Rex

Rex: UOB Kay Hian maintains Buy with $1.27 TP. Price catalysts for the stock include new concession wins and oil finds. On the hydrocarbons discovered at its second exploration well in Oman, further testing will need to be done before it could be determined if the oil resources are significant enough to be commercially viable. According to estimates from Hibiscus Petroleum (from its earlier presentation slides), GA-South is estimated to hold an unrisked best estimate recoverable prospective resource of 31.5 mmbbl (9.8mmbbl net to Rex based on its 31.2% effective working interest). With the slew of positive newsflow, UOB KH believe share price is poised for a recovery after it was heavily beaten down on negative sentiment in the broader market. Prices have also seemed to have stabilised near $0.53/54.