Rex International shares fall on suspension of first exploration well in Oman

Shares of Swedish oil exploration company Rex International fell today on news that a joint-venture unit has suspended its first exploration well in Oman for safety reasons.

At 430pm, the company's shares declined six cents or 9.4 per cent to 58 cents.

The company announced to the Singapore Exchange late on Tuesday that drilling at the exploration well located in Block 50 Oman had to stop due to mud losses, which posed risks of a blowout.

The well was drilled to a total depth of about 1,000 metres below mean sea level, preventing it from reaching a deeper planned target depth.

Rex International also stated that information from the data obtained so far indicated the "presence of non-commercial hydrocarbons", which suggests it is not economical or feasible to get the oil out.

But it is using the data to better understand the geology of the area.

This would help it to identify a drilling location for its second exploration well in the area.

The drilling for the second exploration well will start within two weeks.