Rialto Energy

completed

Rialto Energy is an oil and gas exploration and production company headquartered in London. The CI-202 block offshore Cote d’Ivoire is Rialto Energy’s (“Rialto” or the “Company”) key asset 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 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.IFC’s proposed investment consists of an equity investment in the Company of up to $20 million coupled with a warrants package. IFC’s investment will help finance the Company’s drilling campaign, i.e. drilling the two appraisal wells in the Gazelle gas field area which is scheduled to continue for 120 days for the 3 wells (i.e. if the additional well is also drilled) and will commence in mid-February 2012. Cote d’Ivoire’s power sector is dominated by gas-fueled plants (Azito and CIPREL) which provide majority of the power supply for the country. Rialto’s CI-202 block has significant gas resources complemented with oil resources. It is expected that the gas from Rialto’s CI-202 Block will supply the power plants.