Cove narrows losses as suitor Shell re-thinks
OIL and gas explorer Cove Energy yesterday said that its losses were narrowing while bidder for the company Shell said it was considering its options.
The company reported a net loss for the year to the end of March of $4.09m (£2.6m) compared with $5.01m the previous year.
Meanwhile oil major Shell issued a statement saying it was weighing up its next move after Cove recommended the acceptance of a bid from Thai energy giant PTT for the company.
Shell’s offer for Cove has been extended until 1pm on 13 June, leaving the door open for the FTSE 100 company to put in a higher bid to stay in the race.
The £1.22bn bid from PTT trumped the one made by Shell, leaving the Dutch firm mulling whether it wants to try to outgun PTT. Cove attracted the suitors because of its gas interests in Mozambique. It had previously supported Shell’s offer, which followed a PTT bid that beat Shell’s opening salvo in February. Cove will also be forced to pay Shell a £11.1m break fee under the terms of the deal agreed with Shell in April.