Rex International to keep stake in Oman offshore block
The project is moving according to plan and is expected to achieve production in 2019.
Rex International Holding, a technology-driven oil company, having previously announced that it was looking to farm-out a substantial equity interest in Block 50 Oman (in which it holds a 92.65% indirect stake), is now considering to maintain a high equity stake in the licence.
The change of strategy comes as a result of the Group’s completion of feasibility and concept studies on its discovery well, GA South#1. The feasibility study is based on reprocessed seismic data which were re-analysed with an updated version of Rex Virtual Drilling (RVD version 4) and substantial conventional interpretation. Following the completion of the feasibility study which further validated the earlier studies, the Group plans to achieve production in the second half of 2019.
“The results of the feasibility study are very encouraging and we are of the view that the GA South#1 discovery well is a very valuable asset," said Dan Broström, executive chairman of Rex International Holding. "Although we had previously planned to farm out a larger interest in the concession to reduce our holding risks, we believe that there are merits in maintaining a high equity stake in the block to reap potential benefits of more upside and cash flow when there is production. In the meantime, we are looking at other non-dilutive financing options to help fund oil production costs.”
The GA South#1 discovery was made in 2014, and is the first ever offshore discovery east of Oman. The Group targets to achieve first oil production in Oman in the second half of 2019. The Group currently holds indirectly a 92.65% stake in Masirah Oil Ltd, which holds a 100% interest in the almost 17,000 sq km Block 50 Oman concession. Masirah Oil Ltd’sfinal plan and execution thereof are subject to government approval. The prospective resources (gross mean unrisked) in the entire concession were estimated to be about 4.7 billion barrels of oil by Aker Geo and Pareto Asia (28 February 2012).