Rex

Rex: In a company visit to the company, DBSV notes that Rex has continued to make good progress in expanding its portfolio of assets from 10 to the current 23 concessions since its IPO in Jul last year, expanding its geographical footprint to Trinidad & Tobago and Australia, in addition to the Middle East, Norway and the US. Rex has also recently decided to acquire direct rights to the Rex Technologies from its founders, which not only removes some investor concerns, but also contributes an estimated $10m/year in earnings. Rex is well funded for the future, recently raising US$75m in a recent placement exercise. This will add on to the existing available funds of about US$70m and underpin future drilling programmes at the group's various licences, as well as help fund new business opportunities. Owing to a bigger share base following the recent share placement exercise, DBSV maintains their Buy rating with TP of $1.05 (from $1.15).