Cove Energy: BP Joins Bidding

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Independent oil exploration company Cove Energy (LSE:COV) has received bidding from BP for a possible takeover. Neither company has released any statements regarding the news.

BP is the latest addition to the growing number of companies reported to be interested in acquiring Cove Energy since it opened itself up for a bid on 5 January 2012.

India’s Oil & Natural Gas Corporation along with state-owned gas firm Gail were also reported to be considering a joint bid, as well as China’s National Offshore Oil Exploration, Korea’s Gas Corporation, and PTT Exploration and Production in Thailand.

No comment was released from these companies; however, PTTEP Chief Executive Anon Sirisaengtaksin said Monday they are “studying the plan”.

Despite silence, the PTTEP Chief Executive confirmed “there are several countries interested to enter the race”. Bidding may start in February, he said.

Back in December, Cove Energy announced it is putting its 8.5% stake at the Rovuma Area 1 Project in Mozambique for sale after the successful appraisal. The Project, operated by Anadarko Petroleum Corporation, was said to hold some 15-30 trillion cubic feet (“TCF”) of natural gas.

Earlier this month, the Board of Cove announced they will put the company on sale. Cove Energy’s investing strategy states it is “to acquire oil and gas assets in the early phase of the upstream life-cycle and mature them into marketable opportunities for the medium and larger oil and utility companies”.

Some analysts tag a price of more than $1 billion for the sale. The company is now valued at £662 million of the press time.

Cove Energy shares are currently trading at 136.5 pence, up 1.1% with a turnover of 2.9 million at 11:30 GMT.

Company Spotlight

Cove Energy is an AIM-listed oil & gas exploration and production company with offshore and onshore assets in Mozambique, Tanzania, and Kenya.

References
Company History
↑ BP joins race for Cove Energy’s stake in African gas fields
↑ Thai PTTEP says considering bid for Cove Energy
 Mozambique Operations

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