Took a punt on this a few months back....thanks EK...who tipped this and brought it to my attention !.....looks good for Aminex as well...

do part?

Difficult to guess this one short term because a well success will send it much higher but a dud will probably make the sp lose 10p at least but then it will probably recover before the next spud....medium term (by next christmas)...I would hope for 200p,.....good one to be in...so many prospects.....results don't matter that much as this is a big exploration play....

That would be the sensible thing to do, but am tempted, just this once, to push for a bigger profit. Bought at 76p. Calculated risk, but will kick myself if it all goes badly wrong.

Not with the discoveries already made......so many more wells to be drilled....if you are trading these in a sipp you can buy back any time....

StockMarketWire.com
Cove Energy raised to buy from neutral at Goldman Sachs.

Anadarko Announces Discovery Offshore Mozambique
HOUSTON, Feb. 7, 2011 - Anadarko Petroleum Corporation (NYSE: APC) today announced the latest in a string of major deepwater natural gas discoveries off the coast of Mozambique. The Tubar discovery well encountered more than 110 net feet (34 meters) of natural gas pay and no water in a high-quality Eocene-age reservoir that is separate and distinct from the hydrocarbon accumulations in Anadarko's three previous discoveries in the Offshore Area 1 of the Rovuma Basin.

The Tubar discovery well was drilled to a total depth of approximately 13,900 feet (4,237 meters) in water depths of approximately 2,950 feet (898 meters), approximately 18 miles (29 kilometers) off the Mozambique coast. The partnership plans to preserve the wellbore at Tubar for potential utilization in future testing. Once operations are complete, the partnership plans to mobilize the rig to the previously announced Windjammer discovery, approximately 26 miles (42 kilometers) northeast of Tubar, to begin a coring program that will be followed by appraisal drilling in the Windjammer, Barquentine, Lagosta complex.

Should be much higher than this......could be taken over in the long run Cove Energy....they will make a fortune when production starts in a couple of years....a fortune....

This is still cheap at 96p... bought some today. Thanks for reminding me, rf.

Undervalued.....wait till gas prices start to rise again as they will.....the sp will take off again....and just to repeat it...I can see a takeover coming for this...inevitably so.....

Exclusive negotiations for new Kenya licences
Cove Energy plc is pleased to note the announcement made by its co-venture partner Pancontinental Oil & Gas NL ("Pancontinental") in respect of exclusive negotiations with the Kenyan Ministry for Energy for Production Sharing Contracts (PSCs) for Blocks L10A and L10B offshore Kenya. On execution of the PSCs Cove would have 25% of Block L10A and 15% of L10B. A further announcement will be made as soon as negotiations are finalised.

Cove Energy plc ("Cove" or the "Company") is pleased to provide the following operational update.
Rovuma Offshore block 1 (Mozambique) - A Multi TCF Exploration Success:-

Further exploration running parallel with appraisal and commercialisation of discoveries:

4 Major Gas Discoveries offshore Mozambique

o Windjammer

o Barquentine

o Lagosta

o Tubarao

Oil potential in South - Ironclad oil occurrence

Sufficient gas for Liquefied Natural Gas (LNG) train- Cove is now a participant in a proposed world class LNG project located in a prolific hydrocarbon basin

o High - Quality continuous gas charged sands over vast area

o Combination Traps

o Predictive seismic models proven to work

o Huge remaining multi TCF potential with oil potential in the south

Ongoing Acceleration of a Parallel and Continuous Exploration & Appraisal Programme with new 3D seismic, a dedicated rig and the addition of a second committed rig scheduled for Q4 2011 through 2012 into 2013

o Appraisal Now Under Way - Objective to Certify Gas Reserves in order to obtain gas sales/LNG agreements etc - includes coring of key gas bearing reservoir intervals (Belford Dolphin drilling rig currently taking conventional cores at the Windjammer and later the Lagosta discovery wells), to be followed by an initial 4 to 5 appraisal well programme with well testing, in order to accelerate reserve certification, thus significantly enhancing ultimate project value. Target 2013 for LNG project sanction

o Exploration - Current acquisition of 4,050 sq kms of new 3D seismic to south and north of existing 3D area to further delineate and high grade prospects defined by past 2D seismic - Second Rig to be added in Q4 2011 - to specifically allow for continued exploration drilling, both of the extensive gas play, and to evaluate oil targets. The partnership recognises significant remaining hydrocarbon upside potential, while pushing accelerated commercialisation of existing discoveries

Anticipated Drilling on Adjacent Rovuma Basin Blocks in 2011 -

o ENI, Galp & Kogas consortia will be drilling on block immediately to the east where up to 3 wells are planned

o Statoil, plan drilling on the block to the south

o BG Group/Ophir - Currently drilling in Tanzania Block 1 adjacent to the north of Rovuma Offshore Block Area 1

Adjacent drilling success to have positive impact - Cove and its partners have first mover advantage with ambition to have the first LNG infrastructure in East Africa and with two committed drilling rigs ensuring continuous exploration and appraisal in this emerging hydrocarbon basin.

Indicative Valuation of initial Mozambique Offshore discoveries (Cove Share)

437 to 728+ million - 89p to 1.50p/sh

(Source Anadarko Investor Conference 24/2/2011 of $3 to $5+ billion proportionally adjusted to Cove's 8.5% interest - 1.6 $/ (Anadarko 36.5% interest)) - LNG Project only, excluding 120 milion in Cove's treasury, but importantly not including the huge exploration upside in the existing 3D seismic area and across Cove's extensive acreage in Mozambique, in what is proving to part of an exciting new frontier basin now attracting the attention of many multi-nationals.

Kenya Deepwater Offshore (L5, L7, L11A, L11B & L12)

2010 2D Seismic confirms potential for large hydrocarbon traps.

Five distinct play types including similar plays to Mozambique along with a more oil prone petroleum system

2011 Activity - planned 3D seismic - Exploration drilling proposed for 2012 - Anadarko Operator

New Kenya blocks under negotiation - L10A & L10B - Cove in consortia operated by British Gas.Mnazi Bay Tanzania

Gas Monetisation Options under review - New 300 MW Power Station and Cement Manufacturing Plant under consideration - New Gas Sales Agreements under negotiation

Approximately 2mmscf/d currently sold to existing power plant (Cove share 16.38%)

BG Group/Ophir drilling in adjacent Tanzania Block 1 - good result would have positive impact for Mnazi Bay partnership.

Onshore Mozambique
Licence renewed into the second phase of EPC

Seismic and up to two wells planned

John Craven, CEO of Cove commented:
"2010 was a year of extraordinary exploration success for Cove and all the stakeholders in our offshore Mozambique block. Considering that Cove is part of the first commercial hydrocarbon discovery in deepwater East Africa simply reinforces the magnitude of what has been achieved. I am delighted to be able to confirm that throughout 2011 we will be building on the Mozambique success having already begun the appraisal programme to commercialise the discoveries. At the same time we are now laying down the platform to drive forward an extensive exploration drilling programme, having already commenced the acquisition of a new 3D seismic survey which, with the deployment of a second deepwater rig later this year, ensures continuing exploration of the gas and oil potential within this prolific offshore block, which has only been partially explored to date.

"Our internal economic study of a Mozambique LNG project is broadly in line with Anadarko's valuation released in their February investor conference. Our study is based on the resources only from the existing 4 gas discoveries made to date and does not include the considerable exploration potential offshore Mozambique, nor the remainder of our extensive East Africa portfolio in Mozambique, Tanzania and Kenya.


'In the Kenya deepwater blocks we are accelerating the work programme with a planned 3D seismic survey this year followed by drilling planned for 2012. It has been indicated that a rig slot may be available to the Kenyan partnership from the rig capacity of the Mozambique programme during 2012 or 2013.We are also actively pursuing a number of new venture opportunities which is important for continued growth. Finally the successful fundings that were put in place in 2010 mean that we have the financial firepower to capture the value from what is an extensive and exciting exploration, appraisal and testing programme going forward."

This looks trading at a real discount. Thanks for bringing to attention.

Recovering somewhat this a.m.(up 6.25)

looking very good value at 90p.

UBS broker note:
We believe Cove Energy (Buy, PT 115p) offers significant (105%) upside over the next 12 months, with a high chance of commercial exploration success for gas in Mozambique, and additional oil potential. Downside protection is provided by the 12Tcf Barquentine-Windjammer-Lagosta gas discovery, which is progressing towards LNG development. This makes up 56% of Coves NAV. Cove is an apt play on Anadarkos East African business 75% of Coves acreage is operated by Anadarko.

StockMarketWire.com
Cove Energy initiated with buy rating at Investec, target price 134p

StockMarketWire.com
Cove Energy has signed production sharing contracts for two offshore exploration blocks, L10A and L10B, with the Kenya government. Cove will hold a 25% equity interest in the exploration block L10A and a 15% interest in block L10B.

BG Group will be operator. Blocks L10A and L10B together cover an area of more than 10,400 square kilometres in the southern portion of the Lamu Basin offshore Kenya in water depths ranging from around 200 metres to in excess of 1,900 metres.

They are also adjacent to and inboard of deepwater blocks L11A and L12 part of a package of five contiguous deepwater blocks in which Cove has a 15% interest.

StockMarketWire.com
Cove Energy's operating losses rose to $5.9m in the year to the end of December - up from $1.6m last time.

The loss from continuing operations rose to $5.0m - up from $1.6m in 2009 - while the firm had cash and cash equivalents of $199.3m compared with $51.2m previously.

Chairman Michael Blaha said 2010 was a remarkable second year for the company which transformed the assets it acquired in 2009 from Artumas with world class exploration successes that added significant contingent gas resources that is to form the basis for a significant LNG project.

He said Cove also expanded its portfolio with some strategic exploration positions in seven deep and shallow water blocks in Kenya.

He added: "We remain focussed on geology in emerging basins with intensive exploration and appraisal programmes executed by competent operators.

"We have established ourselves as a reliable company that is focussed on creating shareholder value on the basis of a very clear strategy.

"Cove's participation in the Rovuma Offshore Area 1 gas discoveries has positioned the company in a leading LNG project."

StockMarketWire.com
An appraisal well offshore Mozambique has been successful, Cove Energy said today (22 August).

Cove said the operator, Anadarko Petroleum, had reported that the Barquentine-2 appraisal well in the Rovuma Basin, encountered more than 230 net feet (70 meters) of natural gas pay in high-quality Oligocene-age reservoirs.

Barquentine-2 was the first appraisal well in the Windjammer, Barquentine and Lagosta complex, which is estimated to hold a minimum of 6 trillion cubic feet (Tcf) of recoverable natural gas resources.

Bought in again at 70p ( a little late but.....)
If the latest news had been released in a bull market, the sp would have rocketed, imo. So, on the basis that the news is good and that the market will eventually acknowledge the fact, lots pf upside potential, imo. Very little downside, unless the whole market tanks again.