Rialto, the independent oil and gas company focusing principally on exploration, development and production opportunities in West Africa, is pleased to provide the following corporate update.
Exploration Program in CI-202 (Rialto interest 85%)
As previously announced, the Company continues preparations for drilling a minimum of two wells on Block CI-202 offshore Cote D’Ivoire to meet its PSC exploration commitments.
The Company continues to work up its preferred drilling targets in light of the recently received Pre-Stack Depth Migration data set from the 3D seismic survey that was completed in late 2011. Additional technical and economic analytical work is being conducted on identified prospects to optimize final prospect selection. This prospect selection will also be subject to joint venture agreement from partner Petroci, as well as input from potential incoming joint venture partners.
Drilling preparation is proceeding according to schedule, with the Vantage Sapphire rig expected to be delivered to Rialto in May 2013, once it has completed current drilling programs elsewhere within Cote d’Ivoire.
Appraisal and Development in CI-202 (Rialto interest in Gazelle EEA: 74%)
The Company is, in consultation with the Minister of Energy of Cote d’Ivoire, working closely with other Operators to determine whether a joint development plan will accelerate the monetization of the contingent resources on Gazelle and nearby discoveries. Rialto is also continuing discussions with potential gas purchasers.
Discussions continue with Petroci regarding the re-imbursement of back costs following Petroci’s decision to take up an additional interest in the Gazelle EEA.
Ensuring certainty of funding whilst preserving shareholder value is the primary objective of the Company’s Board and management.
Discussions regarding a farm-out of Block CI-202 and alternative transaction structures that would secure near term funding are ongoing with a number of potential partners. Further, the Company continues to engage with current and potential new investors to understand and assess interest in supporting a potential equity raise to the extent that this may be required.
Rialto has engaged Rothschild to assist in the evaluation of funding options potentially available to the Company.
Following Mr. Rob Shepherd’s appointment as Managing Director and Mr. Bruce Burrow’s announcement of his intention to retire from the Board, the Board will, as it does each year, review its performance and composition. In addition, the composition of senior management within the Company is being reviewed to ensure that the optimum structure is achieved to drive the Company forward. Also, the Company will be shortly undertaking a review of operating costs and structure in order to ensure that both are appropriate for the scale of the Company’s ongoing operations and strategy.
Rialto is committed to engaging with all shareholders, both institutional and retail, wherever possible, via regular market updates, targeted conferences and such like. Offering clear, transparent communications to our shareholders is of utmost importance to us and we will strive to deliver on this.
Whilst the Company’s operational office moved last year to London, two of our directors are based in Australia, where we maintain an office and have recently retained Perth-based MAGNUS Investor Relations + Corporate Communication to support interaction with our highly-valued Australian shareholder base.
Rob Shepherd, Managing Director of Rialto, commented:
“Whilst I am well aware of the difficult year that the Company experienced in 2012, I strongly believe that the Company has a bright future, albeit not without challenges, and I am committed to working with the excellent team we have in place to secure this future and help the Company unlock the vast potential that it currently possesses.”
For more information about related Opportunities and Key Players visit West Africa Projects