Enteq Technologies PLC (AIM:NTQ) said it was "pleased" with the technical and commercial progress of its innovative SABER Tool, setting the stage for a pivotal year in the company’s development.
SABER, which stands for Steer-At-Bit Enteq Rotary technology, offers a new approach in the drilling sector and is poised for customer testing in Australia, marking a crucial step towards commercialisation.
The company has confirmed a customer contract that encompasses a first phase of testing, with a purchase order already in place.
This initial testing phase is a precursor to anticipated commercial services set to commence in the first half of financial 2025, promising Enteq revenues of US$100,000 from these operations.
Preparations for this phase included an advanced shipment of SABER equipment from Enteq's Houston facility to Australia, highlighting the company's readiness for imminent field trials.
Enteq's build programme for additional SABER equipment is on track, investors were told, and Enteq's newly-appointed engineering director has spearheaded significant performance and production enhancements, ensuring the tool meets rigorous industry standards.
Independent flow loop testing conducted in Houston has validated the SABER's design and performance, simulating typical drilling conditions, the company said.
This testing underscores the tool’s potential to revolutionise the drilling process by offering true at-bit steering capabilities, a significant departure from conventional Rotary Steerable Systems (RSS).
Looking ahead, Enteq has scheduled a customer technology demonstration and a follow-up drilling testing program at the Catoosa, the US test site, before the end of March. This event will offer potential customers a firsthand look at SABER in action.
In tandem with these technical milestones, Enteq has unveiled a new branding initiative and website refresh, aimed at bolstering SABER's market presence.
"We are pleased with the commercial and technical progress that has been made with SABER," said Enteq CEO Andrew Law.
"It is very rewarding to have the support and initial financial commitment from our Australian customer who has been involved with the progression of SABER for some time; we look forward to supporting this customer."
Enteq, holding an exclusive global license for this technology from Shell, has further developed and protected the intellectual property associated with the SABER Tool. This development has positioned the company favorably within the approximately US$3.6 billion annual global RSS market, as reported by Spears in a 2023 study.
The company envisions SABER driving operational efficiencies not only in hydrocarbon production but also in geothermal energy, methane capture, and carbon capture and storage (CCS) applications.
Enteq’s strategy to offer the SABER Tool through service arrangements or equipment sales aims to empower independent and regional directional drilling firms to compete more effectively against major integrated service companies.
"The team at Enteq have been working diligently to deliver a quality product," said Law.
"The recent flow loop testing has further increased confidence in the next series of tools which are currently in build for future deployment.
"This is another positive step along the road to full commercialisation of the SABER technology in a market that has a demand for this strong alternative method of steering while drilling."