Status of existing oil contract hedges, page-2

Hi BS

I sought clarification from the CFO regarding the hedges. The $ 4 million was not an early close out of a hedge but the sum of the monthly payments to settle the swaps for the quarter. Being oil swaps, ELK sell the " swapped" oil for the spot price and then they have to pay the difference to the counter party at the end of each month ( I suspect you are up to speed on the machinations of hedging) . These payments will continue as long as the selling price received is above the swap price until the swaps run out in 2021.

Cheers

Dan