ENTEQ Upstream Plc chief executive Andrew Law said he is pleased to see initial recovery for its customer base in North America, and, highlighted the progress being made with the SABER drilling technologies.
The company maintains its expectations for revenue and earnings, and highlighted that it anticipates higher revenues for the second half of the financial year.
"We are pleased to see initial recovery of our customer base in North America. The continued strength of Enteq's balance sheet positions us well to rapidly respond to further increases in customer demand,” Law said.
“SABER has the potential to significantly enlarge our addressable market to include rotary steerable drilling which is experiencing growth in both North America and internationally."
Law’s upbeat comments come in a statement ahead of today’s AGM – to take place at the offices of finnCap Group, in London.
ENTEQ noted the steady rise in US oil prices up to around US$70 per barrel and that rig count in the states had recovered to around 510 from 430 in early April, meanwhile, rotary steerable system (RSS) drilling activity in North America has continued to outpace growth.
The company expects RSS will be a key market for its SABER (Steer At Bit Enteq Rotary) product.
ENTEQ told investors that the SABER project remains on-track with all technology development milestones being met to date. Equipment is presently being shipped for down-hole testing and those results are due before the end of 2021.
The company, however, cautioned that the market for Measurement While Drilling (MWD) equipment – which ENTEQ’s current offering addresses – continues to be over-capacity, though this is expected to diminish over time.
Oil companies have been able to generate significant positive cashflows, in noted, though the company’s customer base have not seen meaningful increases in the rates charged for their services, as a result ENTEQ’s fee income remains constant.
Elsewhere, it said international market continues to see a muted demand compared to pre-COVID levels and noted that international activity tends to take longer to respond to changes in oil prices.