SHARES in oil well technology specialist Plexus Holdings surged 14 per cent after the company said it had won an order from Centrica’s North Sea business which provides a strategic boost for the firm, writes Mark Williamson.
Aberdeen-based Plexus will supply a wellhead which the oil and gas firm will used to help boost production from the Chiswick platform in the Southern North Sea.
The value of the contract has not been disclosed. However, chief executive Ben van Bilderbeek noted Plexus had focused on supplying equipment used by firms including Centrica in the exploration market before moving into supplying production systems. Exploration wells are temporary. Production wells are required for the life of the field involved.
Aim-listed Plexus has been hit hard by the slowdown in exploration activity in the North Sea amid the crude price plunge and has tried to extend its sector and geographic reach in response.
The company last week announced it had won its first contract from Russia’s Rosneft, to supply a rental wellhead for use on an exploration well off Vietnam.
It sees Asia, the Middle East, and Gulf of Mexico as strategically important regions.
Plexus Holdings shares closed up 9.5p at 80.5p yesterday.
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