2010-10-21-2010-10-14-2010-10-14

Acquired 15% WI in five deepwater blocks offshore Kenya, covering 7.5 million acres.

Cove Energy Plc, London, (London Aim: COV) has acquired a 15% participating interest in the production sharing contracts covering five contiguous deepwater blocks offshore Kenya from Dynamic Global Advisors Kenya Ltd., a subsidiary of Dynamic Energy Exploration & Production Corp., (NYSE Amex: PXE) for approximately US$15.7 million in cash and stock.

Cove issued 4.4 million shares to DEPCO valued at US$5.2 million and US$10.5 million in cash.

The assets include interest in blocks L5, L7, L11a, L11b and L12, which cover 7.5 million acres (30,682 square kilometers). The assets have not yet been tested. Cove's subsidiary Cove Energy Kenya Ltd. will hold the properties.

Cove chief executive John Craven says, "These Blocks exhibit geological features that are similar to what we see in our existing interests in Mozambique and Tanzania. Having Anadarko as operator ensures operational and exploration continuity in our East Africa core area. As such, offshore Kenya is a natural next step to our on-going high impact exploration program offshore Mozambique."