Ann: Strategy Update - Investor Briefing, page-21

Dear Valuers

Here is my brief calculation using different methodology.

CPC paid US 148 million for 15 million Dorado and 4.3 million Pavo North barrels.
approximately $7.67 US per barrel.

CVN has 15 million Dorado and 8.6 million Pavo North barrels.
At this rate a further purchase at the same rate equates to
US $181 million. (I would also suggest Pavo barrels have a higher value due to lower capex costs associated but am not adding this)

Converting into todays dollars Aus 0.64 to US equates
to $282 million Australia. If approximately 1.813 billion shares on issue this equals 15.5 cents per share.

If this is added to the 17.7 cents per share comprising existing cash of Aus 181 million plus CPC US 90 million US ( Aus 140 million ) takes the present value above 33 cents per share.

We must then consider the remaining value remaining of exploration leases from recent survey data which suggested up to 1.6 billion barrels of oil ( ignoring the gas) of main areas at a 67 percent success rate of discovery. If amongst the remaining leases we average 15 percent holding this equates to about 160 million barrels to CVN. If sold at $0.50per barrel this equates to US $80 million ( Aus $125 million) or 6.9 c per share.

The deep value of CVN under this valuation is 40 c per share.