Ann: Half Year FY2018 Results & Guidance, page-7

Hi Bulldozer

Around mid April is now the guidance from ELK as per the latest BRR interview, I'm not sure they can actually give a date yet themselves as it is the operator, Denbury which is running the show.

What is more certain is it will take a few weeks for full production to come on stream as the wells are opened up. Despite the delay of a few months in Grieve, the next three quarterly production numbers will be impressive as they will show a continued steep climb in barrels and revenue.

The march quarter will include a full contribution from Aneth, so we should see an extra 170000 barrels to approx 850000 BOE total , the June quarter will see the start of Grieve and ramp up, approx 100000 BOE extra to 950000 total for the period, the Sept quarter should see Grieve in full production at 4000 BOEPD+ ( Elk at 75% share) or and extra 170000 BOE ( after accounting for the previous quarter Grieve increase) to give a quarterly production profile of about 1.12 million BOE of which about 800000 BOE is oil.

The only downside to the significant oil price increase is the fact that ELK will need to pay the first extra US$ 10 million deferred payment to Resolute for Aneth if WTI stays over US$ 52.5 till July 2018.

Cheers

Dan