(MENAFN - Muscat Daily) Muscat- Singapore-based Rex International Holding Limited announced that it is planning to achieve first oil production from Oman's offshore Block 50 in the second half of 2019 and the company is considering to maintain a high equity stake in Oman block.
Rex International, together with its subsidiaries, currently holds a 92.65 per cent indirect stake in Masirah Oil Ltd, which holds a 100 per cent interest in the Block 50 concession, which is almost 17,000sqkm in size.
'Rex International, a new-generation technology-driven oil company, having previously announced that it was looking to farm-out a substantial equity interest in Block 50, is now considering to maintain a high equity stake in the licence', the company said in a press statement on its website.
It said the change in strategy comes as a result of the group's completion of feasibility and concept studies on its discovery well, GA South#1 in Oman.
'The feasibility study is based on reprocessed seismic data which were re-analysed with an updated version of Rex Virtual Drilling (RVD version 4) and substantial conventional interpretation. Following the completion of the feasibility study, which further validated the earlier studies, the group plans to achieve production in the second half of 2019', Rex International said.
Dan Broström, executive chairman of Rex International, said, 'The results of the feasibility study are very encouraging and we are of the view that the GA South#1 discovery well is a very valuable asset. Although we had previously planned to farm out a larger interest in the concession to reduce our holding risks, we believe that there are merits in maintaining a high equity stake in the block to reap potential benefits of more upside and cash flow when there is production. In the meantime, we are looking at other non-dilutive financing options to help fund oil production costs.'
The GA South#1 discovery was made in 2014, and is the first ever offshore discovery east of Oman.
Rex International said that Masirah Oil Ltd's final plan and execution are subject to the government approval. The prospective resources in the entire concession were estimated to be about 4.7bn barrels of oil by Aker Geo and Pareto Asia (on February 28, 2012).