Masirah Oil Limited, the 86.37%-owned subsidiary of technology-driven oil company Rex International, has awarded a drilling rig contract to Shelf Drilling in Oman.
The contract is said to utilise the Tenacious jackup rig to drill two development wells and one exploration well in Block 50 Oman.
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Masirah Oil holds a 100% interest in Block 50 Oman.
The drilling is expected to begin in December 2020.
“With the permanent Yumna 1 production facilities in production and sale of the Masirah crude since April 2020, our next short-term focus would be to drill two development wells to boost production. The average oil price per barrel between July and September 2020 has been US$43, which is 46 per cent higher than the average oil price per barrel between April and June 2020,” says Dan Brostrom, Rex International’s executive chairman.
“Following the development wells, an exploration well, the location of which is to be selected from 14 previously identified prospects near the Yumna Field, is slated to be drilled in 2021. A discovery in this exploration well will enable us to put together further development plans and potentially convert more prospective resources near the Yumna Field into additional reserves,” he adds.
Shares in Rex International closed flat at 15.5 cents on Nov 25.
