Cove Energy Unveils Big Mozambique Gas Find Amid Shell Bid
05/15/2012| 04:07am US/Eastern
Cove Energy PLC (>> Cove Energy PLC) Tuesday unveiled a major natural-gas discovery offshore Mozambique amid a bid offer on the U.K. oil and gas company by major Royal Dutch Shell PLC (RDSB).
In a press release, Cove said between 7 trillion cubic feet and over 20 trillion cubic feet of recoverable gas resources had been discovered in the Golfinho exploration well, which lies within Mozambique's Rovuma basin.
The acreage, which is operated by Anadarko Petroleum Corp (APC) with a 36.5% working interest, would add to the existing recoverable gas resource of 17 trillion cubic feet to over 30 trillion cubic feet in the Prosperidade complex. A Cove unit owns 8.5% in the block.
The announcement pushed Cove's shares higher. At 0720 GMT, they stood at 228.5p, up 5p, or 2.224%.
Shell last month launched a $1.8 billion bid for Mozambique-focused Cove Energy, the board of which has recommended the offer.
The discovery will also vindicate plans by East Africa's Mozambique to turn into a key natural-gas hub, including possibly with liquefied natural gas with Shell's help. Italy's Eni SpA (E, ENI.MI) has also made significant discoveries near Cove's acreage.
-By Benoit Faucon and Rory Gallivan; Dow Jones Newswires; +44 20 7842 9266; firstname.lastname@example.org