Cove Energy today issued an update on various commercial and operational matters.
Formerly called Lapp Plats, Cove is an AIM quoted exploration and production company with a strategy to identify and acquire oil and gas assets in the early phase of the upstream life-cycle. The Company then matures the assets into marketable opportunities for the medium and larger players. The Company's current focus is on Africa and the Mediterranean.
Today's report included information on its Belford Dolphin drillship, operated by Anardarko Petroleum Corporation, which began a four well deep-water programme in Mozambique in December 2009. The project is currently focusing on the Windjammer area, which will reportedly be the first to be evaluated during the drilling season. The Company expects to release further reports imminently. Information on the four wells will apparently be divulged once the well has reached its total depth.
in order to to share in Artumas Group assets, Cove formed a partnership with French group Maurel & Prom in Summer 2009. Following this, Cove says it has now finalised a reduction in the royalty interest granted to Artumas Mozambique from 6.4% to 4.95%.
Plans to commercialise and expand existing gas production are being formulated by the operator, Maurel & Prom, and will be announced to all partners during H10 2010. The Artumas Group had invested nearly US$200 million in its Tanzania and Mozambique assets and Cove is optimistic regarding the current exploration programme.
Cove said, while the focus is on East Africa and in particular the current Anadarko operated drilling programme, it was continuing to review opportunities and acquisitions and that the Artumas deal had triggered a healthy pipeline of future potential transactions.
The Company also announced the appointment of a further non-executive Director, Dr. G. H. Stephen Staley. Dr Staley has a PhD in Petroleum Geology, a BSc in Geophysics and a Masters Degree in Business Administration and has gained extensive experience in gas and power projects in East Africa while working as Development Director for Cinergy Global Power.
Michael Blaha, Chairman of Cove commented:
"I am delighted to welcome Dr Stephen Staley to our Board. I believe his knowledge and experience particularly in East Africa will be of enormous benefit to Cove."
