Compass Venture Inc T.CVI.A

RE: Q3/08 still a little weak!

[CalifDreaming]

Just more of the same bs. Typical Shimoon palaver.  At least they now admit that Hiswah is performing "suboptimally" (must have killed him to make that belated admission, lol).  Now they say it's solution gas is the problem - before it was water.  Ok, if that's the real problem, why did they allow it to occur so long?  And miracle of miracles, the CPF is now complete - only two years late!

Mention 10,000 bpd from Al Roidhat, but when??  Start up supposedly in Q1, but how much oil? If it's anywhere near as reliable as Hiswah guidance, they'll be lucky to get 5000 two years from now.  But once again, wasn't the "original" plan to get that on production two years ago?

And, yes, zero mention of the pipeline.  Conspicuously absent.   But everyone should have guessed by now that building a pipeline with current anemic production is ridiculous.  They were telling us to expect 30,000 bpd two years ago.  They can barely get 5000 now.  Heck, two years ago they were telling the market they wanted to get permission to increase trucking capacity beyond 10,000 bpd to maximize cash flow.  They've never even gotten close to 10,000, so why bother spending $100+MM to build a 100,000 bpd pipeline?

QQ 2 obviously has completion problems - had to bring in a CT unit to try and clean it up to test.  So, how many months has that well been sitting there unable to test?  6?  Wonder if they can clean it up?

CVI continues to be an underperformer and relatively expensive compared to the peer group.  The only truly positive thing is their cash and no debt with ongoing cash flows.