Plexus inks rental contract with Neptune Energy

Oil and gas engineering services business Plexus has struck a roughly £175,000 rental contract award with Neptune Energy UK for exact adjustable wellhead and centric mudline suspension equipment.

Plexus said on Monday that the contract was for adjustable surface wellhead equipment and mudline tooling to allow the permanent abandonment of a UK North Sea well, with operations planned for commencement and completion during the second quarter of 2024.

The AIM-listed group said the contract was "yet another example" of the "growing rental wellhead market" for jackup rigs engaged in both plug and abandonment operations and exploration well drilling.

Chief executive Ben Van Bilderbeek said: "The number of wells that must be permanently plugged and abandoned is fast growing, particularly in mature offshore locations such as the North Sea. We are therefore delighted that Plexus' reputation is strengthening within this sector, and that our range of customers is broadening. Furthermore, this contract continues our progress back into the adjustable wellhead and mudline equipment market as an expert in this field and 'go-to' company for this type of equipment."

As of 1115 GMT, Plexus shares had surged 29.33% to 19.40p.

Reporting by Iain Gilbert at Sharecast.com