OilVoice - Cove Energy Completes Mozambique Offshore Farm-in

Cove Energy Completes Mozambique Offshore Farm-in

Friday, January 08, 2010

Cove Energy plc, the AIM quoted upstream oil and gas company, announce that following the receipt of the consent of the Government of the Republic of Mozambique, as represented by the Minister for Mineral Resources and Empresa Nacional de Hidrocarbonetos E.P. ("ENH"), Cove has now obtained all necessary consents and approvals. As such the farm-in agreement entered into by Cove for the acquisition by Cove from Artumas Group Inc. ("Artumas") of an 8.5% participating interest in the Exploration and Production Concession Contract ('EPCC') in the Rovuma Offshore Area No 1, Mozambique ('Rovuma Offshore 1') ("Rovuma Offshore Participating Interest") is now unconditional and the transfer of the Rovuma Offshore Participating Interest to Cove has been completed.

The Belford Dolphin drillship commenced a four well deep-water programme in the Rovuma Offshore 1 in December 2009 and is currently drilling on the Windjammer prospect. Anadarko Petroleum Corporation is the operator.

John Craven, CEO of Cove said:
"The acquisition of the Rovuma Offshore 1 interest signifies the successful completion of the third and final transaction with Artumas relating to assets in Tanzania and Mozambique, a transaction which was conditionally concluded in September 2009.

The Board is proud to have guided the Company through the negotiation and completion of this complex process, involving a re-admission to AIM and associated £42 million placing of new shares, and to have achieved all necessary partner and government approvals in such a short time frame.

We continue to work closely with all our partners to realise the potential value from these prospective hydrocarbon assets and, with drilling underway in the offshore, 2010 is set to be an exciting year for Cove."

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