Plexus Holdings nails down second POS-SET connector order

Plexus Holdings on Wednesday secured a purchase order to supply and rent its POS-GRIP enabled POS-SET Connector technology for well abandonment operations in the North Sea.

The oil and gas engineering services business will make the technology available to Oceaneering A/S, Norway for the 10-day abandonment project which will involve using the POS-Grip enabled POS-SET technology to re-connect to a temporarily abandoned well.

The technology is designed to support oil field tubing with an externally activated radial friction grip.

Plexus chief executive Ben Van Bilderbeek said: "Following the sale of our Jack-Up exploration business to tier one service provider TechnipFMC, this second order for our POS-SET Connector from Oceaneering, which follows on from the first Centrica order, provides a timely reminder that we have a suite of POS-GRIP-enabled products ready for market."

Plexus sold its jack-up business, which was concerned with wellhead exploration equipment and services business for jack-up applications, in February for an initial cash consideration of £14.2m.

The AIM traded company’s board believes that the abandonment market has significant growth potential as a large number of ageing wells reach the end of their lives, potentially providing the company with many further opportunities to provide its POS-SET technology.

Van Bilderbeek said the firm's plan for the immediate future is to find business by raising standards across the energy industry through the rolling out of its licensing model.

Plexus Holdings’ shares were up 3.09% at 50.00p at 1049 BST.