PTT Exploration gets Mozambique consent for Cove Energy acquisition
BANGKOK -- Thailand's PTT Exploration and Production (PTTEP) is on track to completing its acquisition of Africa-focused exploration company, Cove Energy, 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's offer for Cove.
Interest in Cove, a modestly sized exploration company, 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, offers energy companies a speedy way to get a foothold in the region.
Cove has an 8.5% participating interest in the Rovuma Project in Mozambique, which has estimated gas reserves of up to 60 Tcf. 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 deepwater blocks.
Dow Jones Newswires