REG - Plexus Holdings Plc - £1m contract for a Plug & Abandonment campaign

Plexus HoldingsAnnouncement

16/02/2024 07:00

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RNS Number : 3536D  Plexus Holdings Plc  16 February 2024

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

 

This announcement contains inside information.

 

16 February 2024

 

 

 

 

Plexus Holdings PLC

('Plexus' or 'the Company')

 

 £1 Million Contract Win for Exact™ Adjustable Wellhead Equipment

for Plug & Abandonment Campaign in the North Sea

 

Building reputation in fast-growing oil and gas decommissioning sector

 

Plexus Holdings PLC, the AIM quoted oil and gas engineering services business,
owner of the proprietary POS-GRIP® friction-grip method of wellhead
engineering, known for its safety, time and cost saving capabilities, is
pleased to announce it has won a contract valued in excess of £1 million to
provide specialised equipment and services for multiple plug and abandonment
('P&A') activities in the North Sea.

Under the terms of the contract, Plexus will provide Exact™ Adjustable
Surface Wellhead equipment, and specialised Centric™ Mudline system tooling
and services for P&A operations on wells in the Dutch sector of the North
Sea. Operations are planned to commence in Q2 2024 for a period of nine
months. Exact™ Adjustable Wellheads and Centric Mudline Systems are part of
the Plexus licence/collaboration agreement with SLB.

Commenting on the contract, Plexus' CEO Ben Van Bilderbeek said: "The
number of wells that must be permanently plugged and abandoned is fast
growing, particularly in mature offshore locations such as the North Sea,
where the OEUK indicated that decommissioning would account for 25% of oil and
gas expenditure in 2023, up from 12% in 2022, and encouragingly I believe this
trend will continue. We are therefore delighted that Plexus' reputation is
strengthening within this sector, and that our range of customers is
broadening. Furthermore, this contract demonstrates the progress we are making
in getting back into the Adjustable Wellhead and Mudline equipment market as
an established expert in this field and 'go-to' company for this type of
equipment and service."

 

**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)

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 direct revenues from securing
orders for surface production wellheads in the UK and European North Sea
regions, the Company has several licencing/collaboration agreements with major
partners including SLB and TechnipFMC.

 

Notably, the agreement with SLB was expanded in December 2023 (see RNS
2.1.2024) for a cash consideration payable to Plexus of US$5.2m to enable SLB
to use certain POS-GRIP technology including HG® seal technology for standard
surface wellhead applications for all pressure and size ranges on a worldwide
basis. The in-perpetuity royalty free licence scope includes O&G surface
production and storage applications, as well as CO(2) storage ('CCS') and
hydrogen storage, and water and cuttings injection. The Agreement also
includes a non-exclusive licence to SLB for Adjustable Surface Production
Wellheads, and HG Trees with the potential to generate royalties for Plexus
from such special applications of the POS-GRIP technology.  Plexus may also
quote customers for SLB Valves and Trees combined with Plexus wellheads on a
project basis subject to SLB approval where a full package of equipment is
required. Plexus retains the original IP, and the intention is that Plexus
continues to operate in the surface production wellhead sector on a limited
basis, as an innovative and specialised wellhead equipment supplier, whilst
also pursuing opportunities in 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.

 

The Company also has a separate exploration wellhead equipment related
licensing arrangement with SLB subsidiary Cameron, which has enabled Plexus to
re-enter the Jack-up Exploration (Adjustable) Rental Wellhead market, with
Cameron providing manufacturing support and assisting in sales leads
generation in return for a licence royalty fee.

 

Plexus' current suite of products include Exact-15 exploration rental
wellheads, Adjustable HG surface production 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 superior uniquely enabling qualities of POS-GRIP Technology
both organically and with licencees, Plexus is now focused on establishing its
technology and related equipment in other markets and sectors both in the
UKCS, ECS 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.

 

For more information visit: https://www.plexusplc.com/
(https://www.plexusplc.com/)

 

 

 

 

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