Cove Energy plc, the AIM quoted upstream oil and gas company announces 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.
Press Release, July 27, 2012