RECENT COMPANY NEWS AND MARKET UPDATES
Tellus Resources Ltd ("Tellus" or "the Company") is an ASX-listed oil and gas exploration company that generates value for its shareholders by identifying and acquiring properties and projects that have significant discovery and development potential.
Cooper Basin South Australia
Tellus holds a 50% interest in what was previously PEL105, now PRLs 108,109 and 110 (see below) in the highly prospective Cooper Basin in South Australia.
The other 50% interest is held by Senex Energy Ltd.(SXY).
Following the casing and suspension of the first joint venture well, Pirie 1, Senex had a continuing obligation under the farmin agreement to drill a second well in the Permit but Tellus and Senex have agreed instead to conduct and process extra 3D seismic (approximately 50 kms2) while still maintaining the potential of completing and production testing the Pirie 1 exploration well previously cased and suspended.
Once this work has been undertaken, the 50% interest held by Tellus will reduce to 30% and Senex's interest will increase to 70%.
In May 2014, the South Australian regulator DMITRE agreed to convert PEL105 into three Petroleum Retention Licences, PRL 108, 109 and 110 with a tenure of up to 15 years, giving the JV partners much more flexibility over this exciting 18,000 acre licence area which holds multiple different, material, exploration plays.
The Company has a 25% participating interest in an exciting conventional oil play in Sevier County, Utah, USA, named The Covenant Mondo Joint Venture ("CMJV").
CMJV consists of two leases located on the well known "hingeline" overthrust structure in the Rocky Mountains. The overthrust belt has hosted a number of major oil discoveries including the massive Anschutz Ranch East fields and the Covenant field located 4 kms away.
Drilling operations commenced in early November.
There is currently a dispute between the Company and the Operator and no further information or reports are being made available by the Operator.
The Company, through it's US Attorneys, has served a Notice on the Operator requiring that the dispute be put to arbitration for resolution.
The Company expects arbitration to take place in the next sixty days.
In the mean time, the Company has no choice but to assume that the well has or will be plugged and abandoned as a dry hole.
Any changes in status will be notified immediately.
please refer to the relevant ASX Announcements for further paticulars.
Block 3114 (10,160km2) located in the Morondava Basin.
The Tellus acquisition of this asset was announced to the ASX 11 June 2014.
Madagascar is a large island off the south east coast of Africa and is attracting much attention as one of the great underexplored parts of the world with geology suggesting massive oil and gas potential.
Tellus has acquired a 25% interest with the possibility of increasing that interest to 80%.
Some seismic survey work has already been done and several plays identified.
Large conventional crude oil reserves are indicated.
One play in paticular is drill ready.
Drilling is expected to commence early in the dry season in 2015.
Queensland and NSW Gold tenements
Tellus also has a 100% interest in valuable gold tenements in Chillagoe in North Queensland including the Wandoo and Empire Prospects and in the New England and Rockley areas in NSW.
These valuable Exploration and Mining Leases are prospective for Intrusive Related Gold Deposits (IRG).
A key part of the Company's strategy is to explore and develop its oil and gas assets and maximise the value of its existing gold assets.