Enteq Technologies Share Discussion Threads

[1gw] 08/12/2022 11:17

Results clearly key, but after all the (apparent) delay I'm looking for evidence that they are back on track with a realistic schedule, and news of starting the test would help with that.

We've clearly got a bit of momentum back in the shareprice and news of progress would also help there I think.

[p1nkfish] 08/12/2022 11:14

Just want the results, personally.

[1gw] 08/12/2022 10:43

We're now into week 3 following the IMC presentation. At the time the Norway test was said to be (thought to be) "weeks not months" away. It would be nice to get news from the company when the test starts, not just when the results are available.

[1gw] 06/12/2022 08:25

The share price recovery continues.

[rivaldo] 25/11/2022 07:28

New article from NTQ - after the recent post about removing methane, this covers geothermal:



"Our Steer-At-Bit Enteq Rotary (SABER) Tool represents a radical evolution in RSS design, capable of reliable HPHT performance and greater uptime thanks to a mechanically simple design and at-the-bit steering.

We believe that the SABER Tool can play a key role for the geothermal sector for three main reasons:

The greater uptime and reliability improve project economics – critical in geothermal where capex is higher, and rewards are less immediately lucrative.
Drilling deeper brings harder rock. The inherent design of the SABER Tool decouples the internal platform and electronics from strong torsional vibration effects induced by the bit for improved reliability.
The SABER Tool has been designed from the start to be reliable in the HPHT environments typical of geothermal applications, with a specified max temperature of 175°C.

President Joe Biden has recently signed into law the Inflation Reduction Act which, despite the name, could prove an incredibly significant piece of energy legislation, with as much as $350 billion in loans and loan guarantees for energy and automotive companies – with the help of engineering developments such as the SABER Tool, a slice of that could transform the geothermal energy landscape and put the sector back on track to fulfil its potential contribution to Net Zero."

[valuehurts] 23/11/2022 15:47

If all you say is the case better to take on a bit of debt than issue equity.

[1gw] 23/11/2022 09:53

I agree independent, documented testing makes sense, and that was what was explained at the AGM. My question was aimed more at understanding the delay against earlier suggested timescales - at what point did they decide to go down this route, and how much delay (if any) did this introduce into the earlier schedule?

[p1nkfish] 23/11/2022 09:36

Hard rock testing is necessary and no doubt there will be documented results to convince all adoptees. What you might call "a validated single source of truth".

It makes sense to do if that way rather than some case by case method where no one wants to share results and every application is different due to the geology.

Prove it can do the hard stuff with results all can see and share.

I like the fact they won't be seeking much in the way of further 3rd party products to sell. They only dilute margin and deflect focus. Mostly commodity now anyway.

Agreed about any need for further capital being a positive. My point was that its not off the table. I do think dilution is not impossible and the option to issue a collatoralized loan note also a possibility. Director holding dilution is easily overcome via share options issuance on success of SABER launch.

[1gw] 23/11/2022 09:24

Agree, I think. What concerns me more is just the continued delay, without convincing explanation. I asked the question about whether Norway was always in the project plan and I didn't like being fobbed off (as I saw it) with "we always intended to test". My strong impression was that they intended to go from downhole testing into customer live directional drilling testing which would lead straight into commercial use with each customer if the test was passed. Customers were said to have been lined up to do the testing. In the first (and so far only) SABER webinar (back in March), the next stage was presented as live directional drilling testing. There was going to be a relatively low-temperature version of the tool in 1H 2022, followed by a higher-temperature rated version in 2H.

Now here they are only just starting to assemble the kit for the Norway test. Vague references to supply chain difficulties and an implication that customers, while keen, don't want to see their operations disrupted by a test that (presumably) may have some kinks to iron out. So we have an independent test site booked, which is probably "weeks, not months" away, before further testing with customers can begin.

I understand that new product development is a difficult thing, that customers are loathe to do anything which might disrupt their operations and that Enteq is a minnow with some very big (and potentially aggressive) competitors to worry about (and so some things have to be kept very confidential).

But as a shareholder I don't like getting the impression that management are being disingenuous.

[somerset lad] 23/11/2022 08:52

The scenario in which there is an equity capital raise is:

(i) SABER passes its downhole testing in Norway and testing with the two initial customers; and

(ii) NTQ has invested the following cash in the SABER fleet: (A) its $2.5m cash; (B) the proceeds from selling the Houston freehold (say $2.2m); (C) the proceeds from the unwinding of (most of) its MWD receivables; (D) the $1m HSBC facility ; and (E) cash payments received from initial renters of SABER kit; and

(iii) NTQ still can't keep up with demand for SABER.

If we get to that point, there will be very positive forecasts in the market (since SABER is set to be a high margin product), the share price will have re-rated considerably, and NTQ will presumably have the option of raising debt off the back of demonstrated demand and cash returns on existing SABER kit.

Management has quite large equity stakes (including shares acquired in lieu of salary) and has every incentive to be wary of dilution.

Andrew Law said that needing more money to ramp up the SABER fleet would be a nice problem to have and I agree.

[p1nkfish] 23/11/2022 07:26

Never said it was to do with running out of money, but could lead to dilution.

[valuehurts] 23/11/2022 07:15

Nothing to do with running out of money. It's concerning ramping up saber once it is commercialised. Using their listing as a source of funding means raising through issuing equity.

[p1nkfish] 22/11/2022 23:09

VH - post 1730 - "Some clarity next week with results. A funding round is not impossible no matter what they said in the past."

Random thoughts.

I haven't watched the meeting yet but the statement concerning the listing could relate to a funding, or savings via delisting, or ........ what about reverse take-over allowing another entity to list more cheaply via NTQ'S existing listing if that results in cash injection?

[valuehurts] 22/11/2022 22:38

I hope that the management have not been holding back from purchases of stock due to a possible capital raise. If the product is very cash generative it would probably make more sense to ramp by negotiating some further bank debt with HSBC. Perhaps they could use the Houston site as collateral if it does not sell for the price they are looking for in the next few months.

[valuehurts] 22/11/2022 22:29

I thought the meeting went quite well. Quite amusing seeing Andrew having to stop David talking about commercially sensitive info a couple of times. The big concern I had was when David mentioned that the listing could be a source of capital. presumably this would be a capital raise. I truly hope this would be completed at a far higher share price as giving up equity down here would here would be a disaster.

[1gw] 22/11/2022 11:31

Hopeful but uncertain then. Cross fingers and hope for positive results from Norway around the end of the calendar year by the sound of it.

[valuehurts] 21/11/2022 19:44

Investor meet tomorrow 10.30 conference call. You need to be registered to join.

[rivaldo] 21/11/2022 10:47

The US rig count was up by another three last week to 782, compared to 563 this time last year:

[1gw] 21/11/2022 09:05

Nice to see 11p paid again (from late on Friday by the look of it). Clawing our way back. Hopefully we'll get more encouragement at the IMC presentation tomorrow.

[p1nkfish] 18/11/2022 10:50

Can't happen soon enough. I would hope they have a pipeline of adoptors ready once full hard rock function and reliability is proven. Time someone tipped the cart over in that market.

Making the link from SABER back to legacy systems is very smart as the target customer base is immediately increased at not massive cost to those legacy users vs benefit of SABER & NTQ control supply of that link.

Anyway, that's my understanding, just mho, dyor etc.

[rivaldo] 18/11/2022 09:58

I concur with everyone's earlier comments - the interims were certainly better than I expected given the improvement to a positive EBITDA. The core MWD business may yet see quite a substantial improvement given (1) the US rig count still rising steadily, (2) a likely bounce in international sales and (3) a return of higher margin non third party equipment sales.

Cash is pleasingly up to $2.5m and will be supported by recovery of receivables, plus there's the potential $2m from the Houston property sale, so plenty to see SABER through for some time to come.

Great to see the CEO buying 100,000 more shares. This would have been one of the few ideal windows for him to do so given that results are just out and there's a brief news flow gap before results of SABER trials in Norway and of field trials with customers.

[valuehurts] 17/11/2022 21:46

It seems that with the existing mwd kit they are trying to find specialist applications where they can still charge premium pricing. Due to the kits rugged nature and high heat durability they seem to be trying to pick up sales in this area. Geothermal and methane release would fit with this. That could also be why they are doing the Norway drilling. With energy prices so high geothermal does make a lot of sense.

[valuehurts] 16/11/2022 16:10

Super to see him getting stuck in at these levels. 100000 is not insignificant. Would like to see all the team top up here to be honest.

[1gw] 16/11/2022 15:18

And good to see that Andrew Law was one of the buyers.

[1gw] 16/11/2022 11:59

Great to see the shareprice bouncing back. Seems to have required hardly any volume, but I guess there may be some delayed trades to be reported.