Ann: Pavo-1 and Apus-1 Drilling Update, page-69

Squidgey ...Out of the frying pan into the fire (oil->tech), you do know there is a tech rout starting up? Hedge funds are going the other way.

Not a good week for CVN. Buffalo achieved exactly the opposite of plan, confidence built to high. The odds pre-drill were very good the processing was very wrong. A kick in the Morale for CVN, built and killed ADV, down +90%. The bad processing for Buffalo implies nothing for Bedout, the area of drills has had 2D, 3D,CVN/santos/independents analysed. Dorado field well described so far.

Back to reality Apus and Pavo, the share price looks undervalued at 28c with those drills coming up. The Pavo-1 targets mean recoverable volumes of 82million barrels and 108Bcf in the Caley Fm. The probability of geological success (Pg) is 34%. Pavo-1 will befollowed by Apus-1 with mean recoverable volumes of 235million barrels and 408Bcf (combined - Caley and Milne Fm.’s) and a Pg of 23%.