REG - Plexus Holdings Plc - SLB Extends Non-Exclusive Licence Agreement

Plexus HoldingsAnnouncement

23/05/2023 07:00

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RNS Number : 2504A  Plexus Holdings Plc  23 May 2023

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

 

23 May 2023

Plexus Holdings PLC ('Plexus' or 'the Company')

 

SLB Extends Non-Exclusive Licence Agreement

 

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 announce that SLB has exercised its option to extend its
non-exclusive licence agreement (the 'Agreement') with Plexus for an
additional six years effective from 10 November 2023 (see RNS dated 10.11.2020
and 16.12.2021).

 

Plexus' CEO Ben van Bilderbeek commented: "The decision by SLB to extend the
Agreement beyond its initial three-year term I believe is a testament to our
proprietary POS-GRIP technology.

 

"SLB is finalising the development of its new application of POS-GRIP
technology for oil and gas wellhead applications. Upon completion, we
anticipate receiving licencing income from SLB as it deploys these innovative
wellheads worldwide.

 

"We are proud of our partnership with SLB and look forward to continuing our
collaboration in delivering sustainable solutions for the industry."

 

DETAILS

In November 2020, Plexus entered into a licensing agreement with Cameron
International Limited, a wholly owned subsidiary of SLB (formerly
Schlumberger), the world's leading oilfield services provider. The
non-exclusive licence enabled SLB to use the Company's POS-GRIP friction grip
method of engineering and "HG®" metal to metal sealing system for the
development of oil and gas surface production wellheads. Pursuant to this, SLB
agreed to pay a royalty to the Company based on the number of wellheads sold,
leased, rented, or otherwise supplied in each calendar year in the range of 3%
to 6%.

 

In December 2021, the terms of the scope of the existing agreement were
expanded to additional territories to make the licence worldwide where higher
royalty rates apply.  SLB has now extended this agreement for an additional
six years to 10 November 2029.

 

A second licensing deal with SLB was signed in August 2021 enabling Plexus to
pursue opportunities in the Jack-up exploration wellhead business and offer
Exact exploration wellhead and Centric mudline suspension systems, which
Plexus is actively marketing.

 

**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

 Cenkos Securities PLC     Tel: 0131 220 6939

 Derrick Lee

 Pete Lynch

 St Brides Partners Ltd    plexus@stbridespartners.co.uk

 Isabel de Salis

 Ana Ribeiro

 Max Bennett

 

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
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
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 SLB. SLB 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 SLB 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.

 

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

 

 

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