Thai Divestment, page-17

I think this is brilliant by CVN.
The potential of their WA permits out weighs Thailand 10 fold.

Next year they will be involved in 3 wells.

They will be free carried for the ROC well.

However WA-P436 & 438 they have a 30% interest that will not be free carried.
Its highly likely that Apache will want to drill these permits after Roc.

CVN would have the option of farming this interest down to say 10-15% for the free carry or put up about $50m for the two wells and retain their 30% Interest.

Given that the oil from Phoenix South is probably spilling into ROC and connected with 436 and 438 CVN would be selling themselves short if they didn't try and retain the maximum holding possible.

I don't think people realise what CVN have, the Phoenix South discovery was huge but it now severely upgrades their other permits.

Cashflow from Thailand is great but success in 3 wells next year will see CVN as a $2 billion company.