Over the last week, Rex International has made several announcements that would be music to its shareholders.
In its latest bourse filing on Feb 2, oil and gas explorer Rex International announced the discovery of hydrocarbons in the “Knockando Fensfjord” prospect in the Brage Field, Norway. Rex’s indirect subsidiary Lime Petroleum AS owns a 33.8434% interest in the field.
The type of hydrocarbon is yet to be confirmed. Preliminary estimates indicate 0.5 to 1.5 million standard cubic metres (Sm3) of recoverable oil equivalent (o.e.) if it is oil, or 0.4 to 0.9 million Sm3 o.e. if it is gas.
Reports indicate that the well was drilled from the Brage installation, with the discovery made in connection with the Talisker development well that commenced production on Jan 11.
According to the Norwegian Offshore Directorate (NOD), the development well was drilled through the Lower Fensfjord Formation of Late Jurassic age in the Knockando prospect area on its way to the Talisker development area. A 38.5-metre column of hydrocarbons was proven in an interval of multiple sandstone layers with moderate to good reservoir quality. The NOD added that petroleum/water contact was not encountered.
The development wellbore was drilled to respective measured and vertical depths of 10,009 metres and 2,309 metres below sea level, and was terminated in the Oseberg Formation of Middle Jurassic age according to NOD.
See also: Trump says he welcomes China, India investment in Venezuela oil
Lime’s partners in this venture include OKEA ASA (operator, 35.2%), DNO Norge AS (14.2567 %), Petrolia NOCO AS (12.2575%), and M Vest Energy AS (4.442%). The Edge Singapore understands that all partners are considering developing the “Knockando Fensfjord”.
Earlier on Jan 26, Rex made two announcements. Firstly, Rex’s indirect subsidiary Akrake Petroleum completed drilling operations on the AK-2H production well in the Sèmè Field, Benin. Production is expected to start sometime this week.
Secondly, Lime successfully obtained approval to defer its obligation to pay interest payments in January 2026 for its 2027 and 2028 bonds. Lime also gained some near-term financial flexibility as it also obtained approval to temporarily waive and suspend the minimum liquidity covenants for the bonds until Mar 31, 2026.
See also: Oil’s year of the glut begins with an unexpected price surge
In addition, on Jan 28, it was announced that shareholders approved the proposed spin-off of REX’s commercial drone business. After the completion of the transaction which will see the business listed on the Sweden Spotlight Stock Market, REX will own a 50.4% stake in the spin-off. REX executive chairman John d’Abo says that the development will allow the drone business to obtain debt financing ‘independently” from REX to fund business expansion as well as realising shareholder value for Rex shareholders.
At around 12:20 pm on Feb 2, nearly 13.5 million shares of REX have changed hands. The counter is down 0.6 cents, or 3.9% to 14.9 cents.
