Cove Completes Divestment of Interest in Mnazi Bay Concession, Tanzania

Cove Completes Divestment of Interest in Mnazi Bay Concession, Tanzania

Cove Energy, the AIM quoted upstream oil and gas company announced the completion of the divestment of its 16.38% participation interest in the production operations (20.475% participation interest in exploration operations) in the Mnazi Bay Concession, Tanzania to Wentworth Resources Limited.

Cove’s interest in the Concession, which was held by the Company’s 100% owned subsidiary Cove Energy Tanzania Mnazi Bay Limited (CETMBL), has been divested to Wentworth in exchange for:

  • Termination of Wentworth’s 4.95% royalty interest out of net profits from Cove’s 8.5% working interest in the Offshore Rovuma Area 1 concession in Mozambique;
  • Two million newly issued fully paid shares in Wentworth, which are expected to be admitted to trading on AIM on 31 July 2012;
  • A contingent payment of up to US$8.5 million, should certain future natural gas production thresholds from the Concession be reached;
  • Reimbursement of US$7,746,107 Mnazi Bay cash calls paid by Cove since 30 September 2011.

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LNG World News Staff, July 27, 2012