Enteq Technologies plc (AIM: NTQ.L), the specialist energy services engineering and technology company, today announces its audited final results for the year ended 31 March 2024.
Key features
· Successful proof of SABER during a series of downhole drilling trials in the United States. Post year end currently in customer field testing in an operational environment.
· Filed additional patents covering the key operating regions with one new patent granted in United Kingdom and more pending.
· Third-party IP valuation completed giving confidence in potential.
· Strategic sale of the XXT intellectual property and assets for $3.1 million, completed on time and as planned, during the year ended 31 March 2024 with the final payment received post year-end.
· Increased customer engagement, focused on the key international operating regions.
· SABER fleet build underway, with initial units deployed to a customer location and more under construction.
· Centralised technology development and engineering in a new leased facility in Houston, United States.
· Continued investment in the SABER project of $1.8 million (2023: $2.6 million) and a further $0.4 million (2023: nil) of fleet build expenditure.
· Closing cash balance of $3.0 million (2023: $5.4 million).
Outlook
During the year ending 31 March 2025 the Group expects:
· Robust market for Directional Drilling.
· Demand for more efficient competition.
· Full commercialisation of SABER.
· Regional partnerships to maximise deployment of SABER.
The 2024 information set out herein has been extracted from the audited annual report and accounts for the year ended 31 March 2024. The Group is dependent on its ability to fund operations going forward, which is dependent on the underlying valuation of its key assets relating to the SABER tool and the ability to realise value from these assets in the future. Cash flow forecasts prepared up to 30 September 2025 show sufficient cash resources to enable the funding of working capital, completing the testing of the SABER tool fleet and the completion of the build of the initial set of SABER tools in the fleet to enable the generation of revenue from this new technology. Cash and cash equivalents at 31 March 2024 were $3.0 million (audited) and at 31 July 2024 were $1.8 million (unaudited).
Andrew Law, CEO of Enteq Technologies plc, commented:
"With a fundamentally robust energy market, we expect to see strong demand in the industry for new competition, notably in the RSS sector of drilling. As such, we have been making progress towards securing customer agreements to cover the key regions around the world.
With the technology now having been proven in trials including full operational test environments, we look forward to successful conclusion of the current customer test, and then on to commercial/revenue generating activity commencing shortly.
The Company looks forward to fully introducing this potentially disruptive technology into the market. The focus of commercialisation of SABER is through deployment with new and existing customers in the key regions."