Cove All Smiles over Barquentine Flow Test Results

Cove Energy plc provided the results of its second flow test of the Barquentine-1 well at the northern end of the Prosperidade gas complex in the Rovuma Basin Area 1 block offshore Mozambique.

Testing of the Barquentine-1 well flowed gas at an equipment constrained rate of approximately 100 million cubic feet per day (MMcf/d), with minimal pressure drawdown, targeting a deeper Oligocene sand formation than previously tested Barquentine-2 in March.

Highlights:

• Equipment constrained test flowed gas at rate of approximately 100 MMcf/d.
• Test data supports potential unconstrained flow rates up to 200 MMcf/d.
• Results confirm requirements for fewer development wells than originally planned.
• Flow rates demonstrate a high permeability reservoir.

The Barquentine-1 well is located in water depths of approximately 5,200 feet (1,585 meters) in Area 1 Rovuma Offshore. The drillstem test was conducted by the Deepwater Millennium (UDW drillship), which is planned to stay on the Barquentine-1 location for a flow and interference test in a shallower Oligocene sand formation. The 2012 testing program also includes drillstem tests in the Lagosta and Camarão areas to the south of the Barquentine discovery area.

This flow test result further supports future development well designs capable of 100 to 200 MMcf/d and confirms the high deliverability of the reservoir, indicating that a low density of development wells may be sufficient to produce the reservoir. The flow tests are an important component in the reserve certification process as the partnership focuses on achieving FID (final investment decision) around the end of 2013.

John Craven CEO of Cove Energy commented: "I am very pleased to announce the continued value being added to the Prosperidade gas complex with the second successful gas flow test from the Barquentine-1 well in Area 1 Rovuma Offshore, re-iterating the high quality gas reservoirs from this discovery.

"We look forward to continuing success from the Prosperidade gas complex."