Australian independent oil and gas company Rialto Energy has unveiled plans to raise $60m in share capital to support its Gazelle field exploration and development programme located off the Ivory Coast.
The company said it will raise the funds through a two-tranche placement of around 200 million ordinary shares in February and March for the field, which is in the license CI-202 area. Previously, the International Finance Corporation (IFC) invested $20m in Rialto Energy shares.
Rialto managing director Jeff Schrull said: "We are extremely pleased to the response to the company's placement, which will facilitate the upcoming three well drilling programme, expected to commence this quarter. Together with the proposed IFC investment, Rialto will be well placed to pursue its two well development and Chouette prospect exploration well campaign at Gazelle followed by pre-FEED for the first phase development of the Gazelle oil and gas field."
The facility will produce initial daily oil rates of 8,000 barrels and at gas rates of up to 100 million standard cubic feet of gas a day. The explorer will drill two appraisal and development wells at the Gazelle field to target 2C resources of 14 million barrels of liquids and 266 billion cubic feet of gas.
These two wells will also intersect the deeper Condor exploration prospect and Rialto plans to fast-track it into production at its Gazelle field by the fourth quarter of 2013.
The Chouette project is estimated to hold gross mean potential resources of 84 million barrels of liquid and 42 billion cubic feet of gas. The development is subject to a final investment decision expected in the middle of 2012.
Caption: Rialto Energy to raise capital to fast-track Gazelle field development offshore Ivory Coast. Photo: courtesy of Rialto Energy