Ann: Elk Corporate Update, page-2

Comments:

1. Grieve

Basically still in clean up mode which means no income from the property. Have to wait longer for more information and results.

2. Singleton Sold

A 'leftover' from the previous Elk operators. At least they got rid of the liabilities associated with the property. I wonder how much that cost little side venture shareholders?

3. New Aneth loan facility

Some good news as they were able to raise funds from the debt side rather than dilute shareholders more. The bad news is that oil prices are now headed down.

4. More PV10 BS

I wish all oil companies would stop with the PV10 BS using WTI prices. It doesn't matter what the price of WTI is and using it to justify some figure is meaningless. Elk doesn't get WTI for their oil production so why assign a value using that figure?

Houses in Toorak are worth A$10 million. Using that Toorak house price when talking about a house in Sunshine is ridiculous. Same with WTI.