TIDMPOS
RNS Number : 9085H
Plexus Holdings Plc
09 August 2021
Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil
equipment & services
This announcement contains inside information
Plexus Holdings PLC ("Plexus" or "Company")
Cameron, a Schlumberger company ("Cameron")
Plexus and Cameron enter into Jack-Up Exploration (Adjustable)
Wellhead Agreements
Plexus, the AIM quoted oil and gas engineering services
business, is pleased to announce that it has entered into
Cooperation Agreements with Cameron, which will result in a
commercial opportunity by enabling Plexus to return to the Jack-Up
Exploration (Adjustable) Wellhead rental business for jack-up
applications with proven technology.
Highlights
-- Plexus to re-enter the Jack-up Exploration (Adjustable)
Rental Wellhead market, with Exact* adjustable wellhead system,
Centric* mudline suspension wellhead system and Fontus Explorer*
configurable exploration wellhead system;
-- Cameron to licence and transfer Plexus' original designed
Exact-15 ("Exact") system rental wellhead inventory and Centric-15
("Centric") mudline system equipment, as well as provide
manufacturing support and assist in sales leads generation in
return for a licence royalty fee;
-- The 'through the BOP' ("Blow-out Preventer") wellhead systems
offer improved rig personnel safety by enabling the BOP to be kept
in place during operations and thereby reducing the risk of blow
outs.
-- The Cooperation Agreements are in line with Plexus' strategy,
which is to create a portfolio of revenue streams and builds
on:
o an existing licensing agreement with Cameron, for Plexus'
POS-GRIP(R) method of wellhead engineering, to be used on
conventional and unconventional surface production oil and gas
wells;
o a collaboration agreement with TFMC, which provides a platform
to further develop and commercialise POS-GRIP applications;
o a licensing agreement with Gusar for Plexus' POS-GRIP wellhead
equipment to be supplied to the Russian and CIS markets; and
o the organic development and marketing of Plexus' POS-GRIP
wellhead applications for any type of wellhead, aimed at meeting
demand for guaranteed 'leak-free' seal technology and
performance.
The Cooperation Agreements see Plexus re-enter Jack-up
Exploration (adjustable) Wellhead Rental Market
Under the terms of the Cooperation Agreements, Cameron will
license Plexus to be the sole providers of Exact-15 wellhead
system, Fontus Explorer wellhead system, and Centric-15 wellhead
system and all related systems for jack-up exploration drilling.
Cameron will contribute Exact-15 wellhead systems, Exact-10
wellhead systems, as well as its existing inventory of Centric-15
mudline suspension equipment to kick-start the business
relationship and will also manufacture additional inventory of the
equipment as required. Cameron will also help to provide Plexus
with sales leads and market insight through a formal Sales Advisory
Board. Plexus will contract directly with customers, manage the
full job execution cycle using its in-house field technicians and
infrastructure, and will assume responsibility for the maintenance,
repairs and logistics of the equipment provided. Plexus will pay
Cameron a licence royalty fee based on revenue generated from the
sale and rental of the licenced equipment.
Plexus has a very strong reputation and history in the Jack-up
Exploration Wellhead market, and these Cooperation Agreements mean
that Plexus will immediately have the right product range to offer
customers the excellence of service that they are familiar with
from Plexus, in the Jack-up Exploration market once again. As
before, the attention to detail that Plexus can offer customers on
a per well basis, together with the agility to quickly adapt to a
project's unique requirements, will help the rapid roll out these
products and services to the market.
Benefits of 'Through the BOP' technology
A key feature of the Exact-15 and Fontus Explorer wellhead
system technology is that they enable 'through the BOP' operations,
even when used with Mudline Suspension equipment. The adjustable
hangers mean that the blow-out preventor does not need to be
removed when landing casing or setting seals. The "through the BOP"
capability brings significant time savings to drilling operations,
which can exceed the entire cost of the wellhead equipment, making
this type of technology highly commercially advantageous.
Plexus and Cameron relationship
The signing of these Cooperation Agreements follows on from the
November 2020 surface production wellhead licence, through which
Plexus has completed a technology transfer with Cameron and is now
supporting Cameron's efforts to develop its own production wellhead
products using Plexus' POS-GRIP Technology (Cameron remains in the
conventional exploration wellhead business.).
Plexus' CEO Ben van Bilderbeek commented: "I am excited that
Plexus is re-entering the Jack-up Exploration Wellhead Rental
Market with technology that we pioneered years ago. I believe that
this will be a win-win-win for ourselves, for Cameron and for the
oil and gas industry.
"For Plexus, this initiative provides an excellent opportunity
to add an important revenue stream to our portfolio, alongside our
own organic business, the surface production wellhead licencing
agreement with Cameron, and the agreement with Gusar, which covers
our POS-GRIP technology for the Russian and CIS markets.
"Unlike our previous jack-up exploration rental business, where
we were able to establish a reputation as the go-to supplier from a
standing start, we will now be competing against our historic
POS-GRIP systems, which of course is a technology we know very
well.
"As the exploration market cycles upward again, we anticipate
that there will be ample opportunities to support our growth, and
we believe that the agility and flexibility that our customers know
us for will help to capture a healthy share of this market.
"We have already identified exploration opportunities that we
can now go after with our latest jack-up exploration offering, and
we look forward to updating the market as these opportunities
develop."
*Mark of Schlumberger
**ENDS**
For further information please visit www.posgrip.com or
contact:
Ben van Bilderbeek Plexus Holdings PLC Tel: 020 7795 6890
Graham Stevens Plexus Holdings PLC Tel: 020 7795 6890
Derrick Lee Cenkos Securities PLC Tel: 0131 220 9100
Frank Buhagiar St Brides Partners Ltd Tel: 020 7236 1177
Isabel de Salis St Brides Partners Ltd Tel: 020 7236 1177
NOTES:
AIM-traded oil and gas engineering services company Plexus (AIM:
POS) is an IP led company that has developed a range of products
and applications based on its patent-protected POS-GRIP
friction-grip technology. Plexus has in July 2021 been recognised
by the London Stock Exchange as contributing to the global green
economy by deriving more than 50% of revenues from environmental
solutions. Plexus has been protecting the environment for over 30
years, initially with its 'through the BOP' (Blow Out Preventer)
wellhead designs and subsequently with its POS-GRIP(R) proprietary
metal-to-metal leak-proof wellhead sealing system.
Having proved the superior qualities of POS-GRIP within the
jack-up wellhead exploration market through the sale of this
business to FMC Technologies Limited, a subsidiary of TechnipFMC
(Paris:FTI, NYSE:FTI) (jointly "TFMC"), in early 2018, the Company
is now focused on establishing its technology and equipment in
other markets including surface production wellheads, subsea and
de-commissioning, both organically and through licence partners. In
line with this, in November 2020 Plexus entered into a licence
agreement with Cameron International Limited, which grants the
Schlumberger group company a non-exclusive licence to use the
POS-GRIP and HG(R) metal-to-metal seal method of wellhead
engineering for the development of conventional and unconventional
oil and gas surface wellheads.
Plexus' suite of ongoing products and applications include: "HG"
wellheads, which combine POS-GRIP technology with gas tight leak
free metal sealing; the Python(R) subsea wellhead (a new standard
for subsea wellheads - developed in a Joint Industry Project
supported by Royal Dutch Shell, BG (now owned by Shell),
Wintershall, Total, Maersk (now owned by Total), Tullow Oil, eni,
Senergy (now Lloyds register), and Oil States Industries Inc); the
POS-SET(TM) connector for the growing de-commissioning and
abandonment market; and Tersus-PCT, an innovative HP/HT tie back
connector product. The Company also has a collaboration agreement
in place with TFMC, which provides a platform to further develop
and commercialise these and other applications based on its
POS-GRIP technology.
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