Cove Energy notes the announcement issued today by Wentworth Resources confirming, inter alia, that the concession partner and operator, M&P Exploration and Production Tanzania, has elected to exercise its right of pre-emption under the Joint Operating Agreement in relation to the proposed disposal to Wentworth by Cove of its 16.38% participation interest in the production operations (20.475% participation interest in exploration operations) in the Mnazi Bay Concession in Tanzania, all as previously announced by Cove on 30th January 2012.
As indicated in that announcement, the consideration due to be received by Cove under the terms of the divestment agreement, comprising termination of the Mozambique royalty, receipt of 2 million Wentworth shares and contingent payments of up to US$8.5 million, remain unchanged by M&P's exercise of its right of pre-emption. Shareholders should note that the Government of Tanzania has approved Cove's transaction and that the other concession partner, Tanzania Petroleum Development Corporation, has elected not to exercise its right of pre-emption.
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