agm, page-18

Yes it amazing how much difference a 0 makes thanks for taking the time to correct me.


In the chairman’s address it was stated that the currant production was 4,500 bopd, CVN’s share of this would be 1,800 bopd. If this is so and with more wells to be drilled “20 or 30” next year then what value do you put on CVN now.
I have done some rough calculations and at currant share price this is what I get,

1800 bopd * (us$90.00 – us$6 OPEX) = us$151,200
* 365 = us$55,188,000
Less new wells (20*1m/40%) =us$8,000,000 = us$47,188,000
Less Tax/Duty @ 50% Maximum rate? = us$23,594,000
Us$47,188,000-us$23,594,000 = us$23,594,000
Divide by 660,000,000 shares on issue = us$0.0357cps
Convert to au$ us$.0357cps *1.1 = au$0.039cps
This gives a theoretical PE of (.485sp/.039cps) = PE 12.5
And this is not counting any new production that may come on stream in the next twelve months.

So if we compare CVN’s PE ratio with Oil sector (PE/ 28) CVN sp would be au$1.10 or
If we compare CVN’s PE ratio with market average PE/ 13.5) CVN sp would be au$0.52

; Note PE ratios for oil sector and market average came from Huntley.

EJ