Cove Energy, the AIM-quoted upstream oil and gas company, saw its shares jump after the latest appraisal well in the Mozambique Offshore Area 1 block (Rovuma Area 1) was spudded two days ago.
Cove, which owns an 8.5% participating interest in Rovuma Area 1, said that the Lagosta 2 well is now expected to be completed by the end of January 2012.
The company has now opened a 'data room' to certain parties who have expressed an interest in its interest in the project. "Early stage discussions with major liquefied natural gas off-takers in the Asian and European markets are currently taking place to secure long term commercial contracts for the planned production from the Rovuma Area 1 project", the firm said.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Two weeks ago, Cove said that it had achieved its thickest gas pay to date at Barquentine-3, the sixth successful well to drill in the now world class Windjammer, Lagosta, Barquentine and Camaro (WLBC) gas complex. Recoverable resource ranges for the WLBC gas complex are now estimated to be 15 to 30+ trillion cubic feet of recoverable natural gas, with an estimated 30 to 50+ of natural gas in place.
The company also confirmed that the City Code on Takeovers and Mergers does apply to the company, an issue on which there was previously some discrepancies.
The share price rose 7.18% to 100.75p by 13:49.
NR
