Rex International Holding Acquires Ownership of Rex's Technologies
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, announced Wednesday that it has today, signed a sale and purchase agreement to acquire 100 percent shareholding interest in Rex Technology Management Ltd (RTM), including the latter’s suite of proprietary and innovative exploration technologies, Rex Technologies comprising Rex Gravity, Rex Seepage, and Rex Virtual Drilling (Rex Technologies), of which the Company is the exclusive licensee, at a nominal price of $1. The acquisition will be completed by Dec. 1 or such other date as the parties may mutually agree in writing (the Completion Date) and RTM will operate as a wholly-owned subsidiary of the Company. The Company shall also take over all of RTM’s staff, who shall be included in the Company’s performance share plan, subject to the Remuneration Committee’s approval. All RTM staff will be bounded by non-compete agreements.
Dan Brostrom, executive chairman of Rex International Holding, said, “Over the past year since our listing in July 2013, we have received feedback from many investors, their preference for our key differentiator, the Rex Technologies and specifically, Rex Virtual Drilling, to be housed in the listed entity. We are heartened by our founders’ and majority shareholders’ unstinting support in agreeing to have RTM included under Rex International Holding’s auspices, after considering the potential value creation that will result from the Group’s direct ownership of the Rex Technologies, as compared to being an exclusive licensee; while preserving the strict confidentiality of how the technologies work.”
“Having RTM under the Group will allow us to bolster our value offering, over and above our portfolio of high quality assets scanned with Rex Virtual Drilling, as we will have complete control over the use of the proprietary Rex Technologies. RTM will immediately contribute attractive recurring income from their existing contracts. There remains much potential for future research and development advancements for the Rex Technologies.” Brostrom added.
Hans Lidgren, one of the founders of Rex International Holding and head of technology development at RTM, said, “We are committed to giving Rex International Holding full support for it to achieve its vision to be a leading independent exploration and production company that has an international portfolio of concessions, selected using our proprietary Rex Technologies. The RTM team is excited to join the Rex International Holding family and looks forward to even closer collaboration going forward.”
RTM has signed contracts with an estimated annual value of $10 million. Revenues from RTM will be consolidated on Completion Date. The Company expects RTM to contribute positively towards the Group’s revenue in the fourth quarter of 2014.
The Company believes that the acquisition of RTM will have the following immediate positive effects:
- Strengthen investor perception of Rex International Holding as the outright owner and operator of the Rex Technologies (Rex Gravity, Rex Seepage and Rex Virtual Drilling), with the RTM team as the Group’s employees
- Enlarge the value offering by the Company to partners and clients who are unable to offer equity stakes in concessions, by providing seismic analysis services at a fee; and Contribute a revenue stream
The Company had Aug. 13 announced the addition of Rex Gas Indicator (RGI), an exploration technology to be used to detect gas hydrocarbon accumulations using seismic data interpretation analysis, which had yielded promising initial results. As RGI needs further development before commercialization, it will not be included in the Acquisition. However, subject to compliance with relevant rules and regulations, the Company retains a right of first refusal exercisable until Dec. 31, 2015 to purchase the technology at a price and on such terms and conditions to be determined by the vendor and the Company should RGI prove to be commercially sustainable in upcoming tests, subject to compliance with the Catalist Rules.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- North America Enters Rig Loss Streak
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension