Caribbean Rex Drills Wells in South Erin Block

Rex International Holding Limited announced that its 98.4 percent owned license-holding company Caribbean Rex Limited, has completed the drilling of three wells in the South Erin Block in Trinidad & Tobago. The wells were drilled as part of a three-well drilling program that Caribbean Rex started in the South Erin license in May 2014. Oil-bearing sands were encountered in all wells, two of which are deemed to be commercial with substantial net pay sands. Caribbean Rex will consider putting the wells on production as soon as testing has been completed and approvals have been granted.

 

Kristofer Skantze, Chief Operating Officer of Rex International Holding, said, “We are pleased with our strike rate of 67 percent in the South Erin Block, achieved with the assistance of Rex Virtual Drilling. The information that we have gathered from the wells will be used to further deepen our understanding of the sand trends in the Cruse and Lower Forest reservoirs within the concession. We were able to get drilling costing down to below $1 million per well, which was about 40 percent below budgeted costing, as a result of our cost management measures and taking advantage of the lower cost of oil drilling services over the past months, arising from the global fall in oil prices.”

 

Måns Lidgren, Chief Executive Officer of Rex International Holding, said, “Rex Virtual Drilling (RVD) has been incorporated together with conventional geological and geophysical studies in our work process to identify the locations of wells to drill. The drilling campaign in Trinidad holds important lessons for the refinement of RVD, especially for enhancing the technology’s use on onshore seismic data. The Rex Technology Management team will continue to work closely with the geological team to further improve the de-risking of the asset.”

 

Rex also updated that it has subscribed for NOK 13.7 million (approximately US$1.8 million based on the exchange rate of NOK1:US$0.13) of Fram Exploration ASA’s (FRAM) latest fund-raising round of NOK 28.6 million (approximately US$3.7 million based on the exchange rate of NOK1:US$0.13) that closed on 19 January 2015. Rex International Holding’s stake in FRAM will increase to an estimated 30.29 percent from 22.29 percent after the completion of the fund-raising round.