What Plexus does
POS-GRIP, invented by the company’s chief executive Ben van Bilderbeek, is designed to prevent gas leaks, particularly methane, in wellheads and other connectors.
The system had been used in more than 300 wells worldwide.
In June, a new joint venture vehicle, Plexus Pressure Control (PPC) was set up to supply surface production Xmas trees and wellhead annulus outlet valves.
The unit will be majority-owned by Plexus and its partner is BEL Valves Limited, a subsidiary of Newcastle based British Engines Group.
The AIM-quoted company will control the intellectual property, design and manufacturing.
How it is doing
Plexus, which sold-off its wellhead Jack-up exploration business to FMC Technologies in February 2018 before focusing on the development of the POS-GRIP business, reported £49,000 of sales revenue in the six months to December.
It posted negative underlying earnings (EBITDA) of £1.8mln for the six-month period, widening slightly from the £1.5mln loss in the same period of 2018.
The company ended December with £4.5mln of net cash, £2.96mln of financial assets and no debt.
Coronavirus's impact was an uncertainty Plexus said in March, though at that time it said trading was in line with its expectations.
What the boss says: Ben van Bilderbeek, chief executive
Gas-proof technology like POS-GRIP was “ever more important” as it is now known that methane gas is “84 times as bad environmentally as carbon dioxide”.
“Methane is extremely damaging, so the race is on to improve the leakage rate before the gas is burnt … we have a technology that we can take to customers and say we are leak-proof and we guarantee it for the life of the well.”
He adds that the market the company is now in is worth “over US$2bn each year”.
“The Exxon’s and Shell’s of the world are all bulging with gas assets because they know that eventually, gas will drive the future.
"For us, this is really good as we have a technical solution that will make gas cleaner than it is now ... .we are very bullish about where we might go from this.”
“We have the only metal seal that is genuinely gas-proof, and that’s the key.”