Ann: Quarterly Activities and Cashflow Report, page-7

The quarterly is underwhelming is right, not aided by the delay in production at Grieve. There needs to be some significant top line revenue improvement which seems unlikely as according to the report the company is running at full production, in fact other than Grieve ramp up and unwind of hedges impact, unless oil prices remain frothy through the US summer, there is downside risk to the revenue which will make any strong positive cash flow challenging. The debt refinance without reasonable positive cash flow in the two previous quarters will impair a full discount although if the wheels stay on there should be a savings of circa 8 million annual at current debt levels. This is all at the margin though and not going to turn Elk into a cash cow or growth engine. Current price is actually reasonably valued even with refinance unless there is significant improvement on the revenue side which means a significant increase in daily barrel production.