|To: CommanderCricket who wrote (168882)||5/23/2012 10:03:15 AM|
|From: CommanderCricket||Respond to of 179038|
|Folks, IOC is selling for less than $0.50 MCF for onshore NG/condensates and that does the new discovery at Triceratops. Cove is offshore and is getting bid up to $2.48 MCF for the NG.|
Fyi – latest update on Cove takeover.
The Cove board has recommended a new cash takeover offer from Thailand’s PTTEP, which has surpassed the previously recommended Shell bid by 9.1% or 20 pence per share.
Cove said it would now recommend a new bid from the Thai company of £2.40 for each Cove share held, valuing the company at £1.22 billion, instead of Shell’s £2.20 per share offer, up on its initial offer of £1.95 per share.
Both Cove and PTTEP said the offer price represented an enterprise value between US$2.48 and US$5.18 per barrel (BOE), based on an estimated recoverable gas resource of between 24 trillion and 50 trillion cubic feet in the Mozambique Rovuma Offshore Area 1 discovery.
Cove holds an 8.5% participating interest in the Rovuma project, the acquisition of which would give PTTEP an entry into the Prosperidade gas discovery, believed to one day supply an initial two-train liquefied natural gas complex
PTTEP chief executive Tevin Vongvanich said the company was pleased to be making the offer.
“This acquisition illustrates our commitment to leveraging the liquefied natural gas value chain of the PTT Group and is consistent with our long-term strategic priorities," he said.
Cove chief executive John Craven said the bid represented “significant value for shareholders and confirms the world class nature of Cove's East African assets."
The acquisition is conditional upon the sale of 90% of Cove shares to PTTEP, Mozambican government approval and Cove not selling its Rovuma stake.
PTTEP plans to fund the acquisition using its existing cash resources and a committed debt facility, it said.