When Plexus Hldgs (LON:POS) floated on AIM five years ago it set out to introduce new thinking on the safety and reliability of the designs used in making wellheads for the oil and gas industry through the deployment of its proprietary POS-GRIP ® friction grip method of engineering. Since then, the Aberdeen based engineering group and its Pos-Grip technology have won admiring glances and a string of high profile project wins from the likes of Royal Dutch Shell (LON:RDSA) , BP (LON:BP.) , ConocoPhillips (NYSE: COP) and BG Group (LON:BG.) . Like many other oilfield services groups, Plexus had a tough year in 2009 but still managed to sustain its business in the niche high pressure / high temperature (HP/HT) exploration drilling market. With economic conditions beginning to improve and the aftermath of BP’s catastrophic spill in the Gulf of Mexico opening up an industry-wide debate on well and well equipment safety, design and performance, Plexus is now eyeing an increasingly influential presence in the wellhead market.

According to finance director Graham Stevens, the Gulf spill and its aftermath have brought the issue of inconsistent safety standards around the world and the hazards of exploration and production drilling sharply into focus. He says the industry, particularly in the US, has a lot to learn from the stringent safety rules set by the likes of Norway and the Scottish North Sea. However, he concedes that changing the ways of national regulators and standards bodies, multi-national services groups and the oil companies themselves remains a challenging quest.

Nevertheless, Stevens is confident that Pos-Grip – which uses a simplified metal-on-metal gripping and sealing technique which deflects the outer body of the wellhead onto the inner casing body to effect the suspension of the casing and sealing between the parts and which can be used for surface or subsea applications – has a bright future. In particular, the technology is finding favour in more extreme conditions, in unconventional fields and in HP/HT and X-HP/HT drilling – areas where oil companies are increasing turning to shore up their reserves. In the year to June 30, 2010, the company posted sales of £13.1m…

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