Ann: Progress Update , page-5

In earlier announcements we had been told the contract for CO2 was to begin early 2012 or 1st quarter 2012, from my memory I had never seen 1 February as the commencement date.

But to be fair to Bob he did mention at the AGM there was a strong chance that force majeure would be invoked so this now shouldn’t come as any surprise.

It’ll be interesting to get the latest schedule from the BLM for EA approval. I would expect that the BLM has worked with ELK over the last 8 months or more to address any issues involved with the EA. Only then would it be made available for public comment. Hopefully, there haven’t been any objections so it is now just a matter of an official approval.

Having invoked force majeure ELK can say to the BLM that every day the EA is delayed beyond 1 February results in so much more CO2 being pumped into the atmosphere.

I still believe that approval may be sometime in February.

Not having to do a core well at Ash Creek is good in that money will be saved but I was looking forward to accessing some bypassed oil with this well. It seems the money will instead be spent on some workovers. Let’s hope this time they get some better results.

Yes, it sounds like they are stepping up the waterflood at Ash Creek. Wasn’t Davo urging that a year ago!