Tellus Resources Limited has announced 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 oil exploration asset, located on-shore on the Island of Madagascar, off the south-east coast of Africa.
The interest was previously owned by Caravel Energy with PetroMad Mauritius being the company which owns a 100% interest in the Bezaha Oil Project concession located in Southern Madagascar,
Formal shareholder support will be required with respect to one aspect of the transaction and the Company will put the relevant resolution at an Extraordinary General Meeting to be called shortly.The consideration for the asset is the issuance of 85M TLU shares.
The Asset, which comprises approximately 10,000 sq. kms. of onshore acreage, has recently been the subject of a seismic campaign which has identified large scale oil targets together with at least one drill ready prospect with the drilling campaign planned to commence in the latter part of the year.
Contemporaneous with this transaction, TLU has entered into Agreements which provide it with debt facilities to borrow up to $550k. The Company is expecting an R&D rebate from the ATO later this year which will more than cover any amounts drawn down from these facilities.
Key Terms of Sale Agreement
Under the Sale Agreement the Company has agreed to acquire:
- CRJ’s 25% shareholding interest in PetroMad (Mauritius) Limited (PetroMad) (being the company which owns a 100% interest in the Bezaha Oil Project concession located in Southern Madagascar – the Asset); and
- all of CRJ’s rights and obligations under an agreement entered into with the owner of the remaining 75% interest in PetroMad (and under which CRJ is entitled, subject to successful completion of staged work programs, to earn up to an 80% ownership interest in PetroMad).
- The consideration for the acquisition is the issue of 85 million TLU shares (of which 60 million are to be issue to CRJ and the other 25 million to certain nominated CRJ creditors). CRJ is required to distribute the 60M shares to its own shareholders. A parcel of shares will also be issued to TLU’s corporate adviser upon completion.
Commenting on the deal, the Company’s Managing Director, Mr Carl Dorsch, said “this on-shore oil prospective asset in Madagascar will add significantly to the Company’s suite of high impact oil exploration assets. I have considerable experience in working in franchophone Africa and I’m looking forward to the opportunities in neighbouring Madagascar which is located off the south east coast in one of the most prospective exploration areas remaining in the world.”
“Concurrent with the divestment of the Madagascan oil assets the Company intends to build up these targets further and should have an updated release to the market in the coming quarter,” says Brian McMaster,Chairman Caravel Energy.