Cove Energy (LON:COV) gave an update on its operations in Mozambique, on Rovuma Offshore Area 1, where it is currently appraising a series of discoveries that were made in 2010.
The East African project is being led by major international oil firm Anadarko Petroleum (NYSE:APC), which has a 36.5 percent stake. Cove has an 8.5 percent interest in the assets.
This morning Cove said the partners have completed an extensive conventional coring programme on three gas reservoirs at the Windjammer discovery. Coring is also underway in the Lagosta discovery well.
After this coring work is complete attention will switch to appraisal drilling of the Barquentine discovery, with the Barquentine-2 well.
Importantly a second drillship is expected to join the campaign in the fourth quarter of 2011.
Cove confirmed that a 1,600 kilometre 2D seismic programme has been completed over what it calls a potential ‘oil source kitchen’ in the southern licence area. It said that the survey results are expected in the third quarter of 2011.
Meanwhile an additional 3D seismic survey is ongoing, over northern licence area between the Barquentine discovery and the Tanzania border. It expects that 2,448 square kilometres worth of 3D seismic data will be captured here.
"We are delighted with the progress of both the appraisal and exploration activities in our East Africa offshore blocks, as we continue to hit our milestones,” chief executive John Craven said. "Importantly, having full core data over all potential gas bearing reservoirs offshore Mozambique, will help optimize the gas development plan and accelerate LNG project sanction.”
"I am confident that the new offshore Mozambique 3D seismic survey will confirm a number of additional low risk prospects, in terms of both oil in the south and gas in the north."
He added: "The commitment to a second deepwater rig primarily for appraisal work is also an important milestone. Its arrival in Q4 2011 (coinciding with the availability of the new 3D seismic data) will mean that the Belford Dolphin can revert to exploration drilling.
“Operating the two rigs is a demonstration of the commitment of the offshore partners to rapidly move to project sanction, while at the same time capturing the significant exploration potential; thus maintaining our first mover advantage in East Africa.”
The East African oil exploration play – in which several majors like Anadarko, BG Group (LON:BG.), Tullow Oil (LON:TLW), ExxonMobil (NYSE:XON), Statoil and Petrobras are active – stretches up from Mozambique up through Tanzania and it was recently extended into Kenya.
Back in February a consortium led by BG, which also included Cove and Premier Oil (LON:PMO), reached an agreement with the Kenyan Ministry of Energy over new exploration licences off the countries coast.
Cove has now confirmed that the exploration programme has accelerated in Kenya and a 3,517 square kilometre 3D seismic acquisition programme will start later this month. Later in March fellow exploration junior Dominion Petroleum (LON:DPL) was awarded a separate licence nearby in Kenyan waters.
Referring to Kenya Craven said: “we see a number of leads in promising geological settings some of which will be targeted by our new 3D seismic survey commencing this month.”