binbin I agree with you on the current cash and projected cash...

binbin

I agree with you on the current cash and projected cash burn.

But I would qualify the projected future cash position by adding a third point to the above:

3. Future cash position will be positively impacted by increased Ash Creek revenue. Some from current work and some from start of chemical injection. Extent of this is currently unknown.

Even in 6 months time we should be in a position to assess future prospects and, if good, then other funding options will firm up.

References below:

9th March 2012
Elk Commits to the Staged Development of Enhanced Oil Recovery of its Ash Creek Oil Field


Mr. Cook said, “This work at Ash Creek has provided us with increased confidence to make this current commitment to the Stage 1 development. One of the re-entered wells has been brought on line and total oil production at Ash creek has been increased from approximately 10 barrels of oil per day to approximately 25 barrels of oil per day.”

Chemical injection of the field is expected during the forth quarter of 2012, with a first response to the chemical injection anticipated during the first quarter of 2013.