Ann: March 2011 Quarterly Report , page-30

Three things that disturbed me particulary in the quarterly:

1. The significant loss of reserves attributed to Na Sanun East - the area that really made CVN what it was.

2. The replacement of these back in December by reserves for WBEXT and L33, both of which areas have since become suspect, having had several subsequent March quarter appraisal failures and the inability to re-start the shut-in WBEXT wells at anything like their previous production levels due to water influx.

3. POE reported their April 26 2011 production level for 60% of the L33 and L44 project as being 1,495bopd, ie. LOWER than the average production level for the quarter. CVN did not give a current production level, but its 40% interest would therefore give it about 995bopd at present.

This is a further 20% below the average of 1,222bopd that CVN produced for the March quarter.

In fact it is less for the entire project now than for the average 1,000bopd per well that we were expecting not so very long ago.

I took a fifty grand loss at 28/29c. But it was good medicine, gladly taken. And the stock I replaced it with was the only climber on my screen today.

Can't win 'em all..