Ann: Thailand Drilling Update, page-13

Cosmo,

Firstly oil JV partners are seldom silent, that is the beauty of them. Whereas in a company all tend to fall into groupthink, or into line behind the boss, in a JV there tends to be a productive clash of ego's.

I also find it hard to justify the CEO's package, he's the former admin person, not an oil finder, nor a permit finder. I give credit to the COO perhaps, and to Ted certainly. I voted for Ted and against the remuneration report and against the 1,000,000 hurdleless shares.

The CEO is not an oil finder, however Ted seems to have a pretty good nose for the stuff, in past life's and in Thailand (albeit it didn't go to plan), in the Bedout which seems to have been his inspiration, and now I am prepared to be that he is onto something interesting with the Cerberus permits. At least enough to get someone else to carry us in testing his theories. I'd hate to see CVN lose that input.

But no I don't expect our fortunes to ride too heavily on the inspiration or motivation of our CEO.

I don't know how good our COO is, he's paid near par with the CEO, but I suspect he has more influence on our outcomes. We"ll certainly be reliant on him if they kick the only geologist off our board, an oiler without a geologist at senior decision making level where we need not just any geologist, but an oil finder. I hope that is not the outcome of the AGM.

EL