I would agree with you guys if ELK carried out this acquisition...

I would agree with you guys if ELK carried out this acquisition on their own. Fortunately, they are not. The announcement states:

"Denbury to fund and hold a 65% working interest in the new acquisition."

The above to me implies that Denbury most likely called the shots or at least played a major part in the decision to increase the acreage at Grieve. IMO, Denbury know what they are doing and they wouldn't waste money unnecessarily unless they believed that it was worth their while.

The following extract from the announcement is another potential positive IMO and shows that they Denbury know exactly what they are doing:

"The acreage will be assessed for residual oil when Denbury drills new down dip wells scheduled for later in the year, to source water from the deeper Madison formation. The water from the Madison formation will be used to accelerate the re-pressuring of the Muddy reservoir coincidental with the injection of CO2 in the up dip wells in the field."

Sounds like they will be killing 2 birds with 1 stone ie. extracting water from the newly acquired acreage to ACCELERATE THE RE-PRESSURING OF GRIEVE while also assessing the newly acquired acreage for residual oil.

Sounds like a good plan to me.

Things are definitely looking a lot better now with Denbury's involvement. About time if you ask me!!