Tellus Gets Report on Prospective Oil Resources in Madagascar's Block 3114
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:
- 25 percent interest: Low - 2.6 million standard barrels of oil (MMstb); Best - 9.7 MMstb; High - 27.2 MMmstb
- 80 percent interest: Low - 8.4 MMstb; Best - 31.1 MMstb; High - 86.9 MMmstb
- 100 percent interest: Low - 10.5 MMstb; Best - 38.9 MMstb; High - 108.6 MMmstb
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."
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Sequa Calls Off Purchase of Norway Offshore Assets from Wintershall (Dec 22)
- Tellus, Senex Amend Latter's Farmin Agreement for 3 PRLs in Cooper Basin (Dec 26)
- Cooper Basin JV to Undertake Seismic in 3 SA's Petroleum Retention Licenses (Oct 20)