broker report 4 dec 2008 price target $0.55c

Initiation of Coverage
Investment Highlights
�� CVN is a focused low cost oil producer based onshore Thailand
�� Signifi cant upside potential exists though its near fi eld appraisal and exploration
opportunities
�� Current net production from its Thailand fi elds (CVN 40%) is ~5,600 bopd with growth
expected next year
�� Low capex per well (US$1-1.5m) and current operating costs US$5/bbl
�� High fl ow rates - 3,940 bopd gross the best well so far
�� Continuous, fully funded exploration and development program, 15-20 wells planned in
CY’09 targeting >20 mmbbls and further production growth
�� Forecast PER’s at <4x for the next three years
�� Strong reserves base – 11.4 mmbbls 2P recoverable oil and large upside through 45.7
mmbbls 3P
�� CVN hold a high quality strategic portfolio of Thai assets – corporate appeal exists
�� High leverage with interests of >35% through its high impact exploration portfolio
�� Attractive fi scal terms rank Thailand in top third of most favourable
�� Cash currently totals $52m, no debt, no hedging
�� Solid management and technical team with signifi cant in-country experience
�� Euroz valuation and price target $0.55/sh