ann out: bg bought nto cvn, page-7

Re 'news' (see previous post), CVN still have to disclose anything that is share-price sensitive. Any flow-test result of say 1000 bopd would be a material addition to the company's production levels, revenue and profitablity. This would therefore be share-price sensitive, and would have to be disclosed as soon as the stabilised flow result was to hand. The deafening silence re this month's long-anticipated flow test results was therefore not a good sign.

Tonight's quarterly confirms that the anticipated flow tests on J1 and J2 development wells, and the Bo Rang-2 redrill have yet to be completed, though giving no explanation for the delay.

More concerning though is the 21% drop in average daily production levels and sales volumes and the 10% drop in sales revenues for the quarter (despite the $US WTIC reference oil price having averaged some $US10 higher than the previous quarter).

The reduction in the company's net $A cash holdings to just $A34m (5.6c a share) is also surprising and disappointing.