Tellus Resources will acquire a 25% stake in PetroMad Mauritius, the Bezaha oil project concession in southern Madagascar owned by Caravel Energy.
Tellus will issue 85 million shares for the stake. Caravel Energy intends to secure shareholder and regulatory approval to distribute the 60 million shares to its own shareholders. The deal also includes an option to acquire the remaining 75% in PetroMad.
Tellus has signed agreements which provide it with debt facilities to borrow up to $550,000. The company said that it is anticipating an R&D rebate from the ATO later in the year, which will more than cover any amounts drawn down from the facilities.
The Bezaha oil project concession consists of 10,000km² of onshore acreage. It has been subjected to a seismic campaign that found oil targets together with at least one drill-ready prospect. A drilling campaign is planned to start in the latter part of the year.
Tellus Resources managing director Carl Dorsch said that the onshore oil prospective asset in Madagascar will expand the company’s suite of high-impact oil exploration assets.
"I have considerable experience in working in franchophone Africa and am 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," Dorsch added.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
