rex presentation jpmforum hk
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COMPANY PRESENTATIONREX INTERNATIONAL HOLDING
J.P. Morgan Asia Rising Dragons Forum
Hong Kong, 21-22 November 2013
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DISCLAIMER
The information contained in this presentation has not been independently verified. The Company assumes no responsibility or liability whatsoever (inaccuracy or completeness of, or any errors or omissions in, any information or opinions contained herein nor for any loss howsoever arising, whether direl iance or distr ibut ion of this presentat ion or i ts contents or otherwise arising in connection with this presentat ion. I t is not the intent ion to providepresentation as providing a fair, accurate, complete or comprehensive analysis of all material information concerning the Company, or the Companyprospects. The informationand opinions contained in this presentation are provided as at the date of this presentation and are subject to change without
This presentation may not be forwarded or distributed to any other person and may not be reproduced in any manner whatsoever. Any forwarding, dpresentation in whole or in part is unauthorised. Failure to comply with this directive may result in a violation of the Securities Act or the applicable laws of
This presentation is for information purposes only and does not constitute or form part of an offer, solicitation or invitation of any offer, to buy or subscribor any part of it form the basis of, or be relied upon in any connection with, any contract, commitment or investment decision whatsoever. This documenby any other party, or for any other purpose, and maynot be reproduced, disseminated or quoted without the prior written consent of the Company.
This presentation contains projections and forward-looking statements that reflect the Company's current views with respect to future events and financibased on estimates and current assumptions which are subject to business, economic and competitive uncertainties and contingencies as well as varioover time and in many cases are outside the control of the Company and its directors. You are cautioned not to place undue reliance on these forwabased on the current view of the management of the Company on future events. No assurance can be given that future events will occur, that projectCompany's assumptions are correct. The Company does not assume any responsibility to amend, modify or revise any forward-looking statements,developments, information or events, or otherwise. These statements can be recognised by the use of words such as "expects," "plans," "will," "estimatemeaning. Such forward-looking statements are not guarantees of future performance and actual results may differ from those forecast and projected or ias a result of various factors and assumptions. A potential investor should read the Offer Document first for details of forecasts and projections and con
make their own assessments of the future performance of the Company before deciding to purchase the Companys shares.
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Game-changing and green technologies
Higher exploration accuracy than peers success rate of over 50% vs. usual 10% to 15%
Substantial cost saving and improved profitability
Proprietary technology, several years head start
Faster analysis than peers - weeks compared to years
Joint venture Rexonic has environment-friendly, worlds first high power ultrasound system for commercial oil stimulatio
Existing portfolio Proof of Concept
Portfolio of 15 licences (including the 3 licences in Trinidad and Tobago upon the completion of the investment in Caribb
(Caribbean Rex) and 2 new licences in Norway)
High growth in portfolio going forward
Active drilling programme in portfolio
Concessions and licences in areas with known reservoirs of oil and gas
Close to production
Existing production in Trinidad upon the completion of the investment in Caribbean Rex
Effective business model
Lower risk position: Acquiring equity position whilst committing limited funds
Selling oil in the ground once proven to recycle funds into new assets, while keeping some producing assets for medium
Screening new licences at low cost, high capacity
Minimum target of 50 million barrels of oil recoverable per new concession
Shorter lead time between investment and proving up reserves
INVESTMENT RATIONALE
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REX GRAVITY
DYNAMIC TOPOGRAPHY MEASUREMENT USING SATELLITES
Based on satellite
Water depth com
High correlation waccumulations
Highly cost efficie
The Rex Technologie
owned by Rex Techn
LASER STATIONDORIS STATION
GPS SATELLITE
RANGE
ORBIT
SATELLITEALTITUDE
ELLIPSOID
DYNAMICTOPOGRAPHY
OIL GAS
GEOIDSEA SURFACEHEIGHT
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REX GRAVITY
COMPARISON: TRADITIONAL vs REX
Traditional satellite chart Presence of hydrocarbons more well define
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REX SEEPAGE
COMPARISON: TRADITIONAL vs REX
Traditional photo image of oil slicks Chart using Rex Seepage
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REX VIRTUAL DRILLING
OFFSHORE COLLECTION OF SEISMIC DATA USED IN REX VIRTUAL DRILLING
Detects the prese
accumulations as
Provides informa(oil/brine)
Provides volumet
Works on both ofseismic data
The Rex Technologieowned by Rex Techn
SURVEY SHIP
SOURCE OF SHOCKWAVES (AIRGUN)
IMPERMABLE ROCK
SEA BED
SEDIMENTARY ROCKLAYERS
WATER
HYDROPHONES
PATH OF REFLECTEDWAVES
GAS
OIL
POROUS RESERVOIR ROCK
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REX VIRTUAL DRILLING
OIL FINDINGS USING REX VIRTUAL DRILLING
TRADITIONAL GEOLOGIST FINDINGS
Layer 1
Layer 4
Layer 3
Layer 2
Layer 1
Layer 2
Layer 3 Layer 4
Locations of hydrocarbons found using Rex Virtual Drilling are d
http://localhost/var/www/apps/conversion/tmp/scratch_6//localhost/Users/kristoferskantze/Google%20Drive/1.%20Rex/2.%20Marketing/2.%20Rex%20corporate%20presentation/130127%20North%20Energy-%20Short.f4vhttp://localhost/var/www/apps/conversion/tmp/scratch_6//localhost/Users/kristoferskantze/Google%20Drive/1.%20Rex/2.%20Marketing/2.%20Rex%20corporate%20presentation/130127%20North%20Energy-%20Short.f4v -
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WELL EXPLORATION PROFIT
Min size reservoir 50 MMBbl
Oil in the ground price US$ 5 / barrel
Participation interest 20%
Net revenue US$ 50 million
CAPEX US$ 10 million
PROFIT US$ 40 million
CASE STUDY LOW END
one successful well discovered, sell off oil-in-the-ground
EXAMPLE OF SUCCESS RATES
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EXAMPLE OF SUCCESS RATES IMPACT ON REVENUE OVER TIME
EXPLORATION SUCCESS RATE OF FINDING OIL: 50%
TRADITIONAL E&P COMPANYS SUCCESS RATE: ABOUT10%
Accumulated
net revenueUSD 175 Million
Accumulatednet revenueUSD -5 Million
Rex International Holding Traditional Players
Exploration success rate of finding oil 50% 10% - 15%
Cost Under $100,000 May go in millions
Time required 4 6 weeks 1 3 years
InvolvementParticipation by equity holding;
NOT service provider
SAMPLE OF
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SAMPLE OFVIRTUAL DRILLING RESULTS
ANALYSED 59 PROSPECTS FOR NORTH ENERGY OVER PAST 2 YEARS:
OUT OF 41 WELLS DRILLED, 35 PREDICTIONS WERE SPOT-ON
85% Success Rate
16 predicted positive 11 drilled with commercial oil (69%) 5 failures had weak anomalies (decision to drill based on North Energys own interpretation of d
25 predicted negative 24 out of 25 were dry (96%) Savings in 2012/13 Full effect in 2014
18 positives not drilled yet 5 in North Energy acreage
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OPERATION PROCESS
Partners /Potential partners
Rex InternationalHolding Ltd
Rex Techno
1 Partners/Potential partnershand over seismic data
2 Transfer of datafor analysis
3 Interpretation process of 46 weeks before returning d4 Advise Partners/Potential partners
REXS POSITION IN THE E&P VALUE
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REX S POSITION IN THE E&P VALUECHAIN
Production phase
3. Complementary recurring revenue fromRexonic (license or service model)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
LICENSEAWARD
EXPLOR. DISCOV. DEVT. PDO* CONSTRUCTION FIRST OIL PRODUCTION
*Plan for Development and Operation
RESERVESCONTINGENTRESOURCES
PROSPECTIVE RESOURCES
YEAR
$/BOE, RISKED
UAE/OMAN/NORWAY (1)
USA/TRINIDAD
Exploration & Appraisal phases
1. Prove up value
2. Sell oil in the ground
Notes:(1) Assuming transfer of 10% stakes in PL 707 & PL 708 is completed
REXONIC GAME-CHANGER FOR OIL
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PRODUCTION
VALUE-ADDED TECHNOLOGY FOR OIL PRODUCTION
the worlds first high power ultrasound system for commercial oil stimulation
4-8cm
- Ultrasonication generates alternating low-pressure and high-pressure waves leading to ultrasonic shearwaves in the well and surrounding rock.
- This reduces the friction in the media and improves the oil flow into the well bore.- Ultrasonic waves create cavitation which causes mechanical removal of particles.- Ultrasonication reduces the viscosity of the liquid without the use of chemical agents or steam generators..
ELECTRIC POWERGENERATOR
ULTRASONICGENERATOR
LOGGING CABLEON TRUCK
RESONATOR& WELL
REXONIC HOW IT WORKS
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REXONIC HOW IT WORKS
Cleans the capillaries of wax, asphaltenes and particles to increase the oil flow into the b
Increases oil production by 30% up to 380% and can be deployed onshore and offshore
1. Paraffins, asphaltenes, particles adamages are plugging pore spacenot producing at their potential ca
2. Rexonics ultrasound dislodges thcleaning mechanism of micro-aco
begins.
4. Pore space and permeability arerestored, resulting in an increasedflow and cost-effective production
3. The ultrasounds high power disruforces that hold the particles in plathese particles get removed.
OnshoreOffshore
REXONIC - PROVEN
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FIELD TESTED TECHNOLOGY
- Proven that oil production can be increased by 30% up to 380%
TECHNOLOGY
ONSHORE
* Source: Bloomberg. Crude Oil (Brent)= US$108 /b (26.09.2013)
OFFSHORE
SOUTH AMERICA
2013
CENTRAL AMER
2011
83bpd
137bpd+65%
899bpd
1865bpd
+107%
Additionalrevenue
US$ 5,832*per day
Additionalrevenue
US$ 104,32per day
CENTRAL AMERICA
2010
CENTRAL AMERICA
2009
49bpd
235bpd
Before After
+380%
39bpd
116Bpd
Before After
+197%
Additionalrevenue
US$ 20,088*per day
Additionalrevenue
US$ 8,316*per day
Before AfterBefore After
106BPD= Alltimehigh
CLIENT ADVANTAGES
Short downtime of less than 2 hours
Less environmental risks
Cheaper than common chemical treatmentprocedures
Easy to scale technology
No switching costs, as Rexonic technologycan be used in addition to existingEnhanced Oil Recovery technologies
Fast return on investment
O C C S S
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Existing daily production of clogged well 100 bpd
Daily production after Rexonic stimulation 130 bpd
Increase in daily production 30 bpd
Crude oil price US$ 100 / barrel
INCREASED REVENUE PER DAY US$ 3,000
INCREASED REVENUE PER YEAR US$ 1.1 million
REXONIC - CASE STUDY
CASE STUDY
example of impact on one successful stimulation of a cloggedproduction well and assuming 30% increased production
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OVERVIEW OF REX CONCESSIONS
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OVERVIEW OF REX CONCESSIONS
UARAK OFFRAK ON
SHAROFFSH
OMANBLOCK 50
OFFSHORE
NORWAY6 LICENCES(2)
OFFSHORE
USAFRAM
EXPLORATION27.7%(1)
(LEASES INCO & ND)
TRINIDAD3 CONCESSIONS
ONSHORE
MALAYSIAHIREX JV
SWITZERLANDREXONIC JV
Notes as at 15 Nov 2013::(1) Assuming exchange of 20% stake in US concessions into direct stake in Fram is completed(2) Assuming transfer of 10% stakes in PL 707 & PL 708 is completed
REX COMPANY STRUCTURE*
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64%
REX COMPANY STRUCTURE
REX USLIME
PETROLEUM
BAQALPETROLEUMASSET: RAKONSHORE
ZUBARAPETROLEUMASSET:SHARJAH
OFFSHORE
MASIRAHOILASSET: BLOCK 50OMAN OFFSHORE
DAHANPETROLEUMASSET: RAK
NORTH OFFSHORE
LOYZ REXDRILLINGSERVICES LLC
COLORADO /NORTH DAKOTA
2 ONSHORE LEASEAREAS*
FRAMEXPLORATION(1)
REX INTERNATIONAL HOLDING
HIBISCUS
100% 65%
LIME P
NO6 OFFSHORPL498 PL 61
PL 7
100%100%59%49%
35% SHAREHOLDER
28% 41%
HIREX
Notes as at 15 Nov 2013:* Simplified model of group structure, see Offer Document for complete details**Assuming certain well obligations are met(1) Assuming exchange of 20% stake in US concessions into direct stake in Fram is completed(2) Assuming transfer of 10% stakes in PL707 and PL708 is completed
64%
Inniss-Trinity 100% South Erin Block 75% Cory Moruga Block E 51%**
PL503 Va PL503B V PL616 Ska PL498 Ska PL707 Se PL 708 Se
RAK Onshore 100% Sharjah - 100% Block 50 Oman 100% RAK North - 100%
CARIBBEANREX
ASSETS: 2 ONSHORE RIGS
OWNER OF US LICENCES
REX IS WELL-CAPITALISED FORTHE NEXT FEW YEARS
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THE NEXT FEW YEARS
Amount of funds raised
Pre-listing/ At asset & subsidiary level SGD 114.3 million USD 90 million
Pre-IPO (excluding share swap) SGD 35.6 million USD 28 million
IPO 31.7.2013 SGD 85.3 millionPrivate Placement (Net) 6.11.2013 SGD 50.5 million
Intended Use of IPO Proceeds SGD 85.3 million Intended Use of Private PlacementNet Proceeds
SG
Investment in new opportunities SGD 15.7 million New opportunities in Asia-Pacific SG
Drilling in Middle East Concessions SGD 12.4 million New opportunities in existing markets SG
Drilling in Norwegian Licences SGD 23.6 million Rexonic SG
Repayment of loan to Rex Partners SGD 2.4 million
General working capital(1) SGD 25.9 million
Listing expenses(1) SGD 5.3 million
Conversion Rate: SGD1.00 = USD0.79
(1)Amount of SGD 1.7 million has been redeployed to listing expenses
STRONG STRATEGIC PARTNERS
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REXTECHNOLOGYMANAGEMENT
Technology
Provider
Rex TechnologyManagement is the
licence provider ofRex Gravity, RexSeepage and Rex
Virtual Drilling.
BGP
Seismic Data
Provider
A leadinggeophysical service
company; havecooperated on
complex marine
surveys in Oman,Sharjah and Ras
Al-Khaimah.
SCHRODERS
Investor
A global assetmanagementcompany withUSD359 billion
AUM.
HIBISCUS
Strategic Investor
Malaysia's first listedindependent oil andgas E&P company,
developing small andmedium-sized oil and
gas fields in theMiddle East, South
Asia, East Asia andOceania regions.
FRAMEXPLORATION
ASA
Partner in
US Leases
A Norwegian oilcompany with matureassets onshore in the
US and in theRepublic of Trinidad
and Tobago.
LOYZ ENERGY
Partner in
Drilling Co
A Singapore companyset on becoming a
reputableindependent E&Penergy company in
the Asia-Pacificregion.
PETROCI
Partner in
Oman
The national oilcompany of the IvoryCoast active in thewhole value chainfrom exploration to
production.
NORTH ENERGY
Partner in
Norway
A Norwegian oilcompany listed inOslo, focusing on
assets located on theNorwegian
Continental Shelf. Itis partner in morethan 20 offshore
licenses in Norway.
PARETO
Investor
A leadingindependent energyand energy serviceinvestment bank inEurope, managing
USD 3 billion inequity markets in
2012.
E&P COMPANIES
TECHNOLOGYCOMPANIES /INVESTORS
OG
Tec
De
A Swiswhose fomore th
expeultr
tech
STAUR
Investor
A Norwegian family-owned conglomerate,doing hands-on anddynamic work with
businesses in the oil-
service, energy andfood industries.
KEY MANAGEMENT &SHARE PRICE OVERVIEW
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SHARE PRICE OVERVIEW
Major sha
Rex Comm
Schroders
Pre-IPO in
Ogsonic
PPCF and
Fram
Public floa
Total
*As at 15 Nove
IPO facts
Listing date 31 July 2013
Stock code 5WH
Subscription of public tranche 153x
Share price at IPO SGD 0.50
Share facts as at Fri, 15 Nov 2013 (closing)
Share price SGD 0.660
Number of shares 1,094,957,263
Market capitalisation SGD 722.7 m
Share price devt. since IPO +33%
BOARD OF DIRECTORS
Mr. Dan Brostrm Executive Chairman
Dr. Karl Lidgren Non Executive Director
Mr. Sameer Khan Independent Director
Mr. Abderahmane Fodil Independent Director
Mr. Boon-Ann Sin Independent Director
KEY EXECUTIVES
Mr. Mns Lidgren Chief Executive Officer
Mr. ke Knutsson Chief Financial Officer
Mr. Kristofer Skantze Chief Operating Officer
Mrs. Lina Berntsen Chief Technology Officer
Ms. Mok Lai Siong Group General Manager
LIQUIDITY & SHARE PRICE
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Average daily trading volume since listing up to 15 Nov 2013: 17.8 million s
Average daily trading volume for last 10 days up to 15 Nov 2013: 7.9 millio
Source: Shareinvestor as at 15 Nov 2013
BUSINESS MODEL
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VISION: MARKET CAPITALISATION OF MORE THAN S$1 BILLION
Access to Rex Technologies to asses Fast exploration decision process and Targeted concession investments bas
Complementaryrecurringincome throughoil services jointventure using oilstimulation
technology
Portfolio indifferentstable, lower-tax, oil-richgeographies tospread risks
Strongpartnershipswith strategicpartners, withlimited equitystake per
concession
Maintain aportion of oiproducingassets forrecurringincome
REX INTERNATIONAL HOLDINGA sustainable game-changer in oil explorat
FOUNDATION OFCUTTING-EDGETECHNOLOGY
PILLARS OFBUSINESSSTRATEGY
ACHIEVABLE
MISSION
Continuouscapitalrecyclingsell-off oil inground andinvest in new
assets
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INVESTORS AND MEDIA
Ms. Mok Lai Siong
Group General Manager, IR & Communications
T: +65 6908 4858
M: +65 8518 8945Email: [email protected]
COMPANY ADDRESS
Rex International Holding Ltd
6 Raffles Quay #20-07
Singapore 048580