Ann: Drilling Rig at Pavo-1 Well Site, page-40

Oil and gas exploration is a punters game like a Hunter looking for elephants. You have to be in country know to
have geological formations and source rocks that are favourable. The long term CVN know that highs and lows of this game. As punters we take our losses and wins. However, with the Dorado find we have a jewel of a resource. It makes economic sense to see if the other side of the Dorado canyon has economic deposits as essentially, many factors are the same. The original find is financial at today’s costs. Australia is looking for fuel security for 90 days and has bought storage in the US.
If this was not available then Dorado would be very sought after by our Federal govt. Without fuel guaranteed our economy would be looking at a crisis. In addition, the gas reserves already proven could be easily tied into the NWShef export market. It appears to have a shortage in a few years time, depending on what Woodside does with Scarborough. Celebrate the past successes and acknowledge this is still risky. However, for my part I’m comfortable with my punt on Pavo and Apus exploration wells. Hopefully, we will be pleasantly surprised by the hydrocarbons discovered and remember with Pavo CVN has a 30% interest. At Dorado it was 20%, still a bloody lot of oil, condensate and gas. Go you good drill bit.