A SCOTTISH energy services company has entered administration after an unsuccessful search for a buyer.
Enteq Technologies suspended shares this morning after the firm announced the cease in trading.
The AIM-listed company established its Aberdeen base in the city centre's Queen’s Gardens at the end of 2023 but had warned of potential cashflow issues.
Although it continued to develop its flagship SABER drilling technology, seen as a promising alternative to traditional rotary steerable systems, the share price of the company plummeted from £9 last April to just 43p at market close yesterday.
The SABER Tool (Steer-At-Bit Enteq Rotary Tool) can be used in both oil and gas extraction as well as emerging sectors such as geothermal drilling and methane capture.
The operations, engineering and manufacturing are all based in Houston, Texas, with their executive leadership based in Aberdeen and London. Customers are spread across the globe in North America, China, the Middle East, and Europe.
The company’s search for a buyer did not result in any offers, with a statement this morning adding: “Enteq continues to require funding however the board now no longer considers that suitable funding can realistically be raised.
“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 future of the company's staff and drilling technology is currently unclear.
