Ann: MEL announces scrip merger with Elk Petroleum, page-26

So ELKs Grieve project is due to start producing in March 2017.

So how much further money is it going to take to get to production? Havent seen a response to what the capital plans of Denbury the operator are with respect to the project? At current oil prices is this project making money?

How many ELK employees will come over? They have a pretty high cost base from what I can see, are we extracting synergies or have we jsut increased our costs when the company has no income coming in?

And the million dollar question: What happens if we get a resolution on Rosella- where is the capital to drive this through? Can we fund Grieve to production whilst also having the capital to get moving on NSW gas given this is our bread and butter.

I think we need a lot more detail here. Its all a bit concerning given we have just funded ELK for $2.5m in working capital when really the cash balance of MEL is its last remaining lifeline if things dont get better.