Grieve Oil Production Silence, page-19

On the end of year theorists...if Elk has not sorted out the oil production volumes from Grieve well before the financing, there will be no year end Happy Holiday period as Elk will not be able to successfully obtain the rate discount and terms it is suggesting is attainable. Elk needs a bare minimum 40 million USD per quarter turnover to carry its cost structure and eke out a nominal amount of cash flow to begin covering future modest capex together with the outstanding premium purchase price charges in year 2 and year 3. Even this figure barely enables meaningful development capex.

Grieve verifiable and reliable production of lets say 2000 BBD is an essential component of the cash flow of this company. Without it, dont count on this company being anything but debt holder owned company. The equity value is severely at risk without significant production increases for nominal capex and opex increments. Grieve has to perform to save the equity holder.