Enteq Technologies, the AIM-listed energy services engineering company, has announced potential cash flow challenges as it continues development of its SABER drilling technology.
An update released on Friday indicates uncertainty around expected revenue timing and additional engineering costs.
Recent testing of the SABER Tool at Oklahoma’s Catoosa Test Facility in December 2024 demonstrated basic operational capabilities, successfully achieving directional drilling objectives. However, the tests also revealed the need for additional engineering modifications and operational procedure updates, adding to development costs and timeline extensions.
This delay impacts the company’s anticipated revenue timeline, putting pressure on its cash resources.
Management has indicated that the current cash runway is shorter than previously estimated, considering the ongoing development costs and uncertain revenue timing. In response, Enteq is actively focusing on cash preservation measures, though specific cost-saving initiatives have not yet been detailed.