Enteq Technologies Share Discussion Threads

[puzzler2] 25/9/2013 19:24

Yes - defnitely a falling knife despite an interesting company - anyone with any thoughts as to where the bottom could be?

[here and there] 25/9/2013 18:41

clearly there is a signifiant seller/s in the market. i could have bought any number at 50p today. i did not. graph looks like a real falling knife atm.

anyone seen any recent articles on rig usage in N. America this year compared to the last few years?

interesting looking company

[battlebus2] 25/9/2013 18:18

Glad i only bought a few and didn't add. It's all about timing now.

[jaws6] 25/9/2013 12:34

simon
Thanks ,will let you know if I get answer.

[marben100] 25/9/2013 12:34

Hi Riv et al,

Haven't posted here before but was at the ShareSoc meeting.

GE WAS mentioned, as the past purchaser of Sondex. Martin Perry indicated that GE weren't really developing the product much and therefore that their technology was dating rapidly, hence he saw a widening gap in the market for the more advanced MWD kit Enteq were selling and continuing to develop.

Worth noting that Enteq's kit is primarily for horizontal drilling - which does not necessarily mean fraccing - but the largest demand for onshore horizontal drilling is in wells to be fracced.

I don't think there's a big risk of US fraccing activity slowing due to environmental risks. In the US, commercial interests are more likely to take priority over environmental concerns (which IMO are overplayed). The biggest risk is of a fall in the oil price, which would make fraccing uneconomic (as we saw last year and reflected in poor results from Enteq). However, that's a "chicken & egg" situation - contrary to much of the shoddy analysis I read: if oil/gas prices fall, drilling becomes uneconomic, output falls putting a squeeze on supplies and pushing the price back up again.

From the POV of "picks & shovels" providers like Enteq the "shale revolution" is a godsend: because wells decline quickly, output decreases rapidly unless you keep drilling!

Cheers,

Mark
Twitter @marben100

[simon gordon] 25/9/2013 12:28

jaws,

I don't know. You could try the analyst at Investec, Thomas Rands: 0207 597 5021. He should know how many shares and who's dumping. If you find out please let us know.

[jaws6] 25/9/2013 12:21

simon
Thanks for info.Do you know how much they selling ,is that all from L&G .only if you know.
I got none but seen their Share Society presentation so might buy if drop more.

[simon gordon] 25/9/2013 11:50

Looks like L&G have decided to puke their position, maybe the PI buying from last week has given them encouragement to dump.

[battlebus2] 24/9/2013 22:28

Still pondering whether to add to my holding-

Enteq XXT releases xxMWD/PC Program Suite v02.30

September 17, 2013

This highly anticipated release contains a wealth of new features and capabilities making it more user friendly whilst retaining in depth functionality.

Highlights include:

Simplified Driller's Display Option (xxDRT/xxSAPC)
New xxDashboard/PC Utility
Customization and control of parameters appearing in the xxMWDconfig utility
A Sequence Data Density Analyzer
Side-By-Side Configuration Comparison utility
Improved Network Management capabilities
Convenient new "Quick Roll Test" feature added to xxToolTest
Powerful new xxTerminal and xxNETmonitor2 applications

[simon gordon] 24/9/2013 22:01

It's surprising that he didn't mention the "traditional" angle at the presentation because a lot of peope are nervous about fracking due to the mixed press.

[rivaldo] 24/9/2013 09:22

Cheers Simon, quick work :o))

In summary then, current sales are dominated by fracking/shale, but they're hoping to also sell to "traditional" markets. Whioh doesn't dispel the risks, whilst still presenting opportunities.

I think I'll wait until the overhang is clearing or cleared for starters.

[simon gordon] 23/9/2013 22:23

My email to the CEO and below that his reply - 23/9/13:

Dear Management,

Today I conversed with another Private Investor who attended the Share Society presentation that you gave last week.

My friend was under the strong impression that Enteq's products were only suited and focused on frac drilling.

I am confused because after reading the Prelims I was left under the impression that Enteq's products are suitable for "traditional" drilling. These are the key paragraphs from the Prelims:

"The dominant third party supplier of MWD equipment to directional drilling companies is GE, whose product lines comprised the Tensor system and the Geolink and Bluestar products which it acquired with Sondex plc (the previous company operated by the founders of Enteq). GE has discontinued the Geolink product line, which was the standard in the Eastern Hemisphere.
The Enteq MWD system is based around the technology developed by XXT, whose founders were also the key developers behind the Tensor system. Enteq's MWD system is therefore compatible with existing Tensor systems but allows a migration path to a number of the enhanced sensors and controls which are now integral to the Enteq solution.

A further competitor is APS, based in Connecticut, USA. APS has developed an MWD solution which has filled a gap in the market outside North America, especially as the Geolink product is no longer available. It is believed that APS has recently won a $100m supply contract to Venezuela, via a Chinese led integrated services package. This demonstrates the scale of the opportunities in Enteq's addressable markets. Enteq believes that its evolving solution will have technically differentiated features which set it ahead of APS."

Could you confirm if Enteq's products can be sold to "traditional" drilling markets in the way Sondex's products were?

Thank you

Yours sincerely

SIMON GORDON

======

I apologise if I was not clear on this point.

The Enteq drilling products we have today can be used for all drilling.

Currently the market, and curent sales are very dominated by the shale drilling in North America but we expect to establish opportunities in other markets also.

I hope that helps,

Martin

Martin Perry

Chief Executive Officer

[battlebus2] 23/9/2013 16:34

Thanks Rivaldo and Simon, not bothered by fracking as the States see this as the way forward to giving them cheap gas /energy costs. I know there is an overhang so hopefully another institution will take them. Bit disappointed they are not immediately looking for acquisitions but that could change very quickly and in the meantime these are still very cheap imv.

[simon gordon] 23/9/2013 14:30

Cheers Rivaldo. I will email the company to clarify this. Thanks!

[rivaldo] 23/9/2013 14:19

Hi Simon. I can only pass on my impressions of what I heard, which did not mention anything about GE/APS.

The main subsidiary, XXT, manufactures equipment for the directional drilling market, which is core to the fracking industry. The CEO himself emphasised their supplies to the fracking industry and the growing number of fracked wells.

I personally asked him about concerns over exposure to fracking rather than "traditional" drilling, and he didn't demur from my question or state that this was not the case. He merely answered in terms of their being any problems over fracking in the UK rather than in the USA, thus neatly avoiding the question.

[simon gordon] 23/9/2013 14:03

Hi Rivaldo,

In the Prelims they stated the following:

"A further competitor is APS, based in Connecticut, USA. APS has developed an MWD solution which has filled a gap in the market outside North America, especially as the Geolink product is no longer available. It is believed that APS has recently won a $100m supply contract to Venezuela, via a Chinese led integrated services package. This demonstrates the scale of the opportunities in Enteq's addressable markets. Enteq believes that its evolving solution will have technically differentiated features which set it ahead of APS."

From that statement I'm under the impression that they offer traditional drilling tools. Did they mention the Tensor/GE product situation?

Here's another part of the same statment where is looks like they offer traditional drilling:

"The dominant third party supplier of MWD equipment to directional drilling companies is GE, whose product lines comprised the Tensor system and the Geolink and Bluestar products which it acquired with Sondex plc (the previous company operated by the founders of Enteq). GE has discontinued the Geolink product line, which was the standard in the Eastern Hemisphere.

The Enteq MWD system is based around the technology developed by XXT, whose founders were also the key developers behind the Tensor system. Enteq's MWD system is therefore compatible with existing Tensor systems but allows a migration path to a number of the enhanced sensors and controls which are now integral to the Enteq solution."

[rivaldo] 23/9/2013 13:42

Hi bb2. I went to the Sharesoc presentation last week. As an ex-Sondex shareholder I'm very keen on this management team! I've already e-mailed GHF about the concerns I had following the meeting, which can be summed up as:

- I hadn't realised that NTQ are almost wholly exposed to supplying fracking rather than "traditional" exploration. My worry is if there's any incidents involving fracking in the USA or elsewhere - water pollution, chemical leakage etc - this may damage their entire market, or at least much of it, overnight

- they're not planning any more acquisitions for the time being, only organic growth, which rules out any sudden increases in earnings forecasts

- the overhang from Legal and General may be around for some time, and is certainly still there judging by the large number of shares available online

I like the team and the strategy, but am not sure the share price will be going anywhere for some time to come given the overhang and based on current forecasts.

I'll just have to try and reconcile my liking for the idea of investing here with my concerns as above!

[battlebus2] 23/9/2013 11:52

A very quiet share this one, might add over the coming days. Any reports from the presentations?

[battlebus2] 19/9/2013 13:42

LOL well done, looks a great long term prospect, projections for 2013 to 2016 are impressive imv. I have the feeling of an overhang here but with mostly buys it may soon be taken.

[cheshire man] 19/9/2013 13:39

Got in yesterday so beat you to it on this one battlebus............:-)

[battlebus2] 19/9/2013 12:09

I've also joined the party and hope to move upstream very soon :))

[cwa1] 19/9/2013 10:39

Morning. Well I'm the opposite of Chizgreen68, I'm a grizzled old veteran of many stock market campaigns :-) However I too have dipped a small toe in here with a medium term view on prospects to come.

GLTAH

[chizgreen68] 18/9/2013 22:21

Hi, newbie on the site and to the world of PI. Have been lucky enough to buy Globo, Moni, Opay, Dotd since joining. Have followed those who seem to have greater insight and recently added Ideagen and these chaps, partly on the chat, partly basic beancounting and partly on the directors buy as per kMann. Just a short note of thanks to those willing to share their insight. Cheers

[kmann] 18/9/2013 15:56

Directors buy BEFORE presentation and next update ... could be significant.