Cove-PTTEP Deal Nears Completion

Thai company PTT Exploration and Production (PTTEP) has announced today that a deal to acquire London-listed Cove Energy is nearing completion as a majority of Cove shareholders have voted to approve the deal.

PTTEP said in a statement today that at 1.00pm (GMT), the company received valid acceptances from 91.37 per cent of Cove's shareholders to approve the takeover of Cove Energy by PTTEP. As a result of these acceptances, President and CEO of PTTEP Tevin Vongvanich said today that the company would request that the London Stock Exchange cancel the trading of Cove Energy shares on the on Alternative Investment Market (AIM).

The company has also begun proceedings to acquire consent from the Republic of Mozambique's Ministry of Mineral Resources, where Cove Energy is strongly focused, for the change of control in Cove.

PTTEP became the front-runner for a total acquisition of Cove Energy last month after Shell withdrew from the race. PTTEP said today that it was particularly keen to acquire Cove Energy due to its interests in two prospects in Mozambique. Cove  holds an 8.5 per cent stake in the Area 1 field, which is estimated to have reserves of between the 24-50 trillion cubic feet, and the Rovuma field in which the company holds a 10 per cent stake. PTTEP said it was especially interested in the Rovuma field.

The sale of the shares of Cove Energy are agreed fro 240 pence (GBP) each, bringing the total cost of the deal to £1.12 billion.