elk petroleum seeks a$5 million at 25 cent, page-13

Part of an email I received from my broker this morning..



ELK is seeking to raise A$3.5 million through the placement of up to 14 million shares at a price of A$0.25 per share, with a free attaching listed option on a 1:2 basis with a strike price of A$0.35 and expiry date of November 2013. Placement shares will be issued under the Company's 15% capacity in accordance with ASX Listing Rule 7.1 ("placement"). The Placement is being conducted, pursuant to section 708 of the Corporations Act 2001, to sophisticated, experienced or professional investors.

The Issue Price represents:

- 19.5% discount to the last price, $0.31
- 17.2% discount to the 5 day VWAP of $0.30

Each listed ELK option carries a Black @ Sholes valuation of $0.08 cents per share representing an effective new issue price of $0.21 cents (32.2% discount from last close).

Offer closes 9am WST tomorrow, Tuesday 9 October 2012.

Please email your interest or contact me to discuss ELK or the offer further.

Kind Regards,

Joel Fishlock
Investment Adviser
61 8 9263 5230
[email protected]
DJ Carmichael Pty Limited