Engineering Agreement with Cactus Wellhead LLC

Plexus Holdings PLC (AIM: POS), the AIM quoted wellhead services business, is pleased to announce that it has entered into an agreement with Cactus Wellhead LLC ("Cactus"), an international service company, to develop and qualify a range of wellhead products for offshore energy applications.

HIGHLIGHTS

• Two-year engineering programme to design and test new products for Cactus
• Initial commitment payment of £1m, secured by a debenture
• Additional revenue of up to approx. £1.5m over the course of the programme
• Work to commence immediately

Plexus' CEO Craig Hendrie said: "This work has been awarded to Plexus as a result of our reputation for technology excellence and successful product development and qualification testing over many decades.

"We are very excited and proud to be given the opportunity to take on this work, and I commend the team at Plexus for their dedication and professionalism, which has been instrumental in securing this opportunity.

"Using Plexus' existing engineering capability and testing infrastructure for an international company gives us the opportunity to continue to retain and build our capabilities in Aberdeen at a time when investment in the North Sea has been under pressure."

DETAILS

Under the terms of the agreement, Plexus will undertake engineering, analysis and testing services for Cactus, leveraging its core expertise in wellhead engineering and offshore energy applications.

The Company will receive an initial commitment payment of £1m and expects to generate additional revenue of approximately £1.5m over the duration of the programme, depending on the customer requirements. There is also potential for the scope of work to expand during the programme, which may result in additional revenue.

All work will be carried out at Plexus' operational facility in Aberdeen by its highly skilled and experienced engineers and technicians.

The initial £1m prepayment will be secured by a debenture over all Company assets, until the work under the contract has been discharged, which is expected to occur within the 2-year contract period.

Headquartered in Aberdeen, the Company focuses on providing wellheads for Jack-up rig operations such as exploration and appraisal drilling, Plug & Abandonment work and emerging markets for Carbon Capture & Storage, hydrogen production and storage and geothermal. Plexus has a collaboration agreement with another industry player to supply Exact adjustable wellhead systems for Jack-up applications and supports these operations with a range of proprietary equipment and tools, and project engineering services.

Plexus is known for its highly innovative POS-GRIP® wellhead technology and HG® metal-to-metal sealing systems, for which licences have been sold to other industry players. Plexus continues to develop products based on POS-GRIP technology for challenging surface production wellhead platforms, special projects and connector and subsea applications such as the Python® subsea wellhead system.