For personal use only - Home - Australian Securities ... WA-399-P offshore Western Australia – low...

Investor Presentation

June 2010

www.rialtoenergy.com

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DisclaimerCertain statements contained in this presentation, including information as to the future financial or operating performance of Rialto Energy Limited and its projects, are forward‐looking statements. Such forward‐looking statements:

- are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Rialto Energy Limited, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies;

- involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward‐looking statements; and

- may include, among other things, statements regarding targets, estimates and assumptions in respect of production and prices operating costs production prices, and results, capital expenditures, reserves and resources and anticipated flow rates, and are or may be based on assumptions and estimates related to future technical economic market political social and other conditionstechnical, economic, market, political, social and other conditions.

Rialto Energy Limited disclaims any intent or obligation to update publicly any forward‐looking statements, whether as a result of new information, future events or results or otherwise.

The words “believe” “expect” “anticipate” “indicate” “contemplate” “target” “plan” “intends” “continue” “budget”The words believe , expect , anticipate , indicate , contemplate , target , plan , intends , continue , budget , “estimate”, “may”, “will”, “schedule” and similar expressions identify forward‐looking statements.

All forward‐looking statements made in this presentation are qualified by the foregoing cautionary statements. Investors are cautioned that forward‐looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forward looking statements due to the inherent uncertainty thereincautioned not to put undue reliance on forward‐looking statements due to the inherent uncertainty therein

www.rialtoenergy.com2

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Company Overview

• Rialto Energy Limited (“Rialto”) is an Australian-listed oil and gas company focusing on West Africa- ASX symbol: RIA

• Following shareholder approval at a General Meeting on the 7th July 2010, and completion of the acquisition of CI-202, the Company’s portfolio will consist of:

- CI 202 Block - offshore Côte d’Ivoire - multiple oil and gas discoveries- Accra Block – offshore Ghana – exploration in the Transform Margin- Accra Block – offshore Ghana – exploration in the Transform Margin- WA-399-P offshore Western Australia – low risk exploration, carried to drilling decision

• Enterprise value of approximately A$55million, post completion, pre capital raising

S f• Strong board and management with extensive West African experience, deal making skills and operational expertise.

• Joint venture with Challenger Minerals Inc (CMI) providing further access to New Venture opportunitiesopportunities

• Rialto is looking to raise approximately A$25 mm +/- post General Meeting to close acquisition and provide working capital.

Generate substantial investor returns through accessing acreage which delivers value through near-term development, and leverage via exploration and appraisal


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Senior Management Overview (post completion)

Jeffrey SchrullM i Di t

Brett Woods Technical and Exploration Director

Glenn WhiddonExecutive ChairmanManaging Director

• Senior executive E&P professionalwith 25 years of experience in theupstream E&P business, including19+ years at Chevron

Technical and Exploration Director• Geoscientist, 15 years International

experience including Africa, Asia,Australia, Middle East and US

• Eight years with Shell and Woodside

Executive Chairman• Extensive background in direct

equity investments, and in bankingand corporate advisory in the naturalresources sector.19+ years at Chevron

• Most recently Corporate GeneralManager of Exploration for AddaxPetroleum between 2006 – 2010

• Responsible for building an

Eight years with Shell and Woodside– led Blacktip, Banda, SunriseTroubadour development teams

• 4 years special studies Geophysicistundertaking Inversion and advanced

• Founder of Grove Energy Limited in2003, a focused E&P company thatwas acquired by Stratic EnergyLimited in 2007, valued at

i t l $200 illip g

Exploration Business Unit for Addaxand managing the annual explorationprogramme. During the three years32 exploration wells were drilled inAfrica and the Middle East

Geophysical processing• Four years with Sterling Energy as

Technical Manager Mauritania andInternational New Ventures

approximately $200 million• Holds board positions in Australian

and international companies with anextensive network of investors inEurope and North AmericaAfrica and the Middle East

• Countries of operations includedNigeria, Cameroon, Gabon, SaoTome and Kurdistan with activitieslocated from the on-shore to the ultra

u ope a d o t e ca

deep off-shore


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Management and Non-Executives (post completion)

Robert HallGeneral Manager

Jean Pierre PetitDirector, C & L Natural

Gerry SpanningaExploration Manager

ChaimLebovitsNon Executive Director

• Geologist with 30 yearsmanaging international Oiland Gas exploration anddevelopment projects

• Working across a variety of

Resources Limited• Chemical Engineer and

Economist primarily focusedon oil exploration andproduction in Africa, holding

• Petroleum Explorationistwith 16 years internationalindustry experience workingon exploration and appraisalventures in South America,

• Founder of C & L NaturalResources Limited and isthe president and controllingshareholder of BrainstormCell TherapeuticWorking across a variety of

geographic locations andtechnical/operationalpositions for a number of oilcompanies including MobilOil, ExxonMobil, Fusion Oil

p , gexecutive positions withExxonMobil for 33 years

• Between 1996 to 2002, hewas Vice President andGeneral Manager for

Africa, Gulf of Mexico,Australia and New Zealand

• Employed by WoodsideEnergy Ltd for 10 years,working on several oil

• Extensive Africanexperience, negotiatingmany successful deals onbehalf of Africangovernments and global, ,

& Gas NL and HardmanResources Limited

• He has been involved inprojects throughout Africaand Asia including residency

General Manager forExxonMobil in Chad,responsible for developingfields expected toproduce approximately220,000 bopd

gdiscoveries, now onstream,both domestically andinternationally

• Between 2001 and 2007, heworked in Woodside’s

g gmining businesses

• Mr. Lebovits has previouslyworked for DGI Group andheaded its operation inCongo and wasand Asia including residency

in Ghana, China, Thailand,and Indonesia duringoperational periods

, p worked in Woodside sInternational BusinessDevelopment Team. Keycontributions as TechnicalManager includedsuccessful entries into Gulf

Congo and wasinstrumental in thedevelopment of the Nikanorcopper mine (one of thelargest copper mines in theworld)

of Mexico, Sierra Leone,Liberia, and Brazil

)


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Asset Portfolio

CI-202 Accra

WA-399-P


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Portfolio Overview – Post CompletionWA-399-P

Australia – 30%Accra Block

Ghana – 18%*CI-202

Cote d’Ivoire - 63.75%

Operator: Carnarvon (50%)Operator: Tap Oil (36%)Operator: Rialto

Situated in proven Exmouth Sub-Basin

Low risk portfolio

Situated in proven Keta-Benin Basin

Prospect portfolio contains

Situated in proven Ivorian Basin Petroleum System

5 oil and gas discoveries p

2D reprocessing completed

High grade prospects portfolio developed

multiple proven play types(eg Jubilee, Tweneboa,

Espoir)

2D & 3D seismic

Discoveries require appraisal to optimise FDP

Block under-explored p p

Commitment seismic in planned for Q3 2010

2D & 3D seismic reprocessing planned

First drilling anticipated in 2011-2012

3D seismic re-processing near completion

3-6 well E&A drilling gprogramme in 2011

* Pending GNPC and Ministerial approvals


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West Africa Transform Margin Basins

GO NIN

ERIASIERRA

LEONEGUINEA

COTE D’IVOIRE GHANA

TOG

BEN

NIG

E

CI-202 ACCRA BLOCKLIBERIA

LEONE

Venus

Aj

LiberianBasin Cretaceous Play

Keta-BeninJubilee

Aje

IvorianBasin

Basin

LEGENDOilGas

After: Openfile public releases – Tap, Tullow, Afren, Vanco, CNR


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The Transform Margin – Activity to Date

KOSMOS – WCTP

20102007 2008 2009

Jubilee Odum$$$

EXM - $4B offer

NA

Q1/11 Q2/11 Q3/11 Q4/11

1st Oil Continued Exp and Dev drilling

TULLOW – TANO DEEP

VANCO – CTPD

Tweneboa

DzataLukoil New PSC

Hyudea

AFREN CI 01$$$

AFR $177M$$$

S jit $45M $500M R 3DASI

N

G

HA 1st Oil Continued Exp and Dev drilling

Continued evaluation and drilling

AFREN – CI-01 AFR - $177M Sojitz – $45M + $500M Repro 3D

CLNR – CI-202 Repro 3D

VANCO – CI-101/401 3D LukoilIVO

RIA

N B

A

VOIR

E

Post well evaluation

EDISON – CI-102 Repro 3D

TULLOW CI 103 3DAnadarko

CO

TE D

’I

EDISON – CI-24 Post well evaluation

ANADARKO S LEONE (2 Blocks) T ll V

TULLOW – CI-103 3DAnadarko

TULLOW – CI-105 Anadarko

ASI

N

LEO

A d k

3D

CANADARKO – S. LEONE (2 Blocks)

ANADARKO – LIBERIA (3 Blocks) AnadarkoWoodside/Repsol

Tullow

Tullow

Venus

3D

3D

LIB

ERIA

N B

A

LIB

.

L Anadarko

$$$F i Di M&A A ti it O t W ll

Continued Exp and Dev drilling


$$$Farmin Discovery M&A Activity Onstream Wells

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Côte d’Ivoire – CI-202

1972 – 2003 Licensed by Esso, Shell, Petroci & Sante Fe

2006 C&L NR CI-202 PSC awarded

Corporate Structure(post completion)

2006 C&L NR CI 202 PSC awarded

2007 Jubilee trend stratigraphic traps discovered

2008 Rialto begins negotiation with C&L NR

RIALTO100%

(post completion)2009 CLNR Holdingscontracted to acquired

75% of C&L NR

2010 C

CLNR Holdings

75%License

ACC International

25%

2010 Rialto agrees to acquire CLNR Holdings

C+L Natural Resources

75%

PETROCI

Structure 25%

C+L Natural Resources Operator 85%15%

(10% carried)


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Ivorian Basin – The Place for Discoveries

Côte d’IvoireGhana

Kudu207 BCF

Foxtrot940 BCF

Belier20 MMBO Eland

Panthere420 BCF

Lion

Espoir120 MMBO

Acajou

North Tano71 BCF

W. Tano5 MMBO

95 BCF

CI-202

o, C

NR

Baobab150-200 MMBO

Lion45 MMBO

Acajou25 MMBO

Ibex77 BCF

South Tano120 BCF + 14 MMBO

ullo

w, A

fren,

Van

co

Jubilee~1.8 BBO

Odum120 MMBO

Tweneboa>250 MMBO

COTE D’IVOIRE G

HAN

A

elea

ses

–Ta

pOil,

T

L. CretaceousAlbian Dzata r:

Ope

nfile

publ

ic re

Recent discoveries at Greater Jubilee Area significantly enhance the prospectivity and potential reserve volume of the Ivorian Basin

Albian>100 MMBO

Afte

r


a d po e a ese e o u e o e o a as

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CI-202 – Block Drilling History• Located within the Ivorian Basin

- an established producing basin along the Transform Margin of West Africa

• 13 wells drilled between 1972 and 2003- discovered and/or tested oil and gas through multiple reservoir intervals- oil quality is good to excellent throughout the block (25 – 44 API)

• Five unappraised discoveries exist on block- discovery wells were located sub-optimally using vintage 2D seismic data

• Gazelle Updip (Gazelle Field)Hi U di (Hi 1X)• Hippo Updip (Hippo-1X)

• Updip - IVCO-22• Updip - IVCO-18• Updip - IVCO-13 & IVCO-25p p

• Detailed re-mapping indicates traps are primarily stratigraphic

• Gazelle discovery has been appraised by 5 wells (4 drilled/located on 2D data)

• Significant near term potential remains within the BlockField development, appraisal of existing discoveries, and exploration upside


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CI-202 – CPR Resource Summary

STOIIP MeanMMBBLS Resources Mean

MMBBLS

Contingent 250 Contingent 80

Prospective 409 Prospective 140

Total 659 Total 220

GIIP MeanBCF Resources Mean

BCF

Contingent 218 Contingent 224

Prospective 760 Prospective 669

Total 978 Total 893

Resource growth is expected upon remapping once 3D seismic reprocessing and inversion has been completed


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CI-202 – Field Development Potential

Gazelle Hub – Shallow water• Close to onshore refineries

LEGEND

Oil

OilOil & GasGas

• Five wells intersected and tested Oil & Gas• Gross hydrocarbon bearing sections greater than

370m• Combined structural stratigraphic trap

Belier

Gas/CondP&A

Gas/Cond

Van

coGazelle

• Combined structural-stratigraphic trap• Significant un-appraised volume potential

Hippo Hub– Shallow water discoveries Oil,

Tul

low

, Afre

n, V

IVCO-13-25IVCO-22

IVCO-18

pp• Three oil (updip appraisal) discoveries• One gas and condensate (Hippo) discovery• All discoveries were flow tested

Si ifi t i d l t ti lAFREN

Merged 3D Outline

blic

rele

ases

–Ta

pIVCO-22

Hippo

• Significant un-appraised volume potential

Exploration– Multiple proven plays• Four wells intersected and tested oil and gas

CI-202EDISON

VANCOVANCO

Afte

r: O

penf

ilepu

Four wells intersected and tested oil and gas• Undrilled low risk prospects


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CI-202 - Well Test Results

• Key well tests highlighted * Drilled using 3D Seismic Data


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CI-202 - Exploration Upside• Excellent 3D seismic data quality• >30% Net : Gross 20-25% Porosity 100-1000 mD Perm

L i k A i l d E l ti t iti

B’

• Low risk Appraisal and Exploration opportunities• Portfolio still under evaluation

A A’ B B’

AA’

IVCO-22

B

HIPPO-1X

IVCO-18

PROSPECT


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CI-202 – License ConditionsLicence Term• First Exploration Period 36 Months, May-09 – May-12

- 25% relinquishment at end of period

• Second Exploration Period 18 Months, May-12 – Nov-13- 25% relinquishment at end of period

• Third Exploration Period 18 months, Nov-13 – May-15

Licence Commitments• First Exploration Period

- 3D seismic reprocessing and inversion – near completion- one exploration well or 2 exploration wells + 3D seismic acquisition

• Second Exploration Period- acquisition of 300 km2 of 3D seismic data- one exploration well

• Third Exploration Period- acquisition of 300 km2 of 3D seismic data- one exploration well


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CI-202 – Work Program

Work Activity Date

• Seismic Reprocessing and Inversion Q3 2010

• Final Mapping and Earth Modelling Q4 2010

• Rank and Mature Exploration Opportunities Q4 2010

• Reservoir Simulation and Production Profiles Q1 2011

P li i C t S l ti Q1 2011• Preliminary Concept Selection Q1 2011

• Independent Reserves Report Q1 2011

• Final Well Planning (including testing) Q1 2011• Final Well Planning (including testing) Q1 2011

• Sign Rig Contract Q2 2011

• Commence Drilling Program Q2-3 2011g g


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Ghana – Accra Block

2006 Preliminary review by Rialto Staff

2007 Rialto joins CMI International JV2007 Rialto joins CMI International JV

2007 CMI-JV bids for the offshore Accra Area

2007 Oil discovered at Jubilee, Offshore Ghana

2008 Oil discovered at Odum, Offshore Ghana

2009 Petroleum Agreement negotiations

2010 f f2010 Accra block is awarded and fully ratified

CMI9%*

RIALTO18%*

AFEX27%

LicenseStructure

TAP36% (Op.)

GNPC10% (C.I.)

*equity splits post approvals


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Accra – High Impact Exploration

COTE D’IVOIREGHANA TOGO BENIN NIGERIA

ACCRA BLOCK

CI-202

ACCRA BLOCKAje

Hihon Fifa

NR

Cretaceous Play Keta-BeninJubileeTweneboa

Baobab Espoir

ow, A

fren,

Van

co, C

IvorianBasin

BasinJubilee

LEGENDOil

Tweneboa

leas

es –

Tap,

Tul

lo

Keta-Benin Basin• Oil prone source rocks

Gas

Play Diversity On-Block• Jubilee analogues r:

Ope

nfile

publ

ic re

p• Oil maturity/migration• Analogue reservoir systems• Analogue structural/stratigraphic traps

Jubilee analogues• Tweneboa analogues• Espoir and Baobab analogues• Hihon, Fifa and Aje analogues

Afte

r


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Accra – Exploration Potential

Albian Leads• 100 mmbo recoverable each• Shallow water / moderate depth• Existing 3D data• Analogues at

Play: AlbianAnalog: Espoir, BaobabP t ti l >100 MMBO

gEspoir (110 mmbo) andBaobab (200 mmbo)

• Late Cretaceous Leads

Potential: >100 MMBO

Play: L. CretaceousAnalog: Jubilee,TweneboaPotential: >500 MMBO

–Ta

p O

il

Late Cretaceous Leads• 500 mmborecoverable each• Deep water / moderate depth• Existing and new 3D seismic le

publ

ic re

leas

es –

Existing and new 3D seismic data

• Analogues at Jubilee (1.2Bbo) and Tweneboa (>500mmbo)

Afte

r: O

penf

il

3D seismic reprocessing of existing data to improve imaging and reduce risk through advanced geophysics (DHI / AvO)


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Accra – License Conditions

Licence Term• Three Exploration Periodsp

- First Period - 30 Months – 04/2010 - 10/2012

Licence CommitmentsFi t E l ti P i d• First Exploration Period

- Acquisition of 850 km 2D seismic data- Reprocessing of existing 3D seismic data- One Exploration WellOne Exploration Well


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Australia – WA-399-P

2006 Successful high bidder (3 bids) in 2006 offshoregazettal bid round

2007 Awarded to Carnarvon (50%, Op) & Rialto (50%)

2008 Reprocessed all available 2D seismic data in 2008

2009 C l t i t t ti f i l l b Ri lt2009 Complete re-interpretation of regional plays by Rialto

2010 Completed farm-out; Robust prospect portfolio which require further new seismic data (planned) to de-risk.

RIALTO30%

JACKA20%

LicenseStructure

CARNARVON50% 30% 20%Structure 50%


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WA-399-P – Exmouth Sub-basin

Eskdale Coniston

Novara

Apache

StybarrowSkiddaw

Enfield

Vincent

Pyrenees

Woodside

BHP BHP

Apache

Laverda

Enfield

Scafell

Pyrenees

Macedon

Outrim

Blencathra

CarettaWoodside

BHP

BHP

BHPApache

Caretta

LeatherbackBHP Apache

• Successful 20% farm out to cover back costs and a carry going forwardSuccessful 20% farm out to cover back costs and a carry going forward

• Close proximity to oil production & several analog recent oil and gas discoveries

• Seismic acquisition (commitment) planned for 2010


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WA-399-P - Gazelle Prospect

Trap• Structural / stratigraphic trapg p p• Defined on 2D data• Potential for QI support• 50 mmbo reserve potential

Macedon Member Subcrop below

p

Reservoir• Macedon sandstone

Subcrop belowMuderong ShaleFurther Work

• Primary term- acquire new 3D seismic WA-399-P

DupuySubcropbelow Muderong Shale

- inversion/QI/AvO• Secondary term

- drill one exploration well 5 km

Base Muderong Depth Structure


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Capital Structure – Post General MeetingShares (excluding capital raising) 155.6 million

Capital Raising (shares issued) ~75 millionCapital Raising (shares issued) 75 million

Market Cap @ A$.35 (post raising) ~ A$80 million

Net Cash (assuming A$25 million raising) ~A$15.5 millionet Cas (assu g $ 5 o a s g) $ 5 5 o

Options (strike btw A$0.25-0.70) ~40.1 million *p ( )

Earn-out Shares 30 million*Includes 7.5 million directors and management options


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Use of Funds – to July 2011

Sources of Funds Uses of Funds

Asset Cost Centre Amount (A$)

WA-399-P All 400,000

Accra – Ghana All 1,250,000

Source Amount (A$)

Current cash $2,000,000

CI-202 – Cote d’Ivoire Vendor Payment 10,000,000

Block Evaluation 5,500,000

Equity raise $25,000,000

Total $27,000,000, ,

Well Planning 2,000,000

New Ventures All 1,000,000

W ki C it l All 3 850 000Working Capital All 3,850,000

Corporate All 3,000,000

Total $27,000,000


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Contact

Brett WoodsBrett WoodsJeff Schrull

Rialto Energy Limited

Tel: +61 8 9381 2229



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