Enteq Technologies Share Discussion Threads

[valuehurts] 02/6/2023 00:42

Enteq is basically listed PE and we are in at the ground floor. I'm fairly sure they will raise money at some point but hopefully this will be through debt once they have some cash flow.

[1gw] 01/6/2023 20:33

Results delayed from 20th June to "during July". Is that just an audit delay, or a chance for the new CFO to get a bit more up to speed, or are they hoping to have news from the US SABER testing?

[p1nkfish] 01/6/2023 17:13

Tonne of cash is a relative term, depending on delays, cash burn and need to place inventory for builds.

Hope I'm wrong but there is usually a lot of "extra" info on the RNS when a new main director is hired.

TBD.

[p1nkfish] 01/6/2023 17:11

Stressing the PE experience of the new CFO is for a reason.

[valuehurts] 01/6/2023 16:51

If they need to raise they will do a placing but remember the staff are getting a load of their salaries in shares so that will be the final option. They could get Gervais williams to pony up a bit maybe but if it came to it I would prefer the Hunting family to take a chunk. Would be great to bring some of their amazing tech expertise and distribution in. Not sure what their clients would think though.

[valuehurts] 01/6/2023 16:47

Pink is freaking out again. Calm yourself. They have a ton of cash in the bank.

[p1nkfish] 01/6/2023 09:36

If they need to raise it's likely via PE as the public markets don't have much appetite currently.

The longer delays to commercialisation the weaker NTQ bargaining hand against PE sharks no doubt more commercial than NTQ management.

Get a move on. Even forcing it to go bust can be in PE favour as they pick over the bones on the cheap.

No time to waste, get some orders to strengthen bargaining hand.

[rivaldo] 01/6/2023 09:10

Let's hope this comment from the CEO today presages good news:

"With his significant experience and dynamic approach combined with his strong commercial acumen he will be of great value as we enter a new phase of corporate development and look forward to a period of growth as we commence the exciting phase of introducing the game changing SABER technology to the drilling market."

[p1nkfish] 01/6/2023 08:14

Well, new CFO. With PE experience I wonder if that is a hint about what next.

[valuehurts] 11/5/2023 14:10

Absolute bargain down here imho.

[1gw] 11/5/2023 08:40

New SABER post. 30% lifetime cost reduction vs alternatives being flagged.

[p1nkfish] 19/4/2023 16:53

3 mile laterals, reliability critical.

[p1nkfish] 18/4/2023 22:51

Whatever green initiatives are pushed there's no getting away from oil and gas for years and the Capex spent isn't enough as it has been dissuaded. Output is likely to roll-off faster than demand and price volatility likely the result with an uptrend.

The quick way to new supply is exploiting existing infrastructure and going lateral to previously unexploited oil traps in older fields.

I don't know how far a lateral drill may have to travel but did hear 2Km is possible.
Why dies that matter? RELIABILITY.
Try pulling back a drill head 1Km+, replace and re-position. T quick operation.
A more reliable directional head capable of lateral = $$$'s saved.

[valuehurts] 18/4/2023 22:26

Well that would be splendid. That much cash flow on such an asset light business, with presumably pretty high margins... They wouldn't know what to do with the cash... hopefully start doing some small bolt on acquisitions and advance the tool... grow...

[somerset lad] 18/4/2023 08:20

Hi VH, the finnCap initiation note from July 2021 used a rental rate of $5k per day (which it said was in line with then market rates) and assumed 50% utilisation (that was likely to increase) giving revenue per drill of $900k p/a.

[valuehurts] 17/4/2023 22:49

Anyone have an idea of cost per day for a drill. May be worth getting some scenarios for cash flow and size of fleet. I remember there was a German drill manufacturer who also rents out to independent service companies. I'll see if I can find that comparable.

[p1nkfish] 13/4/2023 18:49

JV perhaps to increase market reach.
Whatever is next........

1) Needs some reasonable real-world proof of adoption.

2) Proof of cost-benefit to show a compelling reason to adopt by the wider market.

Do those two things and today's market cap will be left in the dust.
Until then it's largely cash burn.

[1gw] 13/4/2023 17:40

While we wait for further news on testing, not much to do except engage in wild speculation.

So in that spirit (and with no advice intended), this cleaning up of the balance sheet and disposal of non-core lines should make the company more attractive to someone interested in buying the (licensed) SABER technology rights.

Enteq receiving and then making public a bid approach would likely do wonders for the shareprice but it may not be very likely at this stage. Potential bidders will now see that Enteq is funded for the rest of this year at least - so they would likely anticipate that management would reject any approach ahead of further test results, and this may mean potential bidders hold fire.

Again rather like in biotech, management has to judge how to maximise expected value for shareholders. The business should be more valuable after a successful US test and successful customer field trials, but what is the risk of material failure in each of those events? Would potential bidders (if any) quantify the risk of failure at a similar value to Enteq's own view? i.e. is expected exit value maximised by holding through further trials to reduce the gap between Enteq-perceived and bidder-perceived risk? And even if there would be a difference (between Enteq and a bidder) now in perceived risk, is Enteq's view that the risk of failure is high enough that shareholders might prefer a "bird in the hand" offer now? If the risk of technical failure in the remaining tests is now very low, would that be recognised and valued by potential bidders?

Gut feel is that management would not entertain a bid at this stage and would not want to hand over technical documentation from the Norway test to allow an interested party to assess the remaining technical risk on the project. But what a new owner (or licensee) of SABER technology could perhaps do is accelerate the roll-out of the technology, which would create value (possibly offsetting any perceived difference in risk assessment). So I think it's just about conceivable that a deal could be done, but low probability at this stage - and low probability even of getting an offer that is firm enough for Enteq to feel they need to disclose it to the market.

[mr doughnut1] 13/4/2023 13:48

https://www.enteq.com/news-media/2023/04/enteq-sells-xxt-and-invests-in-new-facility-to-focus-on-novel-rss-solution-saber/

[p1nkfish] 12/4/2023 09:32

SP is in "show me now". Risky and this market doesn't give a toss about IP or new tech. More realism than for quite a while.

Posted a while back.

Interesting model in the US shown by King Operating and certainly should be a target customer. They buy rights in old fields, usually vertically drilled, improve well access with directional drilling and extract value. Up-time critical for payback and cost efficiency overall.

SABER is a natural for this.

"Mauldin Economics - "Bottom line: One potentially significant upside in oil and gas investing is not just the actual price of oil and gas (which is important!), but the increase in the value of proven and probable reserves in the field. Think of it as buying an older apartment complex in a good neighborhood, doing a complete renovation, increasing the price of the rent and then selling the complex at the new increased value. Essentially, what my partners at King Operating do is buy the rights to drill in an older but proven field in a “great neighborhood.” Typically, the older fields were all vertical wells, but you can improve the value of that old field by doing horizontal drilling and fracking. (Oil and gas is a risky business and past performance is not indicative of future results.) It's more complex than that, but that is the essence."



SABER needs to be out quickly, the competitive landscape is moving."

[p1nkfish] 12/4/2023 09:25

EZ, they are jumping off a cliff and either soar or crash but SABER does offer advantages that tip the balance towards soar in a much larger market than they previously addressed. The revenue per unit should be much higher along with margin.

It's an existing market plagued by downtime and reliability issues. Not just the cost of replacing failing bit heads but the time to pull them out, replace, and re-situ. That's not a small headache.

The longer the bit is in the ground before withdrawal the bigger the cost benefit to the user.

SABER does have IP and a new approach to reduce stress and increase reliability. It has a USP.

Bigger players, yes, but that was true of their old market too and this time they appear to have a competitive advantage thry previoulsy didn't. If there is a chance of operation towards 350C+ they could make out big in Geothermal too imho outside of Iceland, Indonesia etc.

[1gw] 12/4/2023 08:47

Priced like a high risk early-stage biotech in a depressed market here, with market cap (£7.7m at 11p) not much above proforma cash ($8.5m => £6.8m at £1=$1.24).

Biotechs can trade even below cash because investors know management will keep consuming the cash to develop assets which require huge amounts (and in all likelihood further equity raises) to bring them to market and which have relatively low chances of success.

Here, I would hope the chances of success, in terms of having a viable SABER-based business, are now relatively high (edit: and the need for further spend to bring the product to market relatively low). So we seem to be almost back in the position we were in before SABER spend started in earnest - a high percentage of market cap in cash which appears to limit the downside should final testing show an unanticipated fatal flaw in the product.

[eezymunny] 12/4/2023 08:38

Selling the family silver to fund construction of a folly?

Reminds me a lot of Corac. Maybe it'll work out better.

They seem desperate to raise cash. It can take a long time for new tech like this to get commercialised.

I predict a bust in 2 years' time but clearly it could go spectacularly the other way. Penny punters here ranting about new tech, but surely they are competing with massively bigger, better financed competitors? Drilling holes is hardly new, exciting or revolutionary.

[p1nkfish] 12/4/2023 08:23

Boats & bridges burnt. Business reputations on line too.
They must be pretty sure they can fly with SABER.

[p1nkfish] 12/4/2023 08:17

I see it as a sensible move as the whole MWD area has commoditised massively.
A downward spiral in price and profit potential that could crush a small listed company like NTQ.

SABER offers a potential upward spiral in opportunity & profit. Now all hands on deck for a successful launch.

Anyone remind me who the partners are?

"........complementary technologies, which are being developed in-house and with partner-agreements."