On Nov 14, Rex announced that its 91.81%-owned Yumna Field in offshore Block 50 in Oman only managed an “anaemic” 1,304 barrels per day (bpd) of oil production, showing a 20% m-o-m and 65% y-o-y decline.
UOB Kay Hian analysts Llelleythan Tan, John Cheong and Adrian Loh are maintaining their “sell” call on Rex International Holding (SGX:5WH
) with an unchanged target price of 10 cents, after the company released its latest operation data for the month of October.
The analysts’ target price is based on a 0.5x P/B instead of the usual discounted cash flow methodology, due to their “diminished confidence” in the company’s ability to execute on its oil production targets.
