Dorado may be a few years off but the market doesnt seem to...

Dorado may be a few years off but the market doesnt seem to giving enough credit to what a top class asset it is. CVN is oddly disconnected to the oil price! Production facilities at Dorado will generate between $400m and $535m per annum for CVN's 20% share. Every extra US dollar the oil price goes up adds between US$7 and US$10 (A$10m - A$13m) to free cash flow and hence about 6cps to CVN's NPV.
CVN have 80 Dorado look alike leads and prospects in their portfolio. The importance of this, and indeed the upcoming drill program, is to keep those production facilities at full capacity. If reserves can be replaced from this fantastic inventory, fair valuation should sit around $2.50-$3.50 per share if oil holds $80, more if it keeps going up.
This drill program is so exciting for CVN, waiting for the market to wake up to it. Maybe it'll take a sniff......
GLTA

CVN Production
BOPD	75,000	100,000
USD/B	$80.00	$80.00
USD Cost/B	-$25.00	-$25.00
USD Net/B	$55.00	$55.00
AUD Net/B @75c	$73.33	$73.33
AUD CF/Day	$5,500,000	$7,333,333
AUD CF/Annum	$ 2,007,500,000	$ 2,676,666,667
CVN/Annum (20%)	$401,500,000	$535,333,333
NPV(10)*	$4,015,000,000	$5,353,333,333
NPV (10) /Share	$2.57	$3.42
Marginal Analysis
NPV @ USD80	401,500,000	535,333,333
NPV @ USD81	$408,800,000	$545,066,667
Diff USD	$7,300,000	$9,733,333
Diff AUD	$9,733,333	$12,977,778
NPV(10) AUD	$97,333,333	$129,777,778
NPV(10)/Share	$0.06	$0.08
Total Prod/Annum	27,375,000	36,500,000
# Years (162mmbo)	5.92	4.44
*Assumes reserves are replaced from leads & prospects