The effects of close spaced drilling into volcanics are in most...

The effects of close spaced drilling into volcanics are in most cases going to have an effect on the initial flow rates (initial decline settles to a far more gradual decline). That was always expected once you get into the swiss cheese effect (unlike the initial 12mth POE9 decline).

However this small decline at an avg of 13% is actually very good. It is far better than they could have expected. Remember that they have to shut down wells during the year for maintenance, and this also effects theoretical production. None of this is of concern to the board because the depressed oil price avg makes it a non priority. Its the best reason to concentrate on dramatically expanding exploration to prove up the substantial reserves they believe they have within the JV.

Shareholders that actually look beyond the opening~closing SP every Monday~Friday can clearly see that wells L44-W, L44-R and NSE-F1 are the fundamental reasoning for CVN's buying strength. IMHO this year (2009) we will definitely see CVN's market cap set new highs.

Ted has always had the aim of putting CVN into a market position of 5 ~ 6 within the oil & gas producers listed on the ASX.

Very happy with the way CVN is heading. Almost all other oilers are finding their oil price/cost ratio is a hurdle that is far too high to clear.