Ann: CVN's September 2010 Quarterly Report , page-19

re: Ann: CVN's September 2010 Quarterly R... Eyes there is also more to the tax/royality situation than you report.

Do you understand that the sliding scale system starts from scratch again in each different concession area? So what you are saying may be true if they continued to only find oil in L44, but they have recently had major finds in L33 (shut in until licence in Dec/Jan). Same again if they find oil in L20/50 with SUR.

CVN are also able to offset their exploration/drilling costs that they incur anywhere in Thailand against income they are earning from any concession in Thailand (i.e. can offset costs in L50 against any of their income in L33 or L44).

So there are actually some pretty good incentives to keep working in Thailand - not the least of which is that they are finding truck loads of oil there!