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Rex eyes Oman offshore production next year

Singapore-based player cancels farm-out plans as reprocessed seismic data boosts interest

Singapore’s Rex International has cancelled plans to farm-out part of the interests in its offshore block in Oman, after reprocessed seismic data pushed the company into a new direction, which include plans to start production next year.

Rex said on Tuesday that it was no longer looking to farm-out a “substantial equity interest” in Block 50.

The change of strategy is due to recently completed feasibility and concept studies on its discovery well, GA South1, where, based on reprocessed seismic data, Rex now plans to achieve production in the second half of 2019.

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“The results of the feasibility study are very encouraging and we are of the view that the GA South1 discovery well is a very valuable asset,” executive chairman Dan Brostrom said.

“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,” Brostrom said.

The GA South#1 discovery was made in 2014, and was the first ever offshore discovery east of Oman.

Rex holds a 92.65% stake in Masirah Oil, which holds a 100% interest in the almost 17,000 square kilometres Block 50 Oman concession.

The prospective resources in the entire concession were previously estimated to be about 4.7 billion barrels of oil.

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