(Alliance News) - Plexus Holdings PLC shares fell on Tuesday, after it said it has signed a new USD5.2 million intellectual property licence agreement with Schlumberger NV, SLB.

Plexus is an oil and gas engineering services business headquartered in Aberdeen. Its shares fell 17% to 17.50 pence each in London on Tuesday morning.

Plexus said it has completed an agreement with SLB to replace an existing surface production wellhead licence with a new licence over a wider field of use for USD5.2 million in cash.

SLB acquires a perpetual royalty free licence for Pos-Grip technology and HG seal technology plus any improvements, enhancements, or derivatives to the technology for surface wellhead production applications for all pressure and size ranges.

Plexus added that the licence scope includes oil and gas production and storage applications, as well as carbon dioxide storage and hydrogen storage, alongside water and cuttings reinjection.

Plexus' CEO Ben van Bilderbeek commented: "This new licence agreement is a further validation of Plexus' IP by this leading energy technology company and recognises the contribution our leak-proof Pos-Grip wellhead equipment can make to the oil and gas industry's [environmental, social and governance] and net zero goals. Not only does the agreement further reinforce our growing relationship with SLB, but it also enables Plexus to continue to operate in the surface production wellhead sector on a limited basis, whilst focusing on the 'preventative' aspects of Pos-Grip metal seal technology."

By Sophie Rose, Alliance News senior reporter

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