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...

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.

Nice breakout......sp climbing rapidly...

Yep. One of my few recent profitable purchases. Watch out though, rf, as I think COV will need more money soon.

StockMarketWire.com
Cove Energy has agreed a farm-out deal on Kenya deepwater blocks with Total.

The agreement was signed by Cove's Kenya subsidiary and its partners - Anadarko Kenya Co and Dynamic Global Advisers Kenya.

Total E&P Kenya will acquire a 30% interest in blocks L5, L7, L11A, L11B and L12 which cover more than 30,000 square kilometres in water depths of between 100 and 3,000 metres.

Cove will contribute 5%, Anadarko 20% and DGA 5% to the farm-out.

Total has also agreed to purchase, for cash, DGA's entire interest in the Kenya offshore blocks.

StockMarketWire.com
Operating losses at Cove Energy fell to $1.98m in the six months to the end of June - down from $3.3m last time.

Revenues rose to $236,000 from $197,000 and the total comprehensive loss for the period attributable to the equity holders of the parent fell to $1.3m from $2.9m.

Chairman Michael Blaha said: "Our main project in Rovuma Area 1, Mozambique, continues to progress with a new gas discovery at Tubar and successful appraisal well at Barquentine 2.

"Also extensive new 3D seismic data has been acquired in the northern gas and southern oil prone parts of the block.

"Preliminary evaluation looks very promising.

"We are also highly impressed with the rapid mobilisation of the pre-development team and the awarding of the high level contracts, building the pre-development momentum to achieve financial sanction by the end of 2013.

"Cove has continued its focussed exploration portfolio in East Africa during the first half of 2011 with the acquisition of further interests in blocks L10A and L10B, offshore Kenya.

"The exchange of contracts on a farm in with TOTAL over our existing Kenyan deepwater acreage, on very good terms, has added substantial value and de-risked this project for Cove.

"In addition TOTAL's proposed purchase of the DGA stake, gives a substantial market value uplift to our investment here from 2010."

Cove Energy plc together with the operator Anadarko Petroleum Corporation ("Anadarko"), is pleased to report exploration and appraisal success from the Camar well in the Rovuma Basin Area 1 block, Offshore Mozambique ("Area 1 Rovuma Offshore").

Highlights
Over 380 net feet (116 meters) of natural gas pay confirmed in both exploration and appraisal targets.

Appraisal objective, in Oligocene fan systems, encountered approximately 240 net feet (73 meters) of natural gas pay in an excellent-quality reservoir sands, pressure data confirms static connectivity with the partnership's previously announced Windjammer and Lagosta discoveries which are some 15 miles apart.

Exploration section of the well encountered a 140 net feet (43 meters) of natural gas pay in shallower Miocene and Oligocene sand packages not encountered in previous wells.

Operator Anadarko estimates substantial increase in recoverable resources to, at least 10TCF (142 million BOE net to Cove Energy), and is also "optimistic that our current estimates will increase, as we still have significant exploration and appraisal work ahead".

Partnership mobilising a second deepwater drillship to Area 1 Rovuma Offshore to accelerate the drilling campaign, which includes an extensive reservoir testing program and up to seven exploration/appraisal wells over the next 12 months.

Base case development plans have now been expanded to a minimum of two 5-million-tonne-per-annum LNG trains with optionality to increase pending further drilling success.

Camar well success has de-risked other prospects in similar geological settings.

more resource upgrades! check out investorschampion.com

Excellent rise.....nice chart...more to come...

Last time the Eurozone kicked off COV dropped 30p, so might be worth taking some profit as a repeat may be on the cards.