hippo and bubale fields

RIALTO WEST AFRICA
AFRICA OIL and GAS SUMMIT, LONDON
28th-29th January 2013
CHARLES NIETO, CHIEF OPERATING OFFICER
1
DISCLAIMER
Certain statements contained in this presentation, including information as to the future financial or operating
performance of Rialto Energy Limited (“Rialto”) 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, 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 conditions.
Rialto 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”, “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 therein
2
RIALTO’S OFFICES & ASSETS
DUAL LISTED ON ASX (RIA) AND AIM (RIA)
Operating Philosophy:
• Zero LTI
• Strong local partnership
• Fully staffed technical team, sub-surface, drilling,
testing, and Facilities Engineering
• Leading Edge Technologies
3 Assets in 3 Countries:
• Cote d’Ivoire (CI-202) - Operator
• Ghana (Accra)
• Australia (WA-399-P)
Rialto Offices
Rialto New Entry
Rialto Assets
3
RIALTO ENERGY COTE D’IVOIRE
OPERATED BLOCK CI-202 IN THE WEST AFRICAN TRANSFORM MARGIN
Jubilee Field
4
REGIONAL INFRASTRUCTURE CONCEPT
Mature Gas Market and Onshore
Infrastructure
 Mature Power generation network, CI
exports electricity from gas fired power
stations
 Major new energy-intensive mining
projects planned
 Current gas supply deficit and
increasing demand predicted
Infrastructure Concept
 Develop Existing discoveries
• Gazelle
• Hippo/Bubale
• Stranded Discoveries in
neighbouring Blocks
5
CI202 - OVERVIEW
15 wells drilled on block:
 14 recovered HCOs to surface
 8 Exploration wells
 4 discoveries
 Additional discovery extends onto
block
 Reservoir deliverability confirmed by
single zone test rates of:
• Gas 40mmscfpd
• Oil 3200bopd
Equity;
 Block CI-202
• 85% Rialto
• 15% Petroci
 Gazelle EEA
• 74% Rialto
• 26% Petroci
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RIALTO’S CURRENT WORK PROGRAMME
 Rig contracted for firm
drilling programme
 Work toward regional
infrastructure plans
 Seeking Industry Partner
for 2013 E&A Drilling
Programme
 CPR up-dated to
incorporate:
o 3D seismic acquisition
o Upgraded Prospect Inventory
o Appraisal drilling
OPERATIONS
8
CORPORATE SOCIAL RESPONSIBILITY
 Built schools in Tankesse and Kokomian
 Renovating orphanage and building & equipping medical centres
 We respect the community and are sensitive to local customs
9
COMPANY HSEQ STANDARDS
 Incorporated IFC
Performance Standards
and EHS guidelines into
Rialto’s policies and
procedures
 Maintain minimal impact to
the environment
10
3D ACQUISITION AND PROCESSING 2012
• Modern acquisition design & technology
• 860km2 full fold data + 140km2 MAZ
• State of art PSDM processing sequence
 Significant uplift in seismic imaging
 Accurate definition of existing discoveries
 Identification of attractive new prospects
 Quantitative seismic reservoir prediction
11
RIALTO AS A DRILLING OPERATOR 2012
Experienced West Africa Drilling Team
• Successfully drilled 2 wells a Sidetrack & DST, at 40⁰ deviation to 3500m
• 207 rig operating days and 267,000 man hours worked
• ZERO LTI’s
• Improvements made to rig operations

Vastly improved drilling performance

Decrease in non productive time

Fewer Maintenance related failures
Well testing P3
Rig at night
12
EXISTING DISCOVERIES
GAZELLE, HIPPO, BUBALE, AND ADDAX
13
EXISTING DISCOVERIES
14
CONTINGENT RESOURCES
Contingent Oil Resources
(mmbbls)
Gazelle Field
Condor
Hippo-Bubale
5.7
Addax
Contingent Gas Resources
(Bscf)
Gazelle Field
Condor
Hippo-Bubale
0.3
9
19
105
143
15.1
13
Contingent Resources
Oil and Condensate (mmbbls)
Area
Gazelle Field
Mean (mmbbls)
5.7
Condor
Hippo-Bubale
0.3
15.1
Addax
Total
19
40
Contingent Resources
Gas (Bscf)
Area
Mean (Bscf)
Gazelle Field
143
Condor
13
Hippo-Bubale
105
Addax
9
Total
270
Addax
GAZELLE FIELD
 Two 2012 appraisal wells
plus sidetrack (2 wells
suspended as future
producers)
GAZELLE
 Complex Geology
 Static Model being built
 CPR revision
 New 3D MAZ seismic to
optimise positioning of
future producers
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HIPPO AND BUBALE FIELDS
Inline from 2012 Polarcus 3D Seismic
Bubale Canyon
Hippo Canyon
IVCO-22
• Missed high N:G axis
• Net pay 18m
• Test flow rates of
2000bpd
• Planned Appraisal well
Hippo 1
• Gas Discovery
• Encountered high
N:G channel system
• Net pay 24.9m
• Test flow rates of
19.3mmscf/d
Base
Maastrichtian
Unconformity
17
ADDAX FIELD
IVCO-13
IVCO-25
Oil Leg
18
PROSPECTS FOR 2013 DRILLING
19
PROSPECTIVE RESOURCES
Prospective Resources
Oil and Condensate (mmbbl)
Prospective Resources
Gas (Bcf)
Area
Mean (Bscf)
GPoS (%)
Area
Mean (Bscf)
GPoS (%)
Condor
20
16-27
Condor
999
16-27
Faucon
181
12-23
Faucon
111
12-23
Arius
289
18-27
Arius
145
18-27
Hippo-Bubale
127
13-38
Hippo-Bubale
684
13-38
Chouette
206
10-23
Chouette
764
10-23
Addax Deep and
Bongo
75
15-16
Addax Deep and
Bongo
233
15-16
Total
898
10 - 38
Total
2936
10-38
Prospective OIL
Versus
Prospective GAS
Gas Prospects (MMBoe)
Oil Prospects (Mmbbls)
35%
65%
CI-202 2013 DRILLING PROSPECT LOCATIONS
Oil
Appraisal Well Locations
Exploration wells
2013 Prospects
Condor
Gazelle
Greater
Chouette
Complex
Addax
Hippo
Faucon
Bubale
Chouette
Arius
Gas
Vantage Sapphire Rig
contracted
• Drilling programme starting
May 2013.
New 3D has upgraded prospect
inventory
• Upper Cretaceous Petroleum
System
• Independent play types
• Stacked prospects
• Stratigraphic & structural traps
• Albian horsts & grabens
• Cenomanian drapes
• Confined slope canyons
• Break in slope fans
• Growth faults
GROWTH FAULT - CONDOR PROSPECT
Growth fault with thick Ceno-Turonian Fill
Red Horizon Structure Map
 Hydrocarbons proven in Lower Cenomanian in P3-ST1 well
 Thick section to north of Gazelle against fault
 Numerous prospective packages within Condor sub-basin
Line of section
22
SENONIAN FANS - ARIUS PROSPECT
Thick Anomalous Ceno-Turonian Base of Slope Fan
Top Arius Amplitude
 Hydrocarbons up-dip (IVCO-18) and down-dip (B3-X)
 Analogous to nearby Jubilee / Tweneboa fan system discoveries
 Well defined seismic-stratigraphic geometries & amplitude trends
Line of section
23
SLOPE CANYONS - CHOUETTE PROSPECT
Top Chouette Depth
Thick Anomalous Ceno-Turonian Slope Canyon
 Adjacent to & to analogous Hippo & Bubale slope canyon discoveries
 Well defined seismic-stratigraphic geometries & amplitude trends
IVCO-22
 Significant stacked prospects above and below Chouette
HIPPO-1
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CENOMANIAN FOUR WAY DIP – FAUCON
PROSPECT
Faucon
Lower Cenomanian 4 way dip- channel and fan complex
 Same depositional fairway as pay sands in IVCO24 Gazelle P4,
IVCO13 & gas sands in IVCO-2, 10 & 15
 Four way dip closed structure, stacked prospects
 Lower Cenomanian sands draped over Albian high
25
VOLUMETRICS – MEAN RESOURCES
Prospective Resources 1,387 mmboe* & Contingent Resources 85 mmboe*
Prospects Mean Resources,
Unrisked 1387mmboe*
Mean Prospective Resources,
Unrisked
Gazelle 2%
Mean Prospective v Contingent Resources
(*) Gas volume conversion: 6 Bcf per 1 mmboe
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ACCRA BLOCK, GHANA
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OFFSHORE ACCRA BLOCK OVERVIEW
Key Facts
Hess announce fifth discovery
on block
Pecan-1, 75m of oil pay in
Turonian
•Block
: Offshore Accra
•Ratified by Parliament
: March 2010
•Gross Acreage
: 2,000 sq km
•Operator
: Ophir
•Exploration Period : max. 7 years
•Agreement Term : 30 years
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ACCRA BLOCK OVERVIEW
• High impact exploration opportunity in a politically stable environment
• Offshore Ghana has been the location of several world class oil discoveries in the last five years – Jubilee; Tweneboa;
Odum; Teak and most recently Pecan-1
• Strong joint venture post-Tap Oil farmout with new experienced African drilling operator in place
• Good quality 3D seismic has defined 10 large prospects with a P50 Resource* of around 3 billion barrels (gross/unrisked)
(~375 mmbbls net to Rialto)
• Near term drilling activity with Starfish-1 well planned for Q3 2013
• Mean unrisked resource* of 645 mmbbls (80 mmbbls net to Rialto)
• Offshore Keta Basin contains similar petroleum systems to Tano Basin
• Starfish-1 will be the first testing of Jubilee play in Eastern Ghana
• Initial Exploration Period 2.5yrs (ends Sept’13)
• All work programme commitments completed except drilling of 1 exploration well (Q3 2013)
• Joint Venture Partners:
Party
Participating
Interest
Effective Interest
Ophir (Operator)
20%
18%
Rialto
12.5%
11.25%
Vitol
30%
27%
Tap Oil
17.5%
15.75%
Afex
20%
18%
GNPC
-
10%
(*) Ghana volumes quoted are TAP Operators’ figures
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CONTACTS
Rialto Energy Limited
Investec
Jade Hockie
Telephone:
Email:
+44 (0)20 7042 8500
IR@rialtoenergy.com
Ben Colegrave, Chris Sim and Neil Elliot
Telephone:
Email:
+44 (0)20 7597 4000
rialto@investec.co.uk
Buchanan
Ben Romney or Tim Thompson
(Financial PR London)
Telephone:
Email:
+44 (0)20 7466 5000
rialtoenergy@buchanan.uk.com
Magnus Investor Relations
John Gardner
and Corporate Communications
(Financial PR and Investor
Relations Australia)
Telephone:
+61 8 9212 0101 or +61 413 355 997
Email:
jgardner@magnus.net.au
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