REX: 2015 operational plan to "prove up more oil in our assets"

OIL PRICES are down, but Rex International Holdings is not taking a hit as it has limited oil production levels currently.

The positive is that for its plan to drill this year, it expects to pay less for drilling services.

300_Mans_Lidgren1_9.14 CEO of Rex International Mans Lidgren. NextInsight file photoMr Måns Lidgren, CEO of Rex International Holding, said it is in a strong position of being debt free and well capitalised for its plan to participate in the drilling of about 10 wells in the core areas of Norway, Oman and Trinidad during the year.

He added in an announcement yesterday: "We will be prudent with our capital expenditure for drilling activities and are very selective when committing to projects. All of them will be de-risked with Rex Virtual Drilling (“RVD”).

"Our basic monetisation strategy, barring other business considerations, remains to sell oil-in-the-ground, upon a declaration of discovery at the best possible price, especially in matured markets such as Norway.”

The company's focus for 2015 will be to prove up more oil in its own assets so that "with more validation of our RVD technology, we can grow the clientele base for Rex Technology Management Ltd (“RTM”), as well as build up our own portfolio of concessions."

Mr Lidgren added that Rex screened about 200 opportunities with RVD in 2014 and expects to look at a similar number of opportunities this year.

Second-Generation Rex Virtual Drilling

Rex Technology Management is developing a second generation of RVD with improved depth resolution in the analysis of seismic data, allowing for improved correlation with conventional geological studies in terms of identifying seals and salt structures.

Rex International Holding has started using this enhanced RVD on previously identified prospects to further validate initial findings before final drill location decisions are made.

Click here for Rex's announcement on its plan for each region it has a presence in -- Norway, Block 50 Oman, United Arab Emirates, Trinidad & Tobago, North Dakota and Colorado, Australia and Germany.

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Counter Name

Last

Change

AEM Holdings

2.360

-0.030

Best World

2.480

0.010

Boustead Singapore

0.945

0.005