While the technology sounds promising, I am disappointed that ELK have chosen to spend what little money they have left (most likely less than $2.5m) on something that will not be generating the company any revenue in the short term (AGAIN).
As per announcement: "Mtarri is working with Elk Petroleum to identify a first location; the target date for first field injection of EORGAS is the SECOND HALF of 2013."
So if Grieve and Ash Creek are only expected to produce around 200bopd at the start of 2014 (as per their last presentation) but their cash is only expected to last until Sept/Oct 2012 (assuming quarterly spending remains constant), where is the cash going to come from to keep the company running? Another capital raising???
Increasing revenues and minimising expenditure should be the priority in the current financial environment. Hope the directors have something else up their sleeve.
ELK Price at posting:
13.0¢ Sentiment: None Disclosure: Held
