Cove moves into Kenya deepwater play

Offshore staff

LONDON-- Cove Energy has conditionally agreed to farm into five contiguous deepwater blocks offshore Kenya.

Blocks L5, L7, L11A, LLB, and LL12 cover a total of over 30,500 sq km (11,776 sq mi). All are operated by Anadarko, with which Cove already is working in an ongoing exploration campaign off Mozambique.

If the farm-in is approved, Cove would take half the 30% equity interest currently held by DEPCO subsidiary Dynamic Global Advisors Kenya.

The blocks cover Kenya’s entire deep offshore fairway, and contain numerous hydrocarbon play types. Cove describes these as typical deepwater hydrocarbons plays, with seismic interpretation revealing turbidite fan channels in structural and stratigraphic traps similar to those identified off Mozambique.

There is also evidence of working petroleum systems. Nearby shallow water and onshore wells produced oil and gas shows, with active oil seeps on Pemba Island close to the southern end of the contract area.

Earlier this year the partners acquired over 5,000 line km (3,107 mi) of 2D seismic over the concession, and Cove expects drilling to get under way in 2012/13, following the conclusion of Anadarko’s rolling program off Mozambique. Here work has just started on the Ironclad prospect well.

Cove will pay DEPCO $15.5 million, inclusive of acquisition costs, reimbursement of DEPCO’s previous investment on the blocks, and funding for the forward exploration phase through June 2012. The two companies also will seek other cooperation opportunities.


07/28/2010