Rex International Holding Limited (Rex International Holding or the Company, and together with its subsidiaries, the Group), one of the largest companies listed on the Catalist of the Singapore Exchange Securities Trading Limited, shared with investors Wednesday the latest addition, Rex Gas Indicator (RGI), to the suite of Rex Technologies, of which the Company is the exclusive licensee. RGI is able to detect hydrocarbons in their gaseous phase using conventional seismic data. RGI has been developed over the last two years by Rex Technology Management Ltd (RTM).
Hans Lidgren, who heads technology development at RTM, said, “RGI will be a complementary technology to Rex Virtual Drilling (RVD). With the addition of RGI to our already powerful suite of technologies, we can now search for the full spectrum of hydrocarbons in both liquid (including oil and condensate) as well as gaseous phases.”
RGI has undergone testing in different basins in Norway with successful results and will now be tested in further geologies. Initial tests have shown the same highly reliable and reproducible results for RGI as has been previously shown by RVD. The success of RGI is dependent on high quality seismic data as seismic data of poorer quality will limit at what depth accumulations can be visualized. RGI is most effective at shallower depths of possible accumulations.
Dan Brostrom, executive chairman of Rex International Holding, said, “RVD, which focuses on liquid hydrocarbons, paved the way for our Company’s success in obtaining stakes in concessions and discovering oil in Oman. We are excited about the development of RGI as it will allow us to engage with a new enlarged market and seize further opportunities for discovery within our existing assets. In the past, we have been forced to decline several opportunities in the gaseous hydrocarbon domain as we have not been able to properly derisk those assets. With RGI, we can now achieve proper de-risking before making significant investments. Current global natural gas reserves total approximately 6,100 trillion cubic feet, according to US Energy Information Administration (EIA) estimates. Of these, roughly half are considered to be stranded, that is, uneconomic to deliver to market. Initial feedback from our partners has been very encouraging.”
The Company believes RGI will have the following positive effects:
It should be noted that Rex International Holding’s current portfolio has not been analyzed with RGI as the Company is focused on hydrocarbons in the liquid phase. For now, the tool will only be used in special circumstances.
The processing capacity of RGI is limited today but will be further developed to enable sampling of large data sets in the same timeframe as a typical RVD analysis.
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