General Cove Thread

23rd Jul '09 by Murakami

69 comments 17932 reads

Hi, further to the discussions here - http://www.stockopedia.com/forum/view/28067/ma?comment=128#128 onwards - we are adding this thread as a place to discuss Cove Energy.

Cove Energy plc (formerly Lapp Plats plc) was incorporated on 15 December 2003 with its primary activity being mineral exploration.
In January 2004 the Company acquired from Minmet plc exclusive rights of access to platinum and nickel data contained in a geochemical database of some 140,000 targets covering Sweden, Finland Norway and Ireland.
Utilising the Database and data from the Swedish Geological Survey, Lapp Plats concentrated its initial efforts in seeking platinum and nickel targets in Sweden.
Per EE above, they have a joint venture relationship with Quantic (who are well known to shareholders of SOCO via Rui De Sousa's connection) & they aim to pick up distressed assets in emerging basins in Africa and the Eastern Med (Quantic territory)

http://www.cove-energy.com/wp-content/uploads/2009/07/Company_Presentation.pdf

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emptyend

23rd Jul '09

I should perhaps just clarify that I have confirmed that Cove and related parties are business ventures of Quantic's that are entirely independent from SOCO. They merely have Quantic as a shareholder/stakeholder in common.

As to the merits of Cove as an investment, I am mildly intrigued. RdS and Quantic are pretty sharp people and the business strategy (targetting distressed sitautions in emerging African basins) is one that I think has some clear merit. Whether much money can be made from it may be another matter, especially for an independent minority partner like Cove.

djpreston

18th Sep '09

RNS issued regaridng the acquisition of assets from Artumas and associated placing:

http://www.investegate.co.uk/Article.aspx?id=200909181507463284Z

have to say that I will be keeping a very close eye on Cove. The argument for a consolidator of E African (sub saharan) juniors is compelling IMO and if Tanz is gassy then consolidating the likes of the Artumas assets, DPL, AEX woudl make sense form a joint devlopment of LNG option. Dont forget M&P's significant assets in the area and their part in the Artumas carve up...

26th Oct '09

Drilling commences in Rovuma

drilling operations have commenced on the Mecupa-1 well in the Onshore Rovuma Block ("Rovuma Onshore Area") in northern Mozambique.....

Artumas has informed the Company that the Belford Dolphin deep
water drill ship is scheduled to arrive in Mozambique in late November 2009 and
that drilling of the first of four deep water wells in the Rovuma Offshore Block
is expected to commence in December 2009.
The Mozambican Rovuma Blocks lie immediately to the south of Mnazi Bay
Concession in Tanzania....

REO100

12th Jan '10

Interesting to see this has recovered from the lows following the update on Mecupa-1, ( I am still not clear whether that drill was merely to maintain their committment). I suppose this subsequent movement could be in anticipation of the first deep water dril which seems to have commenced on schedule, COV have a 8.5% or have they may be identified another investment opportunity they have quite a cash pile ?

Reo

18th Feb '10

Brief post

Success for Anadarko oddshore Mozambique and thus Cove.

Pure wildcat and they come up with an excellent discovery. Typical.

xxnjr

Just guessing, but given (1) the water depth (4,800 ft), (2) no offshore gas producing facilities in proximity, (3) small size of internal gas markets of Mozambique/Tanzania and (4) existing onshore gas discoveries supplying internal markets, then perhaps APC will need to find 5TCF of gas in the area to commercialize this with an LNG project.

xx

p3dr036

Excellent news - bought into these in October last @25.5p. So a useful profit and more to come I suspect.
Peter

oilretire

In reply to xxnjr (post #6)

Some of the press reports are starting to pick up on that:

While the gas discovery isn't commercial given limited market,

http://www.tradesignalonline.com/Markets/Story.aspx?id=575076&cat=3

No dispute with the potential that this opens up across the entire basin though.

mallye

20th Feb '10

Just in case anyone is wondering where the market will be for all this gas, South Africa are short of natural energy resources so I guess the gas could be easily piped there.
A lot of gas already gets piped there from southern Mozambiqe from a pipe line recently completed - see the enclosed link.

http://www.dme.gov.za/pdfs/energy/gas/gas_infrastructure_plan.pdf

General Cove Thread

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Murakami

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