COMPANY PRESENTATION REX INTERNATIONAL HOLDING

Transcription

1 COMPANY PRESENTATION REX INTERNATIONAL HOLDING DBS Vickers Corporate Day Kuala Lumpur, 2 October 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 p. 3

4 INVESTMENT RATIONALE Game-changing technology 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 Existing portfolio Proof of Concept Portfolio of 13 licences (including the 3 licences in Trinidad and Tobago upon the completion of the investment in Caribbean Rex Limited ( Caribbean Rex ) 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 to long-term 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 p. 4

5 p. 5

6 REX GRAVITY DYNAMIC TOPOGRAPHY MEASUREMENT USING SATELLITES GPS SATELLITE Based on satellite gravity data ORBIT Water depth compensation High correlation with known hydrocarbon accumulations Highly cost efficient LASER STATION DORIS STATION RANG E The Rex Technologies are developed and fully owned by Rex Technology Management Ltd. DYNAMIC TOPOGRAPH Y ELLIPSOI D SATELLITE ALTITUDE GEOID SEA SURFACE HEIGHT OIL GA S

7 REX GRAVITY COMPARISON: TRADITIONAL vs REX Traditional satellite chart Presence of hydrocarbons more well defined with Rex Gravity p. 7

8 REX SEEPAGE ADVANCED OFFSHORE SEEPAGE MEASUREMENTS OFFSHORE ONSHORE Based on thermal imaging OIL SLICKS GAS AND AEROSOL TO ATMOSPHERE GAS ABOVE WATER TABLE STREAM OR STANDING WATER SPRING LINE WATER TABLE Advanced analysis of sea surface temperature. An analysis of the thermal infrared spectrum emitted from the top (<0.1mm) ocean layer BUBBLE PLUME CURRENT POCKMARK ZONE OF GAS SATURATED SEDIMENTS A thin oil layer will absorb and emit solar energy differently than water without oil sheen. Part of the energy will be emitted in the infrared (IR) wavelength region. The emissivity of water and oil is different dependent on time-of-observation (day and night) The Rex Technologies are developed and fully owned by Rex Technology Management Ltd. OIL GAS OIL SEEP OIL AND GAS SEEP GAS SEEP MATURE SOURCE KITCHEN

9 REX SEEPAGE COMPARISON: TRADITIONAL vs REX Traditional photo image of oil slicks Chart using Rex Seepage p. 9

10 REX VIRTUAL DRILLING OFFSHORE COLLECTION OF SEISMIC DATA USED IN REX VIRTUAL DRILLING SURVEY SHIP SOURCE OF SHOCKWAVES (AIR GUN) SEA BED SEDIMENTARY ROCK LAYERS IMPERMABLE ROCK PATH OF REFLECTED WAVES HYDROPHONES Detects the presence of hydrocarbon accumulations as well as migration paths Provides information about fluid type (oil/brine) Provides volumetric reserve information Works on both offshore and onshore seismic data The Rex Technologies are developed and fully owned by Rex Technology Management Ltd. WATER POROUS RESERVOIR ROCK OIL GAS

11 REX VIRTUAL DRILLING TRADITIONAL GEOLOGIST FINDINGS OIL FINDINGS USING REX VIRTUAL DRILLING Layer 1 Layer 2 Layer 4 Locations of hydrocarbons found using Rex Virtual Drilling are defined in black. Layer 3 Layer 3 Layer 4 Layer 2 Layer 1 p. 11

12 WELL EXPLORATION PROFIT CASE STUDY LOW END one successful well discovered, sell off oil-in-the-ground 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 p. 12

13 EXAMPLE OF SUCCESS RATES IMPACT ON REVENUE OVER TIME EXPLORATION SUCCESS RATE OF FINDING OIL: 50% Accumulated net revenue USD 175 Million TRADITIONAL E&P COMPANY S SUCCESS RATE: ABOUT10% Accumulated net revenue USD -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 Involvement Participation by equity holding; NOT service provider p. 13

14 SAMPLE OF VIRTUAL 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 Energy s own interpretation of data) 25 predicted negative 24 out of 25 were dry (96%) Savings in 2012/13 Full effect in positives not drilled yet 5 in North Energy acreage p. 14

15 E&P VALUE CHAIN RIH POSITION IN THE E&P VALUE CHAIN $/BOE, RISKED PROSPECTIVE RESOURCES CONTINGENT RESOURCES RESERVES USA/TRINIDAD (1) UAE/OMAN/NORWAY RIH s strategy: 1. Prove up value 2. Sell oil in the ground YEAR LICENSE AWARD EXPLOR. DISCOV. DEVT. PDO* CONSTRUCTION FIRST OIL PRODUCTION *Plan for Development and Operation Note: (1) Assuming the investment by Rex International Holding in Caribbean Rex is completed p. 15

16 MODEL OF CREATING VALUE RIH S MODEL OF CREATING VALUE 1 IDENTIFY, MERGE/ACQUIRE NEW CONCESSIONS 2 INCREASE VALUE BY INTRODUCING REX TECHNOLOGIES 3 REFINE AND DEVELOP CONCESSION VALUES 4 SPINNING OFF MATURE ASSETS FOR RENEWAL OF CAPITAL AND UNLOCKING SHAREHOLDER VALUE 5 REPEAT p. 16

17 OPERATION PROCESS 1 Partners/Potential partners hand over seismic data 2 Transfer of data for analysis Partners / Potential partners Rex International Holding Ltd Rex Technology Management 4 Advise Partners/Potential partners 3 Interpretation process of 4 to 6 weeks before returning data p. 17

18 p. 18

19 OVERVIEW OF CONCESSIONS NORWAY 6 OFFSHORE LICENCES (1) UAE RAK OFFSHORE RAK ONSHORE SHARJAH OFFSHORE USA PARTNER IN 2 LARGE LEASE AREAS: COLORADO AND NORTH DAKOTA p. 19 TRINIDAD 3 ONSHORE CONCESSIONS (2) OMAN OFFSHORE BLOCK 50 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 SINGAPORE HQ

20 CONCESSION STATUS FROM 10 TO 13 AND GROWING Country Prospect Name Operator Q Q Q Q Q Q Norway PL503 Valberget Lotos E&P Norge AS 2 Norway PL 498 Skagen Lotos E&P Norge AS 3 Norway PL 616 Skagastøl Edison International Norway Branch 4 Norway PL503/B Valberget Lotos E&P Norge AS 5 Norway (1) PL Norway (1) PL Oman Oman Block 50 Well #1 & #2 Masirah 8 Trinidad & Tobago (2) Inniss-Trinity Caribbean Rex Ltd. 9 Trinidad & Tobago (2) South Erin Block Caribbean Rex Ltd. 10 Trinidad & Tobago (2) Cory Moruga Block E Caribbean Rex Ltd. 11 UAE Sharjah Zubarah 12 UAE RAK Onshore Baqal 13 UAE RAK Offshore Dahan 14 USA North Dakota Williston Fram Operations Exploration Development Appraisal Production Dry Tentative 15 USA Colorado Whitewater Fram Operations p. 20 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 Drilling schedule is subject to rig availability and other factors

21 PORTFOLIO GROWTH NORWAY (VIA LIME) Rapid growth of licence applications in well spuddings during ASIA PACIFIC (VIA HIREX) Screening mature fields in Asia Pacific (Malaysia, New Zealand, Australia) Goal - to secure 5 to 6 licences in the next 18 months WESTERN EUROPE Focus on UK and Germany p. 21

22 BUSINESS STRATEGIES Increase value through seeking new concessions Increase value through seeking farm-ins Technology advantages Partial farm-out of ownership in concessions to new partners Expansion through acquisitions and strategic partnerships p. 22

23 COMPANY STRUCTURE* REX INTERNATIONAL HOLDING 24% 100% 52% 41% 65% FRAM EXPLORATION ASA REX US Caribbean Rex (1) HiRex LIME PETROLEUM 35% SHAREHOLDER HIBISCUS OWNER OF US LICENCES* Inniss-Trinity 100% South Erin Block 75% Cory Moruga Block E 51% COLORADO / NORTH DAKOTA 2 LARGE LEASE AREAS* 80 wells - 20% 20% Interest 49% LOYZ REX DRILLING SERVICES LLC ASSETS: 2 ONSHORE RIGS 59% DAHAN PETROLEUM ASSET: RAK NORTH OFFSHORE RAK North % 64% MASIRAH OIL ASSET: BLOCK 50 OMAN Block 50 Oman 41.6% ZUBARA PETROLEUM ASSET: SHARJAH Sharjah - 65% 100% 100% 100% BAQAL PETROLEUM ASSET: RAK ONSHORE RAK Onshore 65% LIME PETROLEUM NORWAY CONCESSIONS: PL498 PL 616, PL503/PL503B PL503 Valberget 8.1% PL503B Valberget 8.1% PL616 Skagastol 3.3% PL498 Skagen 3.3% Notes: * Simplified model of group structure, see Offer Document for complete details (1) Assuming the investment by Rex International Holding in Caribbean Rex is completed p. 23

24 STRONG STRATEGIC PARTNERS TECHNOLOGY COMPANIES / INVESTORS REX TECHNOLOGY MANAGEMENT Technology Provider Rex Technology Management is the licence provider of Rex Gravity, Rex Seepage and Rex Virtual Drilling. BGP Seismic Data Provider A leading geophysical service company; have cooperated on complex marine surveys in Oman, Sharjah and Ras Al-Khaimah. SCHRODERS Investor A global asset management company with USD359 billion AUM. PARETO Investor A leading independent energy and energy service investment bank in Europe, managing USD 3 billion in equity markets in STAUR Investor A Norwegian familyowned conglomerate, doing hands-on and dynamic work with businesses in the oilservice, energy and food industries. E&P COMPANIES HIBISCUS Strategic Investor Malaysia's first listed independent oil and gas E&P company, developing small and medium-sized oil and gas fields in the Middle East, South Asia, East Asia and Oceania regions. FRAM EXPLORATION ASA Partner in US Leases A Norwegian oil company with mature assets onshore in the US and in the Republic of Trinidad and Tobago. LOYZ ENERGY Partner in US Leases and Drilling Co A Singapore company set on becoming a reputable independent E&P energy company in the Asia-Pacific region. PETROCI Partner in Oman The national oil company of the Ivory Coast active in the whole value chain from exploration to production. NORTH ENERGY Partner in Norway A Norwegian oil company listed in Oslo, focusing on assets located on the Norwegian Continental Shelf. It is partner in more than 20 offshore licenses in Norway. p. 24

25 KEY MANAGEMENT REX INTERNATIONAL HOLDING LIME PETROLEUM BOARD OF DIRECTORS Mr. Dan Broström Dr. Karl Lidgren Mr. Bernt Østhus Mr. Sameer Khan Mr. Abderahmane Fodil Mr. Boon-Ann Sin KEY EXECUTIVES Mr. Måns Lidgren Mr. Åke Knutsson Mr. Kristofer Skantze Mrs. Lina Berntsen Ms. Mok Lai Siong Executive Chairman Non Executive Director Non Executive Director Independent Director Independent Director Independent Director Chief Executive Officer Chief Financial Officer Chief Operating Officer Chief Technology Officer Group General Manager BOARD OF DIRECTORS Dr. Kenneth Pereira Non Executive Chairman Dr. Karl Lidgren Non Executive Director Mr. Laurence Keenan Non Executive Director Mr. Simon Comina Non Executive Director KEY EXECUTIVES Mr. Svein Kjellesvik Chief Executive Officer Mr. Peter Kitson Chief Financial Officer Mr. Ivar Aarseth Managing Director Norway Mr. Chris Dyas COO Middle East Dr. Rabi Bastia Vice President Exploration Mr. Elike Mawuli Drilling Manager Mr. Thomas Liljedahl Chief Geologist Mr. Guy de Caprona Exploration Manager Norway p. 25

26 SHARE PRICE OVERVIEW IPO facts Listing date 31 July 2013 Stock code 5WH Over subscription of public tranche 153x Share price at IPO SGD 0.50 Share facts as at Friday, 27 Sep 2013 (end of trading) Share price SGD Number of shares 1,004,683,156 Market capitalisation SGD million Major shareholders Rex Commercial Fram shareholders Pre-IPO investors Schroders PPCF and Cathay New public Total 55.43% 10.13% 8.56% 8.61% 0.55% 16.72% % Share price development since IPO +83% p. 26

27 LIQUIDITY & SHARE PRICE AVERAGE DAILY TRADING VOLUME SINCE LISTING: 24.3 MILLION AVERAGE DAILY TRADING VOLUME FOR LAST 10 DAYS: 11.8 MILLION Source: Shareinvestor as at 27 September 2013 p. 27

28 WELL-CAPITALISED FOR THE NEXT 2 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 SGD 85.3 million Conversion Rate: SGD1.00 = USD0.79 Use of proceeds Investment in new opportunities Drilling in Middle East Concessions Drilling in Norwegian Licences Repayment of loan to Rex Partners General working capital Listing expenses SGD 85.3 million SGD million SGD million SGD million SGD 2.35 million SGD million SGD 5.36 million p. 28

29 BUSINESS MODEL VISION: MARKET CAPITALISATION OF MORE THAN S$1 BILLION ACHIEVABLE MISSION REX INTERNATIONAL HOLDING A sustainable game-changer in oil exploration & production PILLARS OF BUSINESS STRATEGY Continuous capital recycling sell-off oil in ground and invest in new assets Portfolio in different stable, lowertax, oil-rich geographies to spread risks Strong partnerships with strategic partners, with limited equity stake per concession Maintain a portion of oilproducing assets for recurring income Management benchstrength with a crossfunctional & experienced team FOUNDATION OF CUTTING-EDGE TECHNOLOGY Access to Rex Technologies to assess areas for exploration Fast exploration decision process and prospect analysis Targeted concession investments based on oil show data p. 29

30 INVESTORS AND MEDIA Ms. Mok Lai Siong Group General Manager, IR & Communications Mob: COMPANY ADDRESS Rex International Holding Ltd 6 Raffles Quay #20-07 Singapore p. 30

31 APPENDICES

32 PEER ANALYSIS Valuations Ticker Mkt Cap TTM P/E CY13 P/E CY14 P/E EV/EBITDA P/BV P/NTA Company (S$m) (x) (x) (x) (x) (x) (x) Rex International Holdings Ltd REXI SP E&P players listed in Spore KrisEnergy Ltd KRIS SP 1, Mirach Energy Ltd MENR SP RH PetroGas Ltd RHP SP Ramba Energy Ltd RMBA SP Interra Resources Ltd ITRR SP Loyz Energy Ltd LOYZ SP Median E&P players with exposure to Norway/UAE/Oman assets (>~$S200m, <~S$3b) DNO International ASA DNO NO 2, Det Norske Oljeselskap ASA DETNOR NO 2, Hibiscus Petroleum Bhd HIBI MK Circle Oil PLC COP LN Median 1, Source: Bloomberg as at 27 September 2013 p. 32

33 PL503 VALBERGET Country: Norway Concession name: PL503 Valberget Concession size in sq km: 978 Rex interest in concessions: 8% Rex Group concession holder: Lime Norway Operator: Lotos E&P Norge AS Location: North Sea p. 33

34 PL 498 SKAGEN Country: Norway Concession name: PL 498 Skagen Concession size in sq km: 278 Rex interest in concessions: 3% Rex Group concession holder: Lime Norway Operator: Lotos E&P Norge AS Location: North Sea p. 34

35 PL 616 SKAGASTØL Country: Norway Concession name: PL 616 Skagastøl Concession size in sq km: 333 Rex interest in concessions: 3% Rex Group concession holder: Lime Norway Operator: Edison International Norway Branch Location: North Sea p. 35

36 PL503/B VALBERGET Country: Norway Concession name: PL503/B Valberget Concession size in sq km: 433 Rex interest in concessions: 8% Rex Group concession holder: Lime Norway Concession partners: North Energy Operator: Lotos E&P Norge AS Location: North Sea p. 36

37 OMAN BLOCK 50 WELL #2 Country: Oman Concession name: Oman Block 50 Well #2 Rex interest in concessions: 31.2% Rex Group concession holder: Masirah Operator: Masirah Location: Gulf of Oman p. 37

38 OMAN BLOCK 50 WELL #1 Country: Oman Concession name: Oman Block 50 Well #1 Concession size in sq km: 16,903 Rex interest in concessions: 31.2% Rex Group concession holder: Masirah Operator: Masirah Location: Gulf of Oman p. 38

39 INNISS-TRINITY Country: Trinidad & Tobago Concession name: Inniss-Trinity Rex interest in concessions: 100% Rex Group concession holder: Caribbean Rex Limited Concession partners: Pareto Staur SPV1 AS Location: South central Trinidad within Moruga district Note: Pending regulatory due diligence and approval p. 39

40 SOUTH ERIN BLOCK Country: Trinidad & Tobago Concession name: South Erin Block Rex interest in concessions: 75% (working interest) Rex Group concession holder: Caribbean Rex Limited Concession partners: Pareto Staur SPV1 AS Location: South-west Trinidad Note: Pending regulatory due diligence and approval p. 40

41 CORY MORUGA BLOCK E Country: Trinidad & Tobago Concession name: Cory Moruga Block E Rex interest in concessions: 51% (working interest) Rex Group concession holder: Caribbean Rex Limited Concession partners: Pareto Staur SPV1 AS Location: Southern basin, onshore Trinidad Note: Pending regulatory due diligence and approval p. 41

42 SHARJAH Country: UAE Concession name: Sharjah Concession size in sq km: 1,600 Rex interest in concessions: 65% Rex Group concession holder: Zubara Operator: Zubara Location: Gulf of Oman p. 42

43 RAK ONSHORE Country: UAE Concession name: RAK onshore Concession size in sq km: 886 Rex interest in concessions: 65% Rex Group concession holder: Baqal Operator: Baqal p. 43

44 RAK OFFSHORE Country: UAE Concession name: RAK offshore Concession size in sq km: 1,200 Rex interest in concessions: 38% Rex Group concession holder: Dahan Operator: Dahan Location: Strait of Hormuz p. 44

45 NORTH DAKOTA WILLISTON Country: USA Concession name: North Dakota Williston Concession size in sq km: 39 Rex interest in concessions: 27.52% Rex Group concession holder: Rex US Ventures LLC Operator: Fram Operations p. 45

46 COLORADO WHITEWATER Country: USA Concession name: Colorado Whitewater Concession size in sq km: 204 Rex interest in concessions: 27.95% Rex Group concession holder: Rex US Ventures LLC Operator: Fram Operations p. 46