🕐06.04.10 - 08:21 Uhr
RIALTO TO ACQUIRE MAJORITY INTEREST IN WEST AFRICAN UNDER APPRAISED OIL & GAS DISCOVERIES
RIALTO ENERGY LIMITED
ASX Announcement
6 April 2010
RIALTO TO ACQUIRE A MAJORITY INTEREST IN A WEST AFRICAN BLOCK CONTAINING
UNDER APPRAISED OIL AND GAS DISCOVERIES
Highlights
- Rialto has entered into a binding Heads of Agreement to ultimately
acquire a 75% interest in C+L Natural Resources Limited (C & L Natural),
the holder of an 85% participating interest in the Cote dIvoire Offshore
Block CI‐202.
The Cote dIvoire State petroleum company, Société
Nationale dOpérations Pétrolières de la Côte dIvoire (Petroci), holds the
remaining 15% interest.
-CI‐202 is a highly prospective petroleum exploration licence that
contains multiple pre‐existing unappraised oil and gas discoveries.
CI‐202 has the following attributes:
o 13 wells drilled between 1977 and 2001 predominately on vintage 2D
seismic data;
o 12 wells intersected hydrocarbons;
o test rates of 2,280 bopd and 37 mmscfd achieved post 435 km2 of high
quality 3D seismic data; and
o the licence is located in shallow water and close to existing oil and
gas markets.
-CI‐202 is located 80km to the west of the giant Jubilee offshore
discovery made in Ghana in 2007 (1.8 billion barrels oil reserves), and the
subsequent Tweneboa (>250 million barrels oil equivalent reserves) and Odum
(120 million barrels oil reserves) discoveries, which have established the
Ivorian Basin, located in the West African Transform Margin, as one of the
most promising emerging offshore petroleum provinces in the world.
-The proximity of the Ghanaian discoveries, located in the same basin, has
significantly re‐rated the potential size of the existing discoveries
within CI‐202 and the exploration upside of stratigraphic traps.
-As part of the acquisition, Rialto will appoint new directors to
complement the existing directors and management team.
Rialto is pleased to announce that it has entered into a binding Heads of
Agreement whereby Rialto will acquire 100% of CLNR Holdings Limited (CLNR)
which is to hold a 75% interest in C & L Natural Resources Limited (C & L
Natural).
C & L Natural is the holder of an 85% participating interest in
Block CI‐202.
The balance of 15% in Block CI‐202 is held by the
Cote dIvoire State petroleum company, Société Nationale dOpérations
Pétrolières de la Côte dIvoire (Petroci).
The proposed transaction will be subject to various conditions precedent
including approval of the shareholders of Rialto, raising sufficient
capital to fund the acquisition, CLNR completing its acquisition of a 75%
interest in C & L Natural and execution of final documentation.
The
transaction also requires the consent of the Government of the Republic of
Cote dIvoire to the change of control of C & L Natural and confirmation to
the satisfaction of Rialto, that the minimum work obligation under the
Block CI‐202 production sharing contract is a single exploration
well.
Formal application for the change of control consent has been lodged
and a determination is expected from the Government of Cote dIvoire within
60 days.
A capital raising totalling approximately A$16 million will be undertaken
by Rialto to fund the acquisition and to provide ongoing working capital to
fund C & L Naturals work programme and Rialtos existing work programmes.
Rialto intends to offer existing shareholders the opportunity to
participate in a share purchase plan following completion of the
transaction.
It is anticipated that formal agreements will be entered into during April
2010 and a Notice of Meeting to shareholders dispatched shortly
thereafter.
To view the announcement and the details of the transaction and capital
structure please click here.
For more information please contact:
Brett Woods
Managing Director
Rialto Energy Limited
Tel: +61 8 9381 2229
Email:
Karen Oswald
Professional Public Relations
Tel: +61 8 9388 0944
Email:
ABOUT RIALTO
Rialto Energy Limited (ASX:RIA) is an oil and gas explorer based in Perth,
Western Australia, which was listed on the Australian Securities Exchange
in July 2006 by a group of experienced industry professionals with the aim
of identifying and developing high impact exploration and production
opportunities in a responsible and profitable manner.
Rialto now boasts a
team of industry experienced geoscientists, with a history of identifying
and capturing high value opportunities and with extensive experience in
Africa, Asia and Australia.
Rialto has one exploration permit located in Australias premier
hydrocarbon province, the Carnarvon Basin on the North West Shelf, offshore
Western Australia.
Rialto also has a Joint Venture Agreement with
Challenger Minerals Inc (CMI), a wholly owned subsidiary of Transocean
(NYSE:RIG), whereby the parties are actively evaluating international
growth opportunities.
An opportunity in Ghana, which arose out of this
joint venture with CMI, is the subject of a separate ASX announcement
today.
Further details on Rialto are available on www.rialtoenergy.com.au
Rialto Energy Limited
ACN: 117 227 086
208 Bagot Road Subiaco WA 6008
Tel: +61 8 9381 2229 Fax: + 61 8 9381 2208 Email:
www.rialtoenergy.com
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