re: Ann: Grieve EOR Project receives approval...
While i'm glad that we've finally received our environmental clearance, we should be careful not to get ahead of ourselves.
My concerns about cash flow still stand as management still have not demonstrated how or where they are going to generate revenue/ cash flow in the shorter term.
This is particularly important because the company's latest presentation shows that Grieve is only expected to start flowing oil 18 to 24 months after first Co2 injection in Nov 2012 and Ash Creek is only targeted to commence oil flows in mid 2013 IF there are no delays. A chart in the presentation also indicates that they are only expecting 200bopd at the start of 2014 from Ash Creek and Grieve combined.
The longer term picture looks bright but I suspect a lot of disgruntled shareholders will be selling out on any short term spikes in the share price which would result in a lot of resistance.
I'm hoping management and Denbury are able to speed up the re-pressurisation of Grieve so we can achieve oil flows a lot sooner. One possibility is for ELK to utilise their recent new EORGAS technology investment, SYNGAS, to speed up the process. This was hinted in the following article on the net:
"Elk’s investment (EORGAS SYNGAS) will be applied to conducting further laboratory tests on oils from mature fields, INCLUDING ITS GRIEVE FIELD in Wyoming."
