PRESS
12 March 2012
Cove Energy Plc
Successful First Flow Test
Area 1, Offshore Mozambique
Cove Energy plc ("the Company" or "Cove", AIM:COV), the AIM
quoted upstream oil and gas company, together with the
operator Anadarko Petroleum Corporation ("Anadarko"), is
delighted to provide the results of its first flow test in
the Rovuma Basin Area 1 block, Offshore Mozambique ("Area 1
Rovuma Offshore"). Testing of the Barquentine-2 well flowed
gas at an equipment constrained rate of 90 to 100 million
cubic feet per day (MMcf/d), with minimal pressure drawdown
supporting future development well designs capable of 100 to
200 MMcf/d.
Highlights:
• Equipment constrained test flowed gas at rate of 90 to 100
MMcf/d.
• Test data supports potential unconstrained flow rates up to
200 MMcf/d.
• Results confirm requirements for fewer development wells
than originally planned.
• Flow rates demonstrate a high permeability reservoir with
excellent lateral continuity.
The Barquentine-2 well is located in water depths of
approximately 5,400 feet (1,650 metres) in Area 1 Rovuma
Offshore. The drillstem test was conducted by the Deepwater
Millennium drillship, which is planned to move to the
Barquentine-1 location for a second flow and interference
test in the complex. The 2012 testing programme also includes
drillstem tests in the Lagosta and Camarão areas to the south
of the Barquentine discovery area.
The flow test confirmed reservoir connectivity and continuity
over a distance of more than 3 kilometres by using pre-set
gauges in an offset well. The test also proves the reservoir
has a very high permeability, meeting the quality
specifications for the partnership's LNG development plans
and is an important component in the Reserve Certification
process as the partnership focuses on achieving a final
investment decision (FID) around the end of 2013.
John Craven CEO of Cove Energy commented;
"We have always believed in the superb quality of the gas
reservoirs; nonetheless it gives me much pleasure to announce
that the first gas flow test from our prolific block in Area
1 Rovuma Offshore has been highly successful; at the top end
of our expectations and positive for the whole project. The
results have significant implications for the optimal
deliverability of gas from this world-class discovery, while
also indicating that savings on development costs may be
achieved, due to the potential high productivity rates.
"The exploration, appraisal and testing programmes using both
the Belford Dolphin and the Deepwater Millennium drill ships
are working with impressive efficiency and we are delighted
that the high expectations of the partnership are being
realised.
"We look forward to continuing success."
High-resolution photographs of the flow test are available
under the "Media Center/Anadarko
News" tab at www.anadarko.com.
- Ends -
For further information, please contact:
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
John Craven, Chief Executive Officer of Cove, and a qualified
person as defined in the Guidance Note for Mining, Oil and
Gas Companies, March 2006, of the London Stock Exchange, has
reviewed and approved the technical information contained in
this announcement. Mr Craven is a petroleum geologist with
approximately 37 years' experience.
Notes to Editors:
Cove has established a strong position in East Africa with
exploration interests in Area 1 Offshore Mozambique, which
contains the Windjammer, Barquentine, Lagosta, Tubarão and
Camarão gas and Ironclad oil discoveries where drilling and
well testing operations are planned to continue through
2012.
Cove also holds exploration and production interests in
Mozambique Onshore, Kenya Offshore. An interest in the Mnazi
Bay Gas Field in Tanzania is under sale to Wentworth
Resources.
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 one 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 six years
experience in senior technical and commercial roles in
upstream oil and gas exploration and production
companies.www.cove-energy.com.
Anadarko's press release is copied below:
ANADARKO ANNOUNCES SUCCESSFUL FLOW TEST OFFSHORE
MOZAMBIQUE
HOUSTON, March 12, 2012 - Anadarko Petroleum Corporation (NYSE: APC) today announced the results of its first flow test offshore Mozambique. The Barquentine-2 well flowed at an equipment- constrained rate of 90 to 100 million cubic feet per day (MMcf/d), with minimal pressure drawdown, providing confidence in well designs that are capable of 100 to 200 MMcf/d.
"The test at Barquentine-2 exhibited exceptional flow characteristics, confirmed the deliverability of this reservoir and indicated a low density of development wells may be sufficient to produce the reservoir," Anadarko Sr. Vice President, Worldwide Exploration, Bob Daniels said. "Using pre-set gauges in an offset well, we were able to confirm connectivity and reservoir continuity over a distance of more than 3 kilometers. The test also proves the reservoir has very high permeability, meeting the quality specifications for the partnership's LNG development plans. This is a very encouraging way to start our testing program, which is an important component in the reserve certification process, as we focus on achieving FID (final investment decision) around the end of 2013."
The Barquentine-2 well is located in water depths of approximately 5,400 feet (1,650 meters) in the Offshore Area 1 of the Rovuma Basin. The drillstem test was conducted by the Deepwater Millennium drillship, which is expected to be mobilized to the Barquentine-1 location for a second flow and interference test in the complex. The 2012 testing program also includes drillstem tests in the Lagosta and Camarão areas to the south of Barquentine.
Anadarko is the operator of the 2.6-million-acre Offshore Area 1 with a 36.5-percent working interest. Co-owners in the area are Mitsui E&P Mozambique Area 1, Limited (20 percent), BPRL Ventures Mozambique B.V. (10 percent), Videocon Mozambique Rovuma 1 Limited (10 percent) and Cove Energy Mozambique Rovuma Offshore, Ltd. (8.5 percent). Empresa Nacional de Hidrocarbonetos, E.P.'s 15-percent interest is carried through the exploration phase.
An updated map of Anadarko's position in Offshore Area 1 of the Rovuma Basin, including the Barquentine-2 well location and high-resolution photographs of the flow test are available under the "Media Center/Anadarko News" tab at www.anadarko.com . Anadarko Petroleum Corporation's mission is to deliver a competitive and sustainable rate of return to shareholders by exploring for, acquiring and developing oil and natural gas resources vital to the world's health and welfare. As of year-end 2011, the company had approximately 2.54 billion barrels-equivalent of proved reserves, making it one of the world's largest independent exploration and production companies. For more information about Anadarko, please visit www.anadarko.com.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Anadarko believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this news release, including Anadarko' s ability to successfully plan, secure necessary governmental approvals, finance, build and operate the necessary infrastructure and LNG plant; produce and market the recoverable resources identified; and test the prospects identified in this news release. See "Risk
Factors" in the company' s 2011 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other public filings and press releases. Anadarko undertakes no obligation to publicly update or revise any forward-looking statements.
ANADARKO CONTACTS
MEDIA:
John Christiansen, john.christiansen@anadarko.com, 832.636.8736
Brian Cain, brian.cain@anadarko.com, 832.636.3404
Christina Ramirez, christina.ramirez@anadarko.com, 832.636.8687
INVESTORS:
John Colglazier, john.colglazier@anadarko.com, 832.636.2306
Clay Gaspar, clay.gaspar@anadarko.com, 832.636.2541
Wayne Rodrigs, wayne.rodrigs@anadarko.com, 832.636.2305