Plexus secures ADNOC qualification for HG-R

Plexus Holdings PLC (AIM: POS), the AIM-quoted wellhead services business, is pleased to announce that its HG-R wellhead integrity system has successfully qualified with Abu Dhabi National Oil Company (“ADNOC”).

Receiving the ADNOC licence is a significant milestone, as ADNOC is one of the world's largest oil and gas operators, and its stringent gatekeeping means securing approval can unlock high-value opportunities for supplying to ADNOC and other operators in the UAE and the region who use the same licence approval system.

Plexus estimates the target market in the UAE at £10m per annum and will now work with ADNOC to identify a trial well opportunity in the coming months. If successful, this could lead to orders for additional wells during the next financial year and beyond.

About HG-R

HG-R is a retrofit wellhead spool based on Plexus’ POS-GRIP and “HG” sealing technology. It is designed to address tubing hanger neck seal integrity issues in existing producing wells by providing a new metal-to-metal sealing solution, without the need to recover the tubing hanger.

Plexus’ CEO Craig Hendrie said: "The recent regional conflict created a period of uncertainty in the Middle East and has delayed the projects we were targeting there. This qualification award shows that momentum is building again, both in our core Exact EX rental wellhead business and in this new direction of supplying the specialised HG-R repair system, which is built on our proven technology. Qualification with an operator of ADNOC’s calibre is a strong endorsement of our products and company, and we are confident that the region will be a key contributor to Plexus’ growth as activity recovers and projects move forward.”