MASIRAH OIL RAISES $13MN FOR DRILLING ACTIVITIES IN OFFSHORE BLOCK 50

MUSCAT: Masirah Oil Ltd, which is the operator and holds 100 per cent ownership in offshore Block 50 concession in Oman, has raised US$12.83mn by issuing new shares to two existing shareholders to pursue its drilling activities and continue operations in the sultanate.

Singapore-based Rex International Holding Limited on Monday said that its indirect wholly-owned subsidiary Rex Oman Ltd has been informed by Masirah Oil of the completion of Rex Oman’s subscription of 5,760 new Masirah Oil shares for a total amount of US$8.21mn.

Masirah Oil is a 64 per cent owned subsidiary of Lime Petroleum Plc, which is Rex International Holding’s 65 per cent indirectly held jointly-controlled entity.

Masirah Oil issued 9,000 new shares (at US$1,426 per share) to raise an aggregate amount of US$12.83mn, an statement issued by Rex International Holding said. It said the remaining 3,240 new shares were subscribed by Petroci, an existing shareholder of Masirah Oil, in proportion to its current equity interest in Masirah Oil of 36 per cent.

The subscription for new Masirah Oil shares was open to all direct and indirect shareholders of the company, of which only Petroci and Rex Oman decided to participate.

‘The capital injection was necessary to allow Masirah Oil to pursue its drilling activities and continue its operations in Oman, as well as for general working capital requirements; and was fully satisfied in cash by Rex Oman and fully funded by internal resources of the group’, Rex International Holding said.

Masirah Oil is planning to drill up to three wells in 2015 and 2016 in the Block 50 concession, Rex International Holding said.

‘The board is of the view that Masirah Oil has high potential for growth, as the discovery made in the concession in early 2014 was the first offshore discovery east of Oman, after 30 years of exploration activity in the area. During a 48 hour test, hydrocarbons were flowed to the surface and the well achieved light oil flow rate of up to 3,000 stock tank barrels per day (stb/d) with no water production’, Rex International Holding added.

SOURCE: MUSCAT DAILY