Leroy,What CVI need is really 1 thing...At the end of this month...

Leroy,

What CVI need is really 1 thing...

At the end of this month there is an announcement expected on funding for 4 off-shore oil permits, or a percentage there of. There has been talk of going for 40% ownership of Falcon to gain access ... in any case it looks to be around 5% ownership of a potential 1BBL+ - about 50mbbl inground value if you like to look at it that way (figures very approximate!)

The inground value is one thing for the company, but the credibility that will be gained by management after they secure such a deal will be the significant factor. For over 18months the management have been talking about securing oil permits in Angola. They have been continually saying its getting better, we are in with bigger players now etc; and as yet, the market is yet to see any of it secured.

If they do secure it, it means that CVI is what they say they are, which is massive in the potential side. If they can pull this off, the chances of everything else coming off as well dramatically increase, reducing risk of the stock and hence increasing the shareprice.
Institutions will look at the stock more seriously and with the insto report coming out in conjunction with the funding package for the offshore oil patches, there is big potential for a big uplift in sp.

On the other hand, further delays will give the sp a massive blow, due to further lack in confidence in the management and probably to a greater extent, an increase in the sovereign risk profile for the stock, both likely to significantly hurt the share price.

All information from management to this point has said that we are getting what we want and MS couldn't be happier with what we are getting (others who have been in recent contact can back this up).

At the moment the market isn't sure about CVI ... In November there was much hype before they secured anything. Now the market after learning that lesson is waiting for serious confirmation with contracts being signed, and slowly retreating with every delay and placement over the past 4 months.

I believe we are coming to (another) head where it can go either way. MS has been in Dubai undoubtedly trying to sure up the funding package through contacts of the already faithful. with the amount of money in Dubai at the moment with oil at US$100+ there will be plenty willing to offer the coin in a virgin area. I'd say many of the guarantees had already been given, he has just gone back with paperwork to lock it all in. thats what I'm hoping anyway, and it makes sense for where they were at a couple of months ago.

As I said, now its all about credibility... if they deliver the offshore oil funding package by the end of April or there abouts, they will be on their way to delivering more than just this 1 project in the eyes of the market, the massive Cu/Au projects (likely US$5B+ IGV to CVI) diamonds, futher oil onshore, Iron Ore.

Not long now... Im lapping up these prices

Bilbo