TIDMPOS
RNS Number : 2752K
Plexus Holdings Plc
13 December 2018
Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil
equipment & services
13 December 2018
Plexus Holdings PLC ('Plexus' or 'the Company')
AGM Statement
Plexus Holdings PLC, the AIM quoted oil and gas engineering
services business and owner of the proprietary POS-GRIP(R)
friction-grip method of wellhead engineering, known for its safety,
time and cost saving capabilities, will hold its Annual General
Meeting ('AGM') today. At the AGM, Jeff Thrall, Chairman, will make
the following statement:
"I would like to take this opportunity to remind our existing
and potential new investors why I believe that Plexus and its
proprietary technology has reached a key point in time in its
strategic development, and why I see an exciting future for our
POS-GRIP(R) wellhead and connector applications in larger market
sectors such as surface production, and subsea exploration and
production.
"Our technology is proven to be superior to conventional
solutions in terms of performance, reliability and safety,
especially in high pressure high temperature environments. As a
result, it is exactly the right technology at the right time as the
global concerns about toxic methane gas leakage become increasingly
urgent and where gas-proof metal sealing performance is essential
as the oil and gas industry moves increasingly to gas production.
These capabilities recently enabled Plexus to meet, without
exception, a set of higher test and qualification standards set by
a supermajor. As far as I am aware we have the only wellhead metal
sealing design solution that can match the higher standards set and
required for premium couplings which delivers long term gas-proof
sealing that does not require maintenance to address leaks.
"It cannot be forgotten however that this places Plexus in the
position of being a small company taking on the might and reach of
established global service businesses which, alongside the
operators themselves, have been used to doing things a certain way
for many years. Such a situation has I believe conspired to hold
back the widespread adoption of our technology and it stands to
reason that any weakening of any such barriers to entry ought to go
a long way towards removing the shackles that have prevented the
wider take-up of our technology. Importantly, we believe that this
situation has now begun to change with the sale of our niche
wellhead exploration equipment services business for Jack-up
applications earlier this year to top tier supplier TechnipFMC,
providing industry recognition of our technology from one of the
major global services companies.
"The pivot to natural gas by major operators due to gas being
the cleanest fossil fuel when burnt, has the potential to displace
oil from its dominant position in the hydrocarbon energy mix. This
'dash to gas' is I believe highly positive for Plexus, as our
'gas-proof' technology is best equipped to withstand the higher
temperatures and pressures associated with gas exploration and
production. Similarly, an increase in exploration activity for
deeper accumulations in harsher operating environments could be
interpreted as a signal that the days of going for the low hanging
fruit in terms of shallow water targets in less challenging
operating conditions are waning. Deeper exploration goes hand in
hand with higher temperatures and pressures which plays to
POS-GRIP's strengths, and where we have a history of success, such
as Total selecting our equipment in 2015 for the drilling of what
is believed to be the highest pressure well ever drilled in the
North Sea. Finally, increased media coverage and industry
recognition of the environmental threat posed by methane leaks
across the gas chain from wellhead to distribution, in our view,
can only lead to increased calls, either as best practice or
regulatory driven, for the best equipment possible to be used at
all stages of the gas chain.
"With the macro environment hopefully moving in Plexus' favour,
it is imperative that at the micro level we are able to fully
capitalise on the opportunities we see opening up for us, and
position ourselves to do so. To this end, and following the sale of
our Jack-up Business to TechnipFMC, we have a cash rich, debt free
balance sheet, and furthermore we no longer have the considerable
draw on our time and resources that came with having to manage our
wellhead rental business. Instead, we can focus on R&D, IP
development and exploitation and the roll out of our technology and
equipment in other markets including surface production wellheads,
subsea and decommissioning, whilst ensuring we are properly
resourced and have put in place an appropriate cost base. Via our
Collaboration Agreement with TechnipFMC, we have a top tier partner
with whom we have the opportunity to design and develop additional
applications for POS-GRIP for use in new markets. We have a
licensing agreement with two established service providers in the
huge Russian market where we retained our Jack-up wellhead
exploration licencing rights, and who recently secured a first
order for our gas wellhead equipment with Gazprom, the Russian
supermajor.
"Furthermore, we have a suite of ongoing products and
applications including "HG"(TM) Wellheads, which combine POS-GRIP
Technology with Gas Tight metal sealing; the Python Subsea
Wellhead; the POS-SET(TM) Connector for the growing decommissioning
and abandonment market, and Tersus-PCT an innovative HP/HT Tie-Back
connector product. We are already winning orders for products
outside jack-up exploration having recently supplied Spirit Energy
with a production wellhead in the North Sea, and Oceaneering with a
POS-SET Connector for a well abandonment operation.
"Our long-term goal has always been to establish POS-GRIP as a
new industry standard for wellhead and metal sealing designs and,
at the same time, generate significant value for our shareholders.
In our view, the prospects for Plexus, both at the corporate and
trading level have never been better. We are ideally placed to
deliver and with this in mind, I look forward to providing further
updates on our progress over the course of the year ahead."
**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
Frank Buhagiar St Brides Partners Ltd Tel: 020 7236 1177
Isabel de Salis St Brides Partners Ltd Tel: 020 7236 1177
NOTES:
AIM-traded oil and gas engineering services company Plexus (AIM:
POS) is an IP-led company that has developed a range of products
and applications based on its patent-protected POS-GRIP
friction-grip technology. Having proved the superior qualities of
POS-GRIP within the jack-up wellhead exploration market through the
sale of this business to FMC Technologies Limited, a subsidiary of
TechnipFMC (Paris:FTI, NYSE:FTI) (jointly "TFMC"), in early 2018,
the Company is now focused on establishing its technology and
equipment in other markets including surface production wellheads,
subsea and de-commissioning.
Its suite of ongoing products and applications include: "HG"(TM)
Wellheads, which combine POS-GRIP Technology with Gas Tight metal
sealing; the Python(R) Subsea Wellhead (a new standard for subsea
wellheads - developed in a JIP supported by Royal Dutch Shell, BG
(now owned by Shell), Wintershall, Total, Maersk (now owned by
Total), Tullow Oil, eni, Senergy (now Lloyds register), and Oil
States Industries Inc); the POS-SET(TM) Connector for the growing
de-commissioning and abandonment market; and Tersus-PCT, an
innovative HP/HT Tie-Back connector product. Importantly, the
Company also has a Collaboration Agreement with TFMC, which
provides a platform to further develop and commercialise these and
other applications based on its POS-GRIP technology.
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END
AGMFFMFFEFASEIE
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