Getting back to what we do best

The markets negative reaction to part sale of the Dorado development to the Taiwanese confirms my suspicion that you have to be very big to be taken seriously as an emerging oil and gas producer. Maybe CVN shareholders would be better off if the rest of the development was simply sold to the highest bidder for cash and the resulting cash bonanza was returned to shareholders in the most tax effective combination of dividends and share buybacks. The Company could then concentrate on what it appears to do best , which is finding oil.
The arithmetic of that strategy looks something like this. The deal with the Taiwanese values our share in the Dorado/parvo oil development at about $US 300 million or about $a 440 million. So if we sold our residual interest for the same price and left the actual development to the big boys we would be left with about $a 540 million in cash plus the unexplored tenements in the Bedouit basin that our Directors tell us should contain (our share) 400 million barrels of yet to be discovered oil . A $540 million cash balance is equivalent to 30 cents per CVN share. I dont know what our unexplored ground is worth but $100 million would represent 25 cents per barrel for the probability assessed potential.
CVN is a medium cap ASX listed Company, most of its shareholders arent in a financial situation where they have the luxury of waiting many years for a big payoff. Maybe its time to go back to what CVN does best-looking for more oil that they can flog to majors who have the financial capacity to pump it out.