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.
LNG World News Staff, July 27, 2012