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Rex updates on plans for Norway, Oman assets after replenishing war chest to $98 mil

PC Lee

SINGAPORE (Aug 19): Shares in Rex International Holding are trading 1 cent or 8.82% higher at $0.07 at 11.48am on Monday with 29.3 million units traded after unveiling its business strategy for the immediate future.

Rex, which uses satellite technology to look for underground oil, said subsidiary Lime Petroleum AS plans to start drilling in two Norwegian Sea licences in the second half of the year. Rex had acquired a 30% stake in each of the licences in June.

In Oman, Rex plans to generate revenue from its GA South asset, which it aims to put into production by end 2019. This will be funded mainly through off-balance sheet financing, said the company.

Rex executive chairman Dan Broström said the group is also buying back its own shares as they have been undervalued by the market which taking into consideration the value on its Oman discovery and Norwegian assets or its Rex Virtual Drilling technology.

Rex, which posted record earnings of US$23.6 million in 2Q19 ended June after selling some of its Norwegian assets, has a share buyback mandate of about $6 million. In the past week, the group had bought back a total of 2.3 million shares at 6.4 cents each.