RIH Raises Indirect Stake in Cory Moruga Block in Trinidad & Tobago
Rex International Holding Limited (Rex International Holding or the Company, and together with its subsidiaries, the Rex Group), one of the largest companies listed on the Catalist of the Singapore Exchange Securities Trading Limited, reported Monday that its indirect subsidiary, West Indian Energy Group Limited, has completed the acquisition of all the issued and outstanding shares of Parex Resources (Trinidad) Limited (Parex Trinidad) (the Acquisition), whose main material asset is a 63.8 percent working interest in the Cory Moruga Block in Trinidad & Tobago, pursuant to a Sale and Purchase Agreement (SPA) signed with Parex Resources (Barbados) Limited, a subsidiary of Parex Resources Inc.. The consideration for the Acquisition is the aggregate of $1.5 million in cash and the working capital of Parex Trinidad as at Jan. 31, amounting to approximately $200,000 (the Consideration). Pursuant to the completion of the Acquisition, Rex International Holding’s indirect working interest in the Cory Moruga Block has increased from 20 percent to 83.8 percent. The Consideration was funded using proceeds from the share placement which was completed on Sept. 17, 2014 and allocated for existing and potential new business opportunities.
Mans Lidgren, CEO of Rex International Holding, said, “Analyzes using our proprietary Rex Virtual Drilling (RVD) technology on seismic data covering the Cory Moruga Block have been positive and we are optimistic about several prospects in the asset. Onshore production levels are typically lower than offshore wells, but drilling of onshore wells costs substantially less than that of offshore wells. At current oil prices, there is potentially still a good margin for produced oil in Trinidad. The Cory Moruga Block is located close to existing prolific fields and with an increased interest in the block, our Trinidadian subsidiary can also book more revenue when a previously locked-in discovery well is put on production.”
The Cory Moruga Block is located in the southern basin, onshore Trinidad. The 7,422-acre block (gross) had 15 wells drilled in the 1950s. A well was spud in 2010 encountered hydrocarbon bearing zones in both the primary and secondary objectives in the Herrera formation. The discovery well produced 37 degree API gravity oil with a stabilized test rate of 578 bopd before being suspended due to operational issues, and is presently awaiting to be reactivated.
Rex International Holding had on Dec. 18, 2014, announced that its previously 64.17 percent indirectly owned license-holding company Caribbean Rex, had completed the divestment of its indirect 100 percent interest in the subsidiary that holds the Incremental Production Sharing Contract for the Inniss-Trinity field, for an increased stake in Caribbean Rex. Rex International Holding now holds an indirect interest of approximately 98.36 percent in Caribbean Rex. Caribbean Rex and its subsidiaries also hold a 100 per working interest in the South Erin Block.
Kristofer Skantze, chief operating officer of Rex International Holding, said, “These two transactions enable us with greater operational control to further focus on assets that can leverage on our RVD technology in the short term. With our recent achievement of having two successful wells out of three wells drilled in the South Erin Block, we are excited about the potential of the Cory Moruga Block.”
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.