TIDMPOS
Plexus Holdings Plc
24 January 2024
Reach - non-regulatory announcement
Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil
equipment & services
24 January 2024
Plexus Holdings PLC ('Plexus' or 'the Company')
Update & Overview of New Licensing Deal
Plexus Holdings plc, the AIM quoted oil and gas engineering
services business and owner of the proprietary POS-GRIP(R) method
of wellhead engineering, is pleased to provide an overview of the
Company's strategy following the signing of a new IP Licence
Agreement with SLB (the "Licence Agreement") (see RNS 2.1.2024) and
confirms receipt of the US$5.2m Licence Agreement payment.
Plexus was established in 1985 as an oil and gas ('O&G')
services research and development ('R&D') led company, focused
on the development of a unique proprietary and patented method of
engineering for wellheads and well control applications, resulting
in the introduction of uniquely safer technologies.
Plexus' strategy concentrates on the development of applications
using the Company's POS-GRIP(R) technology suitable for high
margin, low volume O&G markets where its ground-breaking,
patented method of friction-grip engineering has been deployed in a
wide range of applications, and where it is hoped that it will
become a future industry standard for wellhead design and
associated products. This means that Plexus, over the past decades,
developed into a bespoke manufacturing company, which renders the
standard volume service wellhead production sector, (the subject of
the new licence) non-core to our future activities.
Plexus focuses on "prevention", by developing and introducing
specialised products that eliminate dangerous operating practices
whilst addressing inferior conventional sealing solutions to
maintain integrity throughout the lifecycle of surface and subsea
production wells for all pressure and temperature ranges. These
long-term efforts are, as a result of changing attitudes in the
O&G industry towards NetZero goals, starting to bear fruit, as
evidenced by the License Agreement.
The Company believes that entering into the Licence Agreement
clearly demonstrates the inherent value of Plexus' IP suite and
marks a new level of recognition by SLB, which is one of the
world's leading energy technology companies and will open up the
global market for POS-GRIP surface production wellheads. Through
this Licence Agreement, SLB has joined TechnipFMC in acquiring
long-term rights to certain applications of POS-GRIP technology,
which bodes well for Plexus in its "core" specialty application
markets.
Importantly, the Licence Agreement enables Plexus to continue to
operate in the licenced surface production wellhead market in a
material way, which provides the Company with the opportunity to
exceed its historical revenues from this category of wellhead
business. The Licence Agreement fee provides Plexus with a US$5.2m
cash lump sum, which will be used in part to build new inventory
for the Company's historical core jack up exploration rental
wellhead and associated mudline hanger sales business, which is a
sector Plexus has re-entered in co-operation with SLB.
SLB's best-in-class reputation benefits Plexus on many levels.
As well as validating the additional assurance derived from the
preventive Leak-Free technology delivered by its integral "HG(R)"
metal seal solution, Plexus believes the expansion of its
relationship with SLB will help to grow its own special surface
production wellhead potential, and a further agreement provides
Plexus with the potential to supply SLB's valves and trees on a
project basis, enabling Plexus to supply and maintain package
solutions, thereby enhancing its capabilities to be more responsive
to customer requirements.
Looking to the future, Plexus' focus will be on the continuing
development of its POS-GRIP friction-grip method of engineering for
O&G applications and beyond. Plexus' engineering team holds a
20-year lead in unique proprietary patented "preventative"
metal-to-metal seal technologies and its associated knowhow, making
Plexus well suited to exploit many additional applications. For
example, Plexus retains the rights to POS-GRIP adjustable surface
production wellheads, tensioned hanger systems, HP/HT
metal-to-metal tie-back solutions, subsea wellheads, subsea
intervention systems, hydrogen drilling equipment, geothermal
wellheads, plug & abandonment ('P&A') technologies,
POS-GRIP Trees, bespoke XHP/HT applications, and applications yet
undefined.
With two major multi-national companies, SLB and TechnipFMC,
championing Plexus' technology by incorporating the "Friction-Grip"
method of wellhead engineering in their product mix, the Board
believes that exploration & production ('E&P') operators
will be encouraged to embrace Plexus' POS-GRIP technology in the
future whilst the Company focuses its marketing efforts on the UK
Continental Shelf ('UKCS'), the European Continental Shelf ('ECS'),
and in additional growth regions including the Commonwealth of
Independent States ('CIS'), the Far East, the Mexican Gulf of
Mexico ('GOM'), and South America.
**ENDS**
For further information please visit www.plexusplc.com or
contact:
Plexus Holdings PLC Tel: 020 7795 6890
Ben van Bilderbeek, CEO
Graham Stevens, CFO
Cavendish Capital Markets Limited Tel: 0131 220 6939
Derrick Lee
Adam Rae
------------------------------
St Brides Partners Ltd plexus@stbridespartners.co.uk
Isabel de Salis
Paul Dulieu
------------------------------
NOTES
Plexus Holdings plc (AIM: POS) www.plexusplc.com
Plexus is an IP led company focussed on establishing its
patented leak-proof POS-GRIP(R) wellhead and associated equipment
as the go-to technology for energy markets whilst making a genuine
contribution to the oil and gas ('O&G') industry's ESG and
NetZero goals by championing "through the BOP" (Blow-out Preventer)
designs, and lifetime leak-proof HG(R) 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 over 400 wells worldwide and worked with an
array of blue-chip O&G company clients. As well as generating
revenues from orders for surface production wellheads, and various
plug & abandonment ('P&A') projects particularly in the UK
and European North Sea regions, the Company has several
licencing/collaboration agreements with major partners including
SLB and TechnipFMC.
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(R) subsea wellhead,
developed in a Joint Industry Project with several industry
leaders; the POS-SET(TM) Connector for the de-commissioning and
P&A market; and Tersus-PCT, an innovative HP/HT tie back
connector product.
Having proved the uniquely enabling qualities of POS-GRIP
technology, Plexus is now focused on establishing its technology
and related equipment in other markets and sectors both in the UKCS
and around the world where the directors believe it can play an
important role in reducing harmful fugitive methane emission risks
as operators strive to deliver on ESG commitments and NetZero goals
in a safe and cost-effective way. These opportunities include
exploration rental wellheads from Jack-up rigs, subsea, connectors
such as metal sealing HP/HT Tie-Back applications, P&A, special
applications, geothermal, hydrogen and all non-oil and gas
applications.
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END
NRAPPUAUGUPCGAW
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