Enteq Technologies plc (AIM: NTQ.L) is pleased to announce its interim results for the six months ended 30 September 2024.
Key highlights
Enteq Technologies plc is a specialist energy services engineering and technology company with the flagship product being the SABER (Steer-At-Bit Enteq Rotary) tool, a directional drilling technology.
- The SABER project, a novel and disruptive method of drilling boreholes, has continued to progress through extensive downhole testing in Australia with a long-standing customer (an AJ Lucas Group company ("Lucas")) of our legacy business. An extensive track record has now been established with over 14,000m (45,000 feet) of downhole in-well testing spanning over 57 days in a drilling environment, including a 12 day duration on the most recent run. All indications are that the equipment is fit for purpose and will perform as anticipated. Time has been taken for several performance enhancements to be implemented by the engineering team during the testing, enhancing ultimate reliability.
- With the stage gates having been met, the SABER system is now ready for customer test active trial drilling runs of the full system. This has been scheduled for the next available opportunity in the customer's well plan in the new calendar year. Should this result in the successful drilling of three wells it would then be expected to count as revenue from this customer.
- Post period end, in October 2024, a successful fund-raise was completed raising $2.1 million gross (GBP 1.6 million), supporting working capital for the finalisation of testing and initial commercialisation of SABER. The Company continues to tightly manage cash, with all efforts focused on deployment to market. Another demonstration at the industry test facility in Catoosa, Oklahoma is scheduled for December 2024, for the purpose of demonstrating the capability of the technology to potential customers.
- First revenues relating to SABER from the customer have been recognised in the period.
- Enteq is pleased to announce the appointment of Stephen Kellett as Commercial Director, effective 1 November 2024. Stephen joins the Company as Commercial Director with a wealth of drilling services experience working across major and independent drilling service companies for directional drilling services (encompassing RSS, Logging While Drilling (LWD) and Measurement While Drilling (MWD)), sales, new-country start-up of directional drilling operations, and RSS new technology product launch, having operated in the key target operational regions for Enteq including the US and GCC regions. His experience spans a variety of commercial, management and operational roles, with key relationships supporting the marketing of SABER technology. This appointment is in-line with the business plan to drive the market adoption of SABER through deployment of the initial fleet of equipment to customers in the geothermal, oil and gas and other drilling markets. The position is part-time (non-Board) with the flexibility to increase to full time in-line with equipment availability.
Financial metrics
EBITDA / (LBITDA)
Units: USD million
Unaudited Six months ended Year ended 30 September:
2024: (1.0)
2023: (1.1)
Audited Year ended 31 March 2024:
2024: (3.2)
Profit/(loss) after taxation
Units: USD million
Unaudited Six months ended Year ended 30 September:
2024: (1.0)
2023: (0.6)
Audited Year ended 31 March 2024:
2024: (2.1)
Profit/(loss) after taxation per share
Units: US cents
Unaudited Six months ended Year ended 30 September:
2024: (1.4)
2023: (0.8)
Audited Year ended 31 March 2024:
2024: (3.0)
Cash and cash equivalents
Units: USD million
Unaudited Six months ended Year ended 30 September:
2024: 1.1
2023: 5.0
Audited Year ended 31 March 2024:
2024: 3.0
Investments in fleet build
Units: USD million
Unaudited Six months ended Year ended 30 September:
2024: 0.4
2023: -
Audited Year ended 31 March 2024:
2024: 0.4
Investments in engineering projects
Units: USD million
Unaudited Six months ended Year ended 30 September:
2024: 0.6
2023: 0.8
Audited Year ended 31 March 2024:
2024: 1.8
Andrew Law, CEO of Enteq Technologies plc, commented:
"In H1 FY25 we have conducted extensive SABER downhole customer testing in Australia. We are confident of the tool's expected performance and reliability and now look forward to active drilling run trials of the full system with the customer. In addition we will continue to develop our track record in multiple environments based on the proven steering capability, and we also look forward to a demonstration at the industry test facility in Catoosa, Oklahoma.
We are confident that the SABER tool can address the needs of the industry, with the current customer in Australia needing a cost-effective rotary steerable, importantly with minimal downhole risk for their operations so they can enable methane capture. In a recent meeting with the customer in Australia, Greg Runge, the CEO of Lucas, highlighted to me the importance of having access to a simple, cost-effective RSS with reduced downhole risk, to enable and support the growth of methane capture efforts in Australia.
We are delighted to welcome Stephen Kellett to Enteq. His extensive experience in drilling services and Rotary Steerable Systems with proven track record in driving commercial success make him an invaluable addition to our leadership team.
Stephen attended the recent ADIPEC trade show where his relationships and network proved to be of great benefit in increasing our presence with international service companies in the geothermal and oil and gas sectors. We look forward to Stephen's valuable contribution as we advance our strategy to expand our market presence with the introduction of SABER and build long-term value for our shareholders."
