Rex International Holding Limited, and together with its subsidiaries announced that its 64.17 per cent indirectly owned licence-holding company Caribbean Rex Limited, has on 14 July 2014 signed a binding Heads of Agreement
(“HOA”) with LGO Trinidad Holdings Ltd, a wholly-owned subsidiary of Leni Gas & Oil PLC (“LGO”) to divest its 100 per cent interest in the company that holds the Incremental Production Service Contract (“IPSC”) for the Inniss-Trinity field, owned by the Petroleum Company of Trinidad and Tobago Limited (“Petrotrin”), for a consideration of USD 5 million in cash. The HOA is subject to a number of material conditions, including the negotiation in good faith of a definitive agreement, stakeholders’ consent, legal, financial, taxation, and commercial due diligence on the IPSC-holding company and its business, assets and liabilities. Should the transaction not be completed by 27 September 2014 due to LGO Trinidad acting without cause, LGO Trinidad will pay Caribbean Rex a break-fee of USD 250,000.
Mr Mans Lidgren, Chief Executive Officer of Rex International Holding, said, “As we have shared in our investment update on 17 April 2014, the Inniss-Trinity field is under an incremental petroleum production contract and hence, it is not possible to book any reserves. While the field is a conventionally attractive asset, it does not fulfil our investment criteria as it is not covered with adequate recent 3D seismic data to be effectively derisked with Rex
Virtual Drilling. We are pleased that the field fits well into LGO’s operations and growth plans in Trinidad.”
None of the directors, the CEO, or substantial shareholders of the Company has any interest, direct or indirect, in the aforementioned transaction (other than through their shareholdings in the Company).
Rex International Holding had on 11 April 2014 announced that its five-well onshore drilling programme in Trinidad had been fully funded. It also said that wells would be put on production about one to two months after completion of the drilling operation, subject to successful commerciality testing and government approvals. The production from the Caribbean Rex wells in Trinidad is targeted to be over 500 barrels of oil per day (bopd) at the end of 2014. It is expected that results of the drillings will be announced when all five wells have been drilled.
