ann out, page-5

It adds to it. So for CVNs share its aprox another 370 bopd or at current (US$120) WTI price minus the current 15% disc(US$102) it makes CVN an extra US$37,740 per day.

This is an stunning result as it proves their deviation theory by doubling the twined POE9 (first volcanic) production rate. As seen by their previous announcements CVN now realise that due to the geology the vertical wells where simply not producing the max bopd and in so doing limiting their cash flow potential per well.

Extrapolating the data from L44H (1265 bopd) vs L44H-D1 (4000 bopd) there can be little doubt that the now being tested (deviated well L44H-D2) will produce a result similar if not the same as L44H-D1 (4000 bopd). The level of confidence within CVN of surpassing their targeted 15,000 bopd by the end of Dec 2008 must now be exceptional.

I think that I can now say with a justified degree of confidence that CVN will easily reach their 15,000 bopd production target before the end of the 2008 financial year.