Rex International

Rex International: 2Q14 net loss widened to US$3.6m from US$0.7m, mainly from the group's rapid expansion of operations, raising admin expenses 9-fold to US$2.4m. No revenue has been recorded, as Rex remains only involved in exploration and drilling activities. Share of losses of jointly-controlled entities- Caribbean Rex, HiRex, Rexonic and Lime, expanded 4-fold to US$2.2m, predominantly from Lime's acquisition of seismic data and expenses incurred for Rex Virtual Drilling and extended well testing in Oman. Management expects to continue its five-well onshore drilling programme in Trinidad into 4Q14 and remains on track to undertake extended well testing and early production in the Block 50 Oman concession in 1H15. At $0.595, investors may be too optimistic on the group's assets- priced at a hefty 3.1x book value, compared to oil-producing companies- KrisEnergy (1.4x P/B), Interra Resources (1.6x) and RH Petrogas (2.5x).