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, reported Thursday that a 100 per cent subsidiary of Rexonic AG (Rexonic), in which the Company holds an indirect 66.7 percent stake, has secured a first and ground-breaking contract with a reputed and large National Oil Company (NOC) (name has been withheld at the request of the client). The contract is expected to start in end 2014 and the contractual value is approximately $10 million if fully executed over the next 24 months. Rexonic will provide its unique environment-friendly, ultrasonic well stimulation technology on selected wells owned by the NOC. The start of the contract is dependent on, amongst other things, the arrival of third party technical components.
Peter Spenger, executive chairman of Rexonic, said, “We are pleased and excited over this important milestone in the development of Rexonic. We look forward to update the markets more in detail once execution has started and the first couple of wells have been treated.”
Dan Brostrom, executive chairman of Rex International Holding, said, “We are heartened to see the fruition of Rexonic’s commercialization plans, following months of hard work by the management team. A first contract with an NOC is a notable achievement for Rexonic, as the potential for an expansion in the scope of coverage for the well stimulation technology is promising. Synergies with Rexonic’s technology, such as using Rex Virtual Drilling to prioritize which production well to stimulate first, can be further progressed. We can also tap on each other’s business network to further grow our respective portfolios.
The signing of the aforementioned contract is expected to contribute positively to the earnings per share of the Group for the current financial year ending Dec. 31. None of the directors, CEO or substantial shareholders of the Company has any interest, direct or indirect, in the aforementioned contract (other than through their shareholdings in the Company).
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