RNS Number : 6374J
Rialto Energy Limited
09 August 2012



9 August 2012

ASX Code and AIM Code: RIA

Rialto Energy Ltd

("Rialto" or the "Company")

Weekly Drilling Progress Report - Gazelle-P4 Development Well

Rialto Energy Limited (ASX: RIA and AIM: RIA) provides a weekly update on drilling operations at the Gazelle-P4 Development Well, offshore Côte D'Ivoire as at 10:00hrs, 8 August 2012 (GMT).

Since spudding, the well has been drilled to 1358m MDRT. Current operations are drilling ahead to the 13 3/8" casing point at 2204m MDRT.

In accordance with its policy of releasing weekly drilling progress reports, the company expects to issue a further drilling report on 16 August 2012, subject to any material events occurring in the meantime.

This statement has been approved by Mr Charles Nieto BSc ACSM, Chief Operating Officer of Rialto Energy Limited, who is a member of the Society of Petroleum Engineers, with over 30 years' experience in the Petroleum Industry, and who is a Qualified Person in accordance with the guidance note for Mining, Oil & Gas Companies issued by the London Stock Exchange in respect of AIM Companies.

Enquiries to:

Buchanan

Tim Thompson, Ben Romney or Helen Chan

(Financial PR London)

Telephone:

Email:

+44 (0)20 7466 5000

rialtoenergy@buchanan.uk.com

RBC Capital Markets

Matthew Coakes or Daniel Conti

(NOMAD)

Telephone:

+44 (0)20 7653 4000

PPR

Colin Hay


(Financial PR Australia)

Telephone:

+61 8 9388 0944 or +61 404 68 3355


Email:

colin.hay@ppr.com.au

Rialto Energy Limited

Jade Hockie

Telephone:

Email:

+44 (0)20 7042 8500

admin@rialtoenergy.com

Drilling Progress Report

Gazelle-P4 Development Well

REPORT DATE

8 August 2012

COUNTRY

Offshore Côte D'Ivoire

PERMIT

CI-202

WELL LOCATION:

GEOGRAPHICAL (WGS84)

GRID (UTM ZONE 30 N)

Latitude 5° 6' 29"N

Longitude 3° 42' 30"W

Easting 421492

Northing 564643

PERMIT INTERESTS

C&L Natural Resources (100% RIA owned) 85%

PETROCI15%

PROPOSED TOTAL DEPTH

3401 metres MDRT (2730 metres TVDSS).

DEPTH AT 1000 HRS (GMT)

1358 metres MDRT (1159 metres TVDSS).

ORIGINAL PROGNOSED DRILLING DAYS

40

CURRENT PROGNOSED DRILLING DAYS

40

METRES DRILLED SINCE LAST REPORT

820 metres

SPUD DATE

25 July 2012.

DAYS SINCE SPUD

14 days.

TARGET FORMATION

Cenomanian sands.

OPERATIONS SINCE LAST PROGRESS REPORT

Set 20" casing and drilled ahead to 1358m MDRT

HYDROCARBONS INDICATIONS

N/A

FORWARD OPERATIONS

Drill to 13 3/8" casing point

About Rialto Energy Ltd

Rialto Energy Limited (ASX:RIA, AIM:RIA) is an oil and gas exploration and production company with offices in Perth (Australia), London (UK) and Abidjan (Côte d'Ivoire).

Rialto is the Operator (85% working interest) of the CI-202 block offshore Côte d'Ivoire. The CI-202 block contains the Gazelle Field, which is the current focus of development, with first production expected by early 2014.

A Competent Person's Report completed in September 2011 by RPS Energy Services in relation to CI-202 certified Total Mean Contingent Resources of 50 MMbbls of liquids and 396 Bcf of gas, in addition to Total Mean Prospective Resources of 511 MMbbls of liquids and 1,785 Bcf of gas.

The Company has received approval for a Field Development Plan and Exclusive Exploitation Area over the Gazelle Field and has executed a Gas Sales MOU, which will be superseded by a final binding agreement at Final Investment Decision, with the Government of the Republic of Côte d'Ivoire.

Rialto also has an interest in the Apache operated WA-399-P block in the Carnarvon Basin, Western Australia and is currently in the process of working with joint venture parties and Ghanaian governmental authorities to achieve approvals for an assignment of a 20% paying interest in the Accra Block, offshore Ghana.

Rialto listed on the Australian Securities Exchange in July 2006 and listed on the Alternative Investment Market in April 2012.


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