Rex International : Update On Block 50 Oman

PRESS RELEASE

Update on Block 50 Oman

• Change-outof floating storage tanker completed
• Upgrade of production facilities and change-out of Mobile Offshore Production Unit (MOPU) in progress
• Preparation to start for drilling campaign after monsoon season in third quarter
• Seismic campaign covering Melange prospects planned for March/April 2022

SINGAPORE, 9 March 2022 - Rex International Holding Limited ("Rex International Holding", "Rex" or the "Company", and together with its subsidiaries, the "Group"), a multinational oil and gas exploration and production company, wishes to share its 91.81 per cent subsidiary Masirah Oil Limited's ("MOL") plans for the Block 50 concession in Oman, for which it is the operator.

The previous floating storage tanker has been replaced by a new floating storage tanker. The replacement will allow for the tanker to be in the field for several years without the need for dry- docking. During the change-out in February and March 2022, the production was shut-in for 24 days. Production has since resumed.

A change-out of the Mobile Offshore Production Unit (MOPU) is also underway with upgraded facilities on-board. The upgraded facilities will allow for greater liquid handling capacity and longer time in the field.

Preparations for a targeted drilling campaign after the monsoon season has started. Selection of a drilling rig contractor to drill one firm well and one optional well is ongoing. The first well will establish the eastern extent of the Yumna field. Then this well will be potentially deepened to test a major prospect within the Khufai carbonate (a proven producer from other concessions onshore of Oman).

If the Khufai prospect is proven to be commercial, it can be produced at very low cost from the existing Yumna field facilities.

The second well, an optional exploration well, is under review. Recent geological interpretation has identified several significant prospects (Yumna analogues and additional Khufai carbonate opportunities).

A reinterpretation of gravity and magnetics studies has resulted in potential areas of interest covering the sub-Melange prospects. The new encouraging findings indicate the covering rock to be less onerous for drilling. To further exploit these opportunities, a 3D seismic survey covering 15 sq km using ocean-bottom-nodes is being planned. It is anticipated that seismic acquisition will start in late March 2022.

Mr Dan Broström, Executive Chairman of Rex, said, "Our key focus is to increase production and reserves. With Brent oil price presently above US$120 per barrel and increased market demand for oil under current economic and geo-political circumstances, it makes more sense to invest in our existing assets for higher realisation of cash flow in the near term than to procure new assets at high valuation."

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Disclaimer

This press release may contain 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. Actual future performance, outcome and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, availability of real estate properties, competition from other companies and venues for the sale/distribution of goods and services, shifts in customer demands, customers and partners, changes in operating expenses, including employee wages, benefits and training, governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. 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 recognised 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. Shareholders and investors are cautioned not to place undue reliance on these forward- looking statements, which are based on the current view of management of future events.

About Rex International Holding

Rex International Holding is a multinational exploration and production (E&P) company listed on Singapore Exchange Securities Trading Limited's Mainboard. The Company de-risks its portfolio of exploration and development assets using its proprietary liquid hydrocarbon indicator Rex Virtual Drilling technology, which can locate oil reservoirs in the sub-surface using seismic data. Since the Company's listing in July 2013, the Group has achieved four offshore discoveries, one in Oman and three in Norway. Besides its E&P activities with a focus on Oman and Norway, the Group also offers Rex Virtual Drilling screening services to other oil exploration companies as an additional tool to increase the success rate of finding oil.

Issued by Rex International Holding Limited

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