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A week ago NTQ posted this video showing how SABER is a "step change in directional drilling", including geothermal:
Https://www.linkedin.com/company/enteq-technologies/posts/?feedView=all
Good to see the share price move back up again after a 25k buy, following two early sells of 40k first thing.
Confirmation that the US rig count has increased again to 670:
Https://www.nasdaq.com/articles/permian-oil-rig-count-increases-in-8-of-the-prior-9-weeks
Also encouraging to see Biden calling to "enact a “use it or lose it” policy under which companies that don’t drill on land they’ve leased would lose the leases entirely":
Https://www.independent.co.uk/news/world/americas/us-politics/strategic-oil-reserve-biden-today-b2048510.html
Quite a few buys coming in following the Private Punter article. It seems to be having an effect, as the buying price has now moved up to 14.4p as the MMs presumably start to run out of stock.
with more coverage to come following a meeting with management:
Https://martinflitton1.wixsite.com/privatepunter/post/enteq-technologies-brighter-prospects-18-03-22
Nice to see a bit of buying interest today here - 103,000 shares bought in five lots at 14.25p.
From today's Times:
Https://www.thetimes.co.uk/article/america-fires-starting-gun-on-new-gold-rush-in-shale-hws6zcv0h
"America fires starting gun on new gold rush in shale
As Covid-19 swept the world, America’s shale industry was brought to its knees. An unprecedented slump in demand drove the country’s oil price below zero for the first time on record. What followed was a steep, protracted road to recovery — and then Russia invaded Ukraine. Now, with the conflict having driven the price of crude to its highest levels since 2008, producers that only two years ago had been pushed to the brink are back on the march.
According to John Kilduff, partner at Again Capital, an investment firm, the “boom times” are about to return for those producers. Oil’s rapid ascent is “just too much of an allure not to capitalise on. I don’t think that it’s unfair to say, if these prices last even much longer, that there will be a gold rush.” Last week West Texas Intermediate, the American benchmark oil price that stooped as low as minus $40 in April 2020, hit $129. The last shale boom carried America’s oil output to a peak of 12.9m barrels per day before the pandemic. Covid suppressed production to less than 11m barrels, but this has since recovered to 11.7m. The Baker Hughes rig count, a key barometer of activity across America’s oil sector, reported that 663 rigs were in operation as of Friday, up 261 on the same point in 2021.
With US inflation at a four-decade high, Biden has vowed to throw all he can at mitigating the cost of surging oil prices for consumers. “This is not a ‘drill, baby, drill,’ administration, that’s for sure,” Kilduff said. It is, nevertheless, one that faces the ballot box in November. Officials would “bite the bullet”, he predicted, and do everything possible “in the short term” to boost oil production and get prices down."
The year end trading update has been on 8th April for each of the last two years, so not long to go.
Hopefully NTQ should see their upturn as reported in February's trading update continue and accelerate given market conditions.
228,000 shares traded so far today, all buys at 14.25p, but no upward tick yet. Most unusual for NTQ, suggesting there's still a residual supply of stock.
Good to see Morgan Stanley now out completely - no more shares to be drip-fed into the market.
With market conditions now so good for NTQ, and SABER able to commercialise soon, hopefully NTQ now have the springboard for serious upside from here and the current mere £9.7m m/cap, including the $6.3m cash pile:
Https://www.investegate.co.uk/enteq-technologies--ntq-/rns/holding-s--in-company/202203080906490092E/
Encouraging to see the CEO buying another £20,000 of shares (I wonder if that was his annual ISA spend?). A nice signal at this particular time:
Https://www.investegate.co.uk/enteq-technologies--ntq-/rns/director-pdmr-shareholding/202203031347045630D/
Also good coverage around of the opening of the new technical centre:
Https://www.worldpipelines.com/business-news/28022022/enteq-technologies-launches-uk-technology-centre/
Https://www.oilfieldtechnology.com/drilling-and-production/01032022/enteq-technologies-opens-uk-technology-centre/
I like the comment re SABER of a "fully commercial directional drilling system in 2022":
Https://www.enteq.com/news-media/2022/03/enteq-technologies-launches-uk-technology-centre-to-support-commercial-growth-and-further-technology-development/
"01 March 2022
Enteq Technologies launches UK technology centre to support commercial growth and further technology development
Enteq Technologies (Enteq), the energy services technology and equipment supplier, has today opened its new technology centre in Andoversford, near Cheltenham, in the UK. aditional rotary steerable systems (RSS) for directional drilling. Housing a team of engineers, the dedicated technology centre will allow the company to continue development of the tool ahead of full commercialisation in 2022.
Andrew Law, Enteq CEO comments on the opening: “Once the SABER Tool outperformed our expectations in initial surface and downhole testing, we decided it was time to push forward with our plans for a new UK technology centre to support the tool’s further commercial development.
“Though our ambitions for SABER are global, the UK is our home as a company and an excellent base from which to conduct business worldwide, with a wealth of respected and relevant engineering talent. The area is known within the industry for being a hub of expertise for RSS development, so it was the logical that this should be the location of our UK technology centre.”
The centre will be started up by Marcus Quitsch, who was recently employed as the company’s Reliability Manager. Marcus brings nearly two decades of experience from companies including Baker Hughes and Weatherford.
Neil Bird, VP Advanced Drilling Systems at Enteq adds: “We’re delighted to welcome Marcus to the team. His track record and knowledge are exactly the calibre that we strive for at Enteq Technologies and we know that he’s going to make a wonderful addition to our management team.
“I am looking forward to bringing the SABER Tool to market as a fully commercial directional drilling system in 2022 underpinned by this new appointment and facility expansion.”
The SABER Tool, is an evolution of the proof of concept, tested by Shell and licensed to Enteq, representing a step-change in directional drilling technology. The Enteq team, which has expanded rapidly in response to its product development and global growth ambitions, has re-engineered the concept resulting in a mechanically simple, plain collar and compact design that promises excellent control and new levels of reliability.
Interested parties can sign up to Enteq Technologies’ upcoming webinar series for an update on the SABER Tool’s downhole testing to date on 1st March."
Think that was me! Just bought back in. NTQ has not been kind to me over the years, I first bought ages back, and finally sold out even lower than this a couple of years ago. But the issues you've noted are positive, it's well down, plus there is the geothermal side that they are beginning to identify themselves with strongly: "The RSS market has a global size of over $2bn and the SABER technology is targeted at a range of applications across the energy sector; geothermal drilling, methane capture and oil and gas operations." They may just be plugging the green face of an innately carbon producing industry participant, but geothermal does have potential, and they have the know how as much as anyone for the drilling.
Blue :o))
With oil prices up, the rest of the world is trying to cut Russia out of the picture by producing as much elsewhere as possible. Hopefully this will boost NTQ's sales in their core US market as well as the new international markets where they've had success more recently.
Finncap retain their 40p target price in their new update note,
Quite some upside from the current 14p.
Core trading continues to pick up - and the news from Ukraine today will only raise oil prices further.
Sales and orders are showing "strength" due to "the increase in active drilling rigs and tightening of surplus capacity in North America, following the rising oil and gas prices".
Plus "Year to date trading, together with the current order book, continues to provide confidence in the Board's expectations for the full financial year."
And downhole and surface testing of SABER has gone well and continues to progress. The opportunity is huge:
"The RSS market has a global size of over $2bn and the SABER technology is targeted at a range of applications across the energy sector; geothermal drilling, methane capture and oil and gas operations"
Https://uk.advfn.com/stock-market/london/enteq-technologies-NTQ/share-news/Enteq-Technologies-PLC-Business-Update-and-SABER-T/87371072
It sounds like they should return to profit on existing products, given the current environment. But the upside is all about SABRE. "The SABER Tool Webinar" is on 1st March (see website to sign up). This looks like the ground being prepared for commercialisation, hopefully sooner rather than later...
I topped up with a few yesterday for the first time in ages. The single buy moved the price up, so hopefully an indication there isn't much stock out there.
NTQ should be in a sweet spot now for the first time in a while:
- they still have a very large cash pile relative to the m/cap
- the oil price is back at high levels and seems likely to stay there for some time
- the US rig count contines to rise steadily
- non-US sales should recover as global economies bounce post-pandemic
- new product distribution agreements announced last year should kick in
plus news flow from SABER is due soon - in "early 2022" regarding progression into field trials - and success would be a gamechanger for NTQ.
The 30th April contract win RNS hasn't yet been posted here, so in case anyone missed it....great to see this American $1.1m contract arrive since prospects in the US had seemed pretty poor. If NTQ can combine:
- it's continuing increased international sales
- a revived US market
- and Sabre revenues
then things could get quite tasty:
Https://uk.advfn.com/stock-market/london/enteq-upstream-NTQ/share-news/Enteq-Upstream-PLC-Contract-award/84964288
The other unknown, I think, is what cut NTQ get from sales, as it is licensed from Shell
I don't know about the price of SABRE but NTQ are addressing a 700m/yr market with only one other independent competitor. Is it as simple as wondering what percentage of that market NTQ can get to estimate market cap? E.g 10% = 70m * 8 (PE). That would make the upside insane. Have I got this right?
According to the latest reports there is only one other company selling this type of system. What is the groups thoughts on the price of a Saber drill when it comes to market?
I'm really pleased to see Finncap appointed as broker and NOMAD.
Now we should (1) see more active promotion of NTQ in general and (2) wider dissemination of research material via Research Tree etc. So NTQ's main PI audience will actally get the chance to find out more about the company at a time when its prospects are looking up nicely:
Https://uk.advfn.com/stock-market/london/enteq-upstream-NTQ/share-news/Enteq-Upstream-PLC-Change-of-Nominated-Adviser-and/84851640
Thanks for highlighting this, Rivaldo, especially the geothermal. "Further sales have also been made for the supply of equipment into the geothermal energy sector, a key market for Enteq."
One of my earliest individual share buys. Sold out disastrously last July as I don't like carbon burners and had held on only for the geothermal which seemed to have then fallen off the radar. Now it's up about 50% and geothermal is back on the radar!
Time to look at it again.... My heart wants to be in geothermal (and I know no other way), but oh dear, it could be good money after bad. I've come back to previous fails before and if this wins it will be the exception to prove the rule. [I have a much better record through hanging on to my losers and then topping up near the bottom as with Carclo]. However, Rivaldo, you've been right in the past, often, as witness my comments in WIN just this morning. CLX another recent one. Thank you for those.
PS. It could be that the geothermal comment is more advertising than reality as yet: unless I'm missing something there haven't been any contracts, at least recently. But they are watching the way the wind is blowing and wanting to move into the environmental market. Which is good! They do have the tech.
Good to see the American market picking up at last.
I also note that further sales have been made into the geothermal sector - which interestingly is now described as "a key market for Enteq".
NTQ could at some point be in a sweet spot given:
- $8.1m net cash against a £12m m/cap
- potentially combining rising ROW sales with a revived American market
- increasing geothermal sector sales
- and in particular, if the "gamechanger" SABER tool picks up traction - note that the "recent product launch resulted in a significant level of enquiries for further technical information":
https://www.investegate.co.uk/enteq-upstream-plc--ntq-/rns/trading-statement/202104080700027379U/