Fourth Major Gas Discovery Offshore Mozambique

Company Cove Energy PLC TIDM COV Headline Fourth Major Gas Discovery Offshore Mozambique Released 07:00 07-Feb-2011 Number 7567A07

RNS Number : 7567A

Cove Energy PLC

07 February 2011

 7 February 2011

Cove Energy plc 

Fourth Major Gas Discovery Offshore Mozambique
Cove Energy plc ("the Company" or "Cove", AIM:COV), the AIM quoted upstream oil and gas company, together with the operator Anadarko  Petroleum Corporation, is pleased to announce a fourth major gas discovery at the Tubarão  prospect in the Rovuma Basin Area 1 block, Offshore Mozambique ("Area 1 Rovuma Offshore"). 
The full text of Anadarko's release is copied below:
 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 Tubarão 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 discovery at the Tubarão prospect opens an entirely new play style, which has additional opportunities in Mozambique's Offshore Area 1," Anadarko Sr. Vice President, Worldwide Exploration Bob Daniels said. "This is our fourth significant discovery in the offshore Rovuma Basin and further strengthens our confidence in our geologic and geophysical models of the basin. Our seismic imaging indicates Tubarão's areal extent could cover about 15,000 acres that will be better defined with appraisal drilling. In addition, we continue to safely enhance our drilling efficiencies, procedures and methodology in Mozambique, as we drilled this well in half the time of our first exploration wells."

The Tubarão 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 Tubarão 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 Tubarão, to begin a coring program that will be followed by appraisal drilling in the Windjammer, Barquentine, Lagosta complex.

Anadarko is the operator of the 2.6-million-acre Offshore Area 1 with a 36.5-percent working interest. Co-owners in the area are Mitsui E&P Mozambique Area 1, Limited (20 percent), BPRL Ventures Mozambique B.V. (10 percent), Videocon Mozambique Rovuma 1 Limited (10 percent) and Cove Energy Mozambique Rovuma Offshore, Ltd. (8.5 percent). Empresa Nacional de Hidrocarbonetos, E.P.'s 15-percent interest is carried through the exploration phase.

John Craven, CEO of Cove said:

"We are very pleased to announce a fourth major gas discovery in this prolific Rovuma offshore block. The high quality gas reservoir at Tubarão, located 16 miles south-west of the previously announced Lagosta discovery, confirms a new play concept and de - risks similar prospects in the block.

"Our Joint Venture has already commenced detailed studies and appraisal planning for a Liquefied Natural Gas (LNG) development at the Windjammer, Barquentine and Lagosta discoveries and adding a potential further 15,000 acre Tubarao gas discovery to this inventory expands the resource base considerably.

"The Belford Dolphin deepwater rig will now commence an appraisal programme in the Windjammer, Barquentine and Lagosta gas complex which will involve drilling and coring, to be followed by flow testing, part of the necessary steps to delineate the huge gas resource resulting from the initial highly successful exploration campaign offshore Mozambique.

"In addition to the hydrocarbons discovered so far, there is further significant oil and gas potential remaining in the block and several prospects and leads have already been identified, consequently a return to exploration drilling is planned later this year continuing through 2012." 
- Ends -
For further information, please contact:

Cove Energy plc
John Craven, CEO	c/o Billy Clegg Tel: +44 (0)20 7831 3113
Cenkos Securities
Jon Fitzpatrick Ken Fleming	Tel: +44 (0)20 7397 8900  Tel: +44 (0)131 220 6939
Financial Dynamics
Billy Clegg/Edward Westropp	Tel: +44 (0)20 7831 3113

John Craven, Chief Executive Officer of Cove, and a qualified person as defined in the Guidance Note for Mining, Oil and Gas Companies, March 2006, of the London Stock Exchange, has reviewed and approved the technical information contained in this announcement. Mr Craven is a petroleum geologist with approximately 36 years' experience.

Notes to Editor

Cove has established a strong position in East Africa with exploration interests in Area 1 Offshore Mozambique, which contains the Windjammer, Barquentine, Lagosta and Tubarão  gas and Ironclad oil discoveries where drilling operations are planned to continue  through 2011. Cove also holds exploration and production interests in Mozambique Onshore, Kenya Offshore and in the Mnazi Bay Gas Field in Tanzania.

For more details including a map of the Tubarão discovery visit: www.cove-energy.com.

Cove Energy has a strong management team with a wealth of experience in the oil and gas business and the operation and management of companies in the public arena.  Michael Blaha, Executive Chairman and formerly Country Chairman for Royal Dutch Shell Groupin Algeria, is a Petroleum Engineer with twenty nine years industry experience, his entire career spent working at Shell.  John Craven, Chief Executive Officer was previously CEO and founder of Petroceltic International plc, and is a petroleum geologist with thirty six years experience in senior technical and commercial roles in upstream oil and gas exploration and production companies.

www.cove-energy.com