Enteq Technologies Share Discussion Threads

[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."

[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.