Australia's Tellus Resources Ltd. (TLU or the Company) reported that it has received a report from Denver USA based MHA Petroleum Consultants LLC (MHA) that provides an independent confirmation of significant prospective resources in Block 3114, Madagascar. Note that by definition, prospective resources are risked and recoverable.
The report, titled Technical Review and Prospective Oil Resources Assessment Block 3114 Madagascar is attached and available also on the Company’s website through the following link: www.tellusresources.com.au.
MHA have estimated the risked prospective recoverable resources in a single drill-ready prospect (the Betoiky Prospect) are as follows:
The estimated quantities of petroleum (million standard barrels of oil – MMstb) that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons. The basis of risking is discussed in the MHA report.
As advised to the market June 11 TLU has entered into a binding Agreement to acquire a 25 percent interest (with the right to acquire up to an 80 percent interest) in this block for the issuance of 85 million TLU shares, subject to shareholder approval.
Carl Dorsch, the Company’s managing director, commented on the report as follows:
“MHA’s report provides the Company with enormous encouragement that it has acquired a very material prospective resource base in onshore Madagascar. Importantly, these large numbers are for risked recoverable resources – and are only for one drill ready target in what is a very large and prospective block. The Company has already received early stage farm-in interest in this asset from a number of investor and industry sources."
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