Rex Falls Most in 6 Weeks on Oman Drilling Halt: Singapore Mover
Rex International Holdings Ltd. (REXI), an oil exploration firm with concessions in Norway, Oman and U.S., fell the most in almost six weeks after the company said a joint venture suspended its first exploration well in Oman.
The stock lost as much as 11 percent to 57 Singapore cents and traded at 58 Singapore cents as of 11:26 a.m. local time, heading for its lowest close since Nov. 18. Masirah Oil Ltd., a unit of its Lime Petroleum Plc venture, drilled the well at Block 50 Oman to a depth of 1,000 meters (3,280 feet) before mud losses in two sections stopped the efforts, the company said in a statement on Dec. 24.
“This Oman block is one of the major assets of Rex,” said Loke Chunying, an analyst at United Overseas Bank Ltd. “This is the first well they’re drilling as a company, so there’s so much attention on it. That explains why there’s such a significant drop” in share prices.
Rex said the data from coring and logging programs will be used to better understand the area’s geology. Drilling of a second exploration well in the area will start within two weeks, it said.
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