PRESS

14 March 2012

Cove Energy Plc

Increase in Recoverable Gas Resources

Area 1, Offshore Mozambique

Cove Energy plc ("the Company" or "Cove", AIM:COV), the AIM quoted upstream oil and gas company, is delighted to note that yesterday Anadarko Petroleum Corporation ("Anadarko"), operator of Rovuma Basin Area 1, Offshore Mozambique, announced an increase of the P90 (Proven) estimated recoverable gas resource of the gas discovery area by another 2 Trillion cubic feet (Tcf). The gas discovery area is now estimated to contain 17 to 30 plus (Tcf) of recoverable gas.
The recently performed production test on Barquentine 2 was monitored more than 3 km away in Barquentine 3. A clear pressure response in this well confirmed excellent communication between the two wells as predicted on the basis of the geological model. These results are of vital importance for the development plans and might allow the partnership to significantly reduce the number of planned development wells. The test information will also be applied in the detailed reservoir simulation and might result in higher estimated recovery efficiencies.
John Craven CEO of Cove Energy commented;
"Well and test results continue to confirm the most optimistic geological model for the Barquentine, Windjammer, Lagosta complex. These recent results also confirm the development timeline with Final Investment Decision in 2013 and first gas in 2018. The project is well under way to becoming the second largest LNG project in the world."
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For further information, please contact:
Cove Energy plc Tel: +44 (0)20 7831 3113
John Craven, CEO
c/o Billy Clegg
Cenkos Securities
Jon Fitzpatrick Tel: +44 (0)20 7397 8900
Ken Fleming Tel: +44 (0)131 220 9772
FTI Consulting Tel: +44 (0)20 7831 3113
Billy Clegg / Edward Westropp
John Craven, Chief Executive Officer of Cove, and a qualified person as defined in the Guidance Note for Mining, Oil and Gas Companies, March 2006, of the London Stock Exchange, has reviewed and approved the technical information contained in this announcement. Mr Craven is a petroleum geologist with approximately 37 years' experience.
Notes to Editors:
Cove has established a strong position in East Africa with exploration interests in Area 1 Offshore Mozambique, which contains the Windjammer, Barquentine, Lagosta, Tubarão and Camarão gas and Ironclad oil discoveries where drilling and well testing operations are planned to continue through 2012.
Cove also holds exploration and production interests in Mozambique Onshore, Kenya Offshore. An interest in the Mnazi Bay Gas Field in Tanzania is under sale to Wentworth Resources.
Cove Energy has a strong management team with a wealth of experience in the oil and gas business and the operation and management of companies in the public arena. Michael Blaha, Executive Chairman and formerly Country Chairman for Royal Dutch Shell Group in Algeria, is a Petroleum Engineer with thirty one years industry experience, most of his career spent working at Shell. John Craven, Chief Executive Officer was previously CEO and founder of Petroceltic International plc, and is a petroleum geologist with thirty six years experience in senior technical and commercial roles in upstream oil and gas exploration and production companies.www.cove-energy.com.