Enteq Technologies PLC (AIM:NTQ), the energy services technology supplier, continues to benefit from a tightening of surplus capacity in North America.
The company said sales and orders since the end of September 2021 have continued in line with the trends indicated in its November interim results announcement.
Year to date trading, together with the current order book, continues to provide confidence in the board's expectations for the full financial year, Enteq said.
Meanwhile, the SABER drilling system’s field-testing and development programme has continued to progress and develop.
A lease has been signed to establish a SABER technology centre in the Cheltenham/Gloucester area. This area is recognised within the industry as a global centre of excellence for rotary steerable system (RSS) technology development.
Recent downhole testing performed with an international customer and field-test partner has confirmed the ability of the SABER control system to perform in a dynamic downhole environment. Further surface testing at a third party facility has proven that ample steering forces can be generated by SABER, as well as providing valuable information to optimise the continuing downhole test programme, Enteq said.
The company's current medium-term cash flow forecast shows sufficient internal funds to continue the development through to building up a significant SABER rental fleet. Should an accelerated introduction to market of SABER be required, Enteq's relationship bank, HSBC PLC (LSE:HSBA), has granted the company an overdraft facility of US1mln to provide additional growth related working capital.
Enteq noted the RSS market has a global size of more than US$2bn and the SABER technology is targeted at a range of applications across the energy sector; geothermal drilling, methane capture and oil and gas operations.