Rialto Energy shares spike on Ghana Petroleum Deal

Rialto Energy (ASX: RIA) has announced that an affiliate of the company's International Joint Venture partner, Challenger Minerals Inc. (CMI), has been awarded an interest in the Accra Petroleum Agreement offshore Ghana per a recent announcement by Tap Oil Limited.

Under Rialto’s International Joint Venture Agreement with CMI (April 2007) Rialto has the right, but not the obligation, to seek an interest acquired by CMI and its affiliates in each international offshore oil and gas opportunity, excluding the USA Gulf of Mexico and the North Sea regions.

Subject to obtaining the approvals of the Ghana National Petroleum Company (GNPC) and the Ministry of Energy of the Republic of Ghana, Rialto, through the Joint Venture Agreement and a Memorandum of Understanding concerning the Accra Petroleum Agreement, has the right to seek an 18% equity interest in the Accra Petroleum Agreement.

Rialto intends to exercise its rights under its agreements with CMI and looks forward to working with authorities in Ghana and the participants in the Petroleum Agreement to achieve relevant approvals.

Brett Woods, Managing Director, commented that “the Accra Petroleum Agreement encompasses an attractive block located in the emerging West African transform margin where recent discoveries, particularly at Jubilee, have made the area an extremely important oil and gas province."

"Rialto looks forward to bringing its regional knowledge and skills into the venture and to participating in the contemplated work programme,” he added.

Rialto Energy shares rose 33% to 24 cents in trading this morning.

http://www.proactiveinvestors.com.au/companies/news/6210/rialto-energy-shares-spike-on-ghana-petroleum-deal-6210.html