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1.4¢ elk petroleum limited

Great point Dan and can definitely see it from that view point!...

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gnole

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27/03/18

22:06

Post #: 32071819
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Originally posted by danpech ↑

Hi gnole

Spot on with the explanation regarding Elk's oil hedging.

My take on the opportunity cost is a bit different. As dill said, the Aneth hedging was necessary to facilitate the debt finance..... no hedging would have mean't no finance, and no Aneth deal, or an Aneth deal which would have been more equity dilutive, or with significantly more expensive and restrictive finance.

The opportunity cost to Elk of not picking up Aneth would be immeserably more any hedging loss.

Cheers

Dan

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Great point Dan and can definitely see it from that view point!

Gnole

ELK Price at posting: 9.2¢ Sentiment: Buy Disclosure: Held
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