Rex International Holding Limited (Rex International Holding, the Company, and together with its subsidiaries, the Group) announced it has signed a term-sheet with Norwegian private equity investor Pareto Staur SPV1 AS (Pareto Staur), providing the Company with access to three new onshore exploration & production (E&P) opportunities in the island nation of Trinidad and Tobago in the Caribbean.
Rex International Holding will invest $9 million for a 51.99 percent stake in Rex Caribbean Oil Company Ltd (Rex Caribbean Oil Company) (Investment), while Pareto Staur will invest $6.5 million for a 34.76 percent stake. Other institutional shareholders will hold 12.18 percent and Geoffrey Leid, CEO-designate of Rex Caribbean Oil Company, will hold 1.1 percent in his personal capacity.
The transaction will involve the initial investment into three E&P licenses; namely, the Inniss-Trinity field, the South Erin Block and the Cory Moruga Block ‘E’. These assets already have producing discoveries and Rex Caribbean Oil Company will, after completion of the farm-in activities, hold 100 percent of the Inniss-Trinity field and working interest of 75 percent in the South Erin Block and 51 percent in the Cory Moruga Block ‘E’. The transaction is expected to be completed in the coming weeks and is subject to regulatory due diligence.
The Investment will be funded internally and is expected to be a positive contributor to the Group’s financial performance for the financial year ending Dec. 31, 2014, and generate positive cash flow going forward. The Group believes that the Investment will add bookable reserves and contingent resources, which will be independently reported on in due course, to its existing portfolio.
Måns Lidgren, CEO of Rex International Holding, said, “Trinidad and Tobago is a proven prolific hydrocarbon basin. Using the proprietary Rex Technologies, we see strong potential for discoveries in the three fields and expedient development of existing reserves. We are very pleased to partner with Pareto Staur, an established investor, in these opportunities. The Investment is in line with our business strategy to add on to the Group’s existing portfolio of reserves in regions with well-developed oil and gas infrastructures. The opportunities can be seized based on leverage provided by the Rex Technologies. We are also delivering on our promise to increase Rex International Holding’s current portfolio from 10 opportunities to 20 opportunities over the next 12 months.”
Stig Aune, CEO of Staur Holding AS and fund manager in Pareto Staur, said, “We are very pleased to partner with Rex International Holding in this venture. The Rex Technologies add tremendous value to the assets and show perfect overlap between existing discoveries and Rex Virtual Drilling oil predictions. We look forward to creating value together with Rex International Holding over the next years, through rapid build-up of production in Trinidad and Tobago."
About the three oil fields
Located in the south central part of Trinidad, within the Moruga district, the Antilles-Trinity Inniss field (now renamed Inniss-Trinity field) was initially developed as two neighboring fields; the Innis field first drilled by Shell in 1946 and put on production in 1961 while the Antilles-Trinity field was drilled by Texaco in 1956.
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