Enteq Technologies PLC on Wednesday said it generated revenue for its latest half year, with the commercialisation of its flagship SABER tool being the ‘primary focus’ going forward.
The Ascot, England-based energy services technology and equipment supplier reported a $987,000 pretax loss for the six months ended September 30, narrowed from a $1.0 million loss the year before.
Enteq also generated $25,000 in revenue compared with no revenue last year, with first SABER-related revenue from ‘a long-standing customer’ having been recognised during the half-year period. Administration expenses decreased 7.1% to $981,000 from $1.1 million and there were no cost of sales expenses, unchanged on-year.
Enteq noted that the SABER project ‘has continued to progress through extensive downhole testing in Australia’ with the aforementioned customer.
‘An extensive track record has now been established with over 14,000 [metres] (45,000 feet) of downhole in-well testing spanning over 57 days in a drilling environment...All indications are that the equipment is fit for purpose and will perform as anticipated,’ Enteq said.
‘The primary focus for [Enteq] is the commercialisation of SABER (steer-at-bit Enteq rotary), a novel alternative to existing rotary steerable systems which steer the bit during the drilling of a well,’ Chief Executive Officer Andrew Law and Non-Executive Chair Martin Perry explained in their combined statement.
Law commented: ‘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...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.’
Enteq also announced the appointment of Stephen Kellett as commercial director, effective from November 1. ‘His extensive experience in drilling services and [RSS] with proven track record in driving commercial success make him an invaluable addition to our leadership team,’ Law commented.
Looking ahead, Enteq said the energy market is ‘fundamentally robust’ and ‘the demand for efficient directional drilling technologies continues to increase’.
‘The board is confident of progressing with the commercialisation of the SABER tool and looks forward to fully introducing this potentially disruptive technology into the market,’ Enteq said.
Despite these interim results, Enteq shares were down 11% at 3.60 pence in London on Wednesday.
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