future growth potential

With Elk placing more emphasis on working out of the USA as opposed to Aus it is likley we will see a more aggressive/active Elk going forward. I wonder how much of that enthusiasm extends from the following and the opportunitys it presents???

http://trib.com/news/state-and-regional/article_bed0a78f-5c88-5679-9ee8-1fade3ac6e0a.html

Denbury are about to lay the co2 pipeline that will run through the powder river basin to Bell creek in Wyoming. This no doubt will open up numerous new fields to co2 flooding. Hopefully Elk can take advantage of this and wrap up a few before the rest of America starts throwing large sums cash around and prices Elk out.

Unfortunately the pipeline is on the opposite side of the basin to Ash creek and at 80miles distance between the 2 would rule out a co2 flood there at this stage. Future spurs that may take it within reach would no doubt come to late for this field. So water flood/chemical flood will be the go.


Nice to know we have an aggresive/experienced operator in Denbury who will get Grieve developed quickly and efficiently freeing up our management to chase other opportunitys. With the co2 flood due to start in a little over 6months we potentially could see first oil in around 12months, that could go very quickly relative to the last 6years.

A debt facility is a neccesity going forward to allow Elk to chase these opportunitys..

Cheers