Rex International

 UOBKayhian, 2 Sep 2014

FY14F PE (x): n.m.
FY15F PE (x): n.m.
New technology Rex Gas Indicator added to portfolio. In Aug 14, Rex added Rex Gas
Indicator (RGI) to its suite of Rex Technologies (RT). RGI is able to detect hydrocarbons
in the gaseous phase using conventional seismic data. The addition of RGI to its
portfolio is expected to give Rex access to new markets (gas prospectivity market),
increase the potential in existing and new portfolio as gas prospects can be added to
the resource pool, and increase the attractiveness of REX as a partner to other E&P
companies.
1H15 early oil production in Oman still on track. Management is in the midst of getting
the necessary approvals for technical appraisals from the Ministry of Oil & Gas in Oman.
Early well production is still on track to commence by 1H15, and we understand that
production from the well may be about 5,000-6,000 bopd.
Maintain BUY and target price of S$1.27, based on the expected monetary value of
Rex’s exploration assets using forecasts from traditional geologist findings