- Enteq Upstream said it had signed a license agreement with Shell allowing it to incorporate the oil giant's intellectual property and technology into the manufacture of a new drilling system.

Rotary steerable systems were becoming a new standard for fast and efficient drilling of oil, gas and geothermal wells, the company said.

'The combination of Shell's information and Enteq's proven track record of product innovation, engineering and commercialisation offer the potential to produce a next-generation type of product,' it added.

The product would utilise a unique steering method with potential significant cost reductions and other benefits of operation.

Enteq said the development of a commercial system may take up to a further two years, and may require a total investment of up to $3m, including some initial payments to Shell.

Additional expenditure for the subsequent build of trial and commercial inventory would be required, and royalty payments would be due to Shell when the product went commercial.

At 1:45pm: [LON:NTQ] Enteq Upstream share price was +1p at 26p

Story provided by