(EnergyAsia, March 23 2011, Wednesday) — Singapore-based Loyz Oil Pte Ltd said it and Rex Oil & Gas Ltd will jointly explore for hydrocarbon resources in 35 areas in the Asia-Pacific region including India, Indonesia and New Zealand.

Loyz, the exploration subsidiary of Singapore Exchange-listed Sim Siang Choon Ltd (SSC), said it will identify potential areas while Rex will use its proprietary technologies to conduct studies. The parties are to sign a definitive agreement within 45 days of the fulfilment of conditions set out in a term sheet.

The cooperation is in line with SSC’s objective of establishing itself as a niche player in oil and gas exploration and production (E&P) in the region.

The group, 35.2%-owned by Jit Sun Investments Pte Ltd, entered the upstream oil exploration industry in January 2011 with its acquisition of a 51% stake in Bombay Stock Exchange-listed Interlink Petroleum Ltd (IPL).

IPL wholly-owns concessions for two fields in India’s Gujarat state: the four-sq-km Baola block, and the 12.7-sq-km Modhera block. Baola was chiefly known as a gas field but oil was discovered when the Baola-8 well was drilled.

Adrian Lee, SSC’s director, said:

“We are now at the cusp of an exciting new phase of growth, and this strategic partnership will be instrumental in accelerating that growth as it enables the group to expedite the evaluation process for potential concessions.

“Having gained access to Rex’s proprietary technologies, the group is now in an excellent position to exploit Loyz Oil’s network to build a name for ourselves as an up-and-coming niche player in the E&P sector.”

Rex Oil & Gas was founded by Karl Helge Tore Lidgren, Hans Ove Leonard Lidgren and Svein Kjellesvik, pioneers in exploration technology who hail from internationally renowned oilfield services companies.

Rex uses trademarked proprietary technologies to identify different types of subsurface liquids by their frequency wavelengths, thereby reducing exploration risks and costs.