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...

The Company notes the recent press reports in relation to comments in respect of the possibility of a tax charge which might be levied by the Government of Mozambique (the "Government") in connection with the proposed indirect transfer of the Company's 8.5 per cent participating interest in Rovuma Offshore Area 1 pursuant to a possible takeover of the Company. The Company is seeking clarity on this issue and will make further announcements when or if appropriate.

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 5th January 2012), continues.

Canaccord comment:
"Using Heritage Oil's sale of its Ugandan assets to Tullow, we believe Mozambique could charge approximately 30% on capital gains to Cove. We would then expect the ministry to structure the final payment so the taxes payable go directly to the government. Using our example, in the case of a buyer paying 220p/share we would estimate 28p/share on a risked basis being paid as taxes. Leaving Cove shareholders with 192p/share.
Given the uncertainty that potential taxes create in the final sale of Cove we are changing our recommendation to SELL from TENDER and moving our target price to 190p/share from 220p/share."

No massive rise despite such good news today

FT sector watcher comment:
"So what does Shell do now? COV and its partners have just announced another monster gas discovery offshore Mozambique, with the Atum-1 well boosting estimated reserves to between 30 and 60 tcf of gas in place (up to 10 billion barrels oil equivalent). The Anadarko-led JV is now talking about a resource approaching 100 tcf in place, the biggest single accumulation of gas found globally in years. COV is currently the subject of a 240p/share all-cash offer from PTTEP (Thai state oil company), which last month outbid Shell’s previous 220p/share offer. The onus is now on Shell to further increase its offer, with today’s news piling on the pressure for a bigger number. With a current COV valuation of $2bn, it certainly doesn’t seem a lot for Shell to pay, although this buys it only 8.5% of the licence. Anadarko holds 36.5% of the licence, and I’d imagine Shell also has an eye on a large chunk of that interest. Difficult to guess what Shell’s next move will be, but I wouldn’t rule out a knockout offer approaching 300p/share. "

that doesn't give much upside ...... 10% at full price, but you then need to deduct a slab for risk and time elements

cynic

you said that when they were 60p

quite possibly but then i am not blessed with a crystal ball

StockMarketWire.com
Shell Exploration and Production has decided not to take part in the Takeover Panel's auction of Cove Energy.

Shell made an offer to acquire Cove in February in order to in order to enter potential liquefied natural gas developments in Mozambique, and other exploration positions in the region.

It says the the Takeover Panel has announced an auction procedure to conclude this potential takeover.

Shell Bidco has decided not to revise its offer of 220 pence in cash for each share of Cove, and not take part in the auction procedure for Cove.

Late RNS today 18.15 hrs


31 July 2012







Cove Energy plc


Result of first Golfinho/Atum gas complex appraisal well



Cove Energy plc ("the Company" or "Cove", AIM:COV), the AIM quoted upstream oil and gas company, notes the statement made by Anadarko Petroleum Corporation ("Anadarko"), the operator of Area 1 Rovuma Offshore Mozambique, in its second quarter 2012 results issued on 30 July 2012, which announces the result of the first appraisal well on the Golfinho/Atum gas complex, with the well encountering 254 net feet of natural gas pay.


The following excerpt is taken directly from the Anadarko 2012 second quarter results announcement released on 30 July 2012:



"Exploration Summary

Anadarko continued an active and successful exploration and appraisal program during the second quarter of 2012. Offshore Mozambique, the company extended its exploration success beyond the Prosperidade complex with the discoveries of Golfinho and Atum, forming the company's second major natural gas complex. The Golfinho/Atum complex is estimated to hold 10 to 30-plus trillion cubic feet of recoverable natural gas resources and is completely contained within the Offshore Area 1 block. Anadarko has begun an accelerated four-well appraisal program at Golfinho/Atum, with the first appraisal well encountering 254 net feet of natural gas pay. Significant progress was also made during the quarter at the company's Prosperidade complex, where the appraisal drilling program was successfully completed, and well testing is ongoing."