REG - Plexus Holdings Plc - Expansion of License Agreement with Cameron

Plexus HoldingsAnnouncement

16/12/2021 07:01

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RNS Number : 7895V  Plexus Holdings Plc  16 December 2021

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:

 

 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
 Isabel de Salis     St Brides Partners Ltd   Email: plexus@stbridespartners.co.uk
 Max Bennett         St Brides Partners Ltd   Email: plexus@stbridespartners.co.uk

 

 

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.

 

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