16th Sep 2013 07:24
LONDON (Alliance News) - Rialto Energy Ltd Monday said its Ivory Coast Unit has signed a Memorandum of Understanding with the country's Ministry of Oil & Energy to extend its production sharing agreement for Block-CI202 by seven years.
The new agreement, which the company expects to sign before November 9, will cover three consecutive exploration periods over a total of seven years and acknowledges the proposed entry of Vitol into the partnership.
It said all petroleum costs incurred to date will be carried over for recovery into the new contract, while outstanding exploration spending will be deemed satisfied under new shareholder splits, meaning all liabilities will be deemed satisfied.
Rialto Said it will recommence talks with state-owned electricity company CI-Energies on a future gas sales deal, once the production sharing deal is signed.
"The signature of a new PSC will fulfill the major condition precedent to the completion of the transaction with Vitol announced last April whereby Rialto agreed to sell a 65% interest in Rialto CdI to Vitol in return for their provision of an initial USD50 million of capital to fund appraisal and development activities on the Block," the company said in a statement.
Rialto shares were up 9.3% at 1.7 pence early Monday.
By Steve McGrath; [email protected]; @SteveMcGrath1
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