Plexus upbeat on North Sea plug and abandonment success

The AIM-traded company said the project in the North Sea was completed within a two-month offshore deployment span, seeing the use of Plexus’s specialised equipment on four wells and significantly exceeding financial forecasts.

It said the order from Oceaneering incorporated various tieback and subsea well control equipment and hydraulic controls and services configured explicitly for vessel-based deployment and operations.

Notably, Plexus employed its proprietary multi-release (MR) connector, an annular blowout preventer (BOP), and a hydraulic control system, all bundled into a package dubbed the Mud Containment System (MCS).

Operated via a remotely operated vehicle (ROV), the equipment was attached to well conductors in the North Sea.

This facilitated seamless P&A work on the well and ensured the closed-loop circulation of well fluids.

The endeavour was a technical success, having been smoothly executed across multiple sequential wells and a financial triumph for Plexus.

It said the project generated revenues of £0.85m in the 2023 financial year, showcasing a robust 70% surge above initial estimates.

“We are delighted that Oceaneering is pleased with Plexus’ offshore service and onshore technical support, and that our equipment worked well, especially given the uncertain nature and variability of tackling multiple P&A wells in a single campaign,” said chief executive officer Ben van Bilderbeek.

“Plexus has always excelled at combining our specialist engineering and project support skills together with our unique and innovative IP so as to succeed in meeting the demands of such projects.

“Now that the product is field tested, we believe that additional P&A contracts will arise for this product, and that longer term opportunities will be generated to develop and deploy similar equipment for other specifications and sizes.”

At 1439 BST, shares in Plexus Holdings were up 1.39% at 21.9p.

Reporting by Josh White for Sharecast.com.