co2 injection by november 2012

Great progress being made by our JV Partners at Grieve with first injection of Co2 anticipated in November 2012.

Just take a look at the professionalism and calibre of JV Partner we have in Denbury Resources - www.denbury.com.
Denbury appear to be an "underpromise and overdeliver" type of company.

ELK is free carried through to production of first material oil at Grieve which could be as early as February 2013 based on similar Co2 Injection projects Denbury owns and operates (take a look at some of the production profiles from similar Co2 projects to Grieve from the Denbury wesbite).

For those that don't know, that means ELK will be producing 35% of 18.6 million barrels (see the previously completed Ryder Scott Report on the ELK website). Based on US$90/barrel thats almost $US 586 million of revenue to ELK alone over the next 5-9 years (depending on achieved production profile).

Furthermore, ELK is in the box seat now to monetise the Grieve pipeline which is surplus to their requuirements. This additional cash will either allow them to acquire a new project or expedite the Ash Creek Chemical Project which could mean ELK has significant material production from not only Grieve, but also Ash Creek by potentially the 1st Quarter of 2013.

Taking a look at the previously completed Strachan Report (see ELK website - Elk was valued at 57 cents on a risked basis with potential upside to 97 cents). However, this Strachan Report did not take into account the monetisation of the Grieve pipeline which could allow further upside.

ELK is certainly on the cusp of a major re-rating and after a long wait, its loyal shareholders are set to finally be rewarded. I certainly wouldn't be selling any shares in this little beauty.....