Cove Energy Announces Drilling Update (Mozambique)

Cove Energy plc, the East African oil and gas exploration company, announces that the Belford Dolphin drillship has arrived on location at the Tubarao well site. This follows cessation of operations on the Lagosta gas discovery which has been suspended to allow for future flow testing. As announced on 29th November the Lagosta well encountered over 550 feet of natural gas pay in Oligocene and Upper Eocene high quality sands.

John Craven, CEO of Cove Energy said:

“We are very pleased with the major success at Lagosta which found substantial gas pays in the main Oligocene and Upper Eocene objectives.

“The significance of this discovery means that the partnership can now confidently proceed to advance commercialisation options – particularly as the operator believes that the three gas discoveries already made, Windjammer, Barquentine and Lagosta, exceed the resource size threshold to support a Liquefied Natural Gas (LNG) development in our extensive 2.6 million acre block, offshore Mozambique.

“Cove is excited by the continuous exploration and appraisal programme planned for 2011 and beyond. Drilling operations at the Tubarao well are expected to take 6 to 8 weeks and we look forward to announcing results from that well as and when appropriate.”

Source: Cove Energy, December 22, 2010;

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