Rialto Energy Ltd announces amendment of settlement agreement with offshore drilling company
Rialto announces that, further to the announcement made on 1 May 2013 regarding the settlement agreement in relation to the offshore drilling contract with the rig owner ("Contractor" and together with Rialto, the "Parties"), the Parties have amended the terms of the second tranche of USD 2 million, as previously agreed. Under the terms of the revised agreement, Rialto (1) has this week made a payment of USD 1 million to the Contractor and (2) will make an additional payment of USD 0.25 million on or before 30 July 2015 in full and final settlement and satisfaction of all amounts owing by Rialto to the Contractor. This takes the total settlement payment to USD 11.625 million from USD 17.325 million.
Commenting on today's announcement, Rialto's Managing Director, Rob Shepherd said
"I am very grateful to the Contractor for the understanding that they have shown in reaching this final settlement with us, which has resulted in a significant reduction in overall payments for the Company from the amount due under the original contract entered into by previous management. The current management team is pleased to have resolved this situation and can now focus on the future."
