Grieve 35% - 8.6 million barrels to 2P at Grieve, one only needs...

Grieve 35% - 8.6 million barrels to 2P at Grieve, one only needs to assign a $15 per barrel and his would provide ELK's 35% free carried ownership a value of over 45-50 cents a share (Grieve alone) taking into account a fair discount.

Grieve Pipeline 100% - ELK to earn a very handsome royalty which based upon the conservative estimate of 18.6 million barrels yielded this adds 10-15 cents to the share price. The environmental approvals clearly define that oil can only be transported via this pipeline due to environmental concerns. See the Meagher Associates sale documentation which states this. Further, even if Denbury were to gain approval to truck the oil form the BLMl, it would cost $6-8/barrel which would render the process commercially unviable. This pipeline provides ELK with significant leverage, as Denbury will not want another party to own it and hold them to ransom on what they have to pay per barrel to transport their oil ($5 a barrel for 5,000 barrels a day for 350 days of the year = $8.75million). Surely, the pipeline is worth more than 3 x earnings which is $26.25 million = circa 14 cents per share).

ELK placing the Grieve assets forces Denbury to either pay for the pipeline (circa $25million plus) and the remaining 35% (circa $95million) or risk having to deal with another JV partner (Devon, Anardarko or ConocoPhillips) who will not be the little brother that can be pushed around that ELK has been sonce teh JV was executed.

Add to this the value of Ash Creek which could yield 3 million additional barrels through a low cost chemical flood and you can understand why ELK is attempting to make the market aware of its assets value through a competitive bid process.

Furthermore, the EOR Syngas deal that ELK has could be a very lucrative proposition.

The patience is soon to be rewarded for the long suffering shareholders who have seen his potential since 2006....
Also, all of the above based on $95/barrel - who knows where it will be over the follow years with trouble in the Middle East as it is currently over $106/barrel now....

DYOR but this is undervalued by any measure...