The cash infusion of $8 million came from Rex Oman, an indirect wholly owned unit of Singapore-based Rex International Holdings, following a subscription of new shares of Masirah Oil (MOL).
“The Capital Injection was necessary to allow (Masirah Oil Limited) 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,” said Rex International Holdings in a statement.
“The Board considers the Capital Injection to be in the interest of and beneficial to the Group as (Masirah Oil) is the operator and holds 100 per cent ownership in the close to 17,000 sq km Block 50 Oman concession, which has been identified as one of the Group’s main focus going forward. 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,” it added.
The move comes as Masirah Oil prepares to drill another exploration well in Block 50. Dubbed Karamah-1, the well is the second of a multi-well programme and will be drilled from the Aban VII jack-up rig.
It follows the successful drilling of the first exploratory well Manarah-1 nearly a year ago, which confirmed the presence of a source rock and a working petroleum system in the concession. During a 48-hour test, light oil flowed to the surface at the rate of 3,000 stock tank barrels per day, the company said.
Masirah Oil is also looking for investors to participate in the exploration and development of the Block as part of a farm-out.
As a result of the latest capital injection, Rex Oman has increased its direct interest to 85.15 per cent of the enlarged issued and paid-up share capital of Masirah Oil. The balance is held by Lime Petroleum (1.45 per cent), Petroci Holdings (8.39 per cent) and Schroder & Co Banque SA (5 per cent).
Majority shareholder Rex International Holdings, which is a Singapore-listed oil and gas company, also holds a 65 per cent indirect interest in Lime Petroleum. Consequently, its effective interest in MOL has increased from approximately 78.68 per cent to 86.09 per cent.
Source Link: omanobserver.om