UPDATE 2-Cove, Anadarko find big gas deposit in Mozambique well

* Sees FY Tanzania output up by at least 30-40 pct – CEO

* Says finds more than 416 net feet of gas play

* To continue exploration into 2011

* Cove shares touch all-time high
(Recasts; adds CEO and broker comments)

By Anirban Sen and Aditi Samajpati

BANGALORE, Oct 19 (BestGrowthStock) – Cove Energy (COVE.L: ) said its
licence partner U.S. oil major Anadarko (APC.N: ) found more than
416 net feet of natural gas at the deepwater Barquentine
exploration well in Mozambique, sending the British oil
explorer’s shares to an all-time high.

Interest in offshore East Africa, which is much less
explored than West Africa, has picked up since the discovery of
natural gas by Anadarko and Cove at the Windjammer prospect on
the same licence in February.

“We believe that this additional discovery of deeper gas
could yield a further 3 trillion cubic feet of gross resource
to that previously encountered at Windjammer (255 billion cubic
feet net to Cove),” Cenkos Securities analysts wrote in a note.

The total resources discovered in the area was big enough
and development through a liquefied natural gas terminal was
commercially viable, according to Cenkos analysts.

“We are doing studies and we’ll be drilling another well in
the Southern part, we’ll commence sometime in January,” Cove’s
Chief Executive John Craven told Reuters on Tuesday.

Cove and Anadarko said they would continue exploration
through 2011 and evaluate potential commercialisation options.

Anadarko, which partly owned the well involved in the Gulf
of Mexico oil spill, has a 36.5 percent working interest in the
offshore area in Mozambique and Cove holds 8.5 percent.

Craven also expected the East Africa-focused Cove’s output
from Tanzania to go up by at least 30 percent to 40 percent in
fiscal 2010.

In August, Cove had said it can’t commercially exploit the
offshore Mozambican oil find, but would undertake tests to see
if other parts of the geological structure could produce
sellable oil. [ID:nLDE67H0AH]

Petronas [PETR.UL] of Malaysia, Norway’s Norsk Hydro
(NHY.OL: ) and Italy’s integrated energy firm ENI (ENI.MI: ) are
all exploring the Rovuma Basin.

Cove stock gained 22.5 percent since the Aug. 18 update on
the Mozambican oil find and Anadarko added 10 percent.

Cove was trading up 7 percent at 80.15 pence at 1040 GMT on
the London Stock Exchange. They had gained 17 percent to touch
an all-time high of 87.5 pence earlier in the session.

Anadarko closed at $58.48 on Monday on the New York Stock
Exchange.

(Editing by Prem Udayabhanu)

UPDATE 2-Cove, Anadarko find big gas deposit in Mozambique well