SPAngel|PrinceFrederickHouse|3539MaddoxStreet|London|W1S2PP|UnitedKingdom

SPAngelCorporateFinanceLLPisauthorisedandregulatedbytheFinancialConductAuthority.RegisteredinEnglandNo.OC317049.RegisteredOffice:PrinceFrederickHouse,3539MaddoxStreet,LondonW1S2PP.

Oil&GasFlashNote

RexInternationalHolding
REXISP
S$0.62
BUY
S$1.10

NAV:
Overall $mm
Core 233
Appraisal&Development 73
Exploration 788
Total 1,095
Pershare S$1.10

FromCurrentPrice 77%

Simpler,Stronger andMoreActive&
Focused
ThesummerhasbeenanactivetimefortheCompany.ThesaleofitsinterestinInnis
Trinity in Trinidad has sharpened the focus, while the acquisition of Rex Technology
simplifiesthestructuresignificantly.Therecentfundraising,whereisraised~$75mm,
providesitwithsufficientcashresourcestoexecuteitsneartomediumtermstrategy.
TechnologyOwnershipSimplifiestheOffering
OneofRexskeydifferentiatingfactorswasitapplicationofRexVirtualDrilling(RVD)
intheexplorationphase,whichithadexcludingaccessto,providingcertainshareholder
interests are maintained, etc. Consequently, news the acquisition of the technology
simplifies this area significantly, and eliminates what hitherto has been an area of
confusionforinvestors.
FundraisingProvidesBalanceSheetStrengthandCorporateFlexibility
The recent fundraising is timely (see below) and provides two things to the Company,
namely: (i) balance sheet strength, which given that the funding markets are not fully
open,adollaronthebalancesheetisworthmorethanadollartothirdpartiesoutside
theCompany;and(ii)corporateflexibility,whetheritisintheshapeofactivityontheir
ownacreage,orfarmingintoathirdpartysacreage,itprovidesthemwiththeabilityto
pick and choose, and be more aggressive in their pursuit of terms, which is good for
shareholders.
ActivityIncreasing&MoreFocused
Asweentertheclosingstagesof2014,thedrillingprogrammestartstoaccelerate,with
thefocalpoints(forus)beingNorwayandtheOmaniappraisalwell.However,thisisnot
theonlyactivity,astherewillbeasignificantamountofactivityrightacrosstheportfolio,
inalltheirjurisdictions.
Valuation$1,095(S$1.10)
WhileRIHsassetvaluehasincreasedoverallto$1,095mm,thepersharevaluationhas
beenadjustedtoS$1.10,whichreflectstheincreasednumberofsharesinissue.Weare
reiteratingourBUYrecommendation,butadjustingourtargetpricetoS$1.10.
YEDec($mmunlessstated) 2013 2014E 2015E 2016E
Production(mmboe)
Revenues
Operatingcosts (7.79) (7.79) (7.79) (7.79)
EBITDA (7.79) (7.79) (7.79) (7.79)
PBT (8.56) (8.24) (8.40) (8.34)
NetIncome (8.56) (8.24) (8.40) (8.34)
EPS($) (0.01) (0.01) (0.01) (0.01)
Source:Company&SPAngel

StockData
Ticker(EXCHANGE) REXISP
SharePrice: S$0.62
MarketCap: S$783mm
EV: S$665mm
PriceChart
Research
ZacPhillips
+442034700481
zac.phillips@spangel.co.uk
Sales
RichardParlons
+442034700472
richard.parlons@spangel.co.uk
JodyDownes
+442034700471
jody.downes@spangel.co.uk
www.spangel.co.uk

RexInternationalHoldingSimpler,StrongerandMoreActive&Focused
September2014

2 SPAngel

ResearchDisclosures
ZacPhillips
Zachasinexcessof17yearsexperienceinOil&Gasandfinance,workingforcompanies
suchasBP,Chevron,MerrillLynchandINGBarings,whereheundertookfinanceorfinance
relatedroles.GivenhisChemicalEngineeringdegreeandPhD,Zacscareerhasfocusedon
the economics of investment, and its assessment, on a range of projects from process
changeimplementation,tooperatingplantsandcompanies.
Zacs extensive Oil & Gas financial and technical experience has ably lent itself to the
valuationofexplorationandproducingOil&Gasassets,especiallywherecomplexfinancial
structures define companies access to the economic benefits of ownership. Latterly, Zac
wastheCFOtoDubaiWorldsOil&Gasbusiness(DBPetroleum),withresponsibilityforrisk
management,valuation andthe authoringof investmentproposals. During this time,Zac
valued in excess of 152 transactions with a combined transaction value of in excess of
$35bn.
Zac has an Honours Degree in Chemical Engineering from Wales and a PhD in Chemical
EngineeringfromBathUniversity.HeisamemberoftheSocietyofPetroleumEngineers,
InstituteofChemicalEngineersandtheAssociationofInternationalPetroleumNegotiators;
Zac is also an Approved Person under the Financial Conduct Authority in the United
Kingdom.
+44(20)34700481
zac.phillips@SPAngel.co.uk

RexInternationalHoldingSimpler,StrongerandMoreActive&Focused
September2014

SPAngel 3

DISCLAIMER:InvestmentResearch
This note is a marketing communication and comprises nonindependent research. This means it has not been
prepared in accordance with the legal requirements designed to promote the independence of investment
researchandisnotsubjecttoanyprohibitionondealingaheadofitsdissemination.
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YouareadvisedthatSPAngelCorporateFinanceLLPand/oritspartnersandemployeesmayhavealreadyacted
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significantadviceorinvestmentservicesinrelationtosomeoftheinvestmentsconcernedorrelatedinvestments.
SPAngelCorporateFinanceLLPisacompanyregisteredinEnglandandWaleswithcompanynumberOC317049
and its registered office is SP Angel Corporate Finance LLP, 35 39 Maddox Street, London W1S 5PP United
Kingdom.SPAngelCorporateFinanceLLPisAuthorisedandRegulatedbytheFinancialConductAuthoritywhose
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RexInternationalHoldingSimpler,StrongerandMoreActive&Focused
September2014

SPAngelCorporateFinanceLLP
PrinceFrederickHouse
3539MaddoxStreet
London,W1S2PP
UnitedKingdom

Tel: +442034632260
Fax: +4402076291341

SPAngelCorporateFinanceLLPisauthorisedandregulatedbytheFinancialConductAuthority.RegisteredinEnglandNo.OC317049.RegisteredOffice:Prince
FrederickHouse,3539MaddoxStreet,LondonW1S2PP.

SPAngelContactList
Sales
JodyDownes
+442034700471
jody.downes@spangel.co.uk

RichardParlons
+442034700472
richard.parlons@spangel.co.uk

Research
ZacPhillips
+442034635039
zac.phillips@spangel.co.uk
CorporateFinance
RichardHail
+442034700483
richard.hail@spangel.co.uk