Rex

Rex: 1Q14 net loss of US$2.5m, attributed to US$1.6m in admin expenses on its rapid expansion in operations and additional headcount in the Singapore office, as well as US$1.5m share of losses from jointly controlled entities predominantly on start-up costs. The loss was partially mitigated by finance income of US$0.3m and fair value gain from mark-to-market investments of US$0.3m. Meanwhile, Rex did not record any revenue as it is still involved in exploration and drilling activities. In the current quarter (2Q), 64.2%-owned, Caribbean Rex, is expected to commence onshore drilling for five wells at the South Erin Block and Cory Moruga concessions in Trinidad. The location of these wells were selected based on the group's proprietary "virtual drilling" technology, of which the group claims to provide a significantly higher success rate of over 50%, compared to global average of 10-15%. Theoretically if claims hold well, investors should expect at least two out of the five wells to be put on production 1-2 months after completion of drilling, assuming the discovered resources are of commercial standards. In addition, the group expects to commence production for a well in Cory Moruga, as well as to pursue early production in Block 50 Oman within the next 12 months.