RCS - Plexus Holdings Plc - Update & Overview of New Licensing Deal

Plexus HoldingsAnnouncement

24/01/2024 07:15

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RNS Number : 6588A  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® 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® 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®" 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
(http://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 (http://www.plexusplc.com)

Plexus is an IP led company focussed on establishing its patented leak-proof
POS-GRIP® 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® 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® subsea wellhead, developed in a Joint Industry Project with
several industry leaders; the POS-SET™ 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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