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...

What is it they say ? buy on the bid

StockMarketWire.com
Cove Energy has revealed further appraisal success from the Rovuma Basin offshore Mozambique.

Cove said the Lagosta 2 encountered 237 (777 feet) net meters of natural gas pay in multi zones.

This is the largest pay count of any well in the Windjammer, Lagosta, Barquentine and Camarão (WLBC) gas complex to date.

Chief executive John Craven said: "Lagosta 2 has delivered another outstanding result demonstrating the lateral and vertical extent of the high quality Tertiary reservoirs in the WLBC gas complex and further de-risks the recent resource upgrade of 15 to 30-plus TCF.

"I am confident that after further evaluation of Lagosta 2, combined with new drilling and well testing, we will see more resource upgrades as this exciting project drives on towards final investment decision in 2013."

The operator is Anadarko Petroleum Corporation.

http://www.moneyam.com/action/news/showArticle?id=4292985

January 19, 2012
Investors Cheer As Latest Gas Strike Offshore Mozambique Boosts Cove Energy Sale Prospects
The price tag on Cove Energy, which put itself up for sale earlier this month, increased this week as the AIM-quoted E&P announced another mammoth gas strike in the waters off the coast of Mozambique. The astonishing run of success by the Anadarko-led consortium drilling these deep waters, in which Cove has an 8.5 per cent interest, has already made Cove one of the standout successes on AIM in recent years. The company listed on AIM in 2009 and in September of that year raised £42 million through a placing priced at 20 pence per share to back its US$3 million acquisition of a series of East Africa E&P interests, including an 8.5 per cent interest in the Rovuma Area 1 block offshore Mozambique; just over two years on and that project has yielded world-class gas discoveries and Cove’s shares are trading at record highs of more than 137 pence.
To realise value for shareholders before the Mozambique project enters a capital intensive phase, involving the construction of a two-train onshore LNG plant to monetise the possible 30 TCF of offshore gas, Cove has decided to put itself on the auction block. Shares in the company, which rose 20 per cent in 2011, have rallied strongly over the early weeks of 2012, gaining another 20 per cent, amid speculation that bids of as much as US$1.2 billion could come from the world’s largest oil companies. Cove currently has a market cap of £677 million (US$1.04 billion).
India’s state-owned Oil India has been widely reported as one contender in the secret bid process. Indian companies have been investing in oil and gas projects across the globe to help feed domestic demand for energy – indeed, India’s Bharat Petroleum and Videocon Industries are both partners in the Anadarko-operated Rovuma project – and the Mozambique gas finds are well positioned to deliver gas into the booming Pacific LNG market that feeds energy-hungry markets across Asia, including India. Chinese companies may also be interested in such a reserves-rich asset, particularly given Chinese investments across Africa’s oil and gas rich basins, while European and North American companies should not be discounted as many are jostling for position in sub-Saharan Africa and have been keen to secure acreage along the East African margin.
This week’s news from Mozambique will not have harmed the sales process, with Anadarko announcing that the Lagosta-2 appraisal well, 7 km north of the Lagosta discovery, encountered 777 feet of net gas pay in multiple zones, the largest pay count of any of the wells in the Windjammer, Lagosta, Barquentine and Camarão gas complex, where the recoverable resource tally now stands at 15 to 30 TCF. Pressure readings from Lagosta-2 indicate there’s continuity with the Lagosta-1 and Camarao wells over a distance of 15.5 km – that’s a lot of reservoir. Cove’s CEO John Craven said the well had further derisked the resource estimates on the WLBC gas complex, calling it “another outstanding result”, which could yet see further resource upgrades.
Further drilling and testing work is underway across the block, where two deepwater drillships are now working. The JV partners, which include operator Anadarko with a 36.5 per cent working interest alongside Mitsui (20 per cent), Bharat and Videocon with 10 per cent each and state oil company ENH with a 15 per cent carried interest, now plan to drilled the Lagosta-3 appraisal well.

"BP targets Cove to secure stake in African gas field

Ben Marlow and Danny Fortson Published: 22 January 2012

Recommend (0) Comment (0)PrintFollow Business

BP has joined the race for Cove Energy, the £660m oil explorer that discovered a huge gas field off the coast of Mozambique.

John Craven, the chief executive who transformed Cove from a tiny cash shell into one of Britain’s most valuable independent oil groups, put the company up for sale this month. The auction has triggered a scramble by the oil giants and state-owned Asian firms keen to get their hands on vital new energy sources. The process is being handled by Standard Chartered, the investment bank.

The jewel in Cove’s crown is an 8.5% stake in the Rovuma gas field, which was discovered last year and is estimated to hold up to 30 trillion cubic feet of gas. The size of the field — nearly twice as large as the biggest North Sea find — and its proximity to Asia means there is a long list of potential bidders. Jim Hackett, chief executive of Anadarko Petroleum, the American oil group that owns more than a third of the project, said that it could be “one of the most important natural gas fields discovered in the past 10 years”.

The plan calls for the construction of a plant to cool the gas to liquid form so it can be transported by tanker. The development will cost billions of dollars.

It is understood that ONGC, India’s national oil company, and Gail, its state-owned gas firm, are considering launching a joint bid. PTT, Thailand’s government oil group, has hired UBS to advise it on an offer. CNOOC, China’s national oil company, is also considering a bid, as is Korea Gas Corporation.

The level of interest in Cove’s Rovuma stake is tempting other investors in the project to consider a sale. They are thought to include Videocon, an Indian conglomerate that makes white goods. Mitsui, which owns a fifth of the field, may choose to increase its stake."

but what is the reasonable upside?

Rumour seems to be about the 180p level. That's the highest I have seen, so possibly optimistic.

market would concur

Cove Energy plc is pleased to announce today that it has entered in to an agreement to divest its Tanzanian Interests, comprising a 16.38% interest in production operations and 20.475% interest in exploration operations in the Mnazi Bay Production Sharing Contract, to Wentworth Resources Ltd ("Wentworth", AIM:WRL). The Agreement provides for transfer of 100% of the shares of Cove Energy Tanzania Mnazi Bay Limited, a wholly owned group subsidiary of Cove, to Wentworth in exchange for:

· An increase in profit share from Area 1 Rovuma Offshore Exploration & Production Concession Contract ("Area 1 EPCC") through the termination by Wentworth of its royalty interest of 4.95% over Cove's 8.5% share of the profits derived from the Area 1 EPCC ("Royalty");

· Two million newly issued fully paid shares in Wentworth ("Consideration Shares") to be retained by Cove; and

· Contingent payments of up to US$8.5 million, depending on future natural gas production thresholds from the Mnazi Bay PSC being achieved (the "Contingent Payment"). Any proceeds arising from the Contingent Payment will be used for general working capital.

The transaction is valued at approximately US$39 million.

The Effective Date of the Agreement is 30th September 2011. Cove will continue to meet its financial and contractual obligations under the Mnazi Bay PSC including any drilling costs, until Completion. However, under the terms of the Agreement, Cove will be reimbursed by Wentworth for its costs incurred between the Effective Date and Completion.

Shooting up......bid coming to the fore ?....

R F

I sold to soon @ 140p

I did at 100p...and bought back at 140p....not the best timing...

sold mine at 120p

Well that's better than my timing.....

probably bid coming at least fairly soon - see ST Biz section - but is there enough upside to make it worth buying in now? ..... gut instinct is no, but greed may try its luck

.

PROPOSED CASH OFFER

by

Shell Exploration and Production (XL) B.V. ("Shell Bidco")

(a wholly-owned subsidiary of Royal Dutch Shell plc ("Shell"))

for

Cove Energy plc ("Cove")

1. Highlights

* Proposed Offer of 195 pence in cash for each Cove share.*

* The Proposed Offer values the entire issued and to be issued share capital
of Cove at approximately £992.4 million and would represent a premium of:

* 73.3 per cent. to the closing price of 112.5 pence per Cove share as of 4
January 2012, the last business day prior to Cove's announcement of the
sale process for the company; and

* 28.5 per cent. to the average closing price of 151.75 pence per Cove share
over the five business days ending on 21 February 2012, the last business
day prior to the date of this announcement.

* The making of an announcement of a firm intention to make the Proposed
Offer by Shell Bidco (the "Firm Intention Announcement") is subject to, and
conditional upon, the receipt of written consent of the Republic of
Mozambique's Minister of Mineral Resources (or through one or more
delegated representatives) as required under Article 24.1 of the
Exploration and Production Concession Contract relating to Cove's 8.5 per
cent participating interest in the Mozambique Rovuma Offshore Area 1 Block
(the "Rovuma Area 1 Interest"), such consent to be in a form satisfactory
to Shell Bidco (the "Mozambique Consent").

* The Board of Cove believes that the level and nature of the Proposed Offer
are such that it is in its shareholders' interests to progress matters with
Shell Bidco to the point where such an offer can be made. Accordingly, the
Board of Cove would expect to recommend the Proposed Offer of 195 pence in
cash per Cove share, if made. It has been agreed that, if the Board of Cove
does so recommend the Proposed Offer of 195 pence in cash per Cove share,
each director of Cove will provide a hard irrevocable undertaking to accept
the offer in respect of his own entire beneficial holdings of Cove shares
and those of his family members and related trusts.

* Notwithstanding this announcement, the formal sale process, including the
dispensations granted by the Panel on Takeovers and Mergers in connection
therewith (as detailed in the announcement by Cove on 5 January 2012),
shall continue.

.

.

i sold at 140p