Rex acquires 30% in Norway oil well, increases stake in Cory Moruga block

Oil rig, Lime Petroleum, Norway

Catalist listed oil and gas outfit Rex International Holding has lined up two deals abroad, including an agreement by its jointly controlled entity – Lime Petroleum Norway – to acquire a 30 per cent stake in licence PL338C in the North Sea, Norway.

The deal will see Lime Norway buying a 30 per cent stake from Lundin Petroleum Norway AS (Lundin) in licence PL338C.

Post the deal, Lundin’s stake will be 50 per cent and OMV (Austria’s largest listed industrial company), 20 per cent.

Lime Norway is a wholly-owned subsidiary of Lime Petroleum Plc. Lime Petroleum Plc is a jointly-controlled entity in which, REX holds a 65 per cent indirect stake.

The prospect to be drilled, named Gemini, is located about 10 km from the Edvard Grieg production platform. Lundin has estimated gross un-risked prospective resources of 93 mmboe (P50) with a chance of geological success of 24 per cent  in Paleocene aged sandstones in a stratigraphic pinch-out trap.

The company also said that Lime Norway has adequate financing to fulfil its work commitments for at least the next one year.

In another development, Rex said its indirect subsidiary, West Indian Energy Group Limited, has completed the acquisition of all the issued and outstanding shares of Parex Resources (Trinidad) Limited, whose main material asset is a 63.8 per cent working interest in the Cory Moruga Block in Trinidad & Tobago.

Rex had paid $1.5 million in cash for the deal and Parex had a working capital of $200000, as at Jan 31, 2015.

“The consideration was funded using proceeds from the share placement which was completed on Sept 17, 2014 and allocated for existing and potential new business opportunities,” Rex International said in a filing with the stock exchange on Monday.

Post the deal, Rex International Holding’s indirect working interest in the Cory Moruga Block has increased from 20 per cent to 83.8 per cent.

The Cory Moruga Block is located in the southern basin, onshore Trinidad. The 7,422-acre block (gross) had 15 wells drilled in the 1950s. A well spudded in 2010 encountered hydrocarbon bearing zones in both the primary and secondary objectives in the Herrera formation.

Rex International Holding had on 18 December 2014, announced that its previously 64.17 per cent indirectly owned licence-holding company Caribbean Rex, had completed the divestment of its indirect 100 per cent interest in the subsidiary that holds the Incremental Production Sharing Contract for the Inniss-Trinity field, for an increased stake in Caribbean Rex.

Rex now holds an indirect interest of approximately 98.36 per cent in Caribbean Rex, which together with its subsidiaries also hold a 100 per working interest in the South Erin Block.

Kristofer Skantze, chief operating officer of Rex International Holding, said: “These two transactions enable us with greater operational control to further focus on assets that can leverage on our RVD technology in the short term. With our recent achievement of having two successful wells out of three wells drilled in the South Erin Block, we are excited about the potential of the Cory Moruga Block.”

On the Norway deal, where the company’s jointly controlled entity had will acquire a 30 per cent stake in licence PL338C in the North Sea, Norway, Rex’s chief executive officer Måns Lidgren said, “The window of opportunity to farm-in to the licence came up very recently. Rex Virtual Drilling scans of the Gemini prospect drilling location have strongly indicated the presence of hydrocarbons, confirming conventional geological findings. “

Rex shares ended flat at 36.5 cents on Monday.

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Singapore Reporter/s

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.