Anadarko Petroleum (APC) recently announced that it has made further discoveries in Mozambique. This news has fueled the bidding war for Cove Energy (COV), and it will likely bring good results to the company and shareholders.

Anadarko has previously made other significant natural gas finds in the area as well, so this is just further demonstrating the profitability of the project. Cove is a natural gas company operating in a similar area, and it has an 8.5% stake in Anadarko’s activities in the Mozambique area. It is also looking for a larger firm that will acquire it. Since Anadarko has discovered more natural gas off the coast of Mozambique, Cove may have become an even more attractive target for potential buyers.

Shell (RDS.A) is amongst the companies that are interested in acquiring it. The new discovery may lead companies to act more quickly on the acquisition in hopes of not missing out on this good opportunity. This means that Cove might be able to get a higher price as a result of Anadarko’s discovery. Potential buyers should remember that the new discovery does not overlap with the area that Cove serves. It is still enough to spark renewed interest in the area and should help Cove stock go up as well.

This discovery highlights the fact that East Africa may be a major source of natural gas for Asia in coming years. If Anadarko continues to focus its efforts on the area, it will most likely continue to see profits in the short term and in the long term.To continue reading, click here.