SINGAPORE: Rex International Holding Limited has appointed Nordic independent investment bank ABG Sundal Collier ASA as financial adviser and intermediary to review non-dilutive financing options for Rex’s 86.37 percent subsidiary Masirah Oil Ltd, a news release said.
ABG Sundal Collier will advise, among others, on the structure, timing and organisation of a possible bond financing. Masirah Oil is developing the Yumna field, located in licence Block 50 Oman, in which it has a 100 percent interest.
Dan Broström, Executive Chairman of Rex International Holding, said, “The Group has always been prudent with its use of equity and aspire for its subsidiaries to be financially independent. The bond financing, if successful, will be a win-win for the Group and Masirah Oil, as it is a non-dilutive financing option that leverages on the strength of the Yumna field development.
“The Group believes that ABG Sundal Collier, with its more than 30-year transaction experience and broad financial and industrial network for financing solutions, is well placed to advise on this bond financing project.”
Rex International Holding was listed on Singapore Exchange Securities Trading Limited’s Catalist Board on 31 July 2013. The Company de-risks its portfolio of exploration and development assets using its proprietary liquid hydrocarbon indicator Rex Virtual Drilling technology to identify the location of oil reservoirs in the sub-surface through analysis of seismic data. Since the Company’s listing, the Group has achieved three offshore discoveries, one in Oman and two in Norway. The Group also offers Rex Virtual Drilling screening services to other oil exploration companies as an additional tool to increase the success rate of finding oil.