Check out this archive of international media coverage on the Rex Group and its activities.
“Excerpts from UOB Kay Hian report: In 2H19, Rex is looking to turnaround into profitability in 2020 when two of its oil wells come on stream. Its Oman oil well is to start production in 2H19 with 5,000 bpd. The Rolvness oilfield is slated to start in 2020, with 7,000 bpd and this is set to increase to 14,000 bpd by end-20. Rex could generate S$32.7m net profit in 2020 if the oilfields deliver as planned. In addition, Rex has cash totalling S$56.9m as of 1H18 and it could receive S$34.5m from the Oman government in 2019 if they exercise their option for a 25% stake, based on a historical cost pool of S$138.0m.”
“Rex International Holding announced successful developments in Norway on 27 Aug 2018, following which it received unsolicited, non-binding indications of interest in the portfolio of licences held by Lime Petroleum AS, a 90 per cent subsidiary of Rex. So the big question is how much might Lime Petroleum be worth? Lime Petroleum holds a 30% stake in Rolvsnes discovery in Norway and a 20% stake in the adjacent Goddo prospect. Estimated net combined resource to Lime: >40 mmboe, based on a conservative assumption of net 20% to Lime. Illustrative example: Net 40 million barrels of oil in Rolvsnes and Goddo combined would have a value to Lime after discovery of US$ 80 million assuming current oil-in-the-ground valuation of US$ 2 /bbl. Assuming a higher oil-in-the-ground valuation of US$ 5 /bbl, the value to Lime would be US$200 million. In per share terms, US$80 million translates into about 8.4 SGD cents while US$200 million is 21 SGD cents. These figures are large relative to Rex's stock price, currently at around 11.4 SGD cents.”
“Rex International has announced that the drilling and production testing of well 16/1-28S on the Rolvsnes oil discovery in PL338C, in which Rex’s 90 per cent subsidiary Lime Petroleum AS holds a 30 per cent interest, has been completed successfully. The operator, Lundin Norway AS, has drilled a 2.5km horizontal section in the reservoir. The drilling results show good reservoir productivity and connection to a significant oil volume, with production rate of up to 7,000 barrels of oil per day (bopd), confirming sustainable commercial oil flow. The next step towards commercialisation is to tie the well to the adjacent producing Edvard Grieg platform which is also operated by Lundin.”
"Not that many companies of our size are pre-qualified in Norway and I think is right to say that our technology played a very important part in us getting that pre-qualification," said Mr Dan Broström, executive chairman of REX.
As CEO Mans Lidgren recounted: "We have used our technology-led, de-risked exploration approach to build a cluster of investments in the Rolvsnes area in the North Sea. They are close to existing pipeline infrastructure, so that upon more discoveries, commercialisation can be fast-tracked."
"Singapore-based Rex International Holding Limited, the majority shareholder in Masirah Oil Limited, which owns and operates Block 50 off the Sultanate’s eastern seaboard, says it sees the potential to commence production from a key offshore discovery next year.
"The evaluation of the development programme for the GA South-1 discovery in Oman is ongoing and will continue until the first half of 2018. Should the evaluation be positive, the Group will aim to start production from GA South-1 in 2019,” said Rex International in its newly published 2017 Annual Report."
"Måns Lidgren, CEO of Rex International Holding, said: “PL818B, like the Rolvsnes discovery, is located near to Johan Sverdrup, one of the five largest oil fields on the Norwegian continental shelf, and adjacent to the producing Edvard Grieg and Ivar Aasen fields. "We are very pleased that LPA now holds stakes in a cluster of investments in this oil-prolific area that already has pipeline infrastructure in place, allowing a fasttrack path to potential commercialization and return on investment when we make more oil discoveries.""
“Mr Dan Broström, Executive Chairman of Rex International Holding, said, “When we were first listed in mid-2013, our business model was to focus on using the RVD technology on our own assets to increase the chance of success in finding oil and then to sell oil-in-the-ground upon any discovery. With the collapse of oil prices since mid-2014, we have moderated our drilling plans to focus on getting our key assets to production.
"To concentrate on our core competence in the technology arena, we are seeking operational partners of high professional standard for Oman. In Norway, we are already working with highly experienced partners in the licences, in particular Lundin Petroleum Norway AS who is also the operator of the licence PL338C (Edvard Grieg) discovery.””
"Outside the 10 largest capitalised stocks of Singapore's Energy Sector, Rex International ranked among the 10 actively traded stocks that saw the biggest increase in September volumes (compared to three month average volumes)."
"Rex shares appear to be grossly undervalued; given that the current market capitalisation of the Company is even less than the value of our liquid assets. The market has not price in any value for our proprietary technologies and our interests in licences, which include a discovery in Oman and another in Norway, both of which have the potential to be monetised over the medium term.".
"In another development in the tussle between Rex International and a Malaysia-listed company, the High Court of the Isle of Man on 30 June (2016) ordered the immediate winding up of Lime Petroleum."
Dan Broström, Executive Chairman of Rex International, said, "the Company reiterates that it has always been confident that the Lime Directors have at all times acted consistently with their duties to Lime and is pleased that the Lime Directors have once again been fully vindicated by this latest judgment on the application to wind up Lime."
""For the reasons I have referred to I am not persuaded that Gulf is acting in good faith. I am concerned, on the evidence and arguments presented that Gulf´s conduct and approach taints its good faith and I am not convinced that Gulf is acting with entirely "clean hands". Frankly, based on the evidence presented to me, I am of the view that Gulf has no real genuine interest in advancing the interests of Lime. I am of the view that Gulf simply wishes to advance its own interests and to damage those of Rex."
-- His Honour the Deemster Doyle”
““Rex is in a good financial position and will continue to minimise exploration risks with its proprietary RVD technology and geological review by its Technical Review Committee, and will only participate in selected drilling campaigns that are economically viable in the current challenging environment.””
"Rex's chairman Mr Dan Brostrom explains, "We have liaised with established players such as Lundin and Statoil, who realise we have some interesting technologies that reduce their risk in drilling. We are going with them into areas that are oil-prolific and where there are already discoveries made and these players have been involved there. These are logistically built-up areas, and there's enough work there to keep us busy for some time.".. "we have it all funded for 2016. And the Board's position is we have to be very prudent with the cash we have.""
""The current environment of low oil price is a window of opportunity for exploration work at a much lower price to fill up our well discoveries," said Rex International co-founder and major shareholder Hans Lidgren. "With the money we currently have, we can do twice as much as what we could have done before the oil price slump," he said. "We believe, with a high degree of confidence, that we can find, much more easily, these large oil fields," Kristofer Skantze, Rex International's Chief Operating Officer who was also at the Media Briefing. "If oil prices go up again in the short term, we expect to have more oil reserves in our portfolio to sell. We have many exploration activities in Norway in 2015 and this is a result of the pre-qualification approval (of our jointly controlled entity in Norway) by the government and subsequent high-grading work using Rex Virtual Drilling on assets we've been looking at," said Mr Lidgren. "The drilling technology there is very mature so it is comparatively safe ground to be in. This is a very good opportunity for us to demonstrate the capability of Rex Virtual Drilling and our other proprietary exploration technologies. Norway's a very favourable region to be in because of a 78% tax subsidy from the government on your expenses in oil exploration, regardless of whether you make a discover or not but, you have to be a pre-qualified company, which we are," said Mr Skantze. He also mentioned that "the exploration programme to drill up to 10 wells this year, focusing on identifying and proving up new prospects, is extremely ambitious. To put this in perspective, we are on par in terms of activity level with companies 10 times our size. In addition to Norwegian concessions, we will also be drilling in Trinidad and Oman where we are still working on identifying how much oil there is. We are in this with very reputable companies and we have entered on very favourable terms. They want us to be in on it because we have the technology that can add value to the consortium. In general, we don't participate in drilling prospects unless there is potential for at least 50 million barrels of recoverable oil.""
"Man's Lidgren, CEO of Rex International Holding, said, "Lime Norway completed the acquisition of a 5 percent stake in PL 591 and the neighbouring PL591B from North Energy in October 2014 and was awarded PL591C in the latest 2014 Awards in Predefined Areas (APA) round in January. We are pleased to seize this opportunity to increase our stake in the licenses, given the promising potential we see in the Zumba prospect with Rex Virtual Drilling and the upcoming spud date of the exploration well.""
“Buy” maintained with adjusted TP of S$1.05
“This is a very high-risk industry where only 10% to 15% of the wells drilled contain oil or gas and the rest are dry. But compared with other players, we have a much lower risk because we use satellite technology that allows us to generate higher –resolution maps and zoom in on relevant areas where there is potential to find O&G.” … “Because of this edge in knowing where to explore for oil, we are able to look at a lot more opportunities compared with other companies. Last year, we looked at more than 100 potential contracts. This year, we plan to look at 200 in selected jurisdictions, and we are striving for a success rate of 50%. We will continue to focus on adding exploration assets to our portfolio, but will also look at producing assets that can generate income in fiscally attractive jurisdictions,” says Måns Lidgren, CEO of Rex International.
“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 and 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.””
“There are nine stocks with market capitalisations above S$200 million, the largest of which are Rex International, Charisma Energy Services and Singhaiyi Group…Over 127 trading days last year, the stock (Rex) generated a trading turnover of S$1.11 billion, which implied an average daily turnover of S$8.8 million.”
“Of the top five IPOs in Singapore in 2013, we noted that the companies with the most merger & acquisition (M&A) activities after listing fared the best,” Ernest Kan, chief of operations for clients & markets of Deloitte Singapore, tells The Edge Singapore. “It seems to us that investors also responded better to companies with clear prospects as well as those which were undervalued…Also on the top five list are…Rex International Holding…which has gone up…28%…since going public.”
Maintain BUY for 85% upside potential. Our TP for Rex is adjusted down to S$1.15, as we factor in a bigger share base arising from the recent share placement, as well as consideration shares issued to fund the acquisition of the Rexonic stake and an additional stake in Rex Caribbean. However, we believe the story for Rex remains intact, as highlighted above, and the recent sell down thus presents a good buying opportunity. “
“Rex International Holding has been one of the more successful IPOs in the past year and the stock looks like it could still go higher…Since its listing, Rex International has gone up by 45% to 82 cents on Oct 14, or 4.34 times its book value. The price had touched a peak of 93 cents on Sept 24. Sakar (DBS Vickers) has a “buy” call on the stock with a price target of $1.27, which implies about a 50% upside at its current price.”
“BUY (initiating coverage)…Based on an SOTP valuation using conservative chances of success, we arrive at a price target of $1.27 for RIH, which implies close to 50% upside at current levels. – DBS Vickers Securities (Sept 24)
“The liquidity of the MOG companies…Two of the most active MOG stocks in the quarter to-date including the Initial Public Offerings (IPOs) of Kris Energy and Rex International.”