COV Cove Energy

TIDMCOV TIDMWRL

RNS Number : 6468I

Cove Energy PLC

27 July 2012

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 Camarao), the Golfinho/Atum gas complex and Tubarao 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

This information is provided by RNS

The company news service from the London Stock Exchange

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