Masirah Oil Ltd Secures Jack-Up Rig for Multi-Well Drilling Programme in Yumna Field, Oman

Key Highlights

• Contract Signed for Jack-Up Drilling Rig: Masirah Oil Limited (MOL) announced that its parent company, Rex Oman Ltd., has entered into a contract for the use of the Energy Emerger jack-up drilling rig, operated by Northern Offshore Drilling Operations Ltd.
• Multi-Well Drilling Campaign: The rig will be deployed to drill three new development wells in the offshore Yumna Field, located in Block 50, Oman. This programme is scheduled to commence in March 2026.
• Previous Experience: The Energy Emerger rig was also utilized in MOL’s 2024 drilling campaign, suggesting operational familiarity and a smoother execution for the upcoming programme.
• Strategic Objective: The goal of the new drilling initiative is to increase oil production rates and extend the productive lifespan of the Yumna Field.
• Ownership Structure: MOL is an indirect 87.5% subsidiary of Jasmine Energy Limited (JEL), and MOL holds a 100% operating interest in Block 50, Oman.
• Operational Readiness: Funding and rig arrangements are confirmed, positioning MOL to promptly commence drilling operations.

Implications for Shareholders

• Potential for Increased Oil Production: The drilling of three additional wells has the potential to significantly increase output from the Yumna Field, directly impacting revenue streams and, consequently, shareholder value.
• Field Longevity: Extending the lifespan of the Yumna Field could improve the long-term outlook for both MOL and its parent companies, supporting sustained cash flows and asset valuations.
• Price Sensitivity: Investors should note that successful execution of this drilling programme could be a share price catalyst, especially if it leads to higher-than-expected production rates.
• Operational Risk: While the company has previous experience with the Energy Emerger rig, operational and geological risks remain inherent to any offshore drilling campaign.
• Ownership Clarity: The 87.5% indirect holding by Jasmine Energy Limited and MOL’s 100% operating interest in Block 50 means that value creation from this campaign will be concentrated within these entities.

Management Commentary

“With funding and the rig now in place, we are focused on executing this drilling programme seamlessly to drill new producer wells to increase oil flow rates and extend the lifespan of the Yumna Field in Block 50 Oman,” said Mr. Mike Hopkinson, General Manager of MOL.

Investor Takeaways

The signing of this drilling rig contract and the imminent start of a multi-well development campaign mark a significant operational milestone for Masirah Oil Ltd and its parent entities. The potential for higher production and field longevity, if realized, could drive valuation upside for shareholders. The news is price sensitive and could act as a catalyst for share price movement depending on the outcomes of the drilling programme.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. All investments carry risks, and investors should perform their own due diligence or consult a licensed financial advisor before making investment decisions.

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