Cove Energy PLC : 02-03-2012 Statement re Press Reports...

PRESS

12 March 2012

Cove Energy Plc

Successful First Flow Test

Area 1, 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 ("Anadarko"), is delighted to provide the results of its first flow test in the Rovuma Basin Area 1 block, Offshore Mozambique ("Area 1 Rovuma Offshore"). Testing of the Barquentine-2 well flowed gas at an equipment constrained rate of 90 to 100 million cubic feet per day (MMcf/d), with minimal pressure drawdown supporting future development well designs capable of 100 to 200 MMcf/d.
Highlights:
• Equipment constrained test flowed gas at rate of 90 to 100 MMcf/d.
• Test data supports potential unconstrained flow rates up to 200 MMcf/d.
• Results confirm requirements for fewer development wells than originally planned.
• Flow rates demonstrate a high permeability reservoir with excellent lateral continuity.
The Barquentine-2 well is located in water depths of approximately 5,400 feet (1,650 metres) in Area 1 Rovuma Offshore. The drillstem test was conducted by the Deepwater Millennium drillship, which is planned to move to the Barquentine-1 location for a second flow and interference test in the complex. The 2012 testing programme also includes drillstem tests in the Lagosta and Camarão areas to the south of the Barquentine discovery area.
The flow test confirmed reservoir connectivity and continuity over a distance of more than 3 kilometres by using pre-set gauges in an offset well. The test also proves the reservoir has a very high permeability, meeting the quality specifications for the partnership's LNG development plans and is an important component in the Reserve Certification process as the partnership focuses on achieving a final investment decision (FID) around the end of 2013.
John Craven CEO of Cove Energy commented;
"We have always believed in the superb quality of the gas reservoirs; nonetheless it gives me much pleasure to announce that the first gas flow test from our prolific block in Area 1 Rovuma Offshore has been highly successful; at the top end of our expectations and positive for the whole project. The results have significant implications for the optimal deliverability of gas from this world-class discovery, while also indicating that savings on development costs may be achieved, due to the potential high productivity rates.
"The exploration, appraisal and testing programmes using both the Belford Dolphin and the Deepwater Millennium drill ships are working with impressive efficiency and we are delighted that the high expectations of the partnership are being realised.
"We look forward to continuing success."
High-resolution photographs of the flow test are available under the "Media Center/Anadarko
News" tab at www.anadarko.com.
- Ends -
For further information, please contact:
Cove Energy plc Tel: [phone]
John Craven, CEO
c/o Billy Clegg
Cenkos Securities
Jon Fitzpatrick Tel: [phone]
Ken Fleming Tel: [phone]
FTI Consulting Tel: [phone]
Billy Clegg / Edward Westropp
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 37 years' experience.
Notes to Editors:
Cove has established a strong position in East Africa with exploration interests in Area 1 Offshore Mozambique, which contains the Windjammer, Barquentine, Lagosta, Tubarão and Camarão gas and Ironclad oil discoveries where drilling and well testing operations are planned to continue through 2012.
Cove also holds exploration and production interests in Mozambique Onshore, Kenya Offshore. An interest in the Mnazi Bay Gas Field in Tanzania is under sale to Wentworth Resources.
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 Group in Algeria, is a Petroleum Engineer with thirty one years industry experience, most of his 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.

Anadarko's press release is copied below:

ANADARKO ANNOUNCES SUCCESSFUL FLOW TEST OFFSHORE

MOZAMBIQUE

HOUSTON, March 12, 2012 - Anadarko Petroleum Corporation (NYSE: APC) today announced the results of its first flow test offshore Mozambique. The Barquentine-2 well flowed at an equipment- constrained rate of 90 to 100 million cubic feet per day (MMcf/d), with minimal pressure drawdown, providing confidence in well designs that are capable of 100 to 200 MMcf/d.

"The test at Barquentine-2 exhibited exceptional flow characteristics, confirmed the deliverability of this reservoir and indicated a low density of development wells may be sufficient to produce the reservoir," Anadarko Sr. Vice President, Worldwide Exploration, Bob Daniels said. "Using pre-set gauges in an offset well, we were able to confirm connectivity and reservoir continuity over a distance of more than 3 kilometers. The test also proves the reservoir has very high permeability, meeting the quality specifications for the partnership's LNG development plans. This is a very encouraging way to start our testing program, which is an important component in the reserve certification process, as we focus on achieving FID (final investment decision) around the end of 2013."

The Barquentine-2 well is located in water depths of approximately 5,400 feet (1,650 meters) in the Offshore Area 1 of the Rovuma Basin. The drillstem test was conducted by the Deepwater Millennium drillship, which is expected to be mobilized to the Barquentine-1 location for a second flow and interference test in the complex. The 2012 testing program also includes drillstem tests in the Lagosta and Camarão areas to the south of Barquentine.

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.

An updated map of Anadarko's position in Offshore Area 1 of the Rovuma Basin, including the Barquentine-2 well location and high-resolution photographs of the flow test are available under the "Media Center/Anadarko News" tab at www.anadarko.com . Anadarko Petroleum Corporation's mission is to deliver a competitive and sustainable rate of return to shareholders by exploring for, acquiring and developing oil and natural gas resources vital to the world's health and welfare. As of year-end 2011, the company had approximately 2.54 billion barrels-equivalent of proved reserves, making it one of the world's largest independent exploration and production companies. For more information about Anadarko, please visit www.anadarko.com.

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Anadarko believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this news release, including Anadarko' s ability to successfully plan, secure necessary governmental approvals, finance, build and operate the necessary infrastructure and LNG plant; produce and market the recoverable resources identified; and test the prospects identified in this news release. See "Risk

Factors" in the company' s 2011 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other public filings and press releases. Anadarko undertakes no obligation to publicly update or revise any forward-looking statements.

ANADARKO CONTACTS

MEDIA:

John Christiansen, [e-mail], 832.636.8736

Brian Cain, [e-mail], 832.636.3404

Christina Ramirez, [e-mail], 832.636.8687

INVESTORS:

John Colglazier, [e-mail], 832.636.2306

Clay Gaspar, [e-mail], 832.636.2541

Wayne Rodrigs, [e-mail], 832.636.2305