TIDMPOS
RNS Number : 0492W
Plexus Holdings Plc
20 December 2021
Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil
equipment & services
20 December 2021
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; this is being held as a closed meeting due
to the ongoing COVID-19 pandemic. At the AGM, Graham Stevens will
be appointed to act as the Chairman of the meeting and will make
the following statement:
"Being a services business within the oil and gas sector has not
been easy for the past few years, particularly since the pandemic
began and when more often than not our industry is seen as the
villains in the climate change story. However, for over 30 years
Plexus has been promoting the prevention of methane leaks at the
well site, collaborating with many blue-chip companies to help
prevent blow outs and emissions. Accordingly, we were delighted to
receive the Green Economy Mark from the London Stock Exchange
earlier in the year, which recognised our ongoing commitment to
protecting the environment, initially with our 'through the BOP'
(Blow-out Preventer) wellhead designs, and subsequently with our
POS-GRIP(R) proprietary metal-to-metal HG(R) leak-proof wellhead
sealing system.
"The 2021 UN Climate Change Conference in Glasgow, COP26,
recently played a major role in emphasising to the world the need
to reduce leaks across the supply chain. This is particularly
important where 'Super Emitters' are concerned, which are said to
account for 75% of all methane emissions. As an example, one
blowout that occurred at a well site in Ohio in February 2018
resulted in a reported circa 60 kilotons of methane being released
into the atmosphere in 20 days; this is more than most European
countries produce annually.
"Encouragingly, COP26 saw 105 countries sign a global methane
pledge at the event to reduce overall emissions by 30% by 2030. We
are hopeful that the regulators will review the current processes
and technologies used in the oil and gas sector and insist on
companies utilising leak preventative strategies and equipment
whenever and wherever possible. This hasn't happened yet, but we
remain optimistic.
"In addition, COP26 also highlighted the fact that whilst
renewable energy technology is rapidly advancing, oil and gas will
remain the predominant energy source during the transition for some
years. Indeed, as recently reported by the Wall Street Journal,
"The leaders of the world's largest oil companies said Monday [6
December 2021] that demand for the products they make will remain
robust for years to come even as the world attempts to transition
to lower-carbon energy sources. During this transition, we, at
Plexus, can help companies in the sector make a genuine
contribution to their ESG and NetZero goals by specifying and
installing our unique proprietary technology at their well sites,
such as our leak-proof POS-GRIP(R) wellhead equipment.
"Whilst our focus has been on applying our technology across a
range of applications within the oil and gas sector including
surface exploration and production wellheads, subsea and Plug and
Abandonment de-commissioning, new opportunities in other industries
such as carbon capture, gas storage, hydrogen and geothermal are
increasing. With this in mind, we continue to invest in R&D to
develop new products for alternative applications of POS-GRIP(R)
technology; our 49% interest in Kincardine Manufacturing Services
Limited, a specialist precision engineering business, supports us
in this regard, providing us access to machining capability.
"Alongside our organic sales initiatives, we continue to pursue
licencing opportunities, and several major companies have chosen to
partner with us including TechnipFMC, Gusevsky Valves Plant LLC and
Cameron International (a Schlumberger company). Our relationship
with Cameron is particularly exciting as a second agreement signed
in August 2021 enables us to return to the lucrative rental jack-up
exploration (adjustable) wellhead market to pursue opportunities
for low-cost wellheads in the volume market and develop POS-GRIP(R)
equipment in larger Schlumberger EPIC contracts. Furthermore, a
licencing agreement has seen us support the development of
Cameron's own inaugural low-cost surface production wellhead
designs that incorporate our technology; it is anticipated that
these will begin to be marketed by Cameron in Q1 2022 calendar
year.
"Importantly, we are also happy to confirm in line with our IP
and licensee development strategy, an important post preliminary
results extension to our ongoing partnership with Cameron, a
Schlumberger Group company. We announced last week the signing of a
"Variation Agreement" which expands the scope of the existing
non-exclusive surface production wellhead licence agreement. This
Variation Agreement will enable Cameron to use Plexus' POS-GRIP(R)
method of wellhead engineering on conventional and unconventional
surface production oil and gas wells worldwide, and increased
royalty rates will apply for the expanded applications, further
strengthening our relationship with Cameron. This new agreement is
in line with our IP and licensee development strategy to create a
portfolio of revenue streams and further expanding the reach of our
proprietary POS-GRIP technology, whilst we continue to build on
agreements with other blue-chip organisations, and pursuing our
organic sales activities.
"Looking ahead, there remains considerable scope to cement
Plexus' goal of becoming an essential contributor to the green
revolution as its superior leak-free equipment begins to gain
traction within the industry, and we look forward to updating our
shareholders in the coming months.
"As 2021 draws to a close, Plexus would like to thank its team
and shareholders for their continued support and wish you all a
very Happy Christmas and prosperous New Year."
**ENDS**
For further information please visit www.plexusplc.com or contact:
Ben van Bilderbeek / Graham Plexus Holdings Tel: 020 7795 6890
Stevens PLC
Derrick Lee Cenkos Securities Tel: 0131 220 9100
PLC
Isabel de Salis / Max Bennett St Brides Partners plexus@stbridespartners.co.uk
Ltd
NOTES:
Plexus Holdings plc (AIM: POS) is an IP led company focussed on
establishing its patented leak-proof POS-GRIP(R) 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"(R) 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(R) subsea wellhead,
developed in a Joint Industry Project with several industry
leaders; the POS-SET(TM) 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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END
AGMDKOBNKBDDOBD
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December 20, 2021 01:59 ET (06:59 GMT)
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