Rialto is pleased to advise that the updated Reserve and Resources Report (CPR) for Block CI-202 (CI-202), offshore Cote d'Ivoire, prepared by RPS is complete. The previous CPR on CI-202 was prepared in April 2012 (the "2012 CPR"). This updated report assesses Block CI-202 following new 3D seismic acquisition and interpretation by Rialto plus the drilling of three wells during 2012, Gazelle-P3-ST1, Gazelle-P3-ST2 and Gazelle-P4. Based on this technical information, RPS has been able to independently verify with greater certainty the Contingent and Prospective Resource contained in the Block.
Commenting on the updated CPR, Rialto CEO Rob Shepherd said:
"This independent report recognises the significant prospectivity of Block CI-202 ahead of our planned 2013 drilling programme. Despite reduced Contingent Resources associated with the Gazelle Field, drilling and seismic have opened up a broader Gazelle/Condor play with Gross Mean Prospective Resources of around 1 Tcf of gas.
Whilst work is progressing on a revised development concept for Gazelle with a view to moving to FID as soon as possible, drilling success in the wider Gazelle/Condor Area has the potential to underpin a significant gas development. It is important to note that Gazelle itself represents only a small fraction of total Contingent and Prospective Resource on block. It is the resources outside of Gazelle that will be the primary focus of Rialto in the coming year.
Just as importantly, the CPR demonstrates the value of the technical investment the Company has made in terms of the acquisition and interpretation of the 3D seismic acquired in early 2012. This work has yielded a greater understanding of existing prospects as well as identifying several other exciting prospects and leads that have been added to our prospect inventory. CI-202 is undoubtedly a highly prospective asset and we look forward to our 2013 exploration drilling campaign with confidence."
RPS prepared the CPR in accordance with the 2007 Petroleum Management System (PRMS) approved by the Society of Petroleum Engineers, the World Petroleum Council, the American Association and the Society of Petroleum Evaluation Engineers. RPS has consented to the inclusion of the information in this announcement in the form and context in which it appears.
Prospective Resource Estimate and Chance of Success
The key findings of the CPR in relation to the resource potential of the top five ranked prospect areas in Block CI-202 are summarised as follows:
The Gazelle/Condor Area contains four prospects with a Geological Probability of Success (GPoS) ranging between 13% and 27%.
The Faucon Area contains three prospects with a GPoS ranging between 12% and 23%.
The Hippo-Bubale Area contains six prospects with a GPoS ranging between 13% and 38%.
The Chouette Area contains seven prospects with a GPoS ranging between 10% and 23%.
The Arius Area contains two prospects with GPoS ranging between 18% and 22%.
Gazelle Field Contingent Gas Resource
RPS has assigned the discovered gas resource at the Gazelle Field a classification of Contingent Resource. This is due to the development of this resource being contingent on the execution of a final gas sales agreement, approval of a revised field development plan (FDP) for the area and Final Investment Decision (FID) by Rialto on the development. The Gazelle Field Resources have been revised downwards from those previously listed in the 2012 CPR due to shallower hydrocarbon-water contacts in the relevant sands identified following Rialto's 2012 drilling campaign. As result the resources have been reduced by 123 Bcf and 8.5MMbbls.
Further Total Mean Contingent Resources in the amount of 34MMbbls (Liquids) and 127Bcf (Gas) have been allocated to the Hippo, Bubale, Addax and Condor (South-East) discoveries.