Rialto Energy (RIA) has received approval to acquire a 12.5% participating interest in the offshore Accra contract area in Ghana, West Africa. The news gave the stock a 15% leg up.
The Accra block contains a number of prospects, including Starfish, a large, deepwater prospect, which according to the current operator is similar to its Jubilee discovery, with unrisked prospective resources estimated to be in the range of 500 million barrels.
The prospect is recommended for drilling in 2013.
Rialto will acquire its interest alongside fellow new entrants Ophir Ghana and Vitol Upstream, joining existing partners Afex Oil and Tap Oil. As part of the transaction, operatorship is transferring from Tap to Ophir.
To complete the acquisition of its interest, Rialto is required to pay a 12.5% proportional share of past costs, which amounts to around $3 million (£1.9 million), and provide a bank guarantee in respect of its participating interest share of the approved work programme and budget for the current exploration period.
BHP Billiton gets conditioning plant approval
BHP Billiton (BLT) has announced approval for a $520 million investment in the Longford Gas Conditioning Plant Project as part of the Gippsland Basin joint venture in Victoria, Australia.
The plant will add carbon dioxide-removal capacity to the Longford Gas Plant, which is necessary to condition production from the Turrum offshore development project. It will be designed to process approximately 400 million standard cubic feet of gas per day and will reduce the carbon dioxide content of treated gas to less than 3%.
Saleable gas production is expected to commence in calendar year 2016.
BHP Billiton chief executive petroleum, J Michael Yeager said: “The Longford Gas Conditioning Plant is a necessary extension of Bass Strait infrastructure to enable valuable hydrocarbon liquids production and domestic gas supply for years to come.”
Enegi to secure Jordan interest
Enegi Oil (ENEG) has entered into an agreement with Korea Global Energy in relation to a project in Jordan.
Korea Global is in advanced discussions with the authorities in Jordan over a production sharing agreement for the Dead Sea/ Wadi Araba Block.
Enegi has signed a heads of terms agreement under which it will be issued a 5% interest in the block. In return for the stake, Enegi will provide technical and operational expertise to the development of the block.
A number of wells have been drilled on the block, and the presence of hydrocarbons has been shown. The initial work programme will involve evaluation of technical data and the acquisition of new geophysical data.