Good post Wickerman,You stated:"That means once production...

Good post Wickerman,

You stated:
"That means once production starts at Grieve (say Sept/Oct 2012), ELK sp should reflect something like $67M-$107M for Grieve NPV alone."

Just finished listening to a 2hr presentation by Denbury carried out on the 14 November to various Analysts. The presentation can be found at:

http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=72374&eventID=4202676

Grieve is mentioned only briefly at the 1:08:43 mark.

I strongly believe that its important to manage our expectations so its important for all shareholders to note that in the presentation, Denbury had a Co2 injection target for the 3rd quarter of 2012 and production targeted for the 1st half of 2014 because they were of the opinion that Grieve was a very low pressured well.

So Wickerman, I think your forecast production target of the end of 2012 is probably the best case scenario as I do remember reading in one of Elk's announcements that there was a possibility that oil may start flowing as soon as 4 to 6 months after initial Co2 injection. I'm hoping Denbury's target for the 1st half of 2014 is a conservative one and is the worst case scenario. I obviously hope that you are right but will most likely continue to hold and possibly accumulate until 2014 if I have to as I strongly believe that the Grieve's probability of success is very high.

The other important fact worth noting from the presentation is that Denbury are truly the experts in Co2 EOR recovery. They stated that EOR was low risk and provided a better return on investment than conventional oil extraction methods. They have been carrying out EORs since 1999 and their success rate is very impressive. The presentation also highlighted that they are constantly learning and improving their EOR techniques and oil recoveries to date from most of their projects have been mostly on target and performing very well so Grieve is definitely in good hands IMO.