Rialto says that its subsidiary Rialto Energy (Cote d'Ivoire) Ltd (Rialto CdI) has signed a Memorandum of Understanding (MoU) with the Cote d'Ivoire Ministry of Oil & Energy (the "Ministry"), the state owned oil & gas company PETROCI, and Vitol E&P ("Vitol") to replace the existing Production Sharing Contract (PSC) for Block CI-202 with a new PSC on amended terms.

Key elements of the MOU include:

1) The new PSC is expected to be signed before 9 November 2013 when the second exploration period under the current PSC comes to an end, and will have 3 consecutive exploration periods over a total of 7 years from signature; 2) The Ministry has acknowledged the proposed entry of Vitol into partnership with Rialto on the basis previously outlined and as summarised hereunder; 3) Substantially all petroleum costs incurred to-date by Rialto on Block CI-202 will be carried over for recovery in the new PSC; 4) The outstanding exploration expenditure commitments under the current PSC will be deemed satisfied under shareholding splits agreed for the new PSC. As a result, all remaining liabilities under the current PSC will be deemed to have been satisfied upon award of the new agreement; 5) Following the recent submission by Rialto CdI of a revised Field Development Plan for the development of Gazelle, once it is approved by the Ministry and the new PSC has been signed, a new Exclusive Exploitation Authorisation will be issued to replace the existing one; and 6) Negotiations will be recommenced with CI-Energies, the state owned electricity company, regarding a future gas sales agreement.

Tags: Rialto Energy