🕐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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