Enteq Upstream PLC Licence Agreement with Shell for drilling tech (8359L)
September 10 2019 - 6:29AM
UK Regulatory
TIDMNTQ
RNS Number : 8359L
Enteq Upstream PLC
10 September 2019
10 September 2019
Enteq Upstream plc
("Enteq"")
Licence Agreement with Shell for drilling technology
Enteq, the oilfield services technology and equipment supplier,
is pleased to announce that on 10 September 2019 it jointly signed
a license agreement with Shell Global Solutions (US) Inc. and Shell
Global Solutions International, both subsidiaries of Royal Dutch
Shell plc ("Shell") (the "Licence"). This Licence gives Enteq
exclusive rights to incorporate Shell's patented intellectual
property plus other technology (the "Information") into the
engineering and manufacture of a specialised Rotary Steerable
drilling system.
Rotary Steerable systems are becoming a new standard for fast
and efficient drilling of oil, gas and geothermal wells. The
combination of Shell's Information and Enteq's proven track record
of product innovation, engineering and commercialisation offer the
potential to produce a "next generation" type of product utilising
a novel and unique steering method with potential significant cost
reductions and other benefits of operation.
The Rotary Steerable drilling market is currently estimated at
$1bn within the globally assumed $10bn directional drilling sector
for Oil and Gas and expected to grow at 7% CAGR.
The Information and License relate to a system that has
currently been deployed and tested in an early stage prototype.
Enteq envisages that the development of a commercial system will
take up to a further two years and may require a total investment
of up to approximately $3m over that period, including some initial
payments to Shell. Additional expenditure for the subsequent build
of trial and commercial inventory would be required and royalty
payments will be due to Shell when commercial.
Adrian Chesters, Shell General Manager Wells Technology
commented "Enteq is a strong licensee and collaborator for this
project due to its status as an independent supplier with access to
the directional drilling market. Their interest in further
developing and commercialising the technology aligns well with our
own."
Martin Perry, Enteq's Chief Executive Officer commented "The
Enteq team has a track record in commercialising innovative
engineering projects which have achieved good market share. We look
forward to building upon Shell's innovative work to date in order
to bring an exciting new product to the directional drilling
market."
Enteq will issue a trading update on 25(th) September 2019,
ahead of the AGM that will be held later that day.
For further information, please contact:
Enteq Upstream plc +44 (0)149 461 8739
Martin Perry, Chief Executive Officer
David Steel, Finance Director
Investec Bank plc (NOMAD and Broker) +44 (0)207 597 5970
Chris Treneman, Patrick Robb, David Anderson
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Authority to act as a Primary Information Provider in the United
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contact rns@lseg.com or visit www.rns.com.
END
AGRLLFFIARIILIA
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