Cove Energy says that Cenkos Securities Plc, on behalf of the Company, has conditionally raised approximately £25.7 million (before expenses) (equivalent to approximately US$38.6 million) by the issue of 64,300,000 new ordinary shares at a price of 40 pence (the 'Placing Price') per ordinary share. Pursuant to the Placing, the New Ordinary Shares have been conditionally placed at the Placing Price with institutional investors and it is anticipated that the New Ordinary Shares will be admitted to trading on AIM on 15 March 2010.

Highlights • Placing of 64,300,000 New Ordinary Shares at a price of 40 pence per New Ordinary Share to raise approximately £25.7 million (gross); • New funds will be utilised for the Company's ongoing commitments in Rovuma Basin offshore Mozambique Area 1 ('Rovuma Offshore No 1'), operated by Anadarko Petroleum Corporation ('Anadarko') and for general working capital requirements, and; • New Ordinary Shares are expected to be admitted to trading on AIM on 15 March 2010.

Following the success of the Windjammer exploration well ('Windjammer'); in the Rovuma Offshore No. 1 permit (Cove Energy W.I. 8.5%), as announced on 18 February 2010, the Rovuma Offshore No 1 partners ('Partnership') anticipate that up to two further exploration and appraisal wells in addition to the four wells which the Company has already set aside funds for, and which started with Windjammer, will be drilled on the licence area during 2010 and into 2011. Accordingly and in order to provide the Company with a sufficiently flexible capital base, Cove Energy is raising additional finance to fund its share of these expected additional exploration wells and for further working capital requirements.

Tags: Cove Energy