CVI - CVI Energy Corporation

[tarnor]

Thought I'd start a thread for CVI.. I'm sure some fundies will fill in some info eventually.. but looks fanastic.. stock is very tight even after the recent gains. Expecting more tommorow if today was anything to go by - few decent cappers but didn't flush out many sellers and buyers were willing...

Disc: hold

 

[exberliner1]

Re: CVI - Cityview Corporation

If you want to know what CVI does here is a post I placed over on HC in September 2006....the info is a little old now but a lot ofthe projects are now starting to show some good results / feedback.

I hold oppies from 1.4c

The stock is also quoted in Frankfurt and New York - in NY on Fridat it closed at US$0.13 = AU$0.165 - 10% above the ASX close.

Message Reads.....

Subject uranium...beryllium...oil for 5.5c
Stock Code CVI - CITYVIEW CORPORATION LIMITED
Posted 13/09/06 00:38
Posted by exberliner1
IP 220.235.xxx.xxx
Hotcopper Radio CVI on BoardRoom Radio
Post #1249676 - 266 reads
Start of thread


I have spent a number of hours this evening doing some research into CVI which I present below. I have tried not to take a technical or sensationalist viewpoint but to find all the relevant facts place them in a collection of points and then with a conclusion give a fair value per share for both the existing and diluted share structure:

1) When valuing CVI it is important to bear in mind a major point. Cityview is not a pureplay mining company like, say, THX or CQT. CVI describes itself as an investment company. It's purpose is to take a number of stakes in major prospects as a junior partner and to benefit from any big finds or value that is uncovered. As a result CVI is able to position its portfolio to benefit from much more potential upside than a simple explorer or standard mining exploration firm. It is important to bear this in mind when looking at CVI's cashflow statistics and investments. As it is investments that comprise the asset base of the company.

2) CVI holds a 30% interest in the Longonjo Uranium and Ucua Beryllium project with Petro African holding the other 70%. The 30% interest in this project has been valued at AU$8mn by an independent consultant, This from ASX ann. dated 11th July.

3) Petro African and CVI are now in the process of making a joint application for an onshore oil field in the Kwanza basin of Angola. This is from an area that is seeing very strong interest from international oil firms who are well aware of the geological propensity of the Kwanza basin to be rich in minerals and hydrocarbon deposits. You should bear in mind that Kwanza basin is already producing 1.5mn barrels of oil per day with majors such as Exxon already there.

4) CVI holds 8.3% of Quest - a middle eastern entity with a portfolio of reserves and prospects in the arabian region. The entire portfolio has been valued by Morsion Menon Dubai Chartered Accountants to be worth Euro 45mn. Thus the 8.3% that CVI owns is currently worth AU$ 6.3mn. It is important to note that Quest will assist CVI through its contacts in the region in finding and benefiting from new investment projects in the region.

5) CVI holds a 2.5% interest in the Simengarris oil field which is being drilled by the partner firm PT MedcoEnergi and Pertamina the Indonesian State Oil Company. This interest had a value of AU$3.4mn which CVI has written down to zero in it's last set of accounts. The drilling here has fallen behind schedule and not produced the expected results. However it is important to note that the drilling off deep wells is still actively ongoing. Following the write down however this prospect is in the CVI mix for free having been financially completely written off. So, any hint of a positive result here will result in an extraordinary increase in assets for CVI. The directors of CVI still have faith in a positive outcome of this project.

6) Following the investment in the Longonjo uranium prospect with petro African CVI holds AU$1.72mn in cash - the consideration for Longonjo was 20mn shares in CVI plus USD 500,000 for a share of past work already carried out on the project. It is important to note that the 20mn shares will be held in escrow until 20th July 2007.

7) Out of the 181mn shares currently in issue 97mn are held by long term major investors. See here http://www.cityviewcorp.com/financialsframe.html
The 20mn in escrow is included in the 97mn figure.

8) The company has 80.6mn options in issue these mature March 31st 2007 and have a strike price of 8c. Full conversion of the options will therefore produce AU$6.45mn for the company in March of next year.

9) The following 3 announcements from CVI pertain to the Konang-3 well currently being drilled by MecoEnergi and Pertamina in Indonesia. It gives us an idea of how the drilling is progressing. CVI has a 2.65% interest in this well and is completely free carried so will have to contribute nothing to any future costs while benefitting from any reserves identified and recovered. Drilling progress is as follows:

COMPANY RELEASE August 14, 2006
KONANG-3, SPUD IN
CityView Corporation Limited (“CityView”) is pleased to announce that it has been advised by the operator MedcoEnergi that the Konang-3 well spudded on August 8, 2006. The Konang-3 well has a target depth of 4,920 feet with the Kujung formation as the target area. CityView is free carried through the drilling of Konang-3.


COMPANY RELEASE August 29, 2006
DRILL RESULTS, AUGUST 29 2006
CityView has been advised by Medco Energi that the drilling of Konang-3 well has reached a depth of 2,212 feet. The target depth is 4,920 feet. CityView is free earned through the drilling of Konang-3.

Konang-3 is being drilled in the Madura Block on Madura Island near the city of Surabaya where there is a ready market for oil and gas. The Block covers an area of 674,100 acres. A number of large fields have been discovered in the vicinity and it is these same producing trends which are being examined on Madura.


COMPANY RELEASE September 11, 2006
DRILL RESULTS, SEPTEMBER 11 2006
CityView has been advised by Medco Energi that the drilling of Konang-3 well has reached a depth of 2776 feet. The target depth is 4,920 feet. CityView is free carried through the drilling of Konang-3.
Konang-3 is being drilled in the Madura Block on Madura Island near the city of Surabaya where there is a ready market for oil and gas. The Block covers an area of 674,100 acres. A number of large fields have been discovered in the vicinity and it is these same producing trends which are being examined at Madura.

10) For information on MedcoEnergi the main drilling partner in the Asian investments go here:
http://www.medcoenergi.com/contract.php

Bearing in mind the above points it is now possible to come to some sort of valuation for CVI at the moment. To do this it is necessary to produce 2 sets of figures, one set for today and a second set for the diluted situation next March. It is important to bear in mind though that the figures for March do not take into account anylikely increase in the valuations of the various projects the company has underway between now and then.

So a valuation undiluted based on current figures is:

Longonjo Uranium JV AU$8mn
Quest Middle East AU$6.3mn
Cash in bank AU$1.7mn

Total: AU$16mn

Number of shares 181mn

This equates to 8.8c per share on pure asset based value and takes no account of potential value increases in the Beryllium, Uranium and Oil prospects as these projects move forward.

Following March the the 80.6mn options convert which will produce AU$6.45mn for the company - so if you want to value it on a diluted basis then it is only reasonable to add in the option conversion fees.

Thus we get:

Longonjo Uranium JV AU$8mn
Quest Middle East AU$6.3mn
Cash in bank AU$1.7mn
Options conversion AU$6.45mn

Total: AU$22.45mn

Shares in issue after options conversion now 261mn and this equates to 8.6c per diluted share.

Although the diluted figure is a bit meaningless because I would expect some substantial value increases in these assets over the next 6 months.

So, the heads are 5.5c and the options are 1.8c - do you see what I see? A company that is undervalued with some good looking prospects and very cheap options. Thes heads being only 2.5c away from the option strike price.

CVI also has a quote in the USA.....so that means the Americans can be busy trading this stock while we sleep.

I think CVI has limited downside because it is so cheap while the upside is huge. If you want to play safe buy the options they are only 1.8c and have the potential for gains in the hundreds of percent at these levels.

All the information above has been taken from publicly available sources - I have simply drawn it all together into one post so we all have a point of reference.

CVI represents tremendous value imo - a small company with the capability to work with the majors as a junior partner.

I would be interested in any sensible viewpoints on the information I have uncovered and presented here.

And please make it sensible - it has taken me 4 hours to compile this lot and is now after midnight here in NSW.

EB

Message end....


It's the oppies I like - strike price is 8c so each 1c move on the heads adds the same or more to the oppies - gives you 2X leverage atm....

And we all know it's the leverage that maximises the profits.

EB

 

[skiper]

Re: CVI - Cityview Corporation

Break out alert on CVI, good volumes breaking through previous resistance, a close above .086 should see buyers flocking and a run to 20c, seems very undervalued at existing prices, well done to existing holders and buyers

 

[Wysiwyg]

Re: CVI - Cityview Corporation

Break out alert on CVI, good volumes breaking through previous resistance, a close above .086 should see buyers flocking and a run to 20c, seems very undervalued at existing prices, well done to existing holders and buyers

Lol.... CVI s.p. has a lot of ups and downs.For those interested I dug up some information on the Matanda block in the Douala Basin , shallow offshore Cameroon.Since the CEO had this to say about CVI medium to long term prospects...

Outlook Going Forward

Our projects in Angola and Cameroon are company makers, capable of transforming CityView into a significant oil & gas producer in the medium to long term. Our primary focus is on generating a cashflow positive operation as quickly as possible and the best opportunity to achieve this is in the Cameroon at Matanda. More will be announced on this shortly.
As CEO of CityView, I look forward to experiencing with you the next phase of growth in the company’s history, which I’m sure will be both an exciting and a financially rewarding one.
Yours faithfully,
CityView Corporation Limited
Mark Smyth
Chief Executive Officer.

I discovered that Turnberry Resources (the block holder) had a lease which was to expire in January this year.They have been sitting on the lease for a while and it must have been reinstated.

PRESENTATION OF THE MATANDA BLOCK

The Matanda block (1187 km²) is situated in the northern part of the Douala/Kribi-Campo
basin covering the northern half of the Wouri estuary and surrounding onshore areas. The
block is bounded by the Mount Cameroon volcanic line to the northwest, the block OLHP-
2 to the northeast, the Etinde permit operated by EurOil Limited to the west and the
Kombe-Nsepe permit held by Perenco and Kosmos Energy to the east.
The block was granted as a permit to Turnberry Resources from October 1998 till its
expiry on January 23, 2007. Water depths range from 3 to 6 m.

Here we have reserve estimates from previous exploration of the North Matanda wells.*note this information was authored this year by Marie MPONO AHOUAMA on the 05/04/2007.*

The block contains the proven North Matanda gas-condensate field, in the upper
Cretaceous Logbaba formation. Five wells have been drilled on the block with varying
results namely :
· Missellelé 1 : 1975 ; Dry and abandoned
· Pungo -1 : 1978 ; - « - - « -
· Wouri - 1 : 1980 ; Junked
· N. Matanda - 1X : 1980 ; Gas condensate discovery
· N. Matanda - 2X : 1982 ; Gas condensate appraisal
Drilled stem tests (DST) performed in the North Matanda 1X and 2X wells revealed
proven recoverable reserves estimated at 74 BCF of gas and 2 million barrels of
condensate with an upside speculative reserve base of 423 BCF of gas and 21 million
barrels of condensate, yet to be confirmed by further exploration/appraisal work.
The block is covered by 2D seismic shot by former operators Elf Serepca and Gulf Oil
from the sixties to the eigties with a total of 543 line kilometers and spacing of 1 to 3 km.

So there we go, a known reserve.Please note that CVI is mainly an investor in oil/gas plays.If anyone wants to comment I would be happy to discuss CVI ,whether the markets are crashing or not.

 

[skiper]

Re: CVI - Cityview Corporation

wysiwhg, the management team seem to be achievers in there own right. Extract from CEO's Progress Report below for those that have not read it;

Management
None of CityView’s plans can be achieved without having the right team in place. The recent organisational changes have been put in place to ensure CityView moves from an explorer to a profitable energy producer as quickly and efficiently as possible.
Conrad Maher is a well seasoned player in the oil and gas industry. He has extensive experience in Production Geology, Exploration Geology and Petroleum Engineer which will be invaluable in the proposed Angolan and Cameroon oil production programme.
Paul de Chazal is an international Lawyer fluent in the key languages of Angola and Cameroon (Portuguese and French) and will help protect CityView’s interest there.
Nik Hoexter is skilled at project evaluation and international business relationships, having been a senior member of BP’s HQ policy “think tank”.
Peter Smith was Westpac’s Senior Manager Asian Banking & Oil & Gas and has excellent Government relationships.
Paul Williams has project experience in Mauritania and runs the financial and Company secretarial administration of CityView.
John Jacoby has spent years working in remote locations and hands-on project management is overseeing the site operations in Angola.

And the company seems very confident as can be seen by the bottom quote from the CEO's Report:

Our projects in Angola and Cameroon are company makers, capable of transforming CityView into a significant oil & gas producer in the medium to long term. Our primary focus is on generating a cashflow positive operation as quickly as possible and the best opportunity to achieve this is in the Cameroon at Matanda. More will be announced on this shortly.
As CEO of CityView, I look forward to experiencing with you the next phase of growth in the company’s history, which I’m sure will be both an exciting and a financially rewarding one.

Be interesting i reckon to get a chartists' opinion on todays move.
Hope the next announcements not far away, could be interesting times ahead.

 

[drasicjazz]

Re: CVI - Cityview Corporation

bee it that i m new at all this charting
i must say that the combination of the high volume
and the crossing of the 0 macd line is a good sign

but

there was a clear bounce off the 3 months downtrend line @ 8.3s
and the close was a selloff
i realy should break that line for me to get me buying in
but saying that i does looks good
good luck to the holders
cheers drasic

 

[Wysiwyg]

Re: CVI - Cityview Corporation

Skiper CVI are looking at 20 % of QEML and that confirmation alone will be an excellent move.These people that are being employed presently have the credentials and are capable of better positions than with a junior like CVI so there must be a bit of back slapping going on hey.They have contacts in the right places i.m.o.

On the present share price ...well like I said it is up and down and hard to predict if you want to go for a short term.Midwestern unloaded down to 5.5 c. but it has attracted interest again as your first post pointed out.

The big players are pulling big barrels offshore Angola in the Kwanza Basin so the play onshore has a chance tof course oil `plays` are never a certainty till the hydrocarbons are venting so it is a wait and see for me.

Good to share your enthusiasm.ciao.

 

[skiper]

Re: CVI - Cityview Corporation

A little bit of interest this morning i see, up a lazy 32% and smashed through 10c to 10.5c from a .79 close yesterday on 15 million, already 17million traded in first 1/2 hour today, hope you're on for the ride.

 

[Wysiwyg]

Re: CVI - Cityview Corporation

A little bit of interest this morning i see, up a lazy 32% and smashed through 10c to 10.5c from a .79 close yesterday on 15 million, already 17million traded in first 1/2 hour today, hope you're on for the ride.

Yeah skiper 10.5c hit was a surprise.More volume in the last two days than an AC/DC concert.I missed the June entry and went in at the top before the Midwestern selloff.Made a better entry last month though and am happy as a sandboy.Here is a chart that shows the downtrend is obvious but the turn may have happened.I will wait and see.Much interest in the last six weeks.

 

[skiper]

Re: CVI - Cityview Corporation

Over 48 million traded today, all looks good to power on next week, last 2 days sp has risen more than 20%, everything being equal in the states, big week ahead IMO.:bigun2: Lets power through these sellers.

 

[Pommiegranite]

Re: CVI - Cityview Corporation

I'm trying to get my head around CVI's interest in the Cameroon Oilfields.

Its great to see that they have proven oil resources. Can anyone give me CVI's cut of the 60 million proven barrels?

I like that CVI have stated that this is a probable 120MMBBLs, and could well be a possible 300MMBBLS:bowdown:

Also, does anyone know when Kwanza permits are due to be issued?

 

[123enen]

Re: CVI - Cityview Corporation

Can anyone give me CVI's cut of the 60 million proven barrels?

Currently hold 20% and will soon negotiate for an additional 20%.
Not sure when Angola permits will be granted.

 

[Wysiwyg]

Re: CVI - Cityview Corporation

Conrad Maher is presently compiling a feasibility report on the project,so when that assessment comes out then all interested will then know.

 

[Pommiegranite]

Re: CVI - Cityview Corporation

Much appreciated guys,

It was this statement confused me a little:

"CityView has acquired the right to take up a 28.5% share of Turnberry Resources Inc, being a net 20% interest in Cameroon’s North Matanda PH72 oilfield"

I wasn't sure if it meant 28.5% of a 20% interest.

It's great to have an oil explorer with a sizeable proven resource. I just don't get why this company seems to be so undervalued on this project alone.

So we're talking a proven resource for the Cameroon project worth $840 million US but possibly $8.4 billion, at a Market Cap of $22 million US.

Well given that it's an oil play, and we all know what's happening to oil demand/supply over the coming years, is this stock the most ridiculously undervalued stock out there...and if so any guesses as to why? (Possibly because its Africa?)

Does anyone have any estimates on the capex for Cameroon, and a production timeline?

 

[Pommiegranite]

Re: CVI - Cityview Corporation

Partly in answer to my own questions, I have just found this on Petroleumnews.net:

CityView eyes African condensate

Friday, 10 August 2007

RESOURCES junior CityView has begun a feasibility study on fast-tracking the development of the North Matanda condensate project in Cameroon, West Africa.

"CityView is keen to complete the feasibility study to quantify the technical and commercial aspects of North Matanda," chief executive Mark Smyth said.

The 1187 square kilometre Matanda block is in the northern part of Cameroon's Douala/Kribi-Campo basin covering the northern half of the Wouri estuary and surrounding onshore areas.

The block is partly onshore and partly shallow offshore.

Condensate was discovered in two wells drilled to 3000m in the permit by Gulf Oil USA during the 1980s.

But Gulf was looking for a giant oilfield similar to that found in the Niger delta and relinquished the permit.

Based on the wells, seismic and testing, Gulf assessed the field as having 1P reserves 60 million barrels of condensate and a 3P upside of 300MMbbl, Smyth said.

"Condensate prices from this region historically trade at a premium of US$3 to the price of Brent crude oil," he said.

"West African condensate prices currently exceed US$75 per barrel.

"This project has the potential to be extremely profitable for all of the joint venture partners and we intend to bring it to fruition as quickly as possible.

"The first critical hurdle is to complete a feasibility study on the project."

Smyth said Conrad Maher, the recently appointed Chairman of the Advisory Board, was in Paris with a team of experts to start the review and gather the Gulf Oil USA data as the first stage of the feasibility study.

The scope of the feasibility study will include certifying gas and condensate reserves; designing plant and infrastructure; estimating capital and operating cost; financial modelling; tackling government approval processes; negotiating off-take agreements for gas and condensate; deciding on financing strategy; and early award of the engineering package to a contractor.

 

[Wysiwyg]

Re: CVI - Cityview Corporation

Sheeesh pommie.....CVI sentiment overcome the general market drop last Friday and powers onI shut myself out on Friday `cause of the 200+ point drop on our market and what do ya know.`Soon as you throw the higher they go`.Good on ya .:

 

[Pommiegranite]

Re: CVI - Cityview Corporation

Sheeesh pommie.....CVI sentiment overcome the general market drop last Friday and powers onI shut myself out on Friday `cause of the 200+ point drop on our market and what do ya know.`Soon as you throw the higher they go`.Good on ya .:

Looking very good indeed at the moment. Although, I don't like the breakaway gap left behind. Anyone's thoughts on whether this will have to be filled?

 

[daggs]

Re: CVI - Cityview Corporation

Anyone got any ideas why the SP took a dive following, what looks to me like, a fairly good announcement.
Mabey investors were hoping for something better?

 

[skiper]

Re: CVI - Cityview Corporation

Well pommie, the gap is filled and Daggs, merely profit takers, this is going to go off IMO, a lot of people are talking 50c short term, so time will tell

 

[Pommiegranite]

Re: CVI - Cityview Corporation

Well pommie, the gap is filled and Daggs, merely profit takers, this is going to go off IMO, a lot of people are talking 50c short term, so time will tell

Yep..gap filled...great news. Was fantastic to see CVI heading in the right direction against the negative market.

Did you notice some massive buy orders pulled yesterday? I wonder what that means?

Also, I hope these people you are referring to who are talking about 50c are not from Hotcopper and are brokers instead.

Its really difficult to put a price taget on spec stocks as they move so much on market sentiment. However CVI is the strongest spec I hold/have held.

1. Low Market Cap to High PROVEN resource ration ($26 million MC for $4billion of proven oil)

2. Great cash position

3. Very low capex

4. Are putting a very stong priority of getting this oil to the market asap.

5. The best is yet to come, as they expect the 60 million barrels as drilled by Gulf, to end up being possbily 300 million barrels

6. More licenses being granted in Angola. Wikipeida 'Angola' and you will see that it is a leading African economy, stabel government, with pletiful resources.