Tellus Resources (ASX:TLU) has executed a rig contract with SST Energy Corporation for the imminent drilling of its Covenant Mondo conventional oil play in Utah.
The well is a potential company maker given its proximity to the privately owned Covenant oil field that currently produces 6,400 barrels of oil per day and recoverable reserves of over 150 million barrels of oil.
Tellus has a 25% interest following farm-in completion in the project, which has potential to deliver massive upside with substantial resource estimates in a well-known US overthrust belt.
Drilling of the well will begin early next week and is expected to take about 20 days to complete.
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