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.

Recent stories:

REX INTERNATIONAL: Strikes oil in Trinidad & Tobago

REX INTERNATIONAL: Substantial shareholder FIL scoops up fallen shares

Counter Name	Last	Change
AEM Holdings	2.290	-0.070
Best World	2.460	0.020
Boustead Singapore	0.945	-0.015
Broadway Ind	0.125	-0.003
China Aviation Oil (S)	0.905	-0.005
China Sunsine	0.400	-0.010
ComfortDelGro	1.450	-0.010
Delfi Limited	0.895	-0.005
Food Empire	1.280	-0.040
Fortress Minerals	0.305	-0.015
Geo Energy Res	0.300	-0.005
Hong Leong Finance	2.480	-0.010
Hongkong Land (USD)	2.830	-0.020
InnoTek	0.520	-0.015
ISDN Holdings	0.300	0.005
ISOTeam	0.042	-0.001
IX Biopharma	0.040	-0.005
KSH Holdings	0.255	0.005
Leader Env	0.050	-
Ley Choon	0.044	0.001
Marco Polo Marine	0.067	-0.002
Mermaid Maritime	0.136	-0.003
Nordic Group	0.310	-0.005
Oxley Holdings	0.089	-
REX International	0.138	0.003
Riverstone	0.790	-0.005
Southern Alliance Mining	0.445	-
Straco Corp.	0.495	0.010
Sunpower Group	0.205	-0.005
The Trendlines	0.069	-
Totm Technologies	0.022	-
Uni-Asia Group	0.825	-
Wilmar Intl	3.400	0.020
Yangzijiang Shipbldg	1.740	-0.030

Counter Name

Last

Change

AEM Holdings

2.290

-0.070

Best World

2.460

0.020

Boustead Singapore

0.945

-0.015