Rex International Holdings Provides Updates on Upstream Portfolio
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, would like to give investors Thursday a summary on the developments in its portfolio and an update on its strategy and future plans for equity stakes in subsidiaries, jointly controlled entities and investments.
Mans Lidgren, CEO of Rex International Holding, said, “Over the past eight months since our listing July 31, 2013, we have delivered on growing our portfolio of concessions, expanded our geographical footprint, added to our suite of technologies and made an oil discovery. With this update, we wish to give investors some guidance on the dynamics of our portfolio, our strategy to leverage on our proprietary technologies and to minimize capital outlay, so that investors can better understand the Company’s strategy for each underlying asset in the short term. In line with industry practice, we intend to focus on concessions in our portfolio where we have seen recent success and continue to see significant potential.”
The successful oil discovery in Block 50 Oman has further strengthened public perception that Rex Virtual Drilling (RVD) as a tool, adds real value to the oil exploration, appraisal and development process. North Energy ASA’s announcement August 16, 2013 provided further testament to the accuracy of RVD, highlighting the possibility to deploy RVD successfully across different geologies, operatorships, seismic acquisition/processing companies, depths, characteristics and size of targets.
In order to fully capitalize on the technology, the Company will going forward, only pursue opportunities and invest funds in assets which have in whole or in part been scanned and derisked with RVD, given that RVD is a direct hydrocarbon detector that will lower the risk of drilling dry wells. The Company will particularly not invest in assets where RVD has not been used as any negative drilling result, albeit achieved without the use of RVD, could impact the public perception of the Company and its proprietary suite of technologies in a most severe and adverse way. This has been identified by the Company as a key risk which must be mitigated.
Further, the Company will continue to have a diversified portfolio with ideal equity stakes of between 5 percent to 30 percent direct or indirect ultimate exposure to underlying assets and to limit the amount of funding allocated to each asset, as part of its risk and portfolio management strategy.
The Company is positive on its growth prospects. Investors and shareholders should expect strong growth in the Company’s portfolio of assets and see additions in the Company’s core markets, including in the Middle East, Norway, Trinidad & Tobago, as well as through its jointly controlled entity HiRex Petroleum Sdn Bhd, in Southeast Asia. The Company is currently reviewing participation in two opportunities in Australia and one each in Indonesia, Myanmar and Malaysia.
Even as the Company’s proprietary suite of technologies continues to generate substantial deal-flow and interest from other industry players, the Company is working further to enhance and develop the RVD platform to add more technical capabilities to increase market share and exposure to new opportunities.
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