Australia-based oil & gas and mineral exploration firm Tellus Resources Limited (TLU or the Company) announced that it has agreed to acquire a 25 percent interest (with the right to acquire up to an 80 percent interest) in a drill-ready and large scale onshore oil exploration asset in Block 3114 in Morondava Basin off the south-east coast of Africa on the Island of Madagascar.
The vendor of the asset is ASX listed company Caravel Energy Ltd (CRJ). The terms of the transaction are summarized in the attached Appendix.
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 85 million TLU shares.
The Asset, which comprises approximately 3,861 square miles (10,000 square kilometers) 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 this year.
Contemporaneous with this transaction, TLU has entered into Agreements which provide it with debt facilities to borrow up to $517,880 (AUD 550,000). 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, 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 am looking forward to the opportunities in neighboring Madagascar which is located off the south east coast in one of the most prospective exploration areas remaining in the world."
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