Kenya Offshore (L5, L7, L11a, L11B & L12)

Cove purchased a 15% interest in five Kenya offshore blocks being L5, L7, L11A, L11B and
L12 in November 2010. These were purchased from Dynamic Global Associates, a private
Houston based company who now also hold 15%. The operator is Anadarko who hold a 70%
interest. Under the Kenyan PSCs, the Government of Kenya has the right to a 10% carry
during the exploration phase, which would dilute the partners pro rata.

The area is more than 30,000 sq km covering an extensive deepwater zone from the Somalia
border in the north to Tanzania in the south. The area contains similar play types to those
encountered in Rovuma Offshore. The partnership has confirmed the reservation of a seismic
boat with the expectation that approximately 4,000 sq km of 3D will be acquired during 2011.
The plan to bring forward this work stream will accelerate the commitments of the first phase
of the additional exploration period, which is due under the PSC to commence in 2012.

The planned work programme for 2011 includes a fast track 3D seismic programme. This
work will complement the existing 2D seismic that was acquired in 2010 in the block.

Anadarko has indicated that this 3D seismic work in 2011 will be followed by a drilling
programme in 2013.

Cove has a budget of approximately US$6 million for this work in 2011.
Kenya Offshore (L10A & L10B)

In February 2011 Cove announced that partnerships in which it holds 25% and 15% interests,
were negotiating with the Government of Kenya for offshore blocks L10A and L10B, with
BG as operator. A PSC over these blocks was signed and completed with the Government of
Kenya on 17 May 2011.

Preliminary work will commence in 2011. Blocks L10A and L10B together cover an area of
more than 10,400 sq km in the southern portion of the Lamu Basin offshore Kenya in water
depths ranging from around 200m to in excess of 1900m.

They are also adjacent to and inboard of deepwater blocks L11A and L12, both part of Coves
other Kenyan interests.

Kenya Offshore Partnership Working Interests

5 Blocks (L5, L7, L11A, L11B, L12) %

Anadarko (Operator) 45.0
Cove 9.0
Total 36.0
Kenyan Government 10.0
%
L10A
BG Group (Operator) 40.0
Cove 25.0
Premier Oil Investments Ltd 20.0
Pancontinental Oil & Gas NL 15.0
L10B %
BG Group (Operator) 45.0
Premier Oil Investments Ltd 25.0
Cove 15.0
Pancontinental Oil & Gas NL 15.0

Shell Lifts Cove Energy Bid to $1.8 Billion

By MARK SCOTT
April 24, 2012, 6:00 am

Mergers & Acquisitions

LONDON Royal Dutch Shell increased its offer on Tuesday for the oil and natural gas
exploration company Cove Energy, as Shell seeks to expand into the fast-growing natural gas
industry in East Africa.

The revised bid of 1.12 billion ($1.8 billion), which is supported by Cove Energys board,
increases Shells previous bid of 992 million. A rival bidder, PTT Exploration and
Production of Thailand, has offered 1.1 billion for Cove Energy.

A deal would help Shell increase its presence in East Africa, particularly in Mozambique and
Kenya, where Cove Energy is exploring for large reserves of natural gas.

The deal, to be completed through the subsidiary Shell Bidco, would also allow Shell to gain
access to liquified natural gas assets that allow the fuel to be shipped overseas in large
tankers.

Shell is offering Cove Energy shareholders 220 pence for each of their shares in the company.

The bid is 12 percent higher than Shells previous offer and is

42 percent above Cove Energys closing share price on Feb.
21, the day before Shells initial bid was announced.

The board believes that the recommended cash offer from

Shell Bidco provides very significant value to Cove
shareholders, the Cove Energy chief executive, Michael
Blaha, said in a statement. I am confident, following our
discussions with the government of Mozambique, that timely
consent for Shells offer will be forthcoming.

Cove Energys share price rose 3.8 percent, to 225 pence, in

early morning trading in London on Tuesday.

The acquisition would give Shell access to Cove Energys 8.5 percent stake in a major natural
gas field in Mozambique. The field, called Rovuma Area 1, is estimated to hold up to 30
trillion cubic feet of recoverable natural gas. It is operated by Anadarko Petroleum.
Shell Ups its Bid for Cove
Date: Wednesday, April 25, 2012

Cove Energy is close to making a decision on offers made for the company. The
company put itself on the auction block at the outset of 2012 and attracted the interest of
several big players and it looks like the offer of $1.9 billion could be the winning bid.

Royal Dutch Shell and PTTEP were the two firms to make the most attractive bids. Shell
came in first with a bid, only to have PTTEP up the ante. There was talk of two Indian
firms teaming up and raising the ante to $2 billion though nothing materialized from the
talk.

The bidding was quiet for a while until Shell submitted a new bid of $1.9 billion and
while it equals, rather than beats PTTEPs bid, it looks like it could be the winner. The
directors of the independent firm have recommended the Shell offer. Shells expertise
could help seal the deal if Coves partners on Offshore Area 1 have any say in the matter.
Anadarko Petroleums VP International Exploration Frank Patterson told Petroleum
Africa in February The Shell proposal could be excellent news. We are really excited.
Shell would make an excellent partner with its surface and subsurface expertise.

"PTTEP is currently considering its options and will make a further announcement as
and when appropriate," PTTEP said in a statement on Tuesday.

Cove's directors, who collectively hold over 4% of the company, said they would be
accepting the offer.

"Shell represents an excellent partner for all the stakeholders in the Rovuma LNG project
given its extensive project development, operating and marketing experience in the entire
LNG value chain," Cove's executive chairman Michael Blaha said in a statement.

The deal includes a break fee clause, meaning Cove will have to pay Shell 11.1 million
pounds if it later accepts a rival bid.