Ann: Proactive Investors Series Presentation, page-6

First 6 Last

Share
Profile

Follow
gusman83

208 Posts.

3

07/02/17

14:44

Post #: 22429496
Share

Originally posted by danpech ↑

Sorry about the delayed post.

Just a few quick titbits gleaned from a chat with Brad post luncheon

In regards to the Madden field, looks like ELK got a bargain!

1) ELK were highest bidder from 4 others

2) Post purchase guys from the operator gave the ELK team a presentation during which they expressed surprise at the winning bid of $20 million, they expected at least double.

3)At the presentation ELK were given a gas production profile projection to 2065.... it looks like ELK bought twice as much gas as they thought they had as compared to their due diligence on the Freeport information.

4) the Lost Cabin Gas plant is insured for $625 million. The plant is in very good shape.

5) gas price received is at a discount to Henry Hub, at current prices it is about 22 cents under HH. The discount decreases with an increase in HH.

6) There are no plans for expenditure on new wells into the Maddison formation at this stage.... if there is a significant increase in the gas price then that may change. Keeping in mind the wells need to go to 24000+ feet and can cost $50+ million ( can produce 50mmcfgpd+ )

Cheers

Dan

Expand

This is great! Is everything on track with Grieve? The Madden field looks highly complementary to existing operations. We should start seeing money flowing late this year. Did you hear anything that would suggest any headwinds?

Last edited by gusman83: 07/02/17

ELK Price at posting: 7.6¢ Sentiment: Hold Disclosure: Held
Upvote

0 Great analysis

Reply

Top Stories

GRL

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

PNN

Power gets set for 1000-metre maiden drilling program in Brazil

BTH

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

US election outcomes: Key economic and market takeaways

Quit before you're fired: Russia bans uranium exports to USA, duplicating extant US ban

There are more pages in this discussion • 2 more messages in this thread...

First 6 Last

Add ELK (ASX) to my watchlist

Ann: Proactive Investors Series Presentation, page-6

Top Stories

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

Power gets set for 1000-metre maiden drilling program in Brazil

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

US election outcomes: Key economic and market takeaways

Quit before you're fired: Russia bans uranium exports to USA, duplicating extant US ban

Featured News