Enteq Technologies Share Discussion Threads

[somerset lad] 17/9/2023 19:06

I agree that Neil Bird would have moved on and Mark Ritchie wouldn’t have joined if the test results were poor. I’d like this week to see decent cash in the financials, publication of the reports on the tests, (possibly) one customer agreeing to proceed with trials, and director buying post results (the delays have left them locked out from buying for a while now).

[valuehurts] 17/9/2023 18:28

If the staff were concerned about the future prospects of saber I would have thought some would have left. Engineers in oil and gas could probably get very decent salaries elsewhere in the current environment. If they knew the product was a dud I doubt they would be posting pictures of themselves at climbing walls having a jolly time...

[1gw] 17/9/2023 16:53

Bullish read on the chart from Zak Mir. Difficult to think it means much for such an illiquid stock, but could be a happy coincidence of chart and news on SABER in the relatively near term.

[1gw] 15/9/2023 07:04

News next week (hopefully). Oil price environment certainly should help sentiment, even if yet to translate into an uptick in the US drilling count.

Will we get news of any customers signed up to drill wells with SABER?

[p1nkfish] 11/9/2023 08:46

US has run down the special Petroleum reserve and Saudis/Russians cutting supply. Potential of an oil price crunch ahead. Let's see what happens if oil spikes much above $100, inflation takes off again etc. I suspect a rush to drill, even off-shore, unless others turn the taps back on. It might even become a method to help tame ME suppliers and give more control back to the US - US starts the drills in earnest again.

[p1nkfish] 08/9/2023 08:39

To go from the less ideal known to the advertised better but unknown involves risk.
I doubt many will chomp at the bit for that but it's normal until risk is off the table.

Having a couple of referenceable adoptions with metrics for reduced total cost of operation, down hole time, and sufficient dog leg will work wonders to convince others.

Early adopters could be offered preferential rates in exchange for data of pre and post adoption.

Once a couple are shown to have had a $ benefit from SABER a queue will form.

The oil service sector has perked up and it's no stretch of the imagination to see an oil price problem ahead even as the world slows down.

I would hope ENTEQ are reasonably well plugged into the whole SME driller fraternity and able to get early adopters.

[1gw] 08/9/2023 08:15

What's coming out in these latest articles is the scepticism that there was in the industry about the ability to convert the SABER principle into something that would allow sufficient control over steering. That's a rather different flavour to the impression I had picked up from Enteq that their customers were chomping at the bit (pun intended) to try out the new SABER tool.

[somerset lad] 08/9/2023 07:47

Piece from Neil Bird added to the News section on the website: hxxps://www.enteq.com/news-media/2023/09/chronicles-from-catoosa-saber-validates-its-effectiveness-during-extensive-trials/. Seems consistent with the August announcement (very positive about validation of commercial application, some further optimisation).

[1gw] 07/9/2023 20:59

Still not clear to me why it needs to be done now, rather than when the accounts & AR are ready for approval, given last year's equivalent resolutions are still valid.

All I could think of is that there was a typo in last year's resolution 5 (opening paragraph referred to resolution 5 when it should have referred to resolution 4) and perhaps they wanted to fix this before they actually rely on that resolution to raise funds. They've also added in the option to sell treasury shares as well as issuing new shares, but I don't know if there are any treasury shares.

[p1nkfish] 07/9/2023 20:44

AGM notification. Reads as authority to raise funds.

Hope PI's able to take part, especially those on the register at the date of the AGM.
Oil services sector has been perking up.
US will need to replenish the strategic reserve to some degree and Saudis cutting back.

[1gw] 06/9/2023 06:08

AGM to be held on 29th September, even though results aren't expected until w/c 18th Sept, with separate GM to be held to approve AR and accounts.

So why do they need the AGM in September? Have to look at the resolutions that are proposed.

[1gw] 30/8/2023 13:43

"Same Dogleg, New Tool: Steering the Bit with 300-year-old Physics"



New article, talking to Andrew Law. Flagged by Enteq in their linkedin feed


Tomorrow it's the IADD Rotary Steerable Technical Forum. Wonder if they'll put out anything else around that.

[mr doughnut1] 29/8/2023 09:57

Let's hope Neil Birds phone has already started ringing.

[masurenguy] 29/8/2023 09:39

Wow - some modest buying this morning and a small increase in the Offer! Hope springs eternal 👍

[rivaldo] 23/8/2023 09:32

New interview with the CEO (dated yesterday):

[somerset lad] 21/8/2023 19:41

And presumably Part II of the SABER webinar.

[1gw] 11/8/2023 13:04

I wonder if they will issue something on the independent survey & expert review at or around the 31st August IADD session (Rotary Steerable Technical Forum). Presumably they would have missed the 1st August deadline for abstracts, but they may still be planning to exhibit/present.

[p1nkfish] 11/8/2023 12:11

The independent review would be useful to read.

[1gw] 11/8/2023 11:45

The biotech reference at the AGM came from MP in the context of valuation of the business: he was suggesting multiples of revenue or profit didn't make much sense for Enteq which had so much of its future expected value dependent on success with SABER.

What happens with biotech valuations usually (the market for the last couple of years has been a bit odd) is that they work on models of expected value and as potential drugs go through stage gates (pre-clinical, Phase 1, 2, 3 clinical trials, new drug application, approval) those drugs get revalued in analysts' models (and hopefully, for investors, in the market cap of the company) by increasing the probability of success (commercial sales) of the drug.

What we've just seen I think is akin to getting through a major late-stage gate - final technical trials completed with independent survey and expert review and now just the customer acceptance trial to come as part of a commercial agreement. So the probability of success, as far as the market is concerned, should be materially higher I would have thought now. That doesn't seem to be reflected in the current price relative to the pre-announcement price.

[sturmey] 11/8/2023 11:08

FWIW, I copy below my posting of last October. Much of what I wrote then still applies with a significant difference that there appears to be more progress on SABER. Whilst still a "binary bet", I think the odds have improved after the recent RNS. Accordingly, I have added to my already large holding over the past 3 days.It is worth noting that I believe the company is in a closed period which will prevent insiders from buying before the results in September. Here is my post of last October. As a holder since 2013 (first purchase 10,000 shares@52p - ouch), NTQ has been one of my worst investments. Almost as bad as some of my forays into oil E&P (eg Aminex - ouch).Over the past 9 years, I have probably read every single RNS and perpetually looked for "light at the end of the tunnel". Good example of "jam tomorrow"?But I have kept faith with the management and have not given up yet.I recently re-read 1gw's notes of the AGM and also watched the recent video (available on youtube) of a couple of months ago, where Andrew Law sums up the SABER situation.1gw draws the analogy (IIRC) with biotech companies where success is a binary bet on one product. But a difference with NTQ is that NTQ is cash rich and has no debt.Whichever way you look at it, NTQ has elements of a binary bet on the success of SABER. But with the stock trading at just over half tangible book value, I would argue that the upside is considerably greater than the downside.Add the possibilty of a management buy out or a takeover, and I think there is a compelling case to buy at the current price of 8pI have put my money where my mouth is and increased my own shareholding considerably over the past few days. There appears to be more stock on offer at 8p despite ADVFN showing a spread of 7.50 to 8.50.

[1gw] 11/8/2023 10:46

I think a cynic might argue that's how the oil & gas market, if not most long lead-time commodity markets work.

The industry enjoys a brief period of high prices, cash flow booms, C-suites would rather invest strategically than hand cash back to shareholders (or politicians in more centrally-planned economies see a chance to build their personal influence by increasing their budgets), long-term projects are sanctioned, time moves on, demand stalls or previously unavailable supply comes back, too much sunk cost in long-term projects to cancel them, the market starts to fret about over-capacity when the long-term projects come in, prices fall, etc.

So the question on 2028 supply boost would be how much of that is coming from projects sanctioned during the relatively recent oil price spike, and how much is from shorter-term projects which haven't reached a final investment decision? Also how much is coming from cost-advantaged projects (e.g. Saudi) that will still be profitable even if the price comes down?

One of the curious things about recent history is how disciplined US shale producers have been, returning cash rather than chasing production growth. Have they now returned sufficient cash that investors (and maybe even a US government more fearful of further inflation than it is fearful of environmental harm) may countenance a further attempt at growth?

Having said that, forecasts are (nearly) always wrong. From Enteq's point of view, if they really do have a cost-advantaged and uptime-advantaged drilling solution, then higher prices and more drilling are better than the opposite, but the advantage of their technology may be even more apparent to bigger competitors (who ultimately might buy them out) in a low-price environment than in a high-price one.

[p1nkfish] 11/8/2023 10:02

The volume matters too, spike day had over 50x average volume of the last 3 months whereas it has been much lower on the fall back. There are a few critical levels for the weekly and monthly close price it needs to achieve and it will need to overcome the 12p resistance signalled on the wick of the high volume day.

Just have to wait to see if they can execute appropriately.

Whatever anyone thinks, oil and gas are not going away anytime soon. A while back, last month or two, there was a serious article projecting peak demand is some considerable way off depending on where you look and growth in emerging markets.

Some have published 2028 peak, others out towards 2035 -2040.

This is from the IEA, MEDIUM TERM, global increased supply capacity - "Oil producing countries outside the OPEC+ alliance dominate plans for increasing global supply capacity in the medium term, with an expected rise of 5.1 mb/d by 2028 led by the United States, Brazil and Guyana. Saudi Arabia, the United Arab Emirates and Iraq lead the plans for capacity building within OPEC+, while African and Asian members are set to struggle with continuing declines, and Russian production falls due to sanctions. This makes for a net capacity gain of 0.8 mb/d from the 23 members in OPEC+ overall over the report’s forecast period."

[p1nkfish] 11/8/2023 09:51

Spikes ikely to be order of the day until it gets some momentum in revenue. There will be many looking to bail-out on the way up in price when they reach breakeven having held throughout the worst times. Each sale knocking the price back. Normal sort of PI behaviour and new money will replace the old and stale.

PEB is another likely to exhibit similar when that turns.

Timelines, who knows but the Perry statement was more positive than I expected and if taken as his true thoughts, given he has inside knowledge and market experience, 2024 should be noticeably different.