Three months after it put itself up for sale, Cove Energy – the UK listed company with interests in Mozambique’s huge natural gas fields – said on Tuesday it had accepted a bid from Royal Dutch Shell of 220p a share, valuing the company at £1.12bn ($1.94bn).

In a joint statement, the companies said: “The formal sale process has now been concluded.” But they added: “Other potential offerors can still nonetheless announce competing offers for Cove.” Will PTT Exploration, the state-controlled Thai energy group which had already offered 220p a share, rise to the bait? Continue reading »

The price tag on Cove Energy, the UK-listed oil and gas company that has a stake in Mozambique’s biggest gas field, just went up.

Cove, which has at least three potential buyers banging on its doors, said on Wednesday that it was “delighted” to confirm a big increase in proven reserves in Mozambique’s Rovuma offshore gas basin, where it has an 8.5 per cent stake.

Shareholders will be even more delighted if the bidders start raising their offers. With bids of $1.7bn bid, from Thailand’s PTT Exploration & Production, and $1.6bn from Royal Dutch Shell, and an expression of interest from India’s state-run resources companies, Oil and Natural Gas Corporation and GAIL India,  the auction is well under way.  Continue reading »