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p. 1
REX INTERNATIONAL HOLDINGPRESENTATION ON REXONIC
7 November 2013
p. 2
DISCLAIMER
The information contained in this presentation has not been independently verified. The Company assumes no responsibility or liability whatsoever (in
negligence or otherwise) for, the accuracy or completeness of, or any errors or omissions in, any information or opinions contained herein nor for any loss
howsoever arising, whether directly or indirectly, from any use, reliance or distribution of this presentation or its contents or otherwise arising in connection with
this presentation. It is not the intention to provide, and you may not rely on this presentation as providing a fair, accurate, complete or comprehensive analysis
of all material information concerning the Company, or the Company's financial or trading position or prospects. The information and opinions contained in this
presentation are provided as at the date of this presentation and are subject to change without notice.
This presentation may not be forwarded or distributed to any other person and may not be reproduced in any manner whatsoever. Any forwarding, distribution
or reproduction of this presentation in whole or in part is unauthorised. Failure to comply with this directive may result in a violation of the Securities Act or the
applicable laws of other jurisdictions.
This presentation is for information purposes only and does not constitute or form part of an offer, solicitation or invitation of any offer, to buy or subscribe for
any securities, nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract, commitment or investment decision
whatsoever. This document may not be used or relied upon by any other party, or for any other purpose, and may not be reproduced, disseminated or quoted
without the prior written consent of the Company.
This presentation contains projections and forward-looking statements that reflect the Company's current views with respect to future events and financial
performance. These views are based on estimates and current assumptions which are subject to business, economic and competitive uncertainties and
contingencies as well as various risks and these may change over time and in many cases are outside the control of the Company and its directors. You are
cautioned not to place undue reliance on these forward looking statements, which are based on the current view of the management of the Company on future
events. No assurance can be given that future events will occur, that projections will be achieved, or that the Company's assumptions are correct. The
Company does not assume any responsibility to amend, modify or revise any forward-looking statements, on the basis of any subsequent developments,
information or events, or otherwise. These statements can be recognized by the use of words such as "expects," "plans," "will," "estimates," "projects," or
words of similar meaning. Such forward-looking statements are not guarantees of future performance and actual results may differ from those forecast and
projected or in the forward-looking statements as a result of various factors and assumptions. A potential investor should read the Offer Document first for
details of forecasts and projections and consider the assumptions used and make their own assessments of the future performance of the Company before
deciding to purchase the Company’s shares.
p. 3
REX’S INVESTMENT RATIONALE
FOR REXONIC
• Increase in production for clogged wells – improves production by 30% up to 380%
• Environmentally friendly; easily set up; low cost
• Patented proprietary technology, several years’ head start
Investing into a green
& game-changing
technology
• Rex technologies can be applied to oil exploration and appraisal phases; Rexonic technology can be applied to appraisal and production phases
• Rex Virtual Drilling analyses sound; Rexonic technology uses sound for cleaning
• Opportunities to tap on each other’s network for cross-references to grow respective core businesses
Synergies with
Rex International
Holding
• Remains committed to creating value by identifying and acquiring new exploratory concessions; increasing value by introducing Rex technologies; spinning off mature assets for renewal of capital and unlocking shareholder value
• Rexonic will contribute complementary recurring revenue from the production phase through its service and licensing model, without Rex International Holding having to incur capital expenditure for stakes in production wells
Strengthens
Rex International
Holding’s existing
business model
p. 4
REX’S POSITION
IN THE E&P VALUE CHAIN
Production phase
3. Complementary recurring revenue from
Rexonic (license or service model)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
LICENSE
AWARD
EXPLOR. DISCOV. DEVT. PDO* CONSTRUCTION FIRST OIL PRODUCTION
*Plan for Development and Operation
RESERVESCONTINGENT
RESOURCES
PROSPECTIVE RESOURCES
YEAR
$/BOE, RISKED
UAE/OMAN/NORWAY(1)
USA/TRINIDAD (2)
Exploration & Appraisal phases
1. Prove up value
2. Sell oil in the ground
Notes:
(1) Assuming transfer of 10% stakes in PL 707 & PL 708 is completed
(2) Assuming the investment by Rex International Holding in Caribbean Rex is completed
p. 5
OVERVIEW OF REX
CONCESSIONS
UAE
RAK OFFSHORE
RAK ONSHORE
SHARJAH
OFFSHORE
OMAN
BLOCK 50
OFFSHORE
NORWAY
6 LICENCES(3)
OFFSHORE
USA
FRAM
EXPLORATION
27.7%(1)
(LEASES IN
CO & ND)
SINGAPORE
HQ
TRINIDAD
3 CONCESSIONS
ONSHORE(2)
MALAYSIA
HIREX JV
SWITZERLAND
REXONIC JV(4)
Notes: (1) Assuming exchange of 20% stake in US concessions into direct stake in Fram is completed
(2) Assuming the investment by Rex International Holding in Caribbean Rex is completed
(3) Assuming transfer of 10% stakes in PL 707 & PL 708 is completed
(4) Assuming investment in joint venture with Ogsonic is completed
p. 6
64%
REX COMPANY STRUCTURE*
REX US LIME
PETROLEUM
BAQAL
PETROLEUMASSET: RAK
ONSHORE
ZUBARA
PETROLEUMASSET:SHARJAH
OFFSHORE
MASIRAH
OILASSET: BLOCK 50
OMAN OFFSHORE
DAHAN
PETROLEUMASSET: RAK
NORTH OFFSHORE
LOYZ REX
DRILLING
SERVICES LLC
COLORADO /
NORTH DAKOTA2 ONSHORE LEASE
AREAS*
FRAM
EXPLORATION(1)
REX INTERNATIONAL HOLDING
HIBISCUS
100% 65%
LIME PETROLEUM
NORWAY6 OFFSHORE CONCESSIONS:
PL498 PL 616, PL503/PL503B,
PL 707, PL 708
100%100% 100%59%49%
35% SHAREHOLDER
28% 41%
HIREX
Notes: * Simplified model of group structure, see Offer Document for complete details
**Assuming certain well obligations are met
(1) Assuming exchange of 20% stake in US concessions into direct stake in Fram is completed
(2) Assuming the investment by Rex International Holding in Caribbean Rex is completed
(3) Assuming the investment in joint venture with Ogsonic is completed
(4) Assuming transfer of 10% stakes in PL707 and PL708 is completed
REXONIC(3)
64%
• Inniss-Trinity – 100%
• South Erin Block – 75%
• Cory Moruga Block ‘E’ – 51%**
• PL503 Valberget 12.5%
• PL503B Valberget 12.5%
• PL616 Skagastol 5%
• PL498 Skagen 5%
• PL707 Seiland West 10% (4)
• PL 708 Seiland East 10% (4)
• RAK Onshore – 100%• Sharjah - 100%• Block 50 Oman – 100%• RAK North - 100%
CARIBBEAN
REX(2)
66.7%
ASSETS: 2 ONSHORE RIGS
OWNER OF US LICENCES
p. 7
REX IS WELL-CAPITALISED
FOR THE NEXT FEW YEARS
Amount of funds raised
Pre-listing/ At asset & subsidiary level SGD 114.3 million USD 90 million
Pre-IPO (excluding share swap) SGD 35.6 million USD 28 million
IPO SGD 85.3 million
Private Placement (Net) SGD 50.5 million
Intended Use of IPO proceeds SGD 85.3 million Intended Use of Private Placement Net Proceeds SGD 50.5 million
Investment in new opportunities SGD 15.7 million New opportunities in Asia-Pacific SGD 17.7 million
35.1%
Drilling in Middle East Concessions SGD 12.4 million New opportunities in existing markets SGD16.7 million
33.0%
Drilling in Norwegian Licences SGD 23.6 million Rexonic SGD 16.1 million
31.9%
Repayment of loan to Rex Partners SGD 2.4 million
General working capital SGD 25.9 million
Listing expenses SGD 5.3 million Conversion Rate: SGD1.00 = USD0.79
p. 8
REXONIC – A HIGH POWER ULTRASOUND
STIMULATION TECHNOLOGY FOR GREATER
EFFICIENCY IN THE OIL RECOVERY PROCESS
p. 9
REXONIC – GAME-CHANGER FOR OIL
PRODUCTION
VALUE-ADDED TECHNOLOGY FOR OIL PRODUCTION
– the world’s first high power ultrasound system for commercial oil stimulation
Resonator –
Transducer
Ultrasound power at
Total Depth: 1.5 kW
Max. well temperature
tested: 125°C
1.5
-2 m
4-8cm
- Ultrasonication generates alternating low-pressure and high-pressure waves leading to ultrasonic shear
waves in the well and surrounding rock.
- This reduces the friction in the media and improves the oil flow into the well bore.
- Ultrasonic waves create cavitation which causes mechanical removal of particles.
- Ultrasonication reduces the viscosity of the liquid without the use of chemical agents or steam generators..
ELECTRIC POWER
GENERATOR
ULTRASONIC
GENERATOR
LOGGING CABLE
ON TRUCKRESONATOR
& WELL
p. 10
REXONIC – HOW IT WORKS
Cleans the capillaries of wax, asphaltenes and particles to increase the oil flow into the borehole
Increases oil production by 30% up to 380% and can be deployed onshore and offshore
1. Paraffins, asphaltenes, particles and other
damages are plugging pore spaces. Oil wells are
not producing at their potential capacity.
2. Rexonic’s ultrasound dislodges the formations. The
cleaning mechanism of micro-acoustic streaming
begins.
4. Pore space and permeability are
restored, resulting in an increased oil
flow and cost-effective production.
3. The ultrasound’s high power disrupts the adhesive
forces that hold the particles in place. Consequently,
these particles get removed.
OnshoreOffshore
p. 11
REXONIC – KEY ADVANTAGES
ENVIRONMENTALLY FRIENDLY - EASILY SET-UP - LOW COST - HIGH EFFICACY
1. Less cost intensive, higher efficiency, better results
2. 100% environmental- friendly, no pollution
3. No production downtime
4. Long lasting effects
5. Easy and fast set-up of equipment
EFFECTSon wells below maximum capacity
Stimulation oil wellswith
decreasing production rates
Maintaining oil wellswhich are below
maximum capacity
Reviving oil wellswith low output
APPLICATIONSfor high power ultrasound
technology
1. Removal of paraffines, wax & asphaltene deposits
2. Destruction of salt formations in the capillaries
3. Reduction of surface tension in the capillaries
4. Destruction of colloid formations
5. Unclogging of injected particles
ADVANTAGES OVER COMPETITORS
p. 12
REXONIC - PROVEN
TECHNOLOGY
FIELD TESTED TECHNOLOGY
- Proven that oil production can be increased by 30% up to 380%
ONSHORE
* Source: Bloomberg. Crude Oil (Brent)
= US$108 /b (26.09.2013)
OFFSHORE
SOUTH AMERICA
2013
CENTRAL AMERICA
2011
83
bpd
137
bpd+65%
899
bpd
1865
bpd+107%
Additional
revenue
US$ 5,832*
per day
Additional
revenue
US$ 104,328*
per day
CENTRAL AMERICA
2010
CENTRAL AMERICA
2009
49
bpd
235
bpd
Before After
+380%
39
bpd
116
Bpd
Before After
+197%
Additional
revenue
US$ 20,088*
per day
Additional
revenue
US$ 8,316*
per day
Before AfterBefore After
106
BPD
= All
time
high
CLIENT ADVANTAGES
Short downtime of less than 2 hours
Less environmental risks
Cheaper than common chemical treatment
procedures
Easy to scale technology
No switching costs, as Rexonic technology
can be used in addition to existing
Enhanced Oil Recovery technologies
Fast return on investment
p. 13
REXONIC – TWO OPERATING BUSINESS
MODELS
SCALABLE OPERATING BUSINESS MODELS
Service Model
Well stimulations carried out by
Rexonic’s own teams and equipment
- Revenue from well treatments
- Baseline revenue
- Worldwide data-collection for R&D
Licensing Model
Licenses for Rexonic technology sold, allowing
contracted service providers to use the
technology with their personnel but under
Rexonic’s expert supervision and training
- Revenue from licenses and training
- Fast and worldwide roll-out of technology
p. 14
Existing daily production of clogged well 100 bpd
Daily production after Rexonic stimulation 130 bpd
Increase in daily production 30 bpd
Crude oil price US$ 100 / barrel
INCREASED REVENUE PER DAY US$ 3,000
INCREASED REVENUE PER YEAR US$ 1.1 million
REXONIC - CASE STUDY
CASE STUDY
– example of impact on one successful stimulation of a clogged
production well and assuming 30% increased production
REXONIC TECHNOLOGY IS 100%
ENVIRONMENTALLY-FRIENDLY, CAUSES
NO POLLUTION
INCREASES OIL PRODUCTION THROUGH
STIMULATION AND CLEANING EFFECTS
WITHOUT THE DRAWBACKS OF CONVENTIONAL
ENHANCED OIL RECOVERY TECHNOLOGIES
MAKING THE E&P INDUSTRY
GREENER
p. 16
SAFER AND CLEANER FOR HUMANS AND NATURE
REXONIC – MAKING E&P GREENER
WATER:
No water waste, no water pollution,
no sea contamination
AIR:
No air pollution before, during and after
the treatments
GROUND:
No ground contamination before, during
and after the treatments
HUMAN RESOURCES:
No hazard for human resources, no hesitation
against health problems
DIFFERENTIATORS:
No chemicals
ABOUT OGSONIC AG
COMPANY PROFILE
MILESTONES
ABOUT THE FOUNDERS
p. 18
OGSONIC AG - PROFILE
OGSONIC AG
Swiss-based spin-off company established
in 2008
Looking back to 45+ years of experience in
ultrasound technology
TECHNICAL APPROACH
Cleaning and stimulation of oil wells with high-
power ultrasound technology
DIFFERENTIATORS
Innovative, 100% eco-friendly, Swiss
engineered and patented technology
p. 19
REXONIC- MILESTONES
2012
IMPROVEMENT OF
TECHNOLOGY
Ogsonic AG started a
new research and
development initiative to
improve its core
technology. A test
breakthrough was
accomplished, which
enabled the company to
sign its first contract.
2009
FIRST PILOT TESTS
First successful oil well
stimulation recovery tests
were completed in
Mexico and Romania.
The results showed that it
is possible to increase oil
production by 30% to
380%.
2008
FOUNDING OF
OGSONIC AG
Ogsonic AG was founded
as a spin-off of the world
leading industrial
ultrasonic application
provider to solely
concentrate on the
development and
production of ultrasonic
solutions for the oil and
gas industry.
2013
ACQUISITION OF
CONTRACTS
Ogsonic AG signs
contracts with three
major national oil
companies.
Rexonic AG is formed
pursuant to the JV with
Rex International Holding
and Ogsonic AG.
2014
TECHNOLOGICAL
ADVANCES
In 2014, Rexonic AG will
be introducing the next
generation of tool sets to
increase current
performance.
National oil
companies
p. 20
OGSONIC - FOUNDERS
Peter Spenger
Board Member &
Chief Technology Officer (“CTO“)
30+YEARS OF EXPERIENCE
Peter is the Founder and President of the Board of
Ogsonic AG. He is determined that Ogsonic has a
scalable and sustainable knowledge development.
As the CTO, he examines and safeguards that the
ultrasound technology has the highest standards.
Peter is a founding partner of Ogsonic AG. He
owned and managed the world-leading industrial
ultrasonic company, Telsonic AG, for more than 17
years. He graduated from the Harvard Business
School and the University of St. Gallen.
Andreas Karl Kühne
Board Member &
Chief Executive Officer (“CEO“)
25+YEARS OF EXPERIENCE
Andreas is the CEO and a Member of the Board of
Ogsonic AG. Since 2009 he is entrusted with the
conception and strategic focus of the company as
well as business development.
Andreas is a founding partner of Ogsonic AG. He
graduated in social science from the University of
Zurich. He has multiple years of management and
finance experience at Credit Suisse and other
selected companies, as well as broad experience in
startup areas. He has also furthered his studies in
political science at the University Berkeley and in
finance at UCLA and at the Union Bank of
California, Los Angeles.
FOUNDERS OF OGSONIC TO BE ON REXONIC’S MANAGEMENT TEAM
p. 21
INVESTORS AND MEDIA
Ms. Mok Lai Siong
Group General Manager, IR & Communications
T: +65 6908 4858
M: +65 8518 8945
Email: [email protected]
COMPANY ADDRESS
Rex International Holding Ltd
6 Raffles Quay #20-07
Singapore 048580