REX INTERNATIONAL HOLDING PRESENTATION ON REXONIC

Transcription

1 REX INTERNATIONAL HOLDING PRESENTATION ON REXONIC 7 November 2013 p. 1

2 DISCLAIMER The information contained in this presentation has not been independently verified. The Company assumes no responsibility or liability whatsoever (in negligence or otherwise) for, the accuracy or completeness of, or any errors or omissions in, any information or opinions contained herein nor for any loss howsoever arising, whether directly or indirectly, from any use, reliance or distribution of this presentation or its contents or otherwise arising in connection with this presentation. It is not the intention to provide, and you may not rely on this presentation as providing a fair, accurate, complete or comprehensive analysis of all material information concerning the Company, or the Company's financial or trading position or prospects. The information and opinions contained in this presentation are provided as at the date of this presentation and are subject to change without notice. This presentation may not be forwarded or distributed to any other person and may not be reproduced in any manner whatsoever. Any forwarding, distribution or reproduction of this presentation 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 other jurisdictions. 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 subscribe for any securities, nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract, commitment or investment decision whatsoever. This document may not be used or relied upon by any other party, or for any other purpose, and may not 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 financial performance. These views are based on estimates and current assumptions which are subject to business, economic and competitive uncertainties and contingencies as well as various risks and these may change over 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 forward looking statements, which are based on the current view of the management of the Company on future events. No assurance can be given that future events will occur, that projections will be achieved, or that the Company's assumptions are correct. The Company does not assume any responsibility to amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events, or otherwise. These statements can be recognized by the use of words such as "expects," "plans," "will," "estimates," "projects," or words of similar meaning. Such forward-looking statements are not guarantees of future performance and actual results may differ from those forecast and projected or in the forward-looking statements as a result of various factors and assumptions. A potential investor should read the Offer Document first for details of forecasts and projections and consider the assumptions used and make their own assessments of the future performance of the Company before deciding to purchase the Company s shares. p. 2

3 REX S INVESTMENT RATIONALE FOR REXONIC Investing into a green & game-changing technology Increase in production for clogged wells improves production by 30% up to 380% Environmentally friendly; easily set up; low cost Patented proprietary technology, several years head start Synergies with Rex International Holding Rex technologies can be applied to oil exploration and appraisal phases; Rexonic technology can be applied to appraisal and production phases Rex Virtual Drilling analyses sound; Rexonic technology uses sound for cleaning Opportunities to tap on each other s network for cross-references to grow respective core businesses Strengthens Rex International Holding s existing business model Remains committed to creating value by identifying and acquiring new exploratory concessions; increasing value by introducing Rex technologies; spinning off mature assets for renewal of capital and unlocking shareholder value Rexonic will contribute complementary recurring revenue from the production phase through its service and licensing model, without Rex International Holding having to incur capital expenditure for stakes in production wells p. 3

4 REX S POSITION IN THE E&P VALUE CHAIN *Plan for Development and Operation $/BOE, RISKED PROSPECTIVE RESOURCES CONTINGENT RESOURCES RESERVES USA/TRINIDAD (2) UAE/OMAN/NORWAY (1) LICENSE AWARD EXPLOR. DISCOV. DEVT. PDO* CONSTRUCTION FIRST OIL PRODUCTION YEAR Exploration & Appraisal phases 1. Prove up value 2. Sell oil in the ground Production phase 3. Complementary recurring revenue from Rexonic (license or service model) p. 4 Notes: (1) Assuming transfer of 10% stakes in PL 707 & PL 708 is completed (2) Assuming the investment by Rex International Holding in Caribbean Rex is completed

5 OVERVIEW OF REX CONCESSIONS NORWAY 6 LICENCES (3) OFFSHORE SWITZERLAND REXONIC JV (4) UAE RAK OFFSHORE RAK ONSHORE SHARJAH OFFSHORE USA FRAM EXPLORATION 27.7% (1) (LEASES IN CO & ND) p. 5 TRINIDAD 3 CONCESSIONS ONSHORE (2) Notes: OMAN BLOCK 50 OFFSHORE MALAYSIA HIREX JV (1) Assuming exchange of 20% stake in US concessions into direct stake in Fram is completed (2) Assuming the investment by Rex International Holding in Caribbean Rex is completed (3) Assuming transfer of 10% stakes in PL 707 & PL 708 is completed (4) Assuming investment in joint venture with Ogsonic is completed SINGAPORE HQ

6 REX COMPANY STRUCTURE* REX INTERNATIONAL HOLDING 28% 100% 64% 41% 65% 66.7% FRAM EXPLORATION (1) OWNER OF US LICENCES REX US CARIBBEAN REX (2) HIREX LIME PETROLEUM REXONIC (3) Inniss-Trinity 100% South Erin Block 75% Cory Moruga Block E 51%** 35% SHAREHOLDER HIBISCUS COLORADO / NORTH DAKOTA 2 ONSHORE LEASE AREAS* Notes: p. 6 49% LOYZ REX DRILLING SERVICES LLC ASSETS: 2 ONSHORE RIGS 59% DAHAN PETROLEUM ASSET: RAK NORTH OFFSHORE RAK North - 100% 64% MASIRAH OIL ASSET: BLOCK 50 OMAN OFFSHORE Block 50 Oman 100% * 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 the investment by Rex International Holding in Caribbean Rex is completed (3) Assuming the investment in joint venture with Ogsonic is completed (4) Assuming transfer of 10% stakes in PL707 and PL708 is completed ZUBARA PETROLEUM ASSET:SHARJAH OFFSHORE Sharjah - 100% 100% 100% 100% BAQAL PETROLEUM ASSET: RAK ONSHORE RAK Onshore 100% LIME PETROLEUM NORWAY 6 OFFSHORE CONCESSIONS: PL498 PL 616, PL503/PL503B, PL 707, PL 708 PL503 Valberget 12.5% PL503B Valberget 12.5% PL616 Skagastol 5% PL498 Skagen 5% PL707 Seiland West 10% (4) PL 708 Seiland East 10% (4)

7 REX IS WELL-CAPITALISED FOR THE NEXT FEW YEARS Amount of funds raised Pre-listing/ At asset & subsidiary level SGD million USD 90 million Pre-IPO (excluding share swap) SGD 35.6 million USD 28 million IPO Private Placement (Net) SGD 85.3 million SGD 50.5 million Intended Use of IPO proceeds SGD 85.3 million Intended Use of Private Placement Net Proceeds SGD 50.5 million Investment in new opportunities SGD 15.7 million New opportunities in Asia-Pacific SGD 17.7 million 35.1% Drilling in Middle East Concessions SGD 12.4 million New opportunities in existing markets SGD16.7 million 33.0% Drilling in Norwegian Licences SGD 23.6 million Rexonic SGD 16.1 million 31.9% Repayment of loan to Rex Partners General working capital SGD 2.4 million SGD 25.9 million Listing expenses SGD 5.3 million Conversion Rate: SGD1.00 = USD0.79 p. 7

8 p. 8 REXONIC A HIGH POWER ULTRASOUND STIMULATION TECHNOLOGY FOR GREATER EFFICIENCY IN THE OIL RECOVERY PROCESS

9 REXONIC GAME-CHANGER FOR OIL PRODUCTION VALUE-ADDED TECHNOLOGY FOR OIL PRODUCTION the world s first high power ultrasound system for commercial oil stimulation ELECTRIC POWER GENERATOR ULTRASONIC GENERATOR LOGGING CABLE ON TRUCK RESONATOR & WELL Resonator Transducer m Ultrasound power at Total Depth: 1.5 kw Max. well temperature tested: 125 C - Ultrasonication generates alternating low-pressure and high-pressure waves leading to ultrasonic shear waves 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.. 4-8cm p. 9

10 REXONIC HOW IT WORKS Cleans the capillaries of wax, asphaltenes and particles to increase the oil flow into the borehole Increases oil production by 30% up to 380% and can be deployed onshore and offshore Offshore Onshore 1. Paraffins, asphaltenes, particles and other damages are plugging pore spaces. Oil wells are not producing at their potential capacity. 2. Rexonic s ultrasound dislodges the formations. The cleaning mechanism of micro-acoustic streaming begins. 3. The ultrasound s high power disrupts the adhesive forces that hold the particles in place. Consequently, these particles get removed. p Pore space and permeability are restored, resulting in an increased oil flow and cost-effective production.

11 REXONIC KEY ADVANTAGES ENVIRONMENTALLY FRIENDLY - EASILY SET-UP - LOW COST - HIGH EFFICACY ADVANTAGES OVER COMPETITORS APPLICATIONS for high power ultrasound technology EFFECTS on wells below maximum capacity 1. Less cost intensive, higher efficiency, better results % environmental- friendly, no pollution 3. No production downtime 4. Long lasting effects 5. Easy and fast set-up of equipment Stimulation oil wells with decreasing production rates Maintaining oil wells which are below maximum capacity Reviving oil wells with low output 1. Removal of paraffines, wax & asphaltene deposits 2. Destruction of salt formations in the capillaries 3. Reduction of surface tension in the capillaries 4. Destruction of colloid formations 5. Unclogging of injected particles p. 11

12 REXONIC - PROVEN TECHNOLOGY FIELD TESTED TECHNOLOGY - Proven that oil production can be increased by 30% up to 380% CENTRAL AMERICA 2009 ONSHORE CENTRAL AMERICA 2010 SOUTH AMERICA 2013 OFFSHORE CENTRAL AMERICA 2011 Additional revenue US$ 8,316* per day +197% 39 bpd Before 116 Bpd After Additional revenue US$ 20,088* per day +380% 49 bpd Before 235 bpd After CLIENT ADVANTAGES Short downtime of less than 2 hours Less environmental risks Cheaper than common chemical treatment procedures Easy to scale technology No switching costs, as Rexonic technology can be used in addition to existing Enhanced Oil Recovery technologies Fast return on investment * Source: Bloomberg. Crude Oil (Brent) = US$108 /b ( ) Additional revenue US$ 5,832* per day +65% 83 bpd Before 137 bpd After 106 BPD = All time high +107% 899 bpd Before Additional revenue US$ 104,328* per day 1865 bpd After p. 12

13 REXONIC TWO OPERATING BUSINESS MODELS SCALABLE OPERATING BUSINESS MODELS Service Model Well stimulations carried out by Rexonic s own teams and equipment - Revenue from well treatments - Baseline revenue - Worldwide data-collection for R&D Licensing Model Licenses for Rexonic technology sold, allowing contracted service providers to use the technology with their personnel but under Rexonic s expert supervision and training - Revenue from licenses and training - Fast and worldwide roll-out of technology p. 13

14 REXONIC - CASE STUDY CASE STUDY example of impact on one successful stimulation of a clogged production well and assuming 30% increased production Existing daily production of clogged well Daily production after Rexonic stimulation Increase in daily production Crude oil price 100 bpd 130 bpd 30 bpd US$ 100 / barrel INCREASED REVENUE PER DAY US$ 3,000 INCREASED REVENUE PER YEAR US$ 1.1 million p. 14

15 MAKING THE E&P INDUSTRY GREENER REXONIC TECHNOLOGY IS 100% ENVIRONMENTALLY-FRIENDLY, CAUSES NO POLLUTION INCREASES OIL PRODUCTION THROUGH STIMULATION AND CLEANING EFFECTS WITHOUT THE DRAWBACKS OF CONVENTIONAL ENHANCED OIL RECOVERY TECHNOLOGIES

16 REXONIC MAKING E&P GREENER SAFER AND CLEANER FOR HUMANS AND NATURE WATER: No water waste, no water pollution, no sea contamination AIR: No air pollution before, during and after the treatments GROUND: No ground contamination before, during and after the treatments HUMAN RESOURCES: No hazard for human resources, no hesitation against health problems DIFFERENTIATORS: No chemicals p. 16

17 ABOUT OGSONIC AG COMPANY PROFILE MILESTONES ABOUT THE FOUNDERS

18 OGSONIC AG - PROFILE OGSONIC AG Swiss-based spin-off company established in 2008 Looking back to 45+ years of experience in ultrasound technology TECHNICAL APPROACH Cleaning and stimulation of oil wells with highpower ultrasound technology DIFFERENTIATORS Innovative, 100% eco-friendly, Swiss engineered and patented technology p. 18

19 REXONIC- MILESTONES FOUNDING OF OGSONIC AG FIRST PILOT TESTS IMPROVEMENT OF TECHNOLOGY ACQUISITION OF CONTRACTS TECHNOLOGICAL ADVANCES National oil companies Ogsonic AG was founded as a spin-off of the world leading industrial ultrasonic application provider to solely concentrate on the development and production of ultrasonic solutions for the oil and gas industry. First successful oil well stimulation recovery tests were completed in Mexico and Romania. The results showed that it is possible to increase oil production by 30% to 380%. Ogsonic AG started a new research and development initiative to improve its core technology. A test breakthrough was accomplished, which enabled the company to sign its first contract. Ogsonic AG signs contracts with three major national oil companies. Rexonic AG is formed pursuant to the JV with Rex International Holding and Ogsonic AG. In 2014, Rexonic AG will be introducing the next generation of tool sets to increase current performance. p. 19

20 OGSONIC - FOUNDERS FOUNDERS OF OGSONIC TO BE ON REXONIC S MANAGEMENT TEAM Andreas Karl Kühne Board Member & Chief Executive Officer ( CEO ) Andreas is the CEO and a Member of the Board of Ogsonic AG. Since 2009 he is entrusted with the conception and strategic focus of the company as well as business development. Andreas is a founding partner of Ogsonic AG. He graduated in social science from the University of Zurich. He has multiple years of management and finance experience at Credit Suisse and other selected companies, as well as broad experience in startup areas. He has also furthered his studies in political science at the University Berkeley and in finance at UCLA and at the Union Bank of California, Los Angeles. Peter Spenger Board Member & Chief Technology Officer ( CTO ) Peter is the Founder and President of the Board of Ogsonic AG. He is determined that Ogsonic has a scalable and sustainable knowledge development. As the CTO, he examines and safeguards that the ultrasound technology has the highest standards. Peter is a founding partner of Ogsonic AG. He owned and managed the world-leading industrial ultrasonic company, Telsonic AG, for more than 17 years. He graduated from the Harvard Business School and the University of St. Gallen. YEARS OF EXPERIENCE 25+ YEARS OF EXPERIENCE 30+ p. 20

21 INVESTORS AND MEDIA Ms. Mok Lai Siong Group General Manager, IR & Communications T: M: COMPANY ADDRESS Rex International Holding Ltd 6 Raffles Quay #20-07 Singapore p. 21