Hot stock: Rex International up 20% on oil discovery

A “SIGNIFICANT” oil reservoir discovery by a Norwegian oil drilling firm has helped lift Catalist-listed Rex International Holding’s share price by 20 per cent in Tuesday trade.

Its shares were up 0.8 Singapore cent to 4.8 Singapore cents as at 10.58am, with its 10.8 million shares traded putting it just outside the top five counters by volume traded.

An oilfield services firm, Rex International announced after Monday’s close that the drilling and production testing of the Rolvsnes well – in which Rex’s 90 per cent subsidiary Lime Petroleum AS holds a 30 per cent interest – had been completed successfully by operator Lundin Norway.

A test well drilled in the permit, PL338C, confirmed “sustainable commercial oil flow”, with production rate of up to 7,000 barrels of oil per day (bopd), with a sustainable flow rate of nearly 4,500 bopd.

“The test results show good reservoir productivity and connection to a significant oil volume that benefits from aquifer pressure support, which are positive factors towards demonstrating commercial recovery at Rolvsnes,” Rex International said in a press statement.

The Rolvsnes discovery is located in the Utsira High area three kilometres to the south of the oil producing Edvard Grieg platform, operated by Lundin Norway.