Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil equipment & services

This announcement contains inside information

 16 December 2021

Plexus Holdings PLC ("Plexus" or "Company")

Expansion of Scope of Surface Production Wellhead Licence Agreement with

Cameron International Corporation, a Schlumberger company ("Cameron")

Plexus, the AIM quoted oil and gas engineering services business, is pleased to announce that it has entered into an agreement with Cameron (the "Variation Agreement") to expand the scope of the existing licence agreement, which enables Cameron to use Plexus' POS-GRIP® method of wellhead engineering on conventional and unconventional surface production oil and gas wells (see RNS dated 10.11.2020).

Highlights

·    Strengthened relationship with Cameron with the expansion of the scope of the existing non-exclusive surface wellhead licence agreement.

·    Variation Agreement extends the territory of the licence to worldwide and increases royalty rates for the expanded activities.

·    Agreement is in line with Plexus' strategy to create a portfolio of revenue streams and builds on other agreements with blue-chip organisations.

Plexus' CEO Ben van Bilderbeek commented: "The signing of this Variation Agreement follows on from the November 2020 surface production wellhead licence with Cameron, through which Plexus has completed a technology transfer and is now supporting Cameron's efforts to develop its own production surface wellhead products utilising POS-GRIP® technology.

"As highlighted at COP26, there is an increasing need to improve safety and deliver leak-proof operations, particularly in relation to methane across the oil and gas sector; we are hopeful that our proprietary technology will help improve integrity at the wellsite, with metal-to-metal leak-proof and maintenance-free sealing solutions, for all operating conditions.

"With this license extension with Cameron, we are pleased to be able to offer Plexus' premium POS-GRIP sealing technology in a wider range of applications."

Details

The Company continues to build a portfolio of licencing and direct sales revenue streams centred around establishing its leak-proof POS-GRIP® wellhead equipment as the go-to technology for energy markets whilst making a genuine contribution to the oil and gas industry's ESG and NetZero goals by championing "through the BOP" (Blow-out Preventer) designs, and lifetime leak-proof wellhead metal-to-metal sealing systems.

Accordingly, Plexus has strengthened its relationship with Cameron, having expanded the terms of the scope of an existing surface wellhead licence agreement to include additional territories where a higher royalty percentage will apply.

Under the terms of the updated non-exclusive licence agreement, the remit now extends worldwide,  and will enable Cameron to market the POS-GRIP products which they develop and qualify on a wider basis alongside Plexus.

This expanded Variation Agreement builds on other agreements including a separate licence agreement with Cameron which will see Plexus re-enter the Jack-up Exploration (Adjustable) Rental Wellhead market (see RNS dated 09.08.2021); and licencing agreements with FMC Technologies, a subsidiary of TechnipFMC and LLC Gusar (see RNSs dated 01.02.2018 and 14.02.2018).  Furthermore, the Company continues to pursue its own organic developments including securing orders for surface production wellheads, particularly in the UK and European North Sea regions, and re-entering the Jack-up exploration rental wellhead market.

ENDS

 For further information please visit www.posgrip.com or contact:

Notes:

Plexus Holdings plc (AIM: POS) is an IP led company focussed on establishing its patented leak-proof POS-GRIP® Technology in wellhead and associated equipment as the go-to drilling and production equipment for energy markets whilst making a genuine contribution to the oil and gas industry's ESG and NetZero goals by championing "through the BOP" (Blowout Preventer) products, and lifetime leak-proof "HG"® metal-to-metal sealing systems.  Having protected the environment for many years through these technological innovations, the Company was awarded the London Stock Exchange's Green Economy Mark in July 2021 and continues to place emphasis on its ability to reduce harmful methane emissions and unnecessary maintenance and intervention costs. 

Headquartered in Aberdeen, the Company has provided leak-free wellhead performance in hundreds of wells worldwide and worked with an array of blue-chip oil and gas company clients.  As well as generating direct revenues from securing orders for surface production wellheads particularly in the UK and European North Sea regions, the Company has several licencing/collaboration agreements with major partners including FMC Technologies, which is a subsidiary of TechnipFMC, and LLC Gusar in Russia. Furthermore, it works closely with Cameron, a Schlumberger Group company Cameron has a non-exclusive licence to use the POS-GRIP and "HG" metal-to-metal seal method of wellhead engineering for the development of conventional and unconventional oil and gas surface wellheads, and Plexus entered into a Cooperation Agreement, which enabled Plexus to return to the Jack-up Exploration (Adjustable) Wellhead rental business for 'through the BOP' jack-up applications, where Cameron will help to provide Plexus with sales leads and market insight through a formal Sales Advisory Board. .  

Plexus' current suite of products and applications include: "HG" wellheads, which combine POS-GRIP Technology with gas tight leak free metal-to-metal sealing; the Python® subsea wellhead, developed in a Joint Industry Project with several industry leaders; the POS-SET™ Connector for the de-commissioning and abandonment market; and Tersus-PCT, an innovative HP/HT tie back connector product. Having proved the superior uniquely enabling qualities of POS-GRIP Technology, Plexus is now also focused on establishing its technology and equipment in other markets such as Plug and Abandonment de-commissioning, carbon capture, gas storage, hydrogen and geothermal where it can play an important role in reducing harmful methane emission risks as operators strive to deliver on ESG commitments and NetZero goals in a safe and cost-effective way.