recent announcement, page-2

For DVM, there are a few key elements in the announcement IMHO.

DVM has pre-emptive rights for future equity raising & other shareholders must offer their shares in XDK to DVM prior to selling to any other third party – I would read this as a “clever” way to do a backdoor of XDK into DVM. Just my idea again.....

We know that there are some service stations and has its own storage facilities so if you do some quick calcs ,then with 25,000m3 of storage, that is about US$9.375m worth of crude (assumes US$60 per barrel). 1 standard barrel of crude oil is 42 US gallon or 0.163m3. Therefore 25,000m3 is equivalent to 156,250 barrels. This is a relatively small storage facility but turn this over several times a year and you can get some idea of revenue just from storage.

A petrol station is worth somewhere around 20million RMB each. (they haven’t announced how many they have – so can’t say reaaly put a value on that sector of the business yet).

PetroChina currently holds 40% of service station market and Sinopec about 56%. The rest is a whole bunch of independents and some oil majors. Current legislation only allows foreigners to have a limit of 30 service stations. (sounds like you have to be well connected to get into this market doesn't it?)

Note that small note about XDK – “Shareholders of XDK are current management ….. and Chinese nationals with local knowledge and connections in industry and government” – Potential good deal flow?
XDK has expansion plans for wholesale of fuel oil to power stations and industrial customers – good growth prospects here considering that this is the factory of the world.

sounds to me like the stake dvm have taken will turn out to be qyute a good lil earner wouldnt you agree?

Cheers .