Shares in Aberdeen-based energy services company Enteq Technologies were suspended this morning after the firm announced it has entered administration, following weeks of financial uncertainty and an unsuccessful search for a buyer.
The AIM-listed company, which established its Aberdeen city centre base in Queen’s Gardens at the end of 2023, had previously warned of potential cashflow issues as it continued to develop its flagship SABER drilling technology.
The SABER Tool (Steer-At-Bit Enteq Rotary Tool) is seen as a promising alternative to traditional rotary steerable systems, with applications in both oil and gas as well as emerging sectors such as geothermal drilling and methane capture.
Despite these technological advancements, Enteq’s share price has plummeted over the past year-from £9.00 twelve months ago to just 43p at market close yesterday. The company’s search for a buyer did not result in any offers, adding to its ongoing financial challenges.
In a statement this morning, the company said: “Enteq continues to require funding however the Board now no longer considers that suitable funding can realistically be raised,” the company said in a statement.
“The board has continued to seek advice on its appropriate next steps, and regrettably has concluded that, after detailed consideration of the Company’s current financial situation, it will not be able to meet its liabilities as they fall due and is therefore required to take the necessary steps to seek to preserve value for creditors. “The board has consequently resolved to appoint Managing Directors from Alvarez & Marsal Europe LLP as administrators to the Company. It is anticipated that the administrators will be appointed during the course of today or tomorrow.”
The collapse of Enteq Technologies marks a significant setback for Aberdeen’s energy technology sector, which has been striving to diversify into new energy markets amid the ongoing transition away from fossil fuels. The fate of the company’s local workforce and the future of its innovative drilling technology now rest in the hands of administrators.
