Ann: Rialto completes transaction with Vitol and , page-29

re: Ann: Rialto completes transaction with Vi... Yep Vitol have to pay the 65%, so they will pay $50m plus 65% of the remaining $70m (assuming Petroci will not fund their capex), so in total will front up around $95.5m towards the $120m of development, with RIA paying the rest.

They might not need $100m, they may go with something like $50m that can be extended if required. You are right on the 11% (I just went on the high side). After the last couple of years, the last thing the BOD would want to do is build up more financing risk, so they may try and cover this with the initial RBL facility in order to start focusing on how they will bring Hippo to production. I do think Vitol will want to be quite aggressive here, they know that RIA don't have the cash they do, but they aren't here for the current reserves (tiny for them) so they will want to go exploring sooner rather than later. With only 1 commitment exploration well in each exploration period, its in their interests to get RIA producing so they can fund more exploration wells than this IMO, hence the reason I think they will be looking at an early tie back of Hippo soon after starting production on Gazelle.

In 2009 Afren managed to get a $450m RBL facility at 4-5.5% above LIBOR which I guess would be around 9%, though they did have some cashflow at that point from other assets so the rate may end up being something like LIBOR+6%.