Smart move IHMO. Get the rights for similar looking geography in...

Smart move IHMO. Get the rights for similar looking geography in the same region before the rest of the world wakes up to what they may be missing out on. Some of the other leases on offer this round have up to eight applicants, so there is a fair bit of interest in Thailand.

The results so far have been pretty average with Na Sanun, however now they are going to concentrate on Na Sanun East. Both wells being drilled have oil shows, so there is a good chance of commercial wells(s).

For the new area L20/50 if they are successful in applying for a licence they probably won’t actually be issued the licence until the new year. This is due to the usual Thai circular paperwork requirements with fees at every step. Once they get the licence the first year will probably be reanalysing any old seismic, and maybe working up a program for some additional seismic. Analyse the new seismic, come up with targets and apply for drilling permits, access to land etc involving more circular paperwork and fees.

At best they are looking at 18 to 24 months before putting a rotary lie detector (rig) to work on the new leases.

Shows some admirable forward planning to add value for the shareholders. Of course will work far better if the current program finds sufficient oil for CVN’s Thai interests to become self funding, otherwise it may well be cap in hand back to the market.

Jami