Level 9, 28 The Esplanade, Perth, Western Australia, 6000
PO Box 5643 St George's Terrace, Perth, Western Australia, 6831
Telephone: (61-8) 9226 4788 Facsimile: (61-8) 9226 4799
Email: info@cityviewcorp.com Web: www.cityviewcorp.com
ABN: 59 009 235 634 ACN: 009 235 634
August 21, 2007
Ms. Cecilia D. Blye, Chief Office of Global Security Risk
United States Securities and Exchange Commission
Washington, D.C 20549-5546
Attention: Mr Jack Guggenheim
Dear Ms. Blye,
RE: Form 20-F for fiscal year ended December 31, 2006
File No. 0-28794
In response to your letter of August 15:-
1. Quest Energy Middle East Limited ("QEML") is a Dubai company with
excellent banking connections and engineering expertise. The 8.3%
interest in QEML was inherited from a previous time in CityView's
history. CityView is now preoccupied in Africa and has no plans for other
areas. QEML is planning to float on the Dubai Stock Exchange and this
will be an opportune time for CityView to exit. The total amount that
CityView has invested in QEML is US$574,000 which should generate an
excellent capital gain on the Stock Exchange float.
2. CityView is not involved in the management of QEML. This is a portfolio
investment which will be sold at the appropriate time.
3. Management's objectives are set out in the Report of August 2, 2007, a
copy of which is annexed. CityView's focus is on Angola and Cameroon in
Africa. CityView would like to find a suitable project in Indonesia but
nothing has eventuated yet. CityView has no plans for anything in the
Middle East and has made no contact with Syria.
Yours faithfully,
CityView Corporation Limited
Mark Smyth
Chief Executive Officer.
ASX: CVI
NASD OTCBB: CTVWF
DAC: C4Z
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ASX / MEDIA RELEASE August 2, 2007
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CEO'S PROGRESS REPORT
Dear CityView Shareholder,
Having successfully gained entry into the prolific and highly competitive West
African oil patch, it is an appropriate time to detail CityView's strategic
objectives.
Cameroon
CityView's introduction into Cameroon originated directly from our Angolan
associates. This is very gratifying as it confirms that we have good
relationships in Angola. Many companies have tried to gain access to Matanda
block PH-72 as it has proven reserves of condensate from two discovery wells
plus additional exploration potential. Thanks to our Angolan credentials we
managed to get our foot on a net 20% interest in the field and in time hope to
increase our equity position there and obtain other licences.
The original work done by Gulf Oil USA on the permit in the 1980s was excellent
quality. If condensate prices had not been so low at that time, Gulf would still
be in the permit. Today's condensate price in excess of US$75 per barrel is a
very different story. This is a very manageable project for a junior company.
Infrastructure requirements to bring the two discovery wells into production at
4 million barrels per annum are expected to cost between US$50 million and US$70
million, to which the Government will be contributing their 30% working interest
share. Basically the plant and infrastructure will consist of a small offshore
platform, a small bore pipeline (10" - 12"), a separator and storage facilities
for condensate and a modular power station at the city of Douala, being only 13
kilometres away.
Angola
CityView is working closely with its principal Angolan partner Nexoil
Corporation to obtain the Kwanza Basin onshore permits as soon as they are
released by the regulatory authorities. No onshore Kwanza Basin licences have
yet been granted, but we have been advised that this will happen before the end
of the year and we are ready for it.
With offshore production of more than 1.7 million barrels of oil per day, Luanda
has become a classic boom town. The streets are gridlocked with new vehicles,
the port is clogged with ships waiting to find a berth and accommodation is
scarce. Competition is fiendish but our strong local network gives us the edge
over other companies.
CityView's credibility in Angola stems from its excellent performance on its
metal projects Longonjo and Ucua. Many companies are doing a lot of talking
about what they are going to do, but CityView is actually doing it. As a result,
CityView has increased its holding in both projects to 59% and has gained
management control.
Our Longonjo licence area contains two distinct projects; the Longonjo
Carbonatite (rare-earth, phosphate and niobium) and the Catabola (copper and
gold).
In general terms, worldwide production of phosphates, niobium and rare-earth
oxides tends to come from large, high grade Carbonatite deposits. Grades in such
deposits generally contain a minimum of 5% rare earth oxides. On the basis of
the data analysed, CityView's consultants advise that the Longonjo Carbonatite
appears to have the potential to host such a deposit.
Initial surveys indicate the Catabola is a shear zone hosted, vein type,
copper-gold prospect. The current mapped extent of these veins is over 1
kilometre. All the information collected to date relates only to the upper
oxidised portion but it would appear that the mineralised zones are cross
cutting and dips sub vertically, and their extent through the transition zone
and into the sulphide zone is unknown. An initial drilling programme will
commence within approximately one month and will consist of approximately 3,000
metres of core drilling to investigate the potential of the sulphide zone.
At Ucua, Murphy Geological Services have completed their structural
interpretation of Landsat ETM imagery and identified three major structural
zones across the licence area. The licence hosts the Dande Pegmatite Complex
which is potentially an important source of beryllium.
Indonesia
Using its past Indonesian connections, CityView has concluded an agreement with
PT Mitra Energy Development to produce liquefied petroleum gas in Indonesia.
Demand for LPG is strong as the country is moving away from kerosene. CityView
will be assisted in its proposed venture by Quest Energy Middle East Limited
("QEML") which has, through its associates, considerable experience in LPG
production. Negotiations are now in progress with the regulatory authorities for
access to a sufficient supply of gas in situ to establish commercial production.
Dubai
CityView has maintained its 8.3% interest in QEML which is headquartered in
Dubai where a full operational office is maintained. Being officially qualified
as a developer of oil and gas and power generation projects and with its strong
financial network, QEML has provided CityView with invaluable support in
implementing its strategy to become an energy producer.
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.
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.
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