Rex

Rex: SPAngel reiterates Buy with TP $1.10. Notes the recent fundraising of $75m is timely, and provides two things to the company: i) balance sheet strength - given that funding mkts are not fully open, a dollar on the balance sheet is worth more than a dollar to third parties outside the company, and ii) Corporate flexibility - can pick and choose , and be more aggressive in their pursuit of terms, which is good for shareholders. Entering the end of 2014, SPAngel sees Rex's drilling programme starting to accelerate, with focus points being Norway and Oman appraisal wells. Nevertheless, there will also likely be significant activity right across the portfolio in all their jurisdictions.