Tellus Resources Ltd. (TLU) has provided an update on its Cooper Basin exploration activities in petroleum retention licenses (PRLs) 108, 109, and 110 in South Australia.
TLU has just executed an agreement with its joint venture partner, Senex Energy Ltd., which has the effect of amending the prior farm-in agreement between the parties, as follows:
Instead of drilling a carried well, Senex will instead fully fund the acquisition, processing, and interpretation of a 3D seismic program covering approximately 16 square miles (42 square kilometers) of the PRLs (and additional tails extending into neighboring licenses). In return, Senex will earn an additional 7% equity in the PRLs.
Additionally, Senex intends to begin the seismic program in the first quarter of 2015. The agreement has mechanisms to encourage the timely performance of this farm-in work
Commenting on this development, TLU’s managing director, Carl Dorsch, said, “Conducting a 3D seismic program on our Cooper Basin assets is a technically sensible move for Tellus. It leaves us with a flexible equity level of 43% and will hopefully position us for a lower-risk well to be drilled thereafter.”