CityView Acquires Stake in Cameroon Oilfield

PERTH, Australia--()--CityView Corporation Ltd. (OTCBB:CTVWF)(ASX:CVI)(FWB:C4Z), IS PLEASED to announce that it has acquired the right to take up a 28.5% of Turnberry Resources Inc. (Turnberry) which equates to a net 20% interest in North Matanda PH72 oilfield.

  • CityView has acquired the right to take a net twenty percent (20%) interest in North Matanda oilfield PH72 Cameroon.
  • Gulf Oil USA drilled two wells in PH72 and discovered condensate in both of the wells.
  • Condensate reserves are estimated to be 60 million barrels from the two wells, with production plateauing at 4 million barrels per annum*. West African condensate prices currently exceed US$70 per barrel.
  • Addition of the gas income stream from the two wells would create an uplift of 30-50% in NPV. The major market, Douala, is 13 kilometres away.
  • Other prospects in the licence area are expected to increase reserves: their development to be financed from the current proposed production.

A report by CityViews consulting geologist Eur.Ing. Dr Michael Smith FIMMM, C. Sci. C. Eng. is attached.

The Matanda block (1187 km²) PH-72 (former OLHP-3) is situated in the northern part of the Douala/Kribi-Campo basin see maps at http://www.cityviewcorp.com/recentframe.html 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 a depth of 3,000 metres in the permit by Gulf Oil USA during the 1980s. Gulf, who were looking for a giant oilfield similar to that found in the Niger delta, relinquished the permit.

Gulf, as operator, based on the wells, seismic and testing, quoted the following reserves of condensate;

                  P                60 MMBBLS
                P+P               120 MMBBLS
              P+P+P               300 MMBBLS

According to Dr Smith, six other prospects exist in the licence area (two are offsets of discoveries outside the licence). Turnberry considers they have a potential for a further 1.8 TCF natural gas and 600 MMBBLS of condensate.

Condensate prices from this region historically trade at a premium of US$3 to the price of Brent crude oil. West African condensate prices currently exceed US$70 per barrel.

The entry cost to CityView will be US$1.3 million total in tranches plus half of the NPV of a net 20% interest calculated by a leading valuer.

CityView has agreed with the holder of another 28.5% interest (20% net) in Turnberry to treat the two companies combined 57% interest in Turnberry as concert parties with mutual pre-emptive rights in the event of sale.

Gas production will be directed via a new 13 kilometre pipe line to a 100 megawatt power station to be constructed by Quest, which will finance future expansion of operations.

Negotiations for CityView to acquire an onshore oilfield in the Kwanza Basin of Angola are on-going.

Enquiries:  Mark Smyth          Chief Executive Officer
Contact:    Telephone           (61-8) 9226 4788
            Facsimile:          (61-8) 9226 4799
            Email:              info@cityviewcorp.com
                                Website;  www.cityviewcorp.com
       Eur. Ing. Dr. Michael H. Smith, FIMMM, C. Sci, C. Eng.
                        Economic Geologist
                     205 Rathmines Road Upper
                            DUBLIN 6,
                       Republic of Ireland
                     Tel : 00 353 1 498 0206
                   Mobile : 00 353 86 821 7465
                                                        15th June 2007
To: The Directors,
CityView Corporation Limited

Dear Sirs,

                   PH - 72 Matanda Permit Cameroon
                  Summary of Data Review, 14 Jun 07

The following is a summary of my conclusions resulting from a quick look data assessment.

The licence was originally held by Gulf and relinquished when they failed to find a giant field in the 1980s. They were looking for a new Niger Delta but the Douala Basin is smaller. It is, however, capable of yielding economic fields of reasonable size.

Two key wells were drilled on the Matanda permit, both targeting the Logbaba sands (Cretaceous). Both wells penetrated three other reservoir sections:

           N'Kapa - Lower Tertiary
           Souellaba - Upper Tertiary
           Matanda - Neogene

All are productive in the Douala Basin and wireline logs indicate hydrocarbons in the Souellaba and NKapa formations in the wells drilled. They were not tested.

DSTs were run on both wells. Results were as follows:

WELL DST Interval Tested Gas

MMCF/D

Condensate

BBLSC/D

NM 1X #1  2m  17.1  535 
  #2  5m  11.8  396 
NM 2X #1  3m  1.7  72 
  #2  2m  15.7  1600 

None of the shallow horizons were tested. Gulf, as operator, based on the wells, seismic and testing, quoted the following reserves of condensate:

       P              60 MMBBLS
     P+P             120 MMBBLS
   P+P+P             300 MMBBLS

Gas reserves were not quoted other than a global figure for the 54,000 acres of potential reservoir surrounding the wells ( 4TCF ).

Turnberry, the current operator has used specialist contractors to:

  • Reprocess two of the seismic lines;
  • Re interpret the seismic data over the area;
  • Make an assessment of reserve potential based on the seismic contractors opinion of reservoir development;
  • Carry out a reservoir simulation of hydrocarbon behaviour using Degolyer and McNaughton; and
  • Re evaluate the well data by Gruy and associates.

Their results are as follows:

    P Based on 2 x 640 acres drainage   60 BCFG    3 MMBBL Condensate
  P+P Based on 9000 acres reservoir    423 BCFG 21 MMBBL Condensate(a)
P+P+P Total area of potential reservoir 2.1 TCFG 100 MMBBL Condensate.

(a) This was proposed as the Proven Reserve.

Six other prospects exist in the licence area (two are offsets of discoveries outside the licence). Turnberry considers they have a potential for a further 1.8 TCFG and 600 MMBBLS Condensate.

In the year 2000, based on the Degolyer and Gruy studies, Turnberry proposed a development based on their mid case 20 MMBBLS Condensate and 420 BCF Gas. The decision to go with this model was partly political; 20 BCF is the upper limit for a Marginal Field and this attracts lower royalties and taxes than larger fields.

Based on a condensate price of $ 15.00 / BBL (probably $ 60 70 today) and the gas being flared (no value) and two wells, a financial model was created. Life of field was 10 years, condensate plateaued at 4 MMBBLS / year in year 3 and gas at 70 MMCF / D in year 4. Only the Cretaceous reservoir was developed.

             NPV            $  60 Million
             ROR               21 %
             Investment     $ 145 million.

This was, by todays standards a ridiculously low estimate, especially as condensate reserves are likely to be 60 MMBBLS and the condensate prices today are 4 to 5 those prevailing in 2000. Also the gas was flared. A 120MW power station can be operated on 30 MMCF / Day (the output from one well). At 2000 prices, this represents $ 14,000.00 per day or $ 4.9 million per year. Two units burning all of the gas would generate twice this. Cameroon is energy deficient and predicted demand growth would absorb all of this. Addition of the gas income stream would create an uplift of 30 50% in NPV. A ball park NPV utilising all the resources and recent pricing would be $ 450 500 million.

Infrastructure requirements are not major a small offshore platform, a small bore pipeline ( 10 12 ), separator and storage facilities for condensate and a modular power station onshore. The major market, Douala, is only 13 kilometres away.

I have examined all the data and am evaluating certain key documents. Interpretation of the G and G data set will require significant work. However, I am satisfied that under todays economic conditions, this project can be very successful.

Declaration.

1.  My name is Eur. Ing. Dr. Michael Harold Smith, FIMMM, C. Eng and I
    reside at 205 Rathmines Road Upper, Dublin 6, Republic of Ireland
2.  I am a qualified Economic Geologist with a record of practicing in
    the Resources Industry as well as recognition by the European
    Commission and the World Bank as an approved consultant.  I
    currently practice as "Natural Resources Developments" from the
    above address and also act as Senior Associate Consultant to CSA
    of Dublin, Ireland.
3.  I graduated from Durham University, England with a First Class
    Honours B.Sc. in Geology and have a Ph. D. by research from the
    University of Strathclyde, Scotland.  I have more than 35 post -
    doctoral research years of professional experience.  I am a member
    of the Irish Association of Economic Geology, a member of the
    Gemmological Association, a Chartered Engineer, Chartered
    Scientist and a Euro - Engineer and a Fellow of the Institution of
    Metals, Materials and Mining,
4.  I have no direct or indirect interest in this project, its joint
    venture partners or any associated companies other than as an
    independent consultant.
5.  The only benefit I expect for the preparation of this report is
    the fees for the professional work done.



         Mark Smyth          Signed           15th June 2007

         Eur. Ing. Dr. Michael H. Smith, FIMMM, C. Eng.

About CityView Corporation

City View Corporation Ltd. is an exploration and development company. It is managements objective to grow CityView into a significant uranium, beryllium, oil and gas project by developing its interest in Angola. The company trades on the OTCBB market under the symbol CTVWF and on the Australian Exchange under the symbol CVI. For more information please visit the companys web site at: www.cityviewcorp.com

Forward-Looking Statements

This news release includes comments that may be deemed forward-looking within the meaning of the safe harbor provision of the U.S. Federal Securities Laws. These include, among other things, statements about expectations of future transactions or events, revenues, and performance. Forward-looking statements are subject to risk and uncertainties that may cause the companys results to differ materially from expectations. These risks include the companys ability to complete transactions which remain subject to a due diligence review, obtaining any regulatory approvals, having necessary financing in time to meet contractual obligations, developing appropriate strategic alliances, raising working capital, building a functional infrastructure, and other such risks as the company may identify from time to time. Accordingly, there is no certainty that the companys plans will be achieved.

Contacts

CityView Corporation Ltd.
Investor Relations USA contact:
Clinton Joseph, +1 613-226-5211
www.cityviewcorp.com

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Contacts

CityView Corporation Ltd.
Investor Relations USA contact:
Clinton Joseph, +1 613-226-5211
www.cityviewcorp.com