Last checked at 24 Feb 2022 07:00
Enteq Technologies plc
("Enteq")
Business Update and SABER Technology Progress
Enteq Technologies plc (AIM: NTQ.L) the energy services technology supplier, is pleased to announce an update on the general business and the progress of the SABER technology development.
Business Update
Sales and orders since 30 September 2021 have continued in-line with the update provided in the Interim Results announcement on 18 November 2021. The strength is primarily due to the increase in active drilling rigs and tightening of surplus capacity in North America, following the rising oil and gas prices, making up for a delayed recovery in China.
Year to date trading, together with the current order book, continues to provide confidence in the Board's expectations for the full financial year. Revenues have included third-party products sold under the new distribution agreements as also announced in November 2021.
SABER Development
The SABER field-testing and development programme has continued to progress and develop since the status previously announced in the Interim results for the six months ended 30 September 2021.
A lease has been signed to establish a SABER technology centre in the Cheltenham/Gloucester area. This area is recognised within the industry as a global centre of excellence for rotary steerable system (RSS) technology development.
Recent downhole testing performed with an international customer and field-test partner has confirmed the ability of the SABER control system to perform in a dynamic downhole environment. Further surface testing at a third party facility has proven that ample steering forces can be generated by SABER, as well as providing valuable information to optimise the continuing downhole test programme. A technical webinar series is scheduled to start in March to further strengthen customer engagement.
The Company's current medium term cashflow forecast shows sufficient internal funds to continue the development through to building up a significant SABER rental fleet. Should an accelerated introduction to market of SABER be required, Enteq's relationship bank, HSBC plc, has granted the Company an overdraft facility of USD 1.0m to provide additional growth related working capital.
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.
For further information, please contact:
Enteq Technologies plc +44 (0) 20 8087 2202
www.enteq.com
Andrew Law, Chief Executive Officer
David Steel, Chief Financial Officer
finnCap Ltd (NOMAD and Broker) +44 (0) 20 7220 0500
Ed Frisby, Emily Watts, Tim Harper (Corporate Finance)
Andrew Burdis, Barney Hayward (ECM)