Enteq Technologies - Sale of Property

Enteq Technologies

29/03/2023 07:08

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RNS Number : 6003U  Enteq Technologies PLC  29 March 2023

Enteq Technologies plc

 

("Enteq" or the "Company")

 

Sale of Property

 

Enteq Technologies plc (AIM: NTQ.L) the energy services technology and
equipment supplier, is pleased to announce the sale of the Company's freehold
premises in Houston, Texas (the "Property").

 

To support the Company's strategic growth, including the new SABER product
line which is in the final test phases, the freehold site owned by the Company
in Houston has been sold for $2.5m. The book value of the Property at 30
September 2022 was $2.142m. The sale proceeds, net of current carrying value,
sale costs, and relocation costs are expected to be recognised as an
exceptional item in the current financial year's results.

 

The Company will shortly relocate its Houston Product Centre, including its
MWD (Measurement While Drilling) operation, to alternative leased premises
near George Bush Intercontinental Airport in Houston. The Company has entered
into a three year lease in respect of the new leased premises with an annual
rental expense of c.$97,500. It is expected that the new location will have
significantly lower annual after tax running costs than the Property,
resulting in an overall operating expenses (including rent) cost saving. Enteq
also retains its SABER Product Centre, a leasehold site in the UK.

 

The net cash proceeds from the sale are expected to be invested to support the
Company's product line development over the medium term, primarily deployment
of SABER.

 

A year end trading statement will follow in April.

 

Andrew Law, CEO of Enteq Technologies plc, commented:

 

"I am delighted on a number of fronts, not only does this provide additional
capital for SABER growth and development, our new premises are in a much more
accessible location for our customers, suppliers and industry partners.  We
are looking forward to establishing the new facility with renewed focus on
commercialising SABER as well as providing MWD technologies complementary to
SABER."

 

For further information, please contact:

 

Enteq Technologies
plc
                        +44 (0)20 8087 2202

www.enteq.com (http://www.enteq.com)

Andrew Law, Chief Executive Officer

David Steel, Chief Financial Officer

 

finnCap Ltd (NOMAD and
Broker)
+44 (0)20 7220 0500

Ed Frisby, Fergus Sullivan (Corporate Finance)

Andrew Burdis, Barney Hayward (ECM)

 

About SABER

 

SABER (Steer-At-Bit Enteq Rotary Tool) is an evolution of traditional rotary
steerable systems (RSS). SABER directional drilling technology is based on
intellectual property licenced from Shell and subsequent Enteq developments.
SABER will widen Enteq's addressable market, accessing the large rotary
steerable drilling market, where the SABER toolcan offer a differentiated and
cost-effective alternative to the traditional technology. SABER
utilises internal hydraulic pressure differentials to create side force at
the drill bit for geo-steering, rather than pushing against the borehole wall
(pads and pistons) to change direction. The advantage of internalising the
steering mechanism is expected increased reliability and reduced
downtime. The Company is bringing SABER to commercialisation. For additional
information please visit www.enteq.com/products/rotary-steerable-system-srss/
(https://www.enteq.com/products/rotary-steerable-system-srss/)

 

The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.

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