Enteq Upstream PLC lands new rental contract with existing client

 () said it landed a new US$1.1mln rental contract from an existing North American customer. 

The customer will rent Enteq’s core Measurement While Drilling (MWD) technology for a minimum of eight months.

A deposit has been paid ahead of the first tranche of payment, US$800,000, which is expected shortly. Further payments relate to an option that Enteq is expecting to be exercised within the next month.

It significantly expands the number of MWD kits operated by this customer, the energy technology group noted.

“It is reassuring to see that the US land market is starting its recovery,” said Andrew Law, chief executive of Enteq Upstream.

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“This contract award is yet further confirmation that Enteq continues to provide commercially effective solutions and dependable technologies to our customers, the independent directional drilling companies.”

Earlier this month, Enteq told investors that results for the fiscal year just ended are expected to be in line with expectations.

The group expects revenues in the region of US$5.0mln for the year to the end of March and to break even at the EBITDA (underlying earnings) level. Revenue related to a shipment made to Enteq’s new strategic partner in Saudi Arabia has not been recognised during the accounting period to March 2021, as the registration/accreditation process remains in progress.

Cash at the end of the reporting period stood at US$8.1mln, down from US$10.2mln a year earlier and US$8.8mln at the end of September 2020.

Following the recent oil price recovery and the subsequent upturn in activity in North America, Enteq has received repeat orders from well-established operators in North America, in addition to further Eastern Hemisphere progression in China, the Middle East and Asia. Further sales have also been made for the supply of equipment into the geothermal energy sector, which is a key market for Enteq.

The recent product launch of Enteq’s SABER tool, which will enable Enteq enter the rotary steerable drilling service market, resulted in a significant level of enquiries for further technical information, Enteq revealed.