Ann: Phoenix South-3 Drilling Update, page-177

imho - the reason the stock is being smashed is 2-fold:

1. the results from PS-3 suggest a tight reservoir, it may be "solveable" (understanding the stress direction / fracture orientation / angled well bores), and the brief info the company released suggests low net-to-gross, meaning that if it flows, then vols may get smaller ........as a result - the aggregate volumetrics across Roc and PS may not meet the min threshold ......

2. mr market understands that appraisal of Dor - may require some additional cash .......

as with all juniors - there are periods of time when nothing happens, and then times when it all happens .......

for CVN - they need to make some rational decisions regarding capital allocation:

1. they could sell 50-70% of Buffalo, for say 20-25m and a part carry ........this would be positive given it needs 20m spent to see if the upside case exsists !
2. come out with a new resource statement .....as people have said - its abt Dorado now ......
3. hopefully - Quad wants to appraise this one asap .....
4. farm down Lab....

I took profits ....and now don't hold ......

I still think Dorado has "large upside" ........

but - mr market wont pay-up in the short-term - b/c of perceptions over reservoir risk (ie how it varies over the greater Dor-Roc structure).....

rgds
V_H