Enteq Technologies Share Discussion Threads

[p1nkfish] 19/2/2014 09:08

From what I heard over the weekend NG supply is tighter in the US than thought and prices rising. This is due to the bad winter and is resulting in re-start in some fracking areas. Storage areas have been depleted. The result is very likely to be increased business at the eqpt supply end.

I think the market may have turned.

[hastings] 18/2/2014 14:24

Some thoughts

[rivaldo] 13/2/2014 10:16

Cheers bb.

A new senior appointment:



"Enteq Upstream Appoints Andrew Bridges As Head Of Engineering

Enteq Upstream PLC (Enteq), a provider of systems and components for Measurement WhileDrilling (MWD) and directional drilling,has appointed Andrew Bridges ashead of engineering, announced Enteq CEO, Martin Perry.

Initially based in Enteq's West London, UK,office but with a global remit,this new position will support Henry More, the founder of XXT, which was acquired by Enteq in May 2011.Bridges' appointment further bolstersthe company's world class engineering team.Bridgeshas significant technical,managerial and leadership skills, which will ensure delivery of Enteq's development programs and grow the company'sresearch and development capabilities and capacity. Enteq is evolving a new generation of Measurement and Logging while Drilling (MWD / LWD) equipment suitable for North American and global operations in high temperature and high endurance environments.

Bridges, an engineering graduate from Cambridge University in England, brings many years of downhole tool design experience in MWD / LWD,along with other closely related engineering competencies. Bridges' recent positions include technicaldirector at Hunter Well Sciences and chief engineer at GE Oilfield Technologies.

"We are pleased to have Andrew join our team and look forward to the vast skill-set he brings, which will undoubtedly accelerate our engineering projects," said Perry. "We pride ourselves at Enteq on hiring individuals who understand customer needs and possess the ability to deliver industry leading technical solutions."

Enteq Upstream PLC, a London Stock Exchange listed company (NTQ), has completed acquisitions in the MWD and directional drilling markets with ambitions to globally expand through mergers, acquisitions and organic growth. For more information, visit www.enteq.com."

[battlebus2] 01/2/2014 11:03

Held these a while back and got out with a small profit as they always promise a lot but fail to deliver. It's still on my watch list as the valuation looks cheap but I won't commit any funds until they prove themselves.
I hope this works out for you Rivaldo and other holders.

[poikka] 01/2/2014 10:49

Worth a bob of my speculative fund's cash, I'd say. In at 46.5p and hoping, like Rivaldo, that we're at long last at or near the bottom. Seem to recall saying that about a few shares in the past....ahem.

[rivaldo] 31/1/2014 08:31

Nice little positive turnaround yesterday perhaps bodes well.

Got Investec's note of 21st November (cheers mate) - they conclude as follows:

"Valuation

We move to use a CY15E average PER (from CY14E) for our selected international peer group (12.8x) and on our new EPS of 6.0p, this equates to an earnings value of 77p. However, due to the large amount of unutilised cash on the balance sheet (available for the next acquisition) we adjust for this accordingly. Our forecast cash balance of $10.3m in FY16E, divided by the number of shares outstanding (58.95m), equates to 11p of cash per share. Adding this to our earnings value (77p) results in our new price target of 88p. The group does also have an unutilised $15m bank facility with HSBC."

[rivaldo] 30/1/2014 07:30

Investec have reiterated their Buy rating - they have an 88p target here. Finncap initiated coverage here fairly recently too, saying Buy with an 83p target:



"Enteq Upstream PLC Given Buy Rating at Investec (NTQ)

Posted by Bonnie Powley on Jan 13th, 2014 // No Comments

Enteq Upstream PLC (LON:NTQ)'s stock had its "buy" rating reiterated by equities research analysts at Investec in a research note issued to investors on Monday, AnalystRatingsNetwork reports. They currently have a GBX 88 ($1.45) price target on the stock. Investec's price target would suggest a potential upside of 82.95% from the stock's previous close.

Separately, analysts at FinnCap initiated coverage on shares of Enteq Upstream PLC in a research note to investors on Thursday, November 21st. They set a "buy" rating and a GBX 83 ($1.37) price target on the stock."

[rivaldo] 23/1/2014 09:12

Cheers re the IC article jamielein. I've bought a few, hopefully at or near the bottom. The institutional selling has been going on for months now, so is hopefully near an end, especially with the buying initiated by the IC article.

With cash of 22p per share, and bearing in mind the cost of the acquisitions already made, one would think there's plenty of value here already. It will be interesting to see what happens if a contract win is announced.

[pugugly] 22/1/2014 10:16

Looks as though the institution is still selling down but not much buying interest now from PI's - The IC tip appears to be loosing momentum -

If PI buying interest ceases no support - I wonder how Much pressure to unload and where the support level could be .

thoughts ?

[rivaldo] 17/1/2014 11:57

Here's the intro to the IC tip - anyone got the rest? TIA:



"Cash-rich Enteq geared for growth

American oil output has increased a staggering 25 per cent since 2008 and the International Energy Agency estimates it will increase by over a third by 2020 to 11.6m barrels a day as new and existing technologies continue to unlock supplies of hydrocarbons. UK investors can gain direct exposure to this long-term trend by buying shares in Aim-traded Enteq Upstream (NTQ), a small, North American focused oil services provider."

[rimmy2000] 17/1/2014 08:35

luuvly 8% rise this mornign :)

[alan@bj] 16/1/2014 18:49

One of Investors' Chronicle Tips of the Week. Just got the weekly email, it'll be published tomorrow.

[rimmy2000] 18/12/2013 17:01

another £10k picked up yesterday by NED
"The Company received notification on 17 December 2013 that Robin Pinchbeck, Non-Executive Director, acquired on 17 December 2013 21,659 ordinary shares of 1p each in the Company ("Ordinary Shares") at a price of 46.17p per Ordinary Share. Following this acquisition, Mr Pinchbeck has an interest in 378,111 Ordinary Shares, representing approximately 0.64 per cent. of the Company's issued ordinary share capital."

[simon gordon] 07/12/2013 10:44

WSJ - 19/11/13:

Second Life for an Old Oil Field

Texas' Permian Basin, Where Output Peaked in '70s, Now a Hot Site for Horizontal Drilling

One of Texas' oldest oil fields, in decline for decades, has become one of the hottest places in the country to drill for crude, as energy companies create clusters of wells with layers of horizontal branches.

The Permian Basin-86,000 square miles centered on Midland, Texas-has been pumping oil since the 1920s, though production peaked at about 2 million barrels a day in the early 1970s. For decades, geologists have known that oil could be found in different layers of rock piled up like a stack of geologic pancakes.

But now drillers are starting to tap those layers simultaneously from a single site-and are committing billions of dollars to do so.

Occidental Petroleum Inc., the largest producer in the Permian, said it plans to spend $500 million there in 2014 and has created a new "exploitation team" to identify more drilling locations.

Concho Resources Inc., one of dozens of smaller producers focusing on the Permian, is accelerating its growth plans over the next three years to double oil output by 2016.

And Apache Corp. , the second-largest producer in the region, said its daily oil production in the Permian grew 18% to hit a record; it plans to increase its investments there following the recent sale of operations in Canada and Egypt.

"I think the Permian is going to have years of surprises in it and most of them are going to be good," Apache CEO Steven Farris said in a conference call with analysts earlier this month.

Because of the Permian's many thick layers-Wolfcamp, Cline and Spraberry are the names of just a few-a group of wells on one site can potentially tap into several different oil reservoirs, each wellbore going down just far enough to reach its targeted layer and then turning sideways.

About 70% of the wells drilled in the Permian this year are vertical, but as companies better understand the geology they will increasingly start to drill horizontally, allowing each well to tap more oil, said Robert Christensen, an energy analyst with Cannacord Genuity.

Drilling in the Permian isn't easy, however. In many areas the surface layers of rock are much harder than in some other oil fields, so it can take longer and cost more to drill. A sharp fall in oil prices could make operations there uneconomic.

And some of the layers are low quality compared with the Bakken Shale in North Dakota and the Eagle Ford shale in Texas, where oil production has soared in the past few years thanks to horizontal drilling and hydraulic fracturing.

Permian oil has grown more modestly, from about 850,000 barrels a day in 2008 to 1.3 million barrels this year. But analysts expect the daily rate will rise more-to as much as 1.9 million barrels per day by 2018 according to Bentek Energy, an energy-market analysis company.

Spending in the Permian Basin has already more than tripled since 2008, from about $6 billion to $18 billion in 2012, according to research firm Wood Mackenzie, and is expected to top $19.8 billion by the end of 2013.

The increased activity has helped West Texas cities like Midland and Odessa to some of the lowest unemployment rates in the country, at 3.2% and 3.8% respectively as of August. The national average is 7.3%.

For energy companies, one benefit of working in a place with established oil wells is that drillers don't have to rush in before their leases on land expire; most leases automatically continue in effect once oil starts coming out of the ground (the industry calls this "leases held by production").

So companies including Occidental, ConocoPhillips say they are working slowly and methodically to understand the geology and the best spots to drill.

That leads some experts to say the boom in the Permian is just beginning. "We're just in innings two or three of the game," said Matt Portillo, a research director at Tudor Pickering Holt & Co.

[alan@bj] 02/12/2013 14:35

I'm losing money on my investment but I'm going to hang on in the hope the setback is temporary. Some of my best returns have resulted from not bailing out in situations like this. As long as you don't need the cash immediately "grin and bear it" can be the best strategy.

[rimmy2000] 01/12/2013 17:58

yes, noticed that alan. Also strangely (if it can be conceived as strange) my BUY was marked as a 'sell' which makes me think other trades may also have been mis allocated, intentional or otherwise. I will be keeping hold of these as i think such could eventually be bought out, for the right price.

[alan@bj] 01/12/2013 16:35

Enteq mentioned in Shares magazine, which opens with "We retain our faith in Enteq Upstream even if the shares are taking a battering after last week's interim results" and goes on to say, "The broker (Investec) maintained its "buy" call but cut back its price target from 110p to 88p. Despite this setback, we still believe in Enteq's potential. Analysts are divided on the stock but we side with the bulls."

[rimmy2000] 28/11/2013 08:52

bought a few this morning. Whats the view on the board, much faith?

[eezymunny] 25/11/2013 15:36

On risk/reward, Martin Perry sold Sondex for $660m. Who knows if he can repeat that sort of thing again but that would be an 18 bagger from here....vs downside of maybe 50% if this goes really badly (no sign of either at the moment!).

Very hard for me to accept that risk/reward is poor here (unless you are talking just next few months share price performance)

[eezymunny] 25/11/2013 13:55

Given mgt track record, the market opportunity, the product set, the cashed up balance sheet, the consistent director buying etc I find risk/reward to be good here WC. I guess we'll have to disagree on that. Market cap is just £22m with £13m cash - so only £9m value given to the business as it stands. Given they think they may have superior product to a competitor landing $100m orders that seems kinda cheap to me.

I totally accept that it may drift lower esp if market turns bearish, we can only make our own educated guess on share price direction.

[woodcutter] 25/11/2013 13:18

eezy

It may well ultimately be a decent business but you are paying today for earnings two years down the line which may or may not be delivered on, who knows. Paying for forward earnings multiples in established businesses is fine by me but the NTQ business has insufficient earnings history to provide any certainty.

It's difficult enough to find real value in small caps at present so buying for potential growth is too much of a risk here imv, the operational gearing isn't sufficiently strong enough, i don't think that's an amateurish view at all. We all have to make our own judgements and my view for what it's worth is that current value would need to be around 30pish to attract my interest. At that valuation i could see more upside than downside and that's how i like to see my investments develop, and it's been very successful over many years.

The current risk reward is balanced too much in favour of risk. I see little potential upside and a significant downside at present. Of course a major order may come and change all of that but the longer we have to wait for that order the more i think investors will lose focus and opt out and the share price will drift lower, aimho.

I may be wrong but as i said i can be patient.

WC

[simon gordon] 22/11/2013 11:58

That's the way I read it.

Just caught sight of this Investec comment:

International market opportunity

The company continues to develop both sale channels and its product offering for the international independent directional drilling market. This market is relatively undeveloped as it has traditionally has been dominated by the big four US oil service companies. Providing a product offering to match the requirements of this market is a key focus for management. While North America will continue to dominate revenues over the next few years, driven by market share gains from new customers, equipment upgrades, new product innovation, and best in class customer service, the international market will provide longer-term growth potential.

[eezymunny] 22/11/2013 11:52

Just for clarity should I read that as you saying it's not possible for NTQ to win a big global order (in your opinion, until when etc?))?

[simon gordon] 22/11/2013 11:36

From the RNS:

"Further technology developments are still required in the Enteq solution to address fully the Eastern hemisphere markets."