Tellus Resources Ltd
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Welcome to Tellus Resources

RECENT NEWS,MARKET UPDATES AND WEBSITE ADDITIONS

24 July 2014 -Block 3114 Madagascar

Link to MHA Report 
Block 3114 Madagascar 
 MHA Petroleum Consultants Prospective Oil Resources Assessment Report 

Madagascar Project Page

16 July 2014 - Covenant Mondo Project Market Update

The market was updated with the following information on the progress with the CMP in Utah USA.

Blasting work for the drilling pad for the CMP's first well is complete and the location should be gravelled and ready to accept a drilling unit in 2-3 weeks. The Operator has advised that the regulatory authority to drill will now be lodged and approval from the Utah regulator is expected some 30 days later.

Given these developments, the Operator has advised that spud is now expected late in the  third quarter.

Tellus has agreed with the Operator to reduce it's participating interest in the CMP from 41.67% to 25% which means  it is now required to pay 30% rather than 50% of the cost of the two well farmin to the project. Tellus' share of estimated costs have been advanced to the Operator for the first well and construction of the well pad.

Tellus has now advanced to the Operator all the funds required to enter the CMP and fund the estimated cost of the first welll.
The level of participation is now inline with that originally proposed when farmout negotiations commenced.
The focus is now on working with the Operatore on operational matters.

11 June 2014- Madagascar Drill Ready Acquisition

The following announcement was made to the ASX 11 June 2014.

" Drill-ready African Project Acquisition
 

Tellus Resources Limited (TLU or the Company) is pleased to announce that it has agreed to acquire a 25% interest (with the right to acquire up to an 80% interest) in a drill-ready and large scale oil exploration asset, located on-shore on the Island of Madagascar, off the south-east coast of Africa.

 
The vendor of the asset is ASX listed company Caravel Energy Ltd (CRJ).  The terms of the transaction are summarised below.
 
Formal shareholder support will be required with respect to one aspect of the transaction and the Company will put the relevant resolution at an Extraordinary General Meeting to be called shortly.
 
The consideration for the asset is the issuance of 85M TLU shares.
 
The Asset, which comprises approximately 10,000 sq. kms. of onshore acreage, has recently been the subject of a seismic campaign which has identified large scale oil targets together with at least one drill ready prospect. As such, a drilling campaign is planned to commence in the latter part of the year. The acreage the subject of the acquisition has recently been the subject of a seismic campaign which has identified large scale oil targets.  As such, a drilling campaign is planned to commence in the latter part of this year.

 
Contemporaneous with this transaction, TLU has entered into Agreements which provide it with debt facilities to borrow up to $550k.  The Company is expecting an R&D rebate from the ATO later this year which will more than cover any amounts drawn down from these facilities.
 
Commenting on the deal, the Company’s Managing Director, Mr Carl Dorsch, said “this on-shore oil prospective asset in Madagascar will add significantly to the Company’s suite of high impact oil exploration assets.  I have considerable experience in working in franchophone Africa and I’m looking forward to the opportunities in neighbouring Madagascar which is located off the south east coast in one of the most prospective exploration areas remaining in the world."
 
Key Terms of Sale Agreement
 
Under the Sale Agreement the Company has agreed to acquire:
 

  1. CRJ’s 25% shareholding interest in PetroMad (Mauritius) Limited (PetroMad) (being the company which owns a 100% interest in the Bezaha Oil Project concession located in Southern Madagascar – the Asset); and
 
  1. all of CRJ’s rights and obligations under an agreement entered into with the owner of the remaining 75% interest in PetroMad (and under which CRJ is entitled, subject to successful completion of staged work programs, to earn up to an 80% ownership interest in PetroMad).
 
The consideration for the acquisition is the issue of 85 million TLU shares (of which 60 million are to be issue to CRJ and the other 25 million to certain nominated CRJ creditors).  CRJ is required to distribute the 60M shares to its own shareholders. A parcel of shares will also be issued to TLU’s corporate adviser upon completion.
 
Settlement of the acquisition is conditional, inter alia, on each of TLU and CRJ obtaining all shareholder approvals required under the ASX listing Rules and the Corporations Act to effect the transaction."


A more detailed evaluation of the Asset is now available on the ASX website or in pdf form here.
ASX Madagascar Presentation 11 June 2014

ABOUT TELLUS

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.

Tellus holds a 50% interest in what was previously PEL105 (see below) in the highly prospective Cooper Basin in South Australia.
The other 50% interest is held by Senex Energy Ltd.(SXY).

As part of a farmin agreement Senex Energy Ltd has a contractual obligation to drill a well in PEL 105 on or before 30 September 2014.
This well will be drilled totally at Senex Energy Ltd's expense and risk.
The 50% interest held by Tellus will then reduce to 30% and Senex's interest will increase to 70%.

In May 2014, the South Australian regulator DMITRE agreed to convert PEL 105 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.
Two plays are currently being investigated, one a conventional Toolachee play and the other a potentially large gas play adjacent to the very successful Bookabourdie gas field.

In December 2013, the Company acquired  a 41.76% participating interest in an exciting conventional oil play in Sevier County, Utah, USA, named The Covenant Mondo Project ("CMP").

CMP 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.

The well site location has been chosen and preliminary work by the landowner (stripping twenty feet of gypsum from the site) has begun in June 2014.
Rig operations are expected to commence early in the third quarter.

Tellus also has tenement packages 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).

Tellus is also in negotiations to acquire the Australian and Asian rights to an exciting piece of technology which will transform the maximum that companies are able to extract from a paticular well.

A key part of the Company's strategy is to explore and develop it's oil and gas assets and maximise the value of it's existing gold assets.


For more information on the projects, click here.