Ann: Trading Halt, page-62

Ok, have had a chance to digest this.

Actually, really good for us.

So far, our Buffalo permit has been sitting in no-man's land.

The PSC (Production Sharing Contract) crystallizes our Buffalo permit value - ie. 31 Million barrels of oil.  This agreement will provide us a legal framework to extract and share the Oil revenue.

Unfortunately, in many third world countries, you have to pay a "sign-on" bonus with the Gov.  Its the price of doing business in these countries.  Looks like on this occassion, its USD $10M.

My original concern with this CR was that there might have been some unforeseen events (costs) in relation to PS3 or Dorado that we were not told of, and it was going to blow a hole in our budget.

But this is a very good outcome (IMHO).

As stated above, it will crystallize our oil in Buffalo.  And subsequently, broking houses (note, they have excluded Buffalo so far in the valuation of CVN SP) will rerate our SP.

Here is my previous calculation on Buffalo (should follow the updates following this post as well).

https://hotcopper.com.au/posts/32941405/single

Which means we should be rerated to 40 plus cents per CVN shares, within the next few months (especially after a JV partner is signed).

Any way, AIMHO....back to work.

As Always, DYOR.