december production figures, page-5

Well we are yet to get any reply from the company to our enquiries on production from the quarterly report. Going over the figures they report 1700 bopd stable production at the time of the report. However they also give 450 bopd contribution from shut in production and a further 250 bopd from the new sandstone development. This means the base production outside of this would be only 1000 bopd and not the 1400 bopd used as a basis for the 3000 bopd.

There are no further updates on the volcanic test results or the sandstone development, which lead me to investigate what the possible reasons for delay are. I tried to get some information on Towngas but there is very little available in English, but more on that later.

I do not know why in the last 6 months there has been such a reduction in the company reporting results from wells and production details. Either they are no longer privy to this information since Towngas took over, or they are reluctant to report it now for some reason. The movement in shareprice I see seems to indicate that some in the market are able to access this information. Other than following the shareprice, I suggest watching for updates on the Thai government energy site is the only way to monitor progress on production.

I am looking to exit a reasonable proportion of my CVN holdings in the medium term and sentiment changed to reflect this. It is not so much that they missed their production target for end of year, as their dependence on external factors was outside their control. However I am just not interested in this new lack of transparency in reporting production and drilling results, where an update is given on drilling depth progress, but not on the test results being delayed or inconclusive. I was prepared to invest heavily over the previous 3 years with regular and reliable reports, now I just don't know.

Next update with January production should be in a couple of weeks at most so not long to wait.