fundamentals, page-3

As much as I don't like to admit this, I was posting very similar posts 12 months ago. It took me longer to pull out than I should have but ended up with a $-----k haircut because I thought that CVN had 20m bo of 2P reserves. I retain 100,000 shares or so which does not keep me awake at night.

Without applying rocket science, the last 12 months has shown the following trend:

Revenue $8m per quarter
Expenses $12m per quarter

No matter how CVN dress it up (operating profit's high etc),to generate $8m of revenue in Thailand. they need to spend more than $8m. All sorts of accounting terminology are used to make the revenue look "high margin" but the company has been cash flow negative for over 12 months. If production levels cannot get back to around 2,000 bopd then CVN will be cash flow negative and the $10m cash at bank will soon be gone.

I agree that the WA asset is promising but CVN cannot even possibly fund 10% of a development after a significant farm-out.