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Rex International’s stock has been on a tear since May, rising from around 12 cents (before the FY24 AGM) to 18 cents now, or 50%. Big Production On The Way At the AGM, Chairman John d’Abo told shareholders production was currently at about 11,000 barrels per day, and the aim was to achieve production of 20,000 barrels per day by the end of the year. |
Benin: The Next Big Thing
A big reason for the optimism is what’s happening in Benin, West Africa.
CEO Måns Lidgren said Rex aimed to "replicate its successful infrastructure model from Oman and to bring back oil production and tax revenue to Benin within a short timeframe."
Drilling at the Sèmè Field is set to start in July, and if all goes to plan, oil should be flowing by October at a rate of about 16,000 barrels per day.
Then Rex's effective interest would be 10,000 barrels as there are other stakeholders.
Norway: More Oil, More Often
Over in Norway, Rex’s Lime Petroleum unit is seeing strong results from the Brage and Yme fields.
Production has been better than expected, and with new wells coming online, output from these fields is expected to average 10,000 to 11,000 barrels per day this year—up from guidance of 8,000 to 10,000 issued in February 2025.
Additionally, there’s a new oil discovery in Brage, and more drilling is planned before year-end.
As the CEO of Lime Petroleum put it in the business update: “Lime and its subsidiaries are poised for an exciting Fall, with several high-impact operations taking place from the second half of 2025.
"Our nimbleness in entering new jurisdictions and ability to quickly add reserves and establish production are only made possible with seamless teamwork and collective sharing of expertise and experience among our dedicated employees”.
Rex holds a 80.14% stake in Lime Petroleum, which owns assets in Benin, Norway and Germany.
Financial Firepower
Rex isn’t just growing fast—it’s doing so from a position of strength.
It ended 2024 with about US$130 million in cash and investments, and no long-term debt at the holding company level.
This gives Rex the flexibility to fund its projects without having to tap shareholders for more money.
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Investors are drawn to companies with clear, near-term growth stories, and Rex is delivering just that: • Production is set to nearly double by year-end. • Major new projects in Benin and Norway are on track. • The company is financially solid, with plenty of cash and no long-term debt. The Lime Petroleum CEO’s words from the business update say it all: “Lime is using the full breadth of our expertise across geographies, augmented by the wider Rex family, to build shareholder value." With catalysts lined up for the next few months, it’s no wonder Rex’s stock is on the rise. |
