SLB Extends Non-Exclusive Licence Agreement

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 or contact:

Plexus Holdings PLC   Ben van Bilderbeek, CEO Graham Stevens, CFO	Tel: [phone]
Cenkos Securities PLC Derrick Lee Pete Lynch	Tel: [phone]
St Brides Partners Ltd Isabel de Salis Ana Ribeiro Max Bennett	[e-mail]

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/

 

END