Slide 02
Steering and control: Equipment such as Rotary Steerable Systems (RSS) to provide directional control to follow the planned well path
Measurement: Directional and geological sensors to provide real-time downhole Measurement While Drilling (MWD)
Communications: Connecting systems and transmitting information to/from downhole and surface
Technologies for drilling of oil, gas & geothermal wells
Product Segments
Specialised technologies for efficient drilling of oil, gas & geothermal wells:
MWD systems: • Sophisticated sensors and electronics in the
hostile down-hole environment. • MWD equipment supply market is c.$100m
annually.
Bit Enteq Rotary) with game-changing potential for efficient drilling operations.
• Target new technology RSS market is c.$2bn annually.
Operations Overview
4
• Technology:
– Core MWD based on Enteq’s reliable and industry renowned XXT platform
– SABER engineering and development team (UK based)
– Distribution agreements with selected leading technology suppliers to enhance Enteq’s product range
• Manufacturing:
–SABER technology, manufacturing and assembly facility in progress near Cheltenham, UK
• Sales:
– Technology partnerships to augment full equipment package offering
SABER Technology Development
5
SABER is an evolution of the proof of concept, tested by Shell and licensed to Enteq,
representing a prospective step-change in directional drilling technology. Enteq has re-
engineered the concept resulting in a mechanically simple, compact design.
• Testing and Field Trials:
– Field trials have affirmed the ability of the SABER control system to function in a downhole environment
– Testing has reconfirmed the ability to generate sufficient side forces for steering
– International field trials ongoing prior to moving to North America
• Commercialisation
• Investment
– Committed total investment to September 2021 of $2.3m ($1.4m to March 2021)
SABER Market
Source: The Insight Partners Analysis – report commissioned for Enteq, Sep 2020 Note: Forecasts were made during Covid Source: Image https://th.bing.com/th/id/OIP.7OQfxOmsXrG9Vt1h2b77jwHaEm?w=273&h=180&c=7&o=5&pid=1.7
• SABER designed to meet market’s requirement for RSS with;
– Lower total operating cost
1.7 1.9 2.1 1.7 1.8 2.0 2.2
2.5 2.8
3.3 3.9
0
1
2
3
4
5
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Rotary Steerable Systems – Revenue to 2027 (US$ bn)
Revenue US$ bn
• Markets:
– North America: Steady rig count increase, resulting in expanding MWD fleets, having largely depleted surplus equipment
– International: China slow with international activity growth in discrete regions
• Continued phased investment in SABER technology development
• Renewed focus on cash management and overhead reduction
$m Sept 21 Sept 20 Revenue:
North America 1.7 0.7 International 0.6 1.9
Total 2.3 2.6
• North America market
– Steady increase in active drilling rigs from 430 in March to 550 currently
– Expecting medium term growth
Market / Trading – International
• Middle East:
– Middle East rig activity downturn lagged US, yet has not recovered to same extent
– Focus for technology deployment
– Strong long term fundamentals
– As Middle East, slower recovery
– Long term focus on Russia / Caspian
Market Outlook
– Global gas outlook robust – necessary to support energy transition
• Enteq Focus:
– Address market needs for efficiency for future drilling and production
– Drive for technologies to deliver drilling efficiency improvement
Source: BP Energy Outlook 2020: Rapid Transition Scenario (Rapid): Led by a series of policy measures, significant increase in carbon prices, targeted sector specific measures. Business-as-usual Scenario (BAU) assumes government policies, technologies and social preferences evolve at speed seen over the recent past. Net-Zero scenario also available. Source: The Insight Partners Analysis – report commissioned for Enteq, Sep 2020 Note: Forecasts were made during Covid
13 14 15 13 13 14 16
18 20
24 28
8% 9%
10% 13% 15% 17% 18%
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Global Geosteering Technology Market – Revenue (US$ bn)
Revenue US$ bn CAGR
Global Demand Outlook (Exajoules)
Gas (Rapid) Gas (BAU)
Oil (Rapid) Oil (BAU)
Adjusted EBITDA (0.6) 0.1
Depreciation & amortisation (0.5) (0.8) Severance costs - (0.4) Interest - 0.1 Other (0.1) 0.3
Loss before tax (1.2) (0.7) Tax - - Loss after tax (1.2) (0.7)
Gross Margin 37% 60%
Operational cash generated (0.7) (0.4)
Rental fleet additions (1.1) (0.6)
R&D expenditure (1.0) (0.5)
Capex - -
Opening cash 8.1 10.2
Closing cash 5.3 8.8
Sept 21 Sept 20
Land & buildings (Freehold of SHO) 2.1 2.3
Plant & equipment 0.1 0.1
Rental fleet 0.9 0.9
Inventories held for resale 2.9 2.8
Trade & other payables (1.5) (1.3)
Cash 5.3 8.8
Board and Leadership
Andrew Law – CEO • Joined Enteq Jan 2019 - Promoted to CEO in Mar 2021 • Successfully established market presence for Enteq outside USA • Technical, operations, finance and strategic background from
KPMG, Schlumberger and Weatherford
Martin Perry – Non Exec Chairman • Founder of Enteq Upstream in 2011 - Focus on strategic and
advisory • Formerly CEO Sondex prior to leading exit to GE. • Currently Non Executive Director of Read Cased Hole
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Neil Hartley – Senior Independent Director • Joined Enteq Board in April 2020 • Industry background with Schlumberger. Senior positions with
McKinsey, Simmons and First Reserve • Currently Partner at Buckthorn Partners LLP and NED at Telford
Offshore and Renewi plc
Neil Bird – VP Advanced Drilling Systems • Joined Enteq in November 2020 • Focus on delivering SABER and additional technology
projects • Strong technical background with Baker, Scientific Drilling,
Weatherford
Suki Gill – VP Business Development • Joined Enteq in May 2021 • Focus on sales and customer engagement • Technical background from Schlumberger and independent
MWD technology companies, IADD Chairperson
Iain Paterson – Non-Executive Director • Over 40 years experience in the oil industry • Formerly Chairman of Sondex, ITE; Non-Exec Director: Hunting
plc, Paladin Resources plc, ArmorGroup plc, MOL NyRT • Held senior management positions at BP and was a main Board
director of Enterprise Oil plc
David Steel - CFO • Chartered Accountant who qualified in KPMG’s London office • Extensive experience in aerospace and logistics sectors • Joined Enteq in 2012; previously deputy Finance Director of
geoprediction tools provider to the upstream oil and gas industry
The Board Senior Managers
Energy transition driving gas demand
Focus on technologies to deliver efficient gas production
Maintain healthy balance sheet to take SABER to commercialisation
Refreshed sales effort with development of further market-led technologies
Actively open to earnings-accretive strategic activities
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Date: November 2021