Rex International has engaged London-based independent investment bank, Hannam & Partners (“H&P”), as its exclusive corporate finance advisor with respect to the recently awarded production sharing contract (“PSC”) of Block 1, Sèmè Field in Benin. H&P will support Rex with strategic corporate finance advice in relation to capital fundraising, corporate and asset transactions for its recent PSC, and potentially in other strategic growth initiatives for Rex’s oil & gas business.

The Company is constantly looking to acquire new assets to build up its reserves and production portfolio. In December 2023, the Group announced that it had been awarded a PSC for operatorship and a 76 per cent working interest in Block 1, Sèmè Field in Benin, West Africa.

Mr John d’Abo, Rex’s Executive Vice Chairman, said, 
“Following the award of Block 1, Sèmè Field in Benin, we are actively evaluating financing for organic growth and potential inorganic growth opportunities. We look forward to leveraging on H&P’s expertise and will update the market in due course.”

In December 2023, Rex International announced that Akrake Petroleum SA, a wholly-owned subsidiary of Porto Novo Resources Ltd, Rex's 70 per cent-owned indirect joint venture company, signed a production sharing contract (“PSC”) for operatorship and a 76 per cent working interest in Block 1, Sèmè Field in Benin, West Africa. The remainder of the working interest is held by the government of Benin holding 15 per cent and Octogone Trading, an integrated energy and commodities company trading throughout West Africa, holding 9 per cent.

The offshore Block 1 in Benin covers 551 sq km and is in shallow water depth of 20 to 30 metres. The block includes the Sèmè Field discovered by Union Oil in 1969. The Sèmè Field was first developed by Norwegian oil company, Saga Petroleum (Saga), and had produced approximately 22 MMbbl between 1982 and 1998, before production was stopped prematurely due to low oil prices of around US$14 per barrel in 1998.

Akrake will initially redevelop the Sèmè Field and apply the Group’s tried and tested low-cost production system comprising a jack-up Mobile Production Unit (MOPU) and a Floating Storage Unit (FSO), to restart production. Horizontal wells and modern completion technology for water control will be used to maximise total oil recovery.

KeyFacts Energy: Rex International Benin country profile