Ann: MEL announces scrip merger with Elk Petroleum, page-35

Stumpy, some of this is not quite correct. I am still going through the ELK ASX announcements but: -

Back in 2011 when the JV deal was done with Denbury, the estimated capital cost for the field development was USD 62.8 million (Elk's share USD 22 million). Of this USD 22 million, USD 10 million was the free carry by Denbury. The next USD 12 million was a loan to Elk.

The $2.5 million now being supplied by MEL appears to be Elk's share of the overrun from the initially expected capital cost of USD 62.8 million to the now actual of USD 70 million. And we now don't get to first oil until early 2017. So presumably there are still some costs to be expended, 35% of which are Elk's responsibility.

The other disturbing aspect is that when the project was initiated . This forecast for first oil was 2014 which has now blown out to 2017. Even as late as March 2013 when the CO2 injection commenced, first oil was still forecast as 2014. I have not yet got a handle on the reason for the substantial change in date for first oil.

The early ASX announcements from Elk make for depressing reading - one missed project deadline after another. Which is never encouraging.

So far the Grieve EOR project has looked like a bit if a money pit going nowhere fast.