Enteq wins new contract in Saudi Arabia

The AIM-traded firm said that on 17 August, it received a purchase order and confirmation of a cash deposit payment over a conditional contract valued at $0.9m (£0.68m), for equipment to deploy in Saudi Aramco's drilling operations.

It said the contract was with Enteq's new strategic partner in Saudi Arabia, Sawafi Aljazeera Oilfield Products and Services.

The order was for the recently-released XXH product - an ultra-high durability version of Enteq's ‘Measurement While Drilling’ technology.

Future opportunities were expected for Enteq's technology partner equipment and new product releases.

The equipment would be delivered to the customer during September, and would be used in the process of Sawafi obtaining full supplier accreditation with Saudi Aramco.

Enteq said revenue would be recognised when that accreditation is finalised, which is expected before 31 March 2021.

“The Sawafi partnership in Saudi Arabia has the potential to add significant strategic value to our business,” said chief executive officer Martin Perry.

“Enteq equipment has been proven to be both reliable and robust in the toughest oilfield environments around the world.

“We look forward to a long-term, strategic and mutually beneficial relationship with our partners at Sawafi for both current and future technology.”

At 1223 BST, shares in Enteq Upstream were up 8.33% at 13p.