Finder Exploration, page-15

Jordy,

I believe there is no doubting that the free-carry would be assigned to the purchaser. I am sure that these deals would always be structured so as to facilitate ownership changes.

Incidentally for those that post here before they research or consider, the recent Euroz report had a valuation of 27cps ($270 mm) for these assets to arrive at 35 cps. Taylor Collison appeared to have assigned a more realistic $200 mm or so, but then they woefully valued the Thai assets a multiple higher than the market implied prior to the Phoenix discovery, to arrive at their 35cps.

To some posters brokers targets "just had to be" conservative, and to suggest otherwise was annoying down ramping that it was their self ordained duty to stamp on, and to stamp out. As I said when the sp rose into the high twenties here a couple of weeks ago it was getting too pricey for me. Well the market has since agreed, and my opinion remains that as usual broker targets are a bit inflated.

Having said all that, I suspect the market is slightly undervaluing CVN atm. As always, overshoots and under shoots.

EL