Opportunity missed, page-29

I will just make a few points for those who think we could borrow.

1. Go to your nearest bank or call up head office and ask what is the rate on a project like ours - ie. at the 2c stage,

2. See if they will lend you the money in a hypothetical situation,

I can tell you from personal experience that the answer from traditional banks is a resounding No.

The risks are too high for traditional banks as they can not properly value the assets we have at the moment. They only come to the party when we are at the Reserve stage, not at the Contigent stage.

The only place where we could get finance is via a specialist fund which focuses on high risk oil investments or via STO (our JV partner). But they charge mezzanine rates (high interest). If we did that, we put ouselves at their mercy - I suggest you look at Empire Oil and Nexus Energy, and its share price after they took out their loans, as examples.

IMHO, although our Dorado project has substantially been de-risked, the facts are:

a). We are still a high risk investment from a traditional sense,

b). We have no income and our Dorado Can Not be quantified at the moment (still in 2c stage),

c). Delays can happen - refer to 2017 when Quadrant delayed our drilling program for one year,

d). Accidents can happen - refer to PS2, and

e). Disappointments can happen - refer to PS3 and Roc South.

Any of the above event could destroy our SP and risk our company as a whole if we were to borrow. We would Not be in a position to raise further capital to pay back the loan or drill other prospects like Apus - again, refer to Nexus energy and Empire Oil as examples.

That means your whole investment, whatever they may be: from $100k to millions of dollars, could be All Gone.

Think about that for a minute,

Just like any shareholder, I don't like to see myself being diluted and I don't like to see CVN share price going backward. And since the Roc South disappointment, it has been painful to watch my CVN investment. The fact is, regardless of how much you are in the Green, it is never easy to watch your investment go backward by more than 30%, to be followed by dilution in a capital raising.

But I am looking at the bigger picture - I rather lose a bit via a capital raising dilution now, than lose the whole lot if we were to hit another bump along this journey.

JIMHO.

As Always, DYOR.