Cove Energy PLC : Second Successful Flow Test...

PRESS

04 May 2012

Cove Energy Plc

Second Successful 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 operator Anadarko Petroleum Corporation ("Anadarko"), is delighted to provide the results of its second flow test of the Barquentine-1 well at the northern end of the Prosperidade gas complex in the Rovuma Basin Area 1 block, Offshore Mozambique ("Area 1
Rovuma Offshore").
Testing of the Barquentine-1 well flowed gas at an equipment constrained rate of approximately
100 million cubic feet per day (MMcf/d), with minimal pressure drawdown, targeting a deeper
Oligocene sand formation than previously tested Barquentine-2 in March.
Highlights:
• Equipment constrained test flowed gas at rate of approximately 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.
The Barquentine-1 well is located in water depths of approximately 5,200 feet (1,585 metres) in Area 1 Rovuma Offshore. The drillstem test was conducted by the Deepwater Millennium drillship, which is planned to stay on the Barquentine-1 location for a flow and interference test in a shallower Oligocene sand formation. The 2012 testing programme also includes drillstem tests in the Lagosta and Camarão areas to the south of the Barquentine discovery area.
This flow test result further supports future development well designs capable of 100 to 200
MMcf/d and confirms the high deliverability of the reservoir, indicating that a low density of development wells may be sufficient to produce the reservoir. The flow tests are an important
component in the reserve certification process as the partnership focuses on achieving FID (final
investment decision) around the end of 2013.
John Craven CEO of Cove Energy commented;
"I am very pleased to announce the continued value being added to the Prosperidade gas complex with the second successful gas flow test from the Barquentine-1 well in Area 1 Rovuma Offshore, re-iterating the high quality gas reservoirs from this discovery.
"We look forward to continuing success from the Prosperidade gas complex."
- Ends -
For further information, please contact:
Cove Energy plc Tel: [phone]
John Craven, CEO
c/o Billy Clegg
Cenkos Securities
Jon Fitzpatrick Tel: [phone]
Ken Fleming Tel: [phone]
FTI Consulting Tel: [phone]
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 Prosperidade gas complex (Windjammer, Barquentine, Lagosta, and Camarão) Tubarão 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