The announcement about the" bids" needs clarification.
Does the announcement mean that not one entity bid for all the properties as a package? IMO the way I read the announcement it appears so.
With regards to Grieve, what was retained interest? A % of the EOI project or was it the Niobrara portion? Again IMO the announcement issn't clear, but I would guess that the reatined interest would be the Niobrara portion as there has been no interest in that asset over the past.
And as far as bids are concerned the fact that it appears that each asset has a different bid (see above) IMO indicates that prices will be low.
Even if ELK gets $30 million for the bundle it hardly justifies the current share price. I am guessing that ELK owes Denbury and others at least $18 million. That figure may even be higher.
After paying off the debt and the amount required for 'admin' costs for the rest of the year, that wouldn't leave much for shareholders. With the number of shares outstanding that would work out to around 6 cents a share.
ELK Price at posting:
10.5¢ Sentiment: Sell Disclosure: Not Held
