"FACT #2: ELK have not carried out any horizontal drilling to test the shale;" Laterals can increase production many times. If Elk had of recovered sub economic amounts of oil then horizontal drilling could have made it an economic play. Problem is nothing multipled by nothing is still nothing.
"FACT #3: Another company who has tested the shale formation is currently producing oil from it (Poison Spider field). I tried to find out more about this field but have not found anything on the net." I beleive all 8 upper sands at Grieve economically produce oil, unfortunately at other locations.
FACT #4: The company are aware of this formation and will be continuing to monitor results when drilling commences on the Grieve field." It would have been a P+A except they will use it for the chemical flood. "continue to monitor it" just a nice way to let shareholders down gently.
ELK Price at posting:
10.5¢ Sentiment: Buy Disclosure: Held
