PTTEP Fights Back! Lifts Cove Offer to USD 1.9 bln

After Cove Energy on Monday advised its shareholders to accept Shell’s takeover bid of USD 1.8 billion, Thailand’s PTTEP has launched a counter bid.

Under the terms of the acquisition, Cove shareholders will be entitled to receive 240 pence for each Cove Share, which means that the Thai oil giant has lifted the offer to USD 1.92 billion.

PTTEP says in its press release that “the directors of Cove unanimously recommended to Cove Shareholders that they accept the Offer”.

An 8.5% interest in Mozambique Rovuma Offshore Area 1 is Cove Energy’s primary asset. Anadarko, the operator of the area, last week announced it had made another major discovery in the field. The discovery well, named Golfinho, encountered more than 193 net feet (59 net meters) of natural gas pay. The well was drilled using the Belford Dolphin drillship.

PTTEP is now waiting for the consent of the Government of Mozambique to the indirect acquisition of Cove’s interest in Rovuma Offshore Area 1 which would arise on the takeover of the company. Shell has already received the consent from the Mozambique authorities.

Cove did not immediately respond to a message from Offshore Energy Today seeking comment.

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Offshore Energy Today Staff, May 23, 2012