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Cove Energy one the look-out for acquisitions following successful Artumas deal

02 February 2010

Oil and gas company Cove Energy today said it was continuing to review opportunities and acquisitions and that last year’s reverse takeover involving a series of assets in Mozambique and Tanzania had triggered a healthy pipeline of future potential transactions.

Last summer, AIM-listed Lapp Plats, as it was then known, changed its name to Cove Energy and went on to raise £42 million from investors in order to team up with French group Maurel & Prom and farm-in to assets belonging to Artumas Group.

The three interests included the Mnazi Bay project in Tanzania, along with Area 1 Rovuma Offshore and the Rovuma Onshore Block, both in Mozambique.

The initial deal cost Cove US$3.3 million with the bulk of the new cash earmarked to fund its share of four deepwater wells and one onshore well operated by Anadarko.

The Belford Dolphin drillship is currently drilling the first of those wells over the Windjammer prospect, with results due to be published once each well has reached total depth.

Also today, Cove said that following the completion of its acquisition of the 8.5% Mozambique Offshore participating interest, it had cut the royalty payment due to Artumas from 6.4% to 4.95%. The reduction reflects Cove’s payment of certain cash calls and other expenses, prior to completion.

At Mnazi Bay, plans are being formulated by Maurel & Prom to further commercialise existing gas production in the Mnazi Bay gas production and exploration PSC and to recommence exploration activities. These plans are set to be presented to all partners during the first half of the year.

Finally, Cove has appointed Dr G. H. Stephen Staley to its board as non-executive director with immediate effect.






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