thailand reserves update, page-11

I found these comments from POE's release particularly interesting:

"The L44/43 reserve additions are net of an approximately 6.6 million barrel negative technical revision of the December 31, 2008 2P estimate for the NSE Central field that was primarily a result of recognition that NSE Central and NSE-F1 are distinctly separate pools."

Not sure if that's 6.6 mbbls net to POE or in total, but the overall increase in reserves from last year's exploration drilling before the revision was a further 2.5-4.5 mbbls north of the final net figure. A solid return from the JV.

"The net present value of proved and probable reserves after tax in Concession L44/43, using forecast prices and discounted at 10%, is Cdn$459 million and represents $9.68 per Pan Orient share."

That equates to around Cdn$310m, or around Aud$330, for CVN's share. That certainly underpins CVN's current market cap of $310m.

The Cdn$459m figure is apparently after-tax, and the POE release provides additional figures for other discount rates. Well worth reviewing if you haven't read POE's release.

As has been pointed out recently on this board, confidence needs to be restored. This reserves update is a start, and further development success and increased production, earnings and cash flow as the year progresses should do the trick.

I personally would also like to see a more consistent and balanced news flow.