Enteq Technologies
plc
("Enteq",
the "Company" or the "Group")
SABER Tool -
Update
Enteq Technologies plc (AIM:NTQ.L),
the specialist energy services engineering and technology company,
is pleased to provide an update on the progress of the SABER Tool
(Steer-At-Bit Enteq Rotary) technology.
Commercialisation highlights:
•
The Company has a customer contract in place, as previously
announced, which includes a first phase of customer testing.
Customer testing, in Australia, is expected to commence in this
financial year to 31 March 2024 (FY24). A purchase order has been
received and US$100,000 is expected from the customer in H1FY25 for
future commercial services. Commercial services in FY25 would
commence following successful customer testing. An advanced
shipment of SABER equipment (all heavy equipment for the initial
kit) to Australia has left Enteq's facility in Houston.
•
The build programme for further equipment is progressing as
planned.
Technical progress:
•
The recently recruited Engineering Director has consolidated
performance and production improvements.
•
Further flow loop testing at an independent facility in Houston
simulating typical drilling conditions validated design and
performance specifications.
Market introduction:
•
A customer technology demonstration coupled with follow-up downhole
drilling testing programme, at the Catoosa, USA test site, has been
scheduled before the end of March 2024.
•
Customers have been invited to witness the SABER technology being
deployed in active drilling conditions.
•
Introduction of new branding and website refresh.
Background:
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 shortly 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.
Andrew Law, CEO of Enteq, commented:
"We are pleased with the commercial
and technical progress that has been made with SABER. It is very
rewarding to have the support and initial financial commitment from
our Australian customer who has been involved with the progression
of SABER for some time; we look forward to supporting this
customer.
The team at Enteq have been working
diligently to deliver a quality product. The recent flow loop
testing has further increased confidence in the next series of
tools which are currently in build for future deployment. This is
another positive step along the road to full commercialisation of
the SABER technology in a market that has a demand for this strong
alternative method of steering while drilling."
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 Ltd (NOMAD and
Broker)
+44 (0)20 7220 0500
Ed Frisby, George Lawson (Corporate
Finance)
Andrew Burdis (Corporate
Broking)