Plexus seals POS-GRIP deal with Spirit Energy

Plexus has secured a purchase order for a POS-GRIP surface production wellhead system from Spirit Energy.

The order from Spirit Energy includes Plexus’ POS-GRIP 5,000psi leak proof “HG” metal to metal sealing surface production wellhead and associated spares and equipment for a new gas well in the UK North Sea.

Under the contract, Plexus will receive milestone payments following the signing of the purchase order through to completion.

The wellhead delivery to Spirit Energy should take place in February 2021.

The contract should last approximately 120 days, with most of the revenues booked during the company’s 2020/21 financial year.

This is the second purchase order for a surface production wellhead that Plexus won from Spirit Energy (Centrica).

Significantly, it is Plexus’ first major order since the COVID-19 pandemic.

It is also in line with the company’s strategy to extend the application of its POS-GRIP technology beyond jack-up exploration.

Specifically, this includes oil and gas production, geothermal and other applications.

Plexus’ CEO Ben Van Bilderbeek said,

“This order is for a gas production well, and as the cleanest hydrocarbon to combust in terms of CO2 emissions, natural gas is increasingly viewed as a key transitional fuel, as the world moves towards net zero emissions.

“A key assumption behind this view is that harmful fugitive methane emissions can and must be eradicated from the entirety of the natural gas consumption chain.

“At the well-site, POS-GRIP’s leak-proof wellheads can do that.

“We believe our production technology delivers economic and environmental proposition for the surface production operations we are targeting.”