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Tellus receives confidence-boosting report about Madagascar play

30th July 2014

Tellus Resources Ltd (TLU) has received a report from MHA Petroleum Consultants that provides an independent confirmation of significant prospective resources in Block 3114, Madagascar

Tellus receives confidence-boosting report about Madagascar play
LU has entered into a binding agreement to acquire a 25 per cent interest (with the right to acquire up to an 80 per cent interest) in this block for the issuance of 85M TLU shares

“MHA’s report provides the company with enormous encouragement that it has acquired a very material prospective resource base in onshore Madagascar,” said Carl Dorsch, TLU director. “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.”

MHA have estimated the risked prospective recoverable resources in a single drill-ready prospect (the Betoiky Prospect) are as follows:

The estimated quantities of petroleum 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.

As announced on 11 June 2014, TLU has entered into a binding agreement to acquire a 25 per cent interest (with the right to acquire up to an 80 per cent interest) in this block for the issuance of 85M TLU shares, subject to shareholder approval. 

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