Last checked at 9 Aug 2023 08:25
Enteq Technologies plc
("Enteq" or the "Company")
SABER System Field Trial Update
Enteq Technologies plc (AIM: NTQ.L), the energy services technology and equipment supplier is pleased to provide an update following downhole drilling testing in North America for this game-changing alternative to traditional Rotary Steerable Systems (RSS), the SABER Tool ("SABER").
The SABER system met test objectives during extensive drilling, successfully generating steering forces to change the direction of the well at angles typically expected by the industry for many applications. Delivery of this performance confirms in the Directors' belief the technical ability of the SABER system to provide a competitive commercial solution. An independent survey was taken to validate the changes in trajectory.
Successful completion of this testing in an operational test environment progresses the technology readiness level of SABER. Enteq will continue working with strategic regional industry partners to operate the SABER system, intending to conduct customer trials in a commercial environment, whilst continuing to engineer further performance enhancements identified during testing.
SABER, Enteq's novel steering solution has the potential to disrupt the Rotary Steerable Systems market (greater than $2 bn p.a.*) within the drilling industry with the potential for new levels of performance, both commercial and technical, for operators and service companies. With its ability to operate in high pressure and high temperature environment, SABER is suitable for use in geothermal drilling and methane capture, positioning it to support the energy transition. Equally, it is intended that SABER will offer significant advantages to oil and gas operators, reducing operating costs and improving overall cost of ownership.
Andrew Law, CEO of Enteq, reflected on the testing results:
"We're delighted with the results of the SABER drilling, demonstrating that the SABER concept can steer effectively in an operational environment. Enteq are proud of the team of engineers who have worked persistently to deliver this success, building on the original concept developed by Shell.
We look forward to working alongside selected customers and industry partners to bring this technology to market and to deliver a positive and disruptive impact."
Martin Perry, Chairman of Enteq, said:
"As an independent and agile company, we are positioned to play a disruptive role in the downhole drilling industry. Throughout this project we could see the potential of this technology to make a positive change to the sector. There are exciting times lying ahead for Enteq with the game-changing SABER Tool's commercialisation."
*Management team's estimate of annual addressable market revenue size
For further information, please contact:
Enteq Technologies plc +44 (0)20 8087 2202
www.enteq.com
Andrew Law, Chief Executive Officer
Mark Ritchie, Chief Financial Officer
finnCap Ltd (NOMAD and Broker) +44 (0)20 7220 0500
Ed Frisby, Fergus Sullivan (Corporate Finance)
Andrew Burdis, Barney Hayward (ECM)
About Enteq Technologies' SABER Tool
The SABER Tool (Steer-At-Bit Enteq Rotary Tool) is a step change in directional drilling technology, developed by Enteq Technologies and based on a concept created by Shell. The ingenuity of the SABER Tool approach lies in the application of proven technologies in novel ways to achieve a sleek, elegant, and mechanically simple design, thereby seeking to improve reliability and project uptime versus traditional rotary steerable systems (RSS).
Rather than using pads or plates for steering, the SABER Tool uses an internally directed pressure differential system across the bit face. Removing these external contact points offers the potential for reduced tool wear and improved reliability, while also achieving true at-bit steering for the first time. The sleek, plain collar design also offers the potential for a smoother borehole, further improving reliability, uptime and cost efficiency.
Quoted on the AIM market of the London Stock Exchange (AIM: NTQ.L), Enteq Technologies is a proudly independent UK and Houston-based engineering firm renowned for its high-temperature (HT) expertise that makes the SABER system one of the world's few directional drilling designs suitable for HT applications. The Company is bringing SABER to commercialisation. For additional information please visit www.enteq.com/products/rotary-steerable-system-srss/
The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.