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 (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 further well in the asset previously known as PEL 105.
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 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.
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.
The Company has a 25% 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 icompleted..
Rig operations are expected to commence early in the fourth quarter.
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 in November 2014.
Queensland and NSW Gold tenements
Tellus also has a 100% in valuable gold tenements in Chillagoe in North Queensland including the Wandoo and Empire Prospects and in the New England and Rockley area.s 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.