Enteq reports product development progress, warns of shorter cash runway

(Sharecast News) - Enteq Technologies updated the market on the development and commercialisation of its 'Steer-At-Bit Enteq Rotary', or 'SABER Tool' technology on Friday, following recent testing and customer engagement, although its shares were plunging as it also warned of a shorter cash runway than previously expected. The AIM-traded firm said that in December, it conducted a demonstration test of the SABER Tool at the Catoosa test facility in Oklahoma.

It said the trial validated the tool's operational principles, demonstrating its ability to steer by generating a 'dog-leg', building, and turning angles during drilling.

The results confirmed key objectives and identified areas for engineering enhancements to be addressed in future tests.

Building on the successful passive test drilling with a customer in Australia during the fourth quarter of 2024, Enteq said it was planning to begin active test drilling in April this year, incorporating the engineering modifications identified.

The company said it continued to engage with potential customers, leveraging industry interest in cost-effective rotary steerable systems.

However, the timing of revenue from commercialisation remained uncertain due to the ongoing refinement and testing process.

Coupled with costs associated with the necessary engineering adjustments, Enteq said its cash runway was now projected to be shorter than anticipated during the 2024 fundraise.

The company said it remained focused on preserving and managing cash resources as it progressed towards the commercial launch of the SABER Tool.

At 1521 GMT, shares in Enteq Technologies were down 74.76% at 0.78p.

Reporting by Josh White for Sharecast.com.