Enteq
Technologies plc
("Enteq"
or the "Company")
Year-end
Trading Update
Enteq Technologies plc (AIM: NTQ.L)
the specialist energy services engineering and technology company
is pleased to provide a trading update for the financial year ended
31 March 2024 and an update on the progress of the SABER Tool
(Steer-At-Bit Enteq Rotary) technology.
Trading update:
Trading reflects the Company's
strategy to focus on SABER development and commercialisation,
whilst maintaining a lean overhead base.
The cash balance as at 31 March 2024
was $3.0m ($5.3m at 31 March 2023, and $5.1m at 30 September 2023).
The movement in cash during the financial year reflects continuing
investment in SABER, and the steps taken towards full
commercialisation of the tool.
Revenue for the full year ended 31
March 2024 will be in the region of $0.9m representing the final
revenue following the sale of the XXT business. The adjusted
EBITDA1 loss for the year is expected to be
approximately $2.9m compared to the equivalent loss of $1.6m in the
first half of the year. The EBITDA result reflects the discipline
on lean overhead management while maximising liquidity for the
SABER commercialisation.
SABER update:
The SABER Tool and personnel are
currently on-location in a live drilling environment with the
customer in Australia as part of a structured customer test
programme, expected to then progress to active commercial
operations.
The downhole active drilling
programme, performed at the Catoosa, USA test site in February
2024, has again successfully proved the steering ability of the
SABER Tool, with this phase of testing proving additional technical
capabilities of the tool. Potential customers and strategic
partners have reviewed the results of the testing from Catoosa,
which has led to ongoing commercial discussions with these selected
industry parties.
The build-programme for the further
fleet of equipment is progressing as planned, with the major items
now in stock at the Houston facility. Additional incremental
performance and production improvements have been implemented and
tested.
Andrew Law, CEO of Enteq
Technologies plc, commented:
"We are pleased with the technical
and commercial progress that has been made. Following the recent
Catoosa testing, it has been encouraging to see good levels of
engagement with potential strategic partners and customers in the
industry."
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
Cavendish Capital Markets
Limited (NOMAD and Broker) +44 (0)20 7220 0500
Ed Frisby, George Lawson (Corporate
Finance)
Andrew Burdis (ECM)
The financial information for FY24 included in this
announcement is unaudited.
1Adjusted EBITDA is reported
loss before tax adjusted for interest, depreciation, amortisation,
foreign exchange movements, performance share plan charges and
exceptional items.
About SABER:
Enteq has a track record of
developing and commercialising technical equipment in a drilling
environment for oil, gas, geothermal and now also energy
transition. SABER commercialisation is the primary focus for the
Company and provides a novel approach to steering the bit while
drilling the well; it is an alternative to existing Rotary
Steerable Systems (RSS).
The SABER Tool is based on a concept
originally developed by Shell, where rather than using pads or
pistons to create steering forces, the SABER Tool uses an
internally directed fluid pressure differential system. By removing
these external contact points, the SABER Tool achieves true at-bit
steering for the first time and the mechanically simple design
gives the potential to improve reliability and project uptime
versus conventional RSS solutions.
Enteq has the exclusive global
license for this novel rotary steerable technology and IP from
Shell. Enteq has developed and refined the concept, generating
additional protected IP. Following successful field testing, the
SABER Tool is now commencing customer testing, and is being readied
for commercial deployment.
The global RSS market is worth
approximately US$3.6 billion annually according to a recent 2023
report from Spears. The SABER Tool has the potential to drive
operational efficiency across the world's directional drilling
applications, including hydrocarbon production, geothermal energy,
methane capture and CCS (carbon capture and storage). Enteq will
provide the SABER Tool to customers through a service arrangement
or equipment purchase, providing independent and regional
directional drilling companies more opportunity to compete with
major integrated service companies which have to date dominated
this segment.
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.