Enteq Technologies Share Discussion Threads

[1gw] 12/4/2023 07:43

Cash position great - should remove any lingering worries of a near-term raise to keep the lights on. All eggs now in the SABER basket it would appear. Still wish they could make the next testing run seem a bit firmer than "summer".

[rivaldo] 12/4/2023 07:36

NTQ have received $3.16m for a division which was losing $2.24m per annum. Which strikes me as a perfectly good decision with other priorities in hand.

NTQ now have a $8.5m cash pile in hand against the $7.7m m/cap, which should be more than enough to finance the final commercialisation of SABER through this year.

[dolittle1] 12/4/2023 07:27

They are getting really desperate.

[1gw] 05/4/2023 07:51

"This will be the last big box to tick and if we can do so – barring some software and functionality patches – SABER will be on track for commercial partner field trials in H2 2023."

Feels like they've managed to lose a year over the last year, but I suppose that's the nature of technology development. Still, good to see the colour on the recent test and we now look forward to the TU and whatever they can share there on cash runway.

[rivaldo] 29/3/2023 08:02

Excellent stuff - $2.5m received and banked compared to the $2.14m book value.

And there'll be an overall cost saving even after the lease costs of the new facility, so well worth doing.

SABER development is presumably fully funded going forward now.

[1gw] 29/3/2023 07:18

Property sold. That helps the cash runway.

[p1nkfish] 27/3/2023 12:07

TU early April?

[brugen] 22/3/2023 23:13

I was hoping we might get the Diversity and Inclusion award. We'd still be underwater but we could feel ever so righteous.

[valuehurts] 22/3/2023 23:00

Cannot believe we didn't win... probably due to the fact that Sabre is really land based currently and the awards are focused on offshore..

[gb904150] 20/3/2023 09:00

Well, we didn't win the emerging tech at the OAA:



but really I'd say these things are mostly for show and not a detailed assessment of the tech, its capabilities or commerciality. Just a nice bit of PR if you win.

You could also argue that yes it's emerging but we still need to see much more from SABER to really know the value of it.

Roll on early April.

This encouraging performance has given the green light to proceed to additional directional drilling testing which is scheduled in North America and then customer field trials. A trading statement and further update is expected after the financial year end, in early April.

Last year that was a full year trading update. Will be important to know if the MWD business is close to covering SABER expenses or not and how close to commerciality SABER is.

We are approaching crunch time for the business.

[p1nkfish] 14/3/2023 16:49

Not high enough for serious Geothermal.
OK for some places but not too many.
Iceland, Indonesia, no problem.

[1gw] 14/3/2023 16:22

Max temp on the current technical datasheet (Enteq site) is 177 degrees C.

"With our track record of high temperature (HT) drilling tools, this directional drilling technology can withstand challenging environments around the world. The SABER Tool is ready for HT and geothermal markets like China and the Middle East."

[p1nkfish] 14/3/2023 16:04

Temperature?
High temperature tells us nothing.

[1gw] 14/3/2023 15:21

A further article, again playing up its potential away from traditional oil & gas applications.

"With its ability to operate in high-pressure and high-temperature environments, SABER is suitable for use in geothermal drilling and methane capture in mining. For oil and gas operators, it can also offer reduced operating costs and an improvement in total cost of ownership."

[1gw] 10/3/2023 19:57

I agree the main news the market will be looking for in April is the SABER update, but I think the cash position will also be of great interest.

With SABER delay and 1H cash consumption, the cash runway didn't look great as of 30th September if you just look at the accounts. But if they can show a better cash position in the April update, together with a reasonably upbeat SABER presentation in terms of timeline to commercialisation then I think that will help investor sentiment.

Just as a reminder, they reported $2.0m net cash consumption from operations (incl rental fleet additions) and $3.0m total cash consumption in 1H, with a closing balance of just $1.8m (incl bank deposits). But the cash balance had increased to $2.5m as of mid-November (interims) and David Steel talked through the cash levers in his presentation:
o Sale of Houston property
o Reduction of receivables through less generous credit terms
o Monetisation of inventories

Tightening credit terms may hit revenue, of course, but I think investor focus will be on the cash runway.

[p1nkfish] 10/3/2023 17:54

Looking wider it's obvious the market currently doesn't give a toss about jam tomorrow or revolutionary tech. It's in the "show me now" phase and only real commercial news will make a difference.

I would suggest that anything less than real commercial news might not just be ignored but even punished as it illustrates an out of touch with the mood management.

SABER is worth zero (actually a burden) unless they prove they can use it to drive revenue up. Let's hope for some positive customer outcome around the release of the TU.

[p1nkfish] 10/3/2023 16:45

News of sales needed, the rest is BS in comparison.

[1gw] 10/3/2023 16:26

Feels like a long time until "early April" and the expected trading update. Have to hope for some press around the Offshore Achievement Awards next week. Or even news on the sale of the Houston site.

Speaking of which, it appears to be "under contract"

Www.loopnet.com/Listing/9302-Lambright-Rd-Houston-TX/27488822/

[p1nkfish] 08/3/2023 18:01

Temperature, temperature, temperature.
374C+ capability ideal for Geothermal but can it handle it?
250C too low except in some areas.

[mr doughnut1] 08/3/2023 17:09

My question is simple, is 100m enough for commercialisation??

[1gw] 08/3/2023 11:30

"By developing a tool that can support the energy transition, while enhancing more traditional operations, we are providing companies with real options to their challenges."

And from earlier news item on geothermal:

"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."

Do I detect a subtle change of emphasis? Rather than disruptive technology in the traditional oil & gas sector are they trying to position SABER as principally an "energy transition" tool which just happens also to make traditional drilling more efficient? i.e. is Enteq angling to get some "non-dilutive funding" through the US Inflation Reduction Act - on the basis that SABER could help unlock geothermal?

Nice if they could do it.

[1gw] 08/3/2023 11:21

"During testing the engineering team was able to identify minor enhancements to the control system, and to ensure that the tool is suitable for use in extreme conditions and non-traditional applications, like geothermal drilling."

"We have proven the efficacy of the key elements of SABER in some of the most challenging conditions that the tool will operate in, validating our significant investments in the technology."

In the absence of more complete information, we are left to speculate. Does the repeated use of "key elements" such as in the 2nd quotation mean that some "non key" elements (perhaps part of the control system) didn't perform as hoped?

Have the commercial partners who are lined up for testing not been completely satisfied by the 100m granite test and have they asked Enteq just to go and prove conclusively that the tool will perform well through a much longer section of softer rock.

PS: I note in the CEO's quote (2nd para above), they talk about "the key elements" whereas in the RNS and earlier in the news piece they talk about "key elements". The RNS wording leaves open the possibility that they had proved the efficacy of some but not all the key elements, whereas the CEO's quote appears to remove that doubt.

[p1nkfish] 08/3/2023 10:07

Commercial news needed.