thailand reserves update, page-22

Just to clarify I never stated in my post that I would like to see "more frequent" news.

What I did write is that I would like to see a "more consistent and balanced news flow".

The 2 are very different.

The point I was expressing is that CVN could certainly have done much better in its communication over the past 6-8 weeks, a period that saw:

- increased market nervousness
- heightened political instability in Thailand (the location of its sole producing project)
- potentially significant operational changes (the departure of POE's COO and the rig changes)
- a steadily sliding (and sometimes quite erratic) share price

While all this went on, CVN was practically silent about its Thai operations, the only relevant information provided in early Feb. The half-yearly makes no mention of operations post-year-end. All other releases related to other, currently non-material projects.

It could be argued that management's primary focus should be its operations. But management's primary obligation is to its shareholders. While successful operations are obviously a critical part of this, a fairly simple way to meet its obligations to shareholders (at least compared to the complexity of the oil business) is to communicate effectively.

Imho, communication is a necessary, but not sufficient, pillar to building trust and confidence. To communicate effectively, this communication must also be consistent and balanced, and meet or exceed expectations.

As a reasonably long-term CVN investor who reads most (if not all) its market announcements, my expectations of effective communication are often not met, and particularly over the past couple of months.

As an example, what you will immediately notice if you read the POE release is the greater depth of the information provided. CVN's release doesn't mention the negative revision. It doesn't mention the NPVs (is this an Aussie market restriction?). It's my general observation that the quality and extent of reporting by North American companies is far more detailed that we receive from comparable companies here in Aus.

I understand that "more" information is not always better, but this isn't the first time that CVN has filtered relevant information to its shareholders (and the market generally) that POE has decided was important to provide to its shareholders/market.

Also, I would much prefer to read comprehensive and balanced news from a management in which I have built up some degree of trust, than to read news from a management in whom I have lost trust and confidence because their releases only communicate the positive news, attempt to put a positive spin on negative news or only release when it is convenient for management.

Confidence in CVN's management has seen better days, partly because of not having met its previous production targets (communicated to the market) but also because of its sometimes patchy shareholder/market/public relations.

Unfortunately most of these thoughts/comments are more idealistic than realistic, and CVN's recent record is more the norm than an exception.

Nonetheless it's been cathartic to get some of this off my chest...