Rialto Energy

completed

The CI-202 block offshore Cote d’Ivoire is a key asset of Rialto Energy Ltd (“Rialto” or the “Company”) in which it has an 85% working interest and is also the operator. On CI-202, two main hubs (Gazelle and Hippo) have been identified based on previous drilling and 3D seismic. The block’s contingent resources on a 2C basis are estimated at 35.9 million barrels of oil (“mmbo”) and 355 billion cubic feet (“bcf”). The Project (“Rialto Energy”) consists of drilling 2 wells on the Gazelle area and one exploration well on a prospect in the Hippo cluster. A rig contract has been executed and long-lead items for this program are being acquired. The success of this appraisal and exploration drilling will allow the Company to make the final investment decision and proceed with the field development plan agreed with the Government of Cote d’Ivoire. Once developed, hydrocarbon production from the field, particularly gas from Gazelle, will help address significant shortage of gas supply currently existing and projected in order to serve the country’s power needs.