PRESS
27 July 2012
Cove Energy plc
COMPLETION OF DIVESTMENT OF MNAZI BAY CONCESSION,
TANZANIA
Cove Energy plc ("the Company" or "Cove", AIM:COV), the AIM
quoted upstream oil and gas company is pleased to announce
the completion of the divestment of its 16.38% participation
interest in the production operations (20.475% participation
interest in exploration operations) in the Mnazi Bay
Concession (the "Concession"), Tanzania to Wentworth
Resources Limited ("Wentworth", WRL:AIM).
Cove's interest in the Concession, which was held by the
Company's 100% owned subsidiary Cove Energy Tanzania Mnazi
Bay Limited ("CETMBL"), has been divested to Wentworth in
exchange for:
• Termination of Wentworth's 4.95% royalty interest out of
net profits from Cove's 8.5%
working interest in the Offshore Rovuma Area 1 concession in
Mozambique;
• Two million newly issued fully paid shares in Wentworth,
which are expected to be admitted to trading on AIM on 31
July 2012;
• A contingent payment of up to US$8.5 million, should
certain future natural gas production thresholds from the
Concession be reached;
• Reimbursement of US$7,746,107 Mnazi Bay cash calls paid by
Cove since 30 September
2011.
Ends
Cove Energy plc Tel: +44 (0)20 7831 3113
John Craven, CEO
c/o Billy Clegg
Cenkos Securities
Jon Fitzpatrick Tel: +44 (0)20 7397 8900
Ken Fleming Tel: +44 (0)131 220 9772
FTI Consulting Tel: +44 (0)20 7831 3113
Billy Clegg / Edward Westropp
Notes to Editors:
Cove has established a strong position in East Africa with
exploration interests in Area 1 Offshore Mozambique, which
contains the Prosperidade gas complex (Windjammer,
Barquentine, Lagosta, and Camarão), the Golfinho/Atum gas
complex and Tubarão gas and Ironclad oil discoveries where
drilling, appraisal and well testing operations are planned
to continue through
2012.
Cove also holds exploration interests in Mozambique Onshore
and Kenya Offshore.
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 two 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 eight years
experience in senior technical and executive positions in
major and junior oil and gas companies.
www.cove-energy.com
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