LONDON (ShareCast) - (Sharecast News) - Oil and gas engineering service provider Plexus announced on Thursday that it has entered into an agreement with Cameron to expand the scope of its existing licence agreement, enabling Cameron to use Plexus' 'POS-GRIP' method of wellhead engineering on conventional and unconventional surface production oil and gas wells.
The AIM-traded firm said it had strengthened its relationship with Cameron, with the expansion of the scope of the existing non-exclusive surface wellhead licence agreement.

It said the variation agreement extended the territory of the licence to worldwide, and increased royalty rates for the expanded activities.

The agreement was in line with Plexus' strategy to create a portfolio of revenue streams, and built on other agreements with blue-chip organisations.

"The signing of this variation agreement follows on from the November 2020 surface production wellhead licence with Cameron, through which Plexus has completed a technology transfer and is now supporting Cameron's efforts to develop its own production surface wellhead products utilising POS-GRIP technology." said chief executive officer Ben van Bilderbeek.

"As highlighted at COP26, there is an increasing need to improve safety and deliver leak-proof operations, particularly in relation to methane across the oil and gas sector; we are hopeful that our proprietary technology will help improve integrity at the wellsite, with metal-to-metal leak-proof and maintenance-free sealing solutions, for all operating conditions.

"With this licence extension with Cameron, we are pleased to be able to offer Plexus' premium POS-GRIP sealing technology in a wider range of applications."

At 1335 GMT, shares in Plexus Holdings were up 6.21% at 7.7p.

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