BANGKOK (Reuters) - Shares in Thailand's PTT Exploration and Production Pcl (PTTEP) (>> PTT Exploration and Production PCL) fell more than 3 percent on Wednesday on concern about a possible capital increase after the oil and gas explorer offered $1.9 billion for Mozambique-focused explorer Cove Energy (>> Cove Energy PLC).

At 0730 GMT, PTTEP shares were down 3.4 percent at a six-month low of 156 baht, while the broad Thai index <.SETI> was 1.1 percent lower.

Cove has an 8.5 percent stake in the Rovuma project off northern Mozambique.

PTTEP said in a statement the Rovuma project represented a strong fit for the company and the acquisition was in line with its strategy of leveraging the LNG value chain of its parent PTT (>> PTT Public Company Limited) group, while demand for LNG in Thailand is expected to be strong in the future.

PTTEP shares have underperformed the market in the past 12 months due to concerns about a possible capital raising to finance its massive investment plans. It aims to more than triple petroleum production to 900,000 barrels per day by 2020.

(Reporting by Khettiya Jittapong; Editing by Alan Raybould)