Cove Energy (LON:COV) and its partner-operator Anadarko Petroleum have confirmed a major new gas discovery at the Atum exploration well located approximately 16.5km south of the recently announced Golfinho discovery well in the northern part of Area 1 Rovuma Offshore, Mozambique.
Atum intersected 300+ net feet of Natural Gas Pay in two high quality Oligocene deep water fans. The discovery is believed to be connected to the Golfinho Oligocene gas reservoirs with estimated recoverable gas resources of 10 to 30 plus trillion cubic feet (Tcf).
Details of the latest discovery were released along with an associated resource upgrade for Area 1, where block wide recoverable gas resources are now estimated to be between 30 and 60 Tcf. The current upside for total gas in place for the discovered reservoirs on the block is approaching 100 Tcf.
Atum marks the twelfth successful well in Area 1 and the companies involved are now planning an immediate four-well appraisal/testing programme. The discovery could ratchet-up the pressure on the takeover tussle for Cove. Last month, Thailand’s national oil company PTTEP made a 240p per share recommended offer for the company, which was a 9 percent premium to Shell’s previous offer of 220p
John Craven, the chief executive of Cove, said: “Atum is another outstanding success both in terms of reservoir quality and areal distribution in that the Oligocene pay zones are connected to those at the Golfinho discovery some 16.5 kilometers north. In addition the combination of the discovery being located entirely within Area 1 Rovuma Offshore block and its proximity to planned shore based infrastructure, provide significant commercial advantages to our partnership.
“Given the continued predictive success utilizing the new northern 3D seismic I am confident that the associated appraisal programme will deliver more success.”
