Explanation, page-15

Kalintihi,

You need to make decisions on what is right for you.

Your investment decision should not be guided by what is written here.

For me, to invest in CVN is simple.

I invested about 10% of my overall investment assets in CVN.

Its an "exploration" company - not a producer anymore.

Its got $100M AUD cash and $30M USD receivables, with Zero Debts.

Its running costs per year is about $4M AUD versus its revenue of $2M USD royalty per year plus interest earned from the above $100M AUD (note this is mostly kept in USD account, so will earn less interest).

In a worst case scenario (profits and loss wise), I calculated that they would lose $1M AUD per year (they only have admin costs now - exploration costs was free carry and seismic already paid for).

CVN cash backing is 10.5 cents per share - this does not include any of the lease permits and new seismic we acquired and already paid for.

Its now trading at about 7.8 cents.

To me, that's about 3 cents per share discount.

For me, I still got idle cash to invest in CVN and can wait - either for the results from further drills (we got 20,000km in area size) or applying our cash to buy or merge with another distressed company.

Lets also remember this, CVN found oil and gas in an area (canning basin offshore) which for decades was Not thought to contain any hydrocarbons.

The market at the moment, have totally discounted all CVN permits to Zero and on top of that, its cash by another 3 cents.

So for me, it was an easy decision to add to my existing holdings.

Any way, you should DYOR.