Rex

Rex: Amidst the backdrop of weakened oil prices, Rex's focus in 2015 will be to prove up more oil in its own assets- all of them de-risked with its Rex Virtual Drilling (RVD) technology, to grow the clientele base in the proprietary application.

Group plans to drill about 10 wells in the core areas of Norway, Oman and Trinidad during the year, with funding reportedly in place.

Rex believes that the impact of the plunging oil prices may spur oil exploration companies to look to new technologies such as RVD to increase the chance of striking oil.

While management is of the view that its current limited oil production levels also means that it is less affected by falling oil prices, we reckon that the already-limited cash in-flows would be almost neglible to buffer its extensive capex spending and take a deeper stab into its balance sheet.

At $0.38, Rex trades at 1.5x P/B, with net cash of US$111.2m (as at 30 Sep '14).