Cove joins Anadarko in Kenya

Cove Energy has won approval from Kenya’s Minister of Energy to acquire a 15% interest in five contiguous deepwater blocks from Dynamic Energy Exploration & Production (DEPCO).

Offshore staff

LONDON -- Cove Energy has won approval from Kenya’s Minister of Energy to acquire a 15% interest in five contiguous deepwater blocks from Dynamic Energy Exploration & Production (DEPCO).

These interests have been transferred to the company’s wholly owned affiliate Cover Energy Kenya.

Blocks L5, L7, L11a, L11b, and L12, operated by Anadarko Kenya, cover a total of 30,682 sq km (11,846 sq mi) over an extensive Kenya deepwater zone from the Somalia border in the north to Tanzania in the south.

Cove says there are a range of hydrocarbon play types within the permits that have not been tested in Kenya. They are similar to the plays that Anadarko and Cove have successfully explored in Mozambique’s Rovuma Offshore block, and include Upper Cretaceous and Tertiary deepwater fan systems.

Following a recently acquired 5,000-km (3,107-mi) 2D seismic survey, Anadarko Kenya is looking to accelerate its program with a 3D seismic survey next year, followed potentially by drilling in 2012.

DEPCO has received shares in Cove, plus a cash payment of $10.5 million inclusive of acquisition costs, a reimbursement of its past expenditure, and funding for Cove’s and DEPCO’s forward work program during the first exploration phase through June 2012.

10/14/2010

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