Rialto is an ASX-listed exploration and production company, focusing mainly on West Africa, with interests in Cote d’Ivoire and Australia. Rialto is also in process of acquiring a stake in an exploration block offshore Ghana. The Company has offices in London, Abidjan and Perth. While the Company holds an 85% stake in the CI-202 block, the remaining 15% is held by Petroci, Cote d’Ivoire’s state-owned oil company.

Rialto’s largest shareholder is Glenn Whiddon who owns about 12.4% of the Company, followed mainly by institutional investors such as the Commonwealth Bank of Australia and BlackRock Investment Management.

The project costs are estimated at around $75 million for the first phase 3 wells campaign. IFC’s proposed investment consists of an equity investment in the Company of up to $20 million coupled with a warrants package.

15.17 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	15.17

* These investment figures are indicative

The Project is located offshore Cote d’Ivoire in the Grand Bassam area, south east of Abidjan about 10km off the coast and about 30km from the receiving plant in the Abidjan area.

The project offers strong development impacts.

Develop Cote d''Ivoire''s energy sector: By financing CI-202 appraisal, the project will help increase gas availability, which is crucial for the country''s power sector. The country currently suffers from power outages.

Increase government''s revenues: Oil and gas production will increase the country''s exports and the government''s fiscal revenues.

Provide local employment: the project will generate local employment directly through direct hiring and its local contractors, and indirectly by improving the power sector''s economics.

The proposed project presents an opportunity for IFC to play a critical role in supporting oil and gas exploration and production in Cote d''Ivoire, which is needed not only for the development of its strategic hydrocarbon sector and increasing government revenues, but also to increase gas availability, which is key for the power sector. IFC''s key additionalities include:

(i) Environmental & Social: establishing benchmarks on environmental and social sustainability practices throughout the exploration and development phases of the project.

(ii) Financing: Providing the Company with much needed equity financing to fund its drilling campaign. IFC''s investment will help the Company access a wider pool of new investors.

(iii) Corporate governance: The Company is in its early stages and could take advantage of IFC''s experience as it builds its corporate governance capacity.

(iv) Power Sector: The Company''s profitability will depend on its capacity to evacuate its gas resources and fuel the country''s power plants. The Company will take advantage of IFC''s involvement and understanding of the power sector in the region to improve its execution.

[The CI-202 block covers an area of 675 square km and is located just 30 km to the southeast of Abidjan and 80 km to the west of the Jubilee field in Ghana. IFC’s environmental and social (“E&S”) review of the project consisted of an appraisal visit conducted in November 2011. This visit was to assess the Company’s organizational capacity and commitment, its operations and to review the technical, health, safety, environmental, (“HSE”) and social information submitted by the Company and understand its plans and commitments for the future development of the block.

While all Performance Standards are applicable to this investment, IFC’s environmental and social due diligence indicates that the activities associated with the proposed drilling and appraisal program must be managed in a manner consistent with the following Performance Standards:

PS1: Social and Environmental Assessment and Management Systems
PS2: Labour and Working Conditions
PS3: Pollution Prevention and Abatement
PS4: Community Health, Safety and Security
PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources

IFC’s Environmental Health & Safety (EHS) Guidelines applicable to this investment are:

General EHS Guidelines, April 2007; and
Oil and Gas Offshore EHS Guidelines, December 2007.

The proposed investment has been assessed as a Category A project because of the inherent sector risks associated with oil and gas offshore exploration and production and the project location in a geographically sensitive area.