Rialto CEO Interview Q3 FY13: High Impact Wells

Saturday, Feb 16 2013 by
9
Robert Shepherd CEO Rialto Energy
Robert Shepherd, CEO Rialto Energy

Rialto Energy (LON:RIA) is a dual listed (ASX/AIM:RIA) oil and gas exploration company focused on the West Coast of Africa, notably in Ghana on a 12.5% participating interest alongside Ophir, and in Côte d’Ivoire, where Rialto is the Operator holding a 85% working interest in the CI-202 offshore block. Rialto Energy also hold a 12% working interest in the WA-399-P exploration permit, which is located in the Exmouth Sub-Basin on the North West Shelf, offshore Western Australia, alongside Apache the operators, where a commitment well is expected in 2014.

Rialto had a mixed year with the drill bit in 2012 and in November Rob Shepherd was appointed as interim Chief Executive Officer replacing Mr. Jeff Schrull who stepped down in order to relocate. Rob Shepherd previously held the position of Finance Director at AIM Listed, African focussed, Dominion Petroleum, which was acquired by Ophir Energy for around US$220 million in February 2012.

Following the recent quarterly report and a visit to the Perth office, Rob Shepherd the Rialto Energy interim CEO has taken time out to discuss various aspects of the business, including, the West African licences, updated CPR, 2012 review, 2013 work programme and funding options.

As always, when looking at oil and gas exploration activity the risk element is high, and a dry or non-commercial well almost certainly results in a severe share price drop. Oil and gas exploration activity is also very costly business, hence the future economic outlook and the ability of an exploration company such as Rialto Energy to raise future capital to fund licence commitments along with its overheads also needs serious consideration, alongside factors such as oil/gas price risk, political risk, country/region stability etc.

Q1. Briefly, could you describe Rialto Energy’s history, business model and mission?
As I only joined the Company in late November, I am probably not the most qualified to describe Rialto’s history since inception. However, in terms of mission and business model, I think it is fundamentally about delivering optimum value to our shareholders. Our basic strategy is to identify and mature high impact exploration prospects and to mature potentially commercial discoveries. This does not mean we will always be drilling our prospects or developing our discoveries. If shareholder value can better be delivered by other means then we will look to pursue those…

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Disclaimer:  

This content has been created for information purposes only, and is NOT, in any way, a recommendation to invest.  This communication is a snapshot of a certain aspect of a discussed business at a moment in time, and is merely a basic starting point for research.  The article/thread has been created with honesty and integrity in mind and is based on publically available information sourced in relation to the title, such as from, RNS announcements, published reports, management comments, analyst reports, media coverage etc.  To this extent the author who has written the piece in good faith accepts no liability for the accuracy of the information and urges all readers to verify the content independently.  Please note that the value of investments may fall or rise and you may not get back the amount originally invested, or in some cases your investment may be wiped off altogether.  When investing, bear in mind that past performance is not a guide to future performance and that qualified independent financial advice should be sought before buying or selling shares.  The Author of this article may hold shares in the companies discussed.


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5 Comments on this Article show/hide all

Warwick 15th Feb '13 1 of 5
4

Elias. Another fantastic article thank you very much. I have been an avid watcher of this company since Mr Shepherd took the helm. Absolutely magnificent prospects for the company to realise in 2013.

Wonderful read, good company, exponential potential!

Thank you
Warwick

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hydro 16th Feb '13 2 of 5
1

Noticing the relationship with Rob Shepherd and Ophir Energy and the deal to sell Dominion for $220m and the JV Ophir have with Rialto in Ghana if they will be the JV partner talked about?

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Warwick 16th Feb '13 3 of 5
2

It is a prolific region. Very good opportunity for Ophir to expand on the west african margin with a low entry and a high reward.

Interesting perspective.
Warwick

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hydro 17th Feb '13 4 of 5

BRR did an interview with Rob Shepherd the other day and said they were talking to a number of potential industry partners for the Ivory project and would be looking for a part or full carry.


Rialto Energy reveals potential for 2013 and company update
http://www.brrmedia.com/event/109652/robert-shepherd-ceo?log=1

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Elias Jones 17th Feb '13 5 of 5

Warwick,

Thanks for the feedback and kind words, very much appreciated.

Rialto won’t be for everyone, but if they can secure a good farmout deal then it’s definitely a good high risk/potential reward 2013 punt for me, due to the potential of the identified targets.

Regards,

Elias

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About Elias Jones

Elias Jones

I invest in sectors that are of interest to me and tend to look for the penny share AIM companies that have the transformational potential, which also tend to be by nature high risk investments, some come off some fail. One key aspect of investing for me is the approachability, quality and integrity of management, once I fear those have gone or if the fundamental aspects take a nose dive, that’s usually it for me regardless of asset/future potential. I only invest in a clutch of firms and usually keep an eye on a few other potential firms which I may add at some stage. I don’t mind waiting around if there is potential, I still keep my Marconi certificate to remind me of what can happen, and to the day kick myself for not snapping up Next at 18p many moons ago when I was so close to buying! more »

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