re:drilling report, page-8

drilling report Updated 21 Nov
...............Drilling ...F........G......H Stone

POE 1..........O .....................(dificulty, rig to return later)
POE 2 .........X ........P ......40 .....? + poss A sandstone
POE 3 .........X ........P .......P .....25
POE 5 .........X ........P .......P ......T
POE 6 .........X ........T ......45......? 2 poss.pay zones above
POE7 ..........O ........? .......?.......? Drill complete 24 Nov
POE8 ..........X........ P .......P ......P A-H zones should be tested
POE 9 .........W .......? .......?.......? Early Dec

Production ....0 .......85 ....25 .........= Total 110 bpd (+current non phase 1 production)

100 barrels @ 20USD profit = CVN share of 40% $292KUSD per annum clear for CVN

P = Perferation pending awaiting flow testing
T = Flow rate testing in progress
O = Drill rig operating
W = Work not yet commenced
X= Drilling complete
?= Not mentioned in releases.


Phase 2 has 22 more wells to evaluate when completetd.