Such delays are often the way in the oil game...look at NDo for example.
In fact, this is a very good comparison to make here, as in my view CVI's Cameroon = NDO's Galoc more or less.
Whilst CVI ends up with a slightly larger percentage of a larger accumulation...with an arguably economically more attractive target...the emphasis here for CVI now is more or less identical to that faced my NDO when they first bought Whitby and co to the table.
Look at the Cameroon asset, the recent appointments to CVI and it becomes clear the correlations to NDO clearly exist.
Whilst the assets are more or less similar, CVI has about a quarter of the shares on issue that NDO have. And just like NDO applied for additional ground, so too CVI are going through the same process...I think it is foolish to assume new applications suggest previous applications have failed, for the simple fact that to move beyond single asset status, they will need much more than just the Cameroon exposure.
So, as the additional block SC54 was to NDO, so too will Angola be to CVI.
In CVI however we also get the metals mix...as such I believe a a spin-off will eventually take place...perhaps when the old-wood has left the building once and for all.
Such sell-downs are not always due to lack of support for the company...or leaving the sinking ship...and often simply a reflection on the change of focus of the corporate entity and indeed, the players behind them.
Look not at those leaving the register...who in essence were not able to realise value for shareholders previously...but look to those now buying in and in particular, the recent new appointments to the company, because this tells us what lies ahead.
It will not happen overnight...but given the asset similarities to NDO, and assuming further land grabs to equate to NDO's SC54...the upside to CVI of a similar path to value realisation would result in a share price nearing $1.
In fact, at $1, CVI would still be worth less than NDO!
Cheers!
CVI Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
