Cove Energy auction is boosted by massive gas find
The action-packed auction of east Africa-focused oil and gas explorer Cove Energy took another turn yesterday as a key prospect in Mozambique announced a massive new find.
Less than three weeks after Cove looked to have put an end to a protracted bidding battle by agreeing to a £1.12bn takeover by Shell, the company struck a gas field that significantly transforms its prospects. The discovery boosts the maximum amount of recoverable gas in the so-called Rovuma Area 1 block joint venture off the shore of Mozambique, the jewel in Cove's crown in which it has a 7.5 per cent stake, by 20 trillion cubic feet to 50 trillion cubic feet.
This raised the prospect that Shell would need to boost its offer for Cove, in a move that would increase the windfall of its three top executives, the chief executive John Craven, chairman Michael Blaha and the finance director Michael Nolan.
Under the current offer, the three executives would pocket a combined estimated windfall of at least $35m (£21m).
The move sent Cove's shares up by 4.5p, or 2.0 per cent, to 228p.
This is comfortably ahead of Shell's 220p-a-share bid, signalling that the market believes that if Shell doesn't raise its offer, a rival suitor would step in. Thailand's PTT Exploration and Production, which already outbid Shell once at an earlier stage in the auction, forcing the FTSE 100 giant to raise its offer, is considering making a higher offer for Cove.
The Thai company has not yet made a final decision.
Two state-owned Indian groups, Oil and Natural Gas Corp and Gail India, are also thought to have considered making a joint bid for Cove.
peopleContenders for Time magazine's Person of the Year are a mixture of the good, the bad and the holy
newsAs the world remembers Mandela the hero, the prison where he spent 27 years seems all the more brutal
tvSteven Moffat reveals the actor was dying to take on the role of the Time Lord and says he is excited to see what he will do with the character
sportBayern Munich 2 Manchester City 3: City come from two down to beat reigning European Champions
arts + ents... and a chance to paint Booker Prize winning author Hilary Mantel
danceUnder Tamara Rojo's inspired direction, it seems possible that it could challenge the dominance of the Royal Ballet. We meet some established names and rising stars
travelDiscover Uruguay's jet-set beach resort, an Atlantic enclave with plenty of art and culture to explore on the side
The ten coldest places on Earth
Sir Ian McKellen hits back at Damian Lewis' 'fruity actor' claims
Kenyan politician Mike Sonko left red-faced after photoshopping himself next to Nelson Mandela
Krokodil in Mexico? Teenager hospitalised after 'injecting drug into her genitals'
Nelson Mandela memorial: Cheers, jeers and a masterclass from Barack Obama that stole the show
- 1 Mountain goats' miraculous escape from avalanche captured in dramatic video footage
- 2 It’s shameful that our universities have accepted gender segregation under pressure from the most oppressive religious fanatics
- 3 Sir Ian McKellen hits back at Damian Lewis' 'fruity actor' claims
- 4 Kenyan politician Mike Sonko left red-faced after photoshopping himself next to Nelson Mandela
- 5 Selfie at funeral: Cameron squeezes in on Obama snap at Mandela memorial
- < Previous
- Next >
iJobs Money & Business
£70000 - £90000 per annum + benefits + bonus: Pro-Recruitment Group: Our leadi...
£50000 - £65000 per annum + BONUS + BENEFITS: Harrington Starr: A leading mark...
£60000 - £85000 per annum + BONUS + BENEFITS: Harrington Starr: A leading asse...
£45000 - £70000 per annum + Bonus + Benefits: Harrington Starr: Technical Impl...