Petroci Takes More of Gazelle

Cote d’Ivoire’s state-run firm Petroci has elected to increase its paying interest in the Gazelle Field Exclusive Exploitation Area on Block CI-202.  Petroci, which currently holds a 15% interest (comprising a 5% paying interest) in Block CI-202 has given notice that it will back-in for an additional 11% paying interest in the Gazelle Field EEA, bringing its total interest to 26% (comprising a 16% paying interest).

Under the CI-202 PSC, Petroci Holdings may back-in for up to 11% at their election within four months of any EEA being granted. Rialto reported that the fact that the state-run firm has exercised its option for the maximum possible percentage, shows its commitment and faith in the Gazelle Field going forward.

As a result of the back-in by Petroci Holdings, Rialto Energy’s interest in the Gazelle Field EEA will reduce to 74% (84% paying interest), while its interest in the remaining area of Block CI-202 outside of the Gazelle Field EEA will remain at 85% (95% paying interest). 

By exercising its right to increase its paying interest in the Gazelle Field EEA to 16%, Petroci Holdings will be required to reimburse Rialto within six months for an 11% share of all historic costs associated with the Gazelle Field since the awarding of Block CI-202. Rialto estimates that the total costs to be reimbursed until the back-in date will be around $10 million. From the point of that back-in date, Petroci Holdings will pay its 16% share of the future costs associated with the Gazelle Field EEA.

Commenting on Petroci Holdings’ back-in to the Gazelle Field EEA, Rialto MD Jeff Schrull said: “We are very pleased that Petroci Holdings, our joint venture partner, has shown significant confidence in the proposed Gazelle Field and the work Rialto is doing to progress its development. Petroci has obviously an in-depth knowledge of the hydrocarbon potential of our block and their back-in is a positive sign consistent with the Government’s desire to progress the Gazelle gas development through commercial sanction and into production in a timely manner.”