Rex

Rex : its 64.17% owned licence-holding company, Caribbean Rex, has spudded its first onshore well in Cory Moruga on 29 April. This is the first of a 5-well onshore drilling program that Caribbean Rex will undertake in 2014 in its South Erin and Cory Moruga concessions. According to management, the 5-well on shore drilling programme in Trinidad had been fully funded (each well is estimated to cost ~US$1-5m) Drilling and completion work for the well drilling is expected to take between 25-50 days (end of May to June ). About the Cory Moruga concession: The previous Cory Moruga concession holders had made an exploration well oil discovery in the block in early 2011. The well was subsequently shut-in but will be put on production later this year. Prior to putting the well on production, the Company is also looking to utilize its Rexonics (an ultrasonic well-cleaning technology) to remove any built up deposits and enable optimal production flow. Based on 70 global well stimulations, Rexonics has shown to improve oil production by 30-380% with a longer-term sustained effect. UOBK maintains BUY with TP $1.27.