Senex Energy Agrees to Farm-in to PEL 105 in Cooper Basin
Tellus Resources Ltd (the Company or TLU), an Australian based oil, gas and mineral exploration company, and its wholly owned subsidiary PNC AUST Pty Ltd (PNC) announced Wednesday that they have agreed to a farmout arrangement with Senex Energy Limited (Senex) in its PEL 105 tenement in the Cooper Basin, South Australia. The terms of the deal are summarized as:
- Upon signing of the legally binding HOA (Heads of Agreement), PNC transfers a 50 percent interest in PEL 105 to Senex. The transfer is subject to Ministerial approval as well as both parties completing all the terms of the HOA summarized below
- PNC continues with preparations to commence the drilling of Pirie 1. PNC cash calls Senex for $3.25 million (AUD 3.5 million) to contribute to the costs of drilling Pirie in two equal tranches as follows:
- Tranche 1 : $1.62 million (AUD 1.75 million) prior to spudding Pirie 1 (expected in 5 days)
- Tranche 2 : $1.62 million (AUD 1.75 million) 25 days after spud
- Following the rig release on Pirie 1 well operated by PNC, PNC will transfer operatorship of the Permit to Senex
- Upon assuming operatorship, Senex will sole fund a further well in the Permit on or before June 30, 2014. Following this, PNC will transfer a further 20 percent interest in the block to Senex. Interests at this stage will be:
Percentage Working Interest
TLU - 30.0
SXY - 70.0
The Pirie 1 well is targeting Birkhead, Toolachee, Patchawarra and Tirrawarra oil and wet gas prospects. Recoverable oil in the Tirrawarra could be as high as 3 million barrels.
Commenting on the transaction, managing director Carl Dorsch said “It is with a great deal satisfaction that we have managed to attract a company of the calibre of Senex Energy in to this prospect and we look forward to a mutually beneficial result with the wells and indeed into the future together."
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