TIDMPOS
RNS Number : 7508E
Plexus Holdings Plc
10 November 2020
Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil
equipment & services
10 November 2020
This announcement contains inside information
Plexus Holdings PLC ('Plexus' or 'the Company')
Licence Agreement with Cameron, a Schlumberger Group company
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, is pleased to
announce that the Company has entered into a licence agreement (the
"Agreement") with Cameron International Limited ("Cameron"), a
Schlumberger group company, the world's leading oilfield services
provider.
The Agreement grants a non-exclusive licence to enable Cameron
to use the Company's POS-GRIP and HG(R) metal-to-metal seal method
of wellhead engineering for the development of conventional and
unconventional oil and gas surface wellheads.
Pursuant to the Agreement, Cameron shall 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%,
which shall apply up to the end of the 2029 calendar year, subject
to the terms of the Agreement.
The Agreement provides for a modest minimum performance
requirement with respect to wellhead sales in a market that
historically has consumed tens of thousands of production wellheads
per annum. If Cameron does not reach the minimum performance
requirement, it can elect to pay a "top up" royalty fee.
In addition to royalty fees, Cameron shall pay the Company a
capital licence fee payment of US$500,000 in exchange for the
non-exclusive licence rights.
If Cameron wishes to initiate additional projects, the parties
have committed to work together to agree the scope, terms,
objectives, territory and royalty rates and royalty duration of
each additional project.
The Company has a general obligation to provide Cameron with
comprehensive guidance as to how to apply the specified
intellectual property, including a specific obligation in relation
to how to apply the POS-GRIP friction grip method of engineering
for a period of two years from the date of the Agreement.
The Agreement is for an initial term of three years with the
option for Cameron to extend the agreement for a further six years.
The Agreement contains customary provisions permitting either party
to terminate the Agreement upon the occurrence of other events,
including upon a material breach of the Agreement.
As the industry pivots away from coal and oil to natural gas as
the preferred future hydrocarbon energy source, as well as for the
production of hydrogen, it is essential that a choice of dependable
technology is available for application throughout the supply
chain. At the wellsite, this certainly applies to wellheads where
leak proof performance, particularly for natural gas, is important
throughout the life of a field, and where wellheads have
historically required maintenance to maintain integrity.
POS-GRIP wellheads are "by design" capable of delivering
life-cycle integrity by employing integral metal seals, which are
externally pre-loaded, against permanent wellhead fixtures. This
alternative method of engineering is achieved with a rigid
assembly, for which critical actuation forces are accurately
controlled, monitored and verified, to simultaneously energise
multiple seal bumps, which maintain gas-tight integrity throughout
the life of a well.
Plexus' CEO Ben van Bilderbeek commented:
"I am very pleased that we have entered into a non-exclusive
intellectual property licence agreement with Cameron, a
Schlumberger company.
"The first of what we hope will be many joint development
projects between our two companies, will be the design and
development of competitive and technically differentiating surface
production wellhead systems, which incorporate our proprietary
POS-GRIP friction-grip technology.
"The POS-GRIP method of wellhead engineering has over the years
demonstrated that it delivers life-cycle integrity for critical
seal systems, particularly for gas applications.
"The project will focus on the application of scientifically
configured and actuated proprietary sealing methods, which can
guarantee leak-proof and maintenance-free performance, throughout
the life-cycle of a well. Such features are particularly relevant
as the move towards net-zero emissions is demanded by ever more
informed investors, and the environmental lobby.
"The resulting wellhead products will be marketed under the
Cameron trademark, whilst in the meantime Plexus continues to offer
its own proprietary wellhead technology, with focus on special
applications and technically challenging projects, as well as
innovations.
"Our joint aim is to demonstrate that with the right technology,
our industry can achieve Totex savings, whilst at the same time
addressing Capex issues, which are generally associated with the
provision of the higher standards needed, whilst helping to
responsibly develop oil and gas reserves."
Paul Sims, Global Business Director - Surface Production at
Schlumberger, commented:
"We are looking forward to working with Plexus to explore the
use of friction-grip technology in our wellhead systems."
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
Pete Lynch 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
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END
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