Rialto Energy optimistic after successful drilling

Rialto Energy, the oil and gas company which listed on the AIM market in April, has successfully drilled one of its wells offshore Cte D'Ivoire which encountered both oil and gas zones as anticipated.

The Gazelle-P3 ST2 Well was drilled to a target depth of 2,959m; oil and gas PVT [pressure, volume and temperature] quality samples were recovered from the Upper Cenomanian sands as expected.

"The samples will now be used to assist in the design of the Gazelle field development processing facilities. Logging continues with VSP and sidewall coring and these logging operations are expected to be concluded in the next three days," the group said.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Shares have dropped since listing on AIM at around 27p, hitting a low of 14p a few weeks ago. Nevertheless, after Wednesday's statement, the stock jumped 9.09% to 16.5p in morning trade.

Speaking at the time of Rialto's debut on the stock market, Managing Director Jeff Schrull said: "The directors of Rialto believe our successful admission to AIM will represent the next natural step in aligning the company with its strategy of establishing itself as an operator and explorer of substance in the West African region."

BC