Cove Energy aims for £110m for drilling in Africa

4 Nov 2010

Cove Energy has announced the placing of more than 144 million of new ordinary shares at a price of £0.76p stg per new ordinary share – a 4.1pc discount to the closing mid-market price 3 November 2010.

The £110m (around €126m) placing, as well as the company’s existing cash balances, will be used to fund costs relating to its existing assets in Mozambique, Tanzania and Kenya and potential new opportunities, the company said.

“The new funds will ensure that Cove is adequately financed, allowing the company to continue the successful high-impact exploration and appraisal deep-water drilling programme,” commented CEO John Craven.

Craven went on to say the funds would also be used to bring forward new 3D seismic data in order to firm up drilling prospects.