Rex International Holding Limited, one of the largest companies listed on the Catalist of the Singapore Exchange Securities Trading Limited, referred to the announcement issued on December 24, 2013 in which Masirah Oil Limited, a 64% owned subsidiary of its jointly-controlled entity, Lime Petroleum Plc , had suspended, for safety reasons, drilling of its first exploration well, Masirah North North #1 in Block 50 Oman for further evaluation. The MNN #1 well was drilled to a total depth of approximately 1,000 meters below mean sea level. Mud losses in two carbonate sections of the well prevented Masirah from drilling to its planned target depth.
Rex International Holding Executive Chairman, Dan Broström, said, “Even though the suspension of the drilling campaign was not caused by the use of Rex Technologies (Rex Virtual Drilling), we are of course disappointed that we did not reach the target area. The portion that was drilled coincide with the result using Rex Virtual Drilling. We have of course no way of validating Rex Virtual Drilling from the portion that was not drilled before the suspension. The collected data from the coring and logging programs will now be used to refine the geological understanding of the area. Efforts will also be made to take all possible safety measures from our learnings from MNN #1. To Rex International Holding, Block 50 in Oman is a very valuable asset so the operational difficulties encountered in MNN #1 has in no way lessened our resolve to be able to complete a successful drilling campaign. It is however imperative that we now carefully contemplate the next well to be drilled by Masirah to give us assurance we will reach the targeted depth. This will be done during the next two weeks.
Rex International Holding has already validated Rex Virtual Drilling in our drilling campaign in the U.S. and hopes to add to that with the start of its drilling campaign in Trinidad and Tobago in 1st Quarter 2014. We are also very hopeful to be able to add new concessions to our portfolio in Norway, through the new Awards in Predefined Areas (APA) round that is expected to be announced around 21 January 2014. For 2014, in addition to the onshore drilling mentioned above, Rex International Holding plan to drill a number of wells in Norway, Europe, Middle East and South East Asia all of which have been identified using Rex Virtual Drilling.”