Plexus Holdings wins £3.3m exploration deal

PLEXUS Holdings, the oil and gas well technology firm, has won a £3.3 million contract to help Total with its exploration drive in the North Sea.

Aberdeen-based Plexus will supply wellhead systems for use on the Solaris well that the French oil and gas giant pl an s to drill in t he Norwegian sector of the North Sea.

The award provides a sign that oil and gas firms are prepared to continue with exploration work in parts of the North Sea in spite of the plunge in the crude price.

Norway provides generous tax breaks for exploration.

Total recently put a 20 per cent stake in the giant Laggan Tormore development West of Shetland up for sale.

The Solaris well looks set to be a challenging exercise. Plexus said initial estimates suggest that Solaris may be the highest pressure well in the North Sea to date.

Oil and gas firms have been moving into high pressure and high temper ature (HPHT) areas in their search for new finds in basins where there has been lots of exploration activity, such as the North Sea.

Aim-listed Plexus says its technology is well-suited for work in such areas. In March Plexus said Budget tax changes intended to boost activity on HPHT fields could help generate business for the firm. Solaris will be drilled close to BG’s Mandarin East well, known for its extreme high pressure conditions.

Revenues under the Total contract will start in October.

Plexus grew revenues to £13.5m in the six months to December, from £12.6m last time.