Australia-based oil & gas and mineral exploration firm Tellus Resources Ltd. (TLU) reports that it has agreed to acquire a 25% interest (with the right to acquire up to an 80% interest) in a drill-ready and large-scale onshore oil exploration asset in Block 3114 in the Morondava Basin off the southeast coast of Africa on the island of Madagascar.
The vendor of the asset is ASX-listed company Caravel Energy Ltd. Formal shareholder support will be required with respect to one aspect of the transaction and TLU 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 3,861 square miles (10,000 square kilometers) of onshore acreage, has recently been the subject of a seismic campaign tha has identified large scale oil targets together with at least one drill-ready prospect. As such, a drilling campaign is planned to begin in the latter part of this year.
Contemporaneous with this transaction, TLU has entered into agreements that provide it with debt facilities to borrow up to $517,880 (AUD 550,000).