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Rexonic nets maiden well stimulation contract with unknown national oil company

06th October 2014

Rexonic, through a wholly-owned subsidiary, has secured a first and ground-breaking USD 10m well stimulation contract with a reputed and large national oil company (NOC), whose name has been withheld at the request of the client

Rexonic nets maiden well stimulation contract with unknown national oil company
The start of the contact is dependent on, amongst other things, the arrival of third party technical components

The contract is expected to start in end 2014 and the contractual value is approximately USD 10m if fully executed over the next 24 months.

“We are pleased and excited over this important milestone in the development of Rexonic,” said Peter Spenger, executive chairman of Rexonic. “We look forward to update the markets more in detail once execution has started and the first couple of wells have been treated.”

Rexonic will provide its unique environment-friendly, ultrasonic well stimulation technology on selected wells owned by the NOC. The start of the contact is dependent on, amongst other things, the arrival of third party technical components.

“We are heartened to see the fruition of Rexonic’s commercialisation plans, following months of hard work by the management team,” said Dan Broström, executive chairman of parent company Rex International Holding.

“A first contract with an NOC is a notable achievement for Rexonic, as the potential for an expansion in the scope of coverage for the well stimulation technology is promising. Synergies with Rexonic’s technology, such as using Rex Virtual Drilling to prioritise which production well to stimulate first, can be further progressed. We can also tap on each other’s business network to further grow our respective portfolios.”

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