PTT Exploration: Gets Consent From Mozambique Government for Cove Deal

By Phisanu Phromchanya

BANGKOK--Thailand's PTT Exploration and Production PCL (PTTEP.TH) is on track to completing its acquisition of Africa-focused exploration company, Cove Energy PLC (COV.LN), after the Mozambique government approved the change in control of Cove's stake in a gas field in that country.

The Thai company said in a statement 94.32% of Cove's shareholders have accepted the cash offer made by its wholly owned unit PTT Africa Investment Ltd., which last month outbid Royal Dutch Shell PLC's (RDSA.LN) wholly owned unit offer for Cove.

Interest in Cove, a modestly sized exploration company listed on London's junior exchange, has been fueled by the company's stake in one of the world's most promising new gas resource areas. Cove's main asset, an 8.5% stake in a gas field off Mozambique's coast operated by Anadarko Petroleum Corp. (APC), offers energy companies a speedy way to get a foothold in the region.

PTT Exploration said in a separate statement to the Stock Exchange of Thailand that its unit will soon begin the process of compulsorily acquiring the remaining Cove shares from shareholders who have not yet accepted the offer.

PTT Exploration also plans to delist Cove from the London Stock Exchange's Alternative Investment Market, the statement said.

Cove has an 8.5% participating interest in the Rovuma Project in Mozambique, which has estimated gas reserves of up to 60 trillion cubic feet. It also has a 10% stake in the Rovuma Onshore Area, also in Mozambique, as well as interests ranging from 10%-25% across seven Kenya deep-water offshore blocks.

Write to Phisanu Phromchanya at [e-mail]

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