An Aberdeen oil and gas engineering and services firm said yesterday it was working on technology which would save the industry hundreds of millions of pounds by allowing the use of wells that would otherwise be abandoned.
Plexus Holdings said its high pressure high temperature (HP/HT) tie-back system design would allow HP/HT exploration wells and pre-drilled production wells to be converted into either subsea or platform production wells.
Plexus chief executive Ben van Bilderbeek said at the moment these types of wells were abandoned.
“To date there is no other technology in the market which can ‘save’ or ‘convert’ such wells,” he said.
“I believe that this system has the potential to become one of the most far reaching and financially beneficial developments seen in many years as currently such exploration and pre-drilled production wells are abandoned after having cost an estimated £50million to £200million.”
He was speaking as the firm announced its annual results, which included a record 144% rise in full year pre-tax for the firm.
Sales for the year to the end of June were up 17% to £15.4million and pre-tax profits were up 144% to £1.57million.
Profits after tax were up 77% at £1.24million.
The Granite City-based firm said despite the fluctuating oil price its record year for sales and profits came as its main product, its proprietary POS-GRIP wellhead equipment, was becoming increasingly recognised by major international oil and gas companies resulting in a strong order book.
The firm would be looking to significantly increase its capital investment over the next year in order to build its rental inventory and develop new products.
These would be aimed at expanding Plexus’ product range beyond rental wellhead equipment for jack-up surface drilling and include the HP/HT tie-back system.
The latter was anticipated to be ready for commercialisation before mid 2012, said Mr Bilderbeek.
A second development the firm is working on is its joint industry project HGSS POS-GRIP subsea wellhead, which is attempting to develop a capability to monitor, bleed, and access spaces in the well, without penetrating the wellhead body.
Further in the future, the firm said it would be also looking into the commercial opportunities in new markets such as fracking, geothermal and carbon dioxide storage.
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