Help needed for academic assignment, page-16

1. What led you to invest in CVN?

I liked CVN profile when drilling in Thailand, thought there was good LT potential. Have contributed ever since via SPP, good way to pick up shares at cheap prices, and have the money go directly to the company.

1. What impact might this oil discovery have on the Australian economy?

Hopefully contribute to a new-ish oil province. Will create jobs and infra-structure that will make further development in that area cheaper, eg. any gas finds or condensate stripping. Overall it will be a noticeable pimple on the economy, but will will help ten of thousands of Australian families.

1. Should CVN seek to become listed on another international stock exchange?

Not at this stage, usually it is a big distraction to a company, and the shareholders cant really judge where the loyalty lies. This does create some uncertainty in shareholders, as companies can move completely off shore via this route. Better to develop, increase in size, organically grow, or been taken-over outright. Hopefully when the share price is closer to $2.

1. Should CVN remain focusing its operations in Australia or expand globally?

Australia has great advantages in sovereign risk, unlike most of the other territories FAR has leases in. I did like Thailand because of the low development costs and proximity to market, which made any discoveries cheap to develop and easily to get market. Dorado was really a wildcat well, with low chance of discovering low cost

1. Does the Bedout Basin have any chance of becoming Australia’s top producer of oil/gas?

Possible, but unlikely, some boundaries are known by some earlier drilling. Bedout is a Sub-basin and doesn't have any where near the area of Carnavon basin as a whole, currently Australia greatest producer. Hoping it is sizable fraction.

1. Where do you see CVN in 5 years?

Unknown. 5 years depends on so many variables. If the oil price is depressed by over production (US, Saudi , Russia etc) and CVN is highly leveraged to pay for developments, oil disaster, then the market capitalization may even be less than today. Bedout doesn't pan out in subsequent drilling, we have had one really successful well so far, again Market Cap will drop. However more likely the MCap would go the other way, high or stable oil prices, Bedout success expands, faster development to production cycle than other basins because of favorable location and depth, surrounding developments in close basins. MCap hopefully will closer to $5Billion given favorable outcomes, glass have full. CVN may/probably wont exist, taken-over, if Dorado and satellites expand.