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Kenya Offshore (L5, L7, L11a, L11B & L12

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Cove purchased a 15% interest in five Kenya offshore blocks being L5, L7, L11A, L11B and
L12 in November 2010. These were purchased from Dynamic Global Associates, a private
Houston based company who now also hold 15%. The operator is Anadarko who hold a 70%
interest. Under the Kenyan PSCs, the Government of Kenya has the right to a 10% carry
during the exploration phase, which would dilute the partners pro rata.

The area is more than 30,000 sq km covering an extensive deepwater zone from the Somalia
border in the north to Tanzania in the south. The area contains similar play types to those
encountered in Rovuma Offshore. The partnership has confirmed the reservation of a seismic
boat with the expectation that approximately 4,000 sq km of 3D will be acquired during 2011.
The plan to bring forward this work stream will accelerate the commitments of the first phase
of the additional exploration period, which is due under the PSC to commence in 2012.

The planned work programme for 2011 includes a fast track 3D seismic programme. This
work will complement the existing 2D seismic that was acquired in 2010 in the block.

Anadarko has indicated that this 3D seismic work in 2011 will be followed by a drilling
programme in 2013.

Cove has a budget of approximately US$6 million for this work in 2011.

both part of Cove’s other Kenyan interests. Kenya Offshore Partnership – Working Interests 5 Blocks (L5. Blocks L10A and L10B together cover an area of more than 10. with BG as operator.400 sq km in the southern portion of the Lamu Basin offshore Kenya in water depths ranging from around 200m to in excess of 1900m.0 % L10A BG Group (Operator) 40.0 Total 36.0 Kenyan Government 10. L7. L12) % Anadarko (Operator) 45. L11A. were negotiating with the Government of Kenya for offshore blocks L10A and L10B.0 Cove 9.Kenya Offshore (L10A & L10B) In February 2011 Cove announced that partnerships in which it holds 25% and 15% interests.0 Pancontinental Oil & Gas NL 15. A PSC over these blocks was signed and completed with the Government of Kenya on 17 May 2011.0 Cove 25. They are also adjacent to and inboard of deepwater blocks L11A and L12. Preliminary work will commence in 2011.0 L10B % .0 Premier Oil Investments Ltd 20. L11B.

The acquisition would give Shell access to Cove Energy’s 8. The field.0 Premier Oil Investments Ltd 25. in early morning trading in London on Tuesday. Shell is offering Cove Energy shareholders 220 pence for each of their shares in the company. as Shell seeks to expand into the fast-growing natural gas industry in East Africa. increases Shell’s previous bid of £992 million. particularly in Mozambique and Kenya.0 Cove 15. called Rovuma Area 1. to 225 pence.8 Billion By MARK SCOTT April 24. the day before Shell’s initial bid was announced.” Cove Energy’s share price rose 3. . would also allow Shell to gain access to liquified natural gas assets that allow the fuel to be shipped overseas in large tankers.1 billion for Cove Energy.0 Pancontinental Oil & Gas NL 15.8 billion).” the Cove Energy chief executive.12 billion ($1.BG Group (Operator) 45. A rival bidder. has offered £1. following our discussions with the government of Mozambique. A deal would help Shell increase its presence in East Africa. 21. to be completed through the subsidiary Shell Bidco.8 percent. that timely consent for Shell’s offer will be forthcoming. “I am confident. said in a statement. which is supported by Cove Energy’s board. “The board believes that the recommended cash offer from Shell Bidco provides very significant value to Cove shareholders. where Cove Energy is exploring for large reserves of natural gas. The bid is 12 percent higher than Shell’s previous offer and is 42 percent above Cove Energy’s closing share price on Feb.0 Shell Lifts Cove Energy Bid to $1.5 percent stake in a major natural gas field in Mozambique. is estimated to hold up to 30 trillion cubic feet of recoverable natural gas. The revised bid of £1. 6:00 am Mergers & Acquisitions LONDON — Royal Dutch Shell increased its offer on Tuesday for the oil and natural gas exploration company Cove Energy. The deal. 2012. PTT Exploration and Production of Thailand. It is operated by Anadarko Petroleum. Michael Blaha.

it looks like it could be the winner. April 25. Shell came in first with a bid. The directors of the independent firm have recommended the Shell offer. "Shell represents an excellent partner for all the stakeholders in the Rovuma LNG project given its extensive project development.9 billion could be the winning bid. Royal Dutch Shell and PTTEP were the two firms to make the most attractive bids. operating and marketing experience in the entire LNG value chain.1 million pounds if it later accepts a rival bid.Shell Ups its Bid for Cove Date: Wednesday. who collectively hold over 4% of the company.9 billion and while it equals. Shell would make an excellent partner with its surface and subsurface expertise. Shell’s expertise could help seal the deal if Cove’s partners on Offshore Area 1 have any say in the matter. The bidding was quiet for a while until Shell submitted a new bid of $1." Cove's executive chairman Michael Blaha said in a statement. Anadarko Petroleum’s VP International Exploration Frank Patterson told Petroleum Africa in February “The Shell proposal could be excellent news. rather than beats PTTEP’s bid. We are really excited. . 2012 Cove Energy is close to making a decision on offers made for the company." PTTEP said in a statement on Tuesday. Cove's directors. There was talk of two Indian firms teaming up and raising the ante to $2 billion though nothing materialized from the talk. said they would be accepting the offer. The deal includes a break fee clause. meaning Cove will have to pay Shell £11. only to have PTTEP up the ante. The company put itself on the auction block at the outset of 2012 and attracted the interest of several big players and it looks like the offer of $1.” "PTTEP is currently considering its options and will make a further announcement as and when appropriate.