Q: The Company is often asked by investors to comment on rumors and statements found on internet chat lines. Here is a reply to one recent inquiry.
A: With reference to your e-mail of June 06, 2002 entitled "From the Bullboards", our policy is that we do not comment in any way on rumors or statements attributed to chat lines. Chat lines were designed to serve a useful purpose, but have become forums for many persons with agendas detrimental (sometimes beneficial) to the well-being of our Company. Some of these statements, even though made under the veil of an alias, can be actionable through the court system. Recent successful court actions taken against persons making anonymous false defamatory statements on chat lines indicate that the days of such statements on these forums are numbered.
Q: Isn't it inappropriate for Company management to make statements to the media concerning information that has not been previously released to investors?
A: Not at all. As long as the information does not refer to a material change to the Company, there is no problem. We get many calls from the media each week and indeed have been one of the most reported on companies in this province. The media's job is to inquire and we feel it generally benefits the Company to keep the public informed regarding our Company and its operations. Information regarding a material change in the Company would require an official news release under exchange rules.
Q: Is it unusual for the first step out well from a discovery to be unsuccessful?
A: No it is not. Two prime examples would be Hibernia and Terra Nova, offshore Newfoundland. The first step out well at both these hugely successful oil discoveries were non-commercial.
Q: Can you use the data from the abandoned Port au Port # 1 sidetrack well for future operations?
A: Yes indeed. We obtained valuable geological information that we will use to further define and interpret the geological model and to develop future drilling programs for the field.
Q: What is the quality of the oil in your Port au Port # 1 well?
A: It is a high grade, light sweet crude, 51% A.P.I.
Q: Why do we believe the sales in Western Newfoundland are attractive?
A: The shale's of Western Newfoundland have the ideal mineralogy, porosity, and maturity. In addition, they are extensive and there is a history of oil production from them in Western Newfoundland.
Q: How long is the drilling program at 2K-39?
A: The program will last between 70 – 90 days.
Q: What is CIVC’s interest in the 2k-39 well?
A: CIVC’s interest is 22.5%