Ann: New NWS Exploration Acreage-CVN.AX, page-8

Whatsamadoovie,

I am not a geologist or a geophysicist - although I have been reading a lot.

But my limited understanding is that, prior to PS1 and ROC, the "Conventional" belief was that hydrocarbons (if any) should be around the same range as those discovered in Carnarvon and Browse basins - ie. sands that are higher.

CVN and JV operators (since PS1 and especially ROC1), have discovered that hydrocarbons exists lower (note the drill in ROC1 beyond TD).

And its their belief (note the press release where it states CVN management have been studying "the lower Triassic petroleum system") that there is hydrocarbons in the lower sands.

This was borne out in the lower sand at ROC 1 (the lower Caley sands) and the Barrett sands at PS1.

In essence, we have discovered two new levels of geological sands (about 400 metres apart) that contains sufficient "hydrocarbons" - in geological time, the different levels of hydrocarbon charged sands probably represent a time line of 50 to 100M years apart.

Any way, it is their belief that these sands extend out to the Continental Shelf (hence this permit).

Our goal (CVN and JV partners) is to find them in traps and sufficient quantity, so that we could extract them at economical value (of course, there are other issues such as porosity and permeability in these sands too).

Hence their comment "they have identified several target structures that are significantly larger than the Phoenix South and Roc discovery areas"

AIMHO