Enteq sells freehold site in Houston for $2.5m

Energy services specialist Enteq Technologies announced the sale of its freehold premises in Houston, Texas on Wednesday.

The AIM-traded firm said the sale was part of its strategic growth plan, including the final test phases of its new ‘SABER’ product line.

It said the freehold site was sold for $2.5m, while the book value of the property was $2.142m at the end of September.

After deducting the current carrying value, sale costs, and relocation costs, the company said it expected to recognise the sale proceeds as an exceptional item in its current financial year's results.

Enteq would be relocating its Houston Product Centre, including its measurement-while-drilling (MWD) operation, to leased premises near George Bush Intercontinental Airport in Houston.

The company said it had signed a three-year lease for the new premises, with an annual rental expense of $97,500.

Enteq said the new location was expected to result in significantly lower annual after-tax running costs than the freehold property, including rent, resulting in an overall operating expenses cost saving.

Enteq also retained its SABER Product Centre, a leasehold site in the UK.

The net cash proceeds from the sale were set to be invested in the medium-term to support the company's product line development, primarily the deployment of SABER.

“I am delighted on a number of fronts - not only does this provide additional capital for SABER growth and development, our new premises are in a much more accessible location for our customers, suppliers and industry partners,” said chief executive officer Andrew Law.

“We are looking forward to establishing the new facility with renewed focus on commercialising SABER as well as providing MWD technologies complementary to SABER.”

Reporting by Josh White for Sharecast.com.