Rex International Holding Limited 197 NOTES TO THE FINANCIAL STATEMENTS 4 OIL AND GAS PROPERTIES (CONTINUED) Impairment assessment (continued) The recoverable amounts of oil and gas properties in Norway were determined based on value-in-use calculations and expected production period up till 2031 (2024: up till 2031). The key assumptions used in the calculation includes pre-tax discount rate of 11% (2024: 11%), proved and probable reserves and resources of 5.4 million (2024: 7.2 million) of barrels of oil equivalent (“MMboe”) and oil price from US$65.00 to US$73.00 (2024: US$70.00 to US$77.00) per bbl. The recoverable amounts of oil and gas properties in Benin were determined based on value-in-use calculations and expected production period up till 2040. The key assumptions used in the calculation includes pre-tax discount rate of 11%, proved and probable reserves and resources of 32.1 MMboe and oil price from US$65.00 to US$87.00 per bbl. The recoverable amounts of oil and gas properties in Oman were determined based on value-in-use calculations and expected up to five years (2024: up to three years) of production period. The key assumptions used in the calculation include a pre-tax discount rate of 12.35% (2024: 12.35%), proved and probable reserves of 4.9 million (2024: 3.1 million) barrels of oil (“MMbbls”) and oil price from US$61.42 to US$69.21 (2024: US$73.85 to US$75.35) per barrel (“bbl”). Cash flows over the expected production period are derived from independent reserve reports prepared by qualified persons, which management considers to be the most reliable and supportable basis for estimating future cash flows, as they reflect the technical and economic characteristics of the respective oil and gas properties. Financial year ended 31 December 2025 Acquisition of interests in Schwarzbach and Lauben fields On 1 January 2025, Lime Resources Germany GmbH (“LRG”), a subsidiary of the Group, acquired assets in the bankruptcy estate of Rhein Petroleum GmbH. The estate includes four exploration and two production licencebased concessions in the Rhein River valley in Germany, which comprise a 100% working interest in the Schwarzbach Field and a 50% working interest in the Lauben Field (operated by ONEO GmbH & Co.KG). Based on management’s assessment, the acquisition meets the definition of an asset acquisition rather than a business combination under SFRS(I) 3. The transaction comprises primarily exploration and production licences along with unmanned production facilities, without the transfer of any substantive processes. The technical and operational activities required to manage these assets can be carried out by LPA’s existing personnel or external operators. As such, the acquired set of activities and assets does not include substantive processes; rather, the value of the acquisition is driven by the Group’s own expertise, technical capabilities, and resources. Accordingly, the acquired activities do not constitute a business, and the consideration paid will be allocated to the identifiable assets acquired on a relative fair value basis, with no goodwill recognised.
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