Wentworth has acquired Cove Energy’s 100% owned subsidiary, Cove Energy Tanzania Mnazi Bay Limited

The Mnazi Bay Concession Area is located in coastal, south-eastern Tanzania in the Rovuma (Ruvuma) Basin.The area lies between Aminex and Tullow Oil’s Ruvuma Concession Area and Ophir Energy and BG Group’s offshore Block 1.

Ophir and BG Group’s Chaza-1 gas discovery lies just northeast of Mnazi Bay’s marine border. The 756 km concession area contains two discovered Tertiary aged gas fields (Mnazi Bay and Msimbati) and holds additional Tertiary, Cretaceous and Jurassic hydrocarbon potential. Four wells have been drilled to date: MB-1, MB-2, MB-3 and MS-1X, and all four wells encountered hydrocarbons. MB-1 is currently producing gas at a rate of 1.7-2.0mmscf/d and this gas is transported via an 8”, 27 kilometre pipeline to the Mtwara Power Plant where it generates electricity for numerous local communities.
 
The Transaction is subject to pre-emption rights. The pre-emption period is 30 days from the issuance of the pre-emption notice. Notice was given to the remaining partners on January 30, 2012 and therefore the pre-emption period ends on February 29, 2012. The Transaction is expected to close immediately following the pre-emption period or sooner if both partners notify Wentworth of their intent in writing prior to the end of the pre-emption period but could extend beyond that date depending upon Government approvals.