CityView Corporation is focused on oil and gas projects in two African countries - Angola and Cameroon - both underexplored because of th high "country risk". It also has a minerals concessions area in Angola.
Why Buy
CityView is a second junior explorer that has good prospective acreage and is well placed to benefit from the oil price surge.
Yr high $0.28 Yr low $0.038 Now $0.26 Buy at market.
Another junior with top-drawer connections whose directors and management include former senior executives with Occidental Oil, British Petroleum,Selection Trust and Westpac. New management, led by Perth-based Mark Smyth (ex-Selection Trust), took control in March, 2006, and refocused the company on oil and gas in Africa plus a 3746 square kilometre minerals concession with rare earths, copper and gold targets in central Angola. At 24c, CVI has a market capitalisation of $65.4 million.
The icing on the cake will be CVI's right (announced in October) to earn 100% of Petro Energy Africa, giving it a 40% stake in Cameroon's North Metanda oilfield and management of its operations. So far, proven reserves are 60 million barrels of condensate plus gas. Cost is $US19.5 million ($21.8million) in shares and cash. CVI was in "advanced negotiation" last month with the government of Cameroon - which adjoins oil-rich, but trobled Nigeria - to access further known oil tenements.
Kelt
CVI Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
