Rex

Rex: StanChart issued a non-rated company visit note for Rex, citing key competitive advantages include relatively higher exploration success rate, lower exploration cost and substantially shorter time required on exploration. Rex has had a success rate of 85% in back-tests using data from North Energy. The company hopes to improve asset valuation to 5-10x, given its low risk and cost exploration advantage. So far, Rex’s single completed well offshore Oman has produced encouraging light oil flow rates. The company is looking to drill at least nine more exploration wells across its portfolio this year. In addition, Rex is rapidly expanding its asset base – from 10 assets at the end of Jul 2013 to 23 now, and targeting 30 by end-2014E.