In the statement, Stevens highlighted the company’s “proven disruptive technology” and that POS-GRIP “delivers true and verifiable leak-proof HG metal-to-metal seals and generates considerable cost savings for operators due to reduced installation and downtime”.
He added that POS-GRIP wellheads have also been “successfully deployed on hundreds of wells in some of the most challenging operating conditions all around the world by blue-chip operators including Royal Dutch Shell, BP, ENI and Total, many of whom have become long term customers”, and that the well heads using the technology has been “proven to deliver superior performance and cost savings many times over out in the field. POS-GRIP applications for the renewable sector, including geothermal and nuclear also offer unique advantages, and work is ongoing to see how we can access such markets”.
Stevens also said that Plexus now has agreements in place with “two of the top three oil and gas services providers in the world” and that its technology is beginning to “gain the recognition that it deserves”.
Looking ahead, the finance director said the market narrative for POS-GRIP is “supportive” going forward.
“The oil and gas industry has to satisfy growing demand for energy while at the same time playing its part in helping the world become carbon neutral as it moves to the goal of ‘net zero’.
Natural gas represents the low hanging fruit for operators wishing to cut their carbon footprint due to it being the cleanest fossil fuel in terms of carbon emissions when combusted. As gas exploration and production grows, so too does scrutiny of operations from activists and investors to ensure that all activity is conducted in line with the highest possible standards to safeguard the environment from harmful emissions. At the well site, POS-GRIP delivers the highest possible standards”, he said.
“The narrative is increasingly being driven by the need for the world to move to net zero carbon emissions to combat climate change. In line with this, the energy sector’s carbon footprint needs to be reduced towards net-zero targets. Advanced leak-proof solutions such as POS-GRIP are required throughout the supply chain, all the way from the well site to the consumer. While the ongoing COVID-19 pandemic may continue to impact energy consumption levels and timings into 2021, we are confident that the best days for Plexus’ proprietary technology lie ahead. Our confidence is based on the combination of the momentum behind the energy transition, the higher level of scrutiny operators are under to avoid and tackle emissions, and the growing pressure to manage costs in the current volatile oil and gas price environment where margins are under pressure. POS-GRIP delivers on all counts.
“With a capital-light licensing model, a debt-free balance sheet and a proven track record, Plexus is well placed to succeed for the benefit of all stakeholders in the energy transition”, Stevens concluded.
Shares in Plexus were up 2.5% at 20p in mid-morning trading.