Singapore-listed Rex International Holding Ltd. reported Monday that Oman's Ministry of Oil & Gas (MOG) has extended the exploration and production sharing agreement (EPSA) with its subsidiary Masirah Oil Ltd. for Block 50 for another 3 years from the end of the current phase to March 2020.
Masirah Oil is finalizing plans to drill another exploration well in Block 50 in early 2017 and this will be the first well to use the new multi-attribute version of Rex Virtual Drilling (RVD), which enables the company to be independent from traditional geological inputs on porosity and permeability.
The Manarah-1 well drilled earlier in the first quarter of 2016 had confirmed the presence of a source rock and a working petroleum system in the 6,564 square miles (17,000 square kilometers) Block 50 concession. Investigations are also underway for a revised, lower service-cost extended well testing and early production system to be used in Block 50. Masirah made its first oil discovery offshore Oman in the GA South well in 2014.
Masirah Oil is actively pursuing a farm-out campaign with the aim of attracting partners to the concession. The company, who holds 76.95 percent interest in Block 50, said in the press release that it expects "successful investments in Oman to generate positive cash flow even at prevailing oil prices of around $40."
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