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  Oil major Shell makes $1.6bn offer to acquire Cove Energy of AfricaUS News.Net
 Shell, Europe's largest oil company, had teamed up with Brazilian firm Petroleo Brasileiro SA last year to search for oil and gas off Tanzania. The move has so failed to yield any results in East Africa. Shell is offering 195 pence for each Cove share, a 26 per cent premium to the closing price of Tuesday, according to a company statement. The latest acquisition comes as Shell has revealed plans to boost its investment on exploration by 35 per cent to about $5 billion this year. Last month Cove reported a major gas discovery off Mozambique in its main asset - a 8.5 percent stake in the Rovuma Offshore Area 1. The discovery is reported to be one of the world's largest in a decade with recoverable gas reserves estimated to be over 30 trillion cubic feet. "This is a much better price than the market anticipated and will likely not see," Stuart Joyner, an analyst at Investec Securities in London, was quoted as saying by Bloomberg. News of the acquisition sent Cove's shares rising to 38.75 pence, a gain of 25 per cent, to 193.25 pence a share, in London trading. Shell gained 0.3 per cent to 2,311 pence in London. Cove has a large presence in Africa. It is working with Total SA and BG Group to explore off the coast of Kenya. It joined Cairn Energy last year to bid for exploration off Lebanon.
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