Tellus Resources spuds Cooper Basin well, targets 3 million barrels of recoverable oil
Tuesday, October 01, 2013 by Proactive Investors
Tellus Resources (ASX: TLU) has spudded the much awaited Pirie-1 well in the Cooper Basin, South Australia, that targets up to 3 million barrels of recoverable oil in the Tirrawarra Sands.
Notably, Cooper Basin producer Senex Energy (ASX: SXY) is contributing $3.5 million towards drilling costs for a 70% interest in PEL 105.
Further upside could come from the Birkhead and Toolachee, Patchawarra oil and wet gas formations that are also targeted by the well. Drilling is expected to take 25 days to complete.
Tellus has received the first tranche of $1.75 million from Senex and will receive the second tranche about 25 days after spud.
Senex will takeover as operator of PEL 105 after rig release at Pirie-1 and will then sole fund a further well in the Permit on or before 30 June 2014.
A success at Pirie-1 could be transformational for Tellus, a newcomer to the upstream oil and gas sector.
TLU Price at posting:
8.8¢ Sentiment: Buy Disclosure: Held
