Well, if you want to write a soap opera ELK would be a good story.
You know chasing one good thing after another and then finding zip.
People have been hoping for oil from Grieve since what......2007..............and then waiting for the next installment of the the never ending story.
The key to growing an oil company is to increase the amount of oil per share and not decrease it.
Maybe you can put up a chart starting in 2007 to the present day showing how much oil backed/backs each share just using the Grieve project.
There is a long time between now and when the first cash ever starts to flow from the project and ELK needs to find a way to:
1. Fund the remaining expenditure for the Grieve project. DNR and ELK have a loan facility set up but based on the amount of expenditures to date and the length of time remaining to first cash from the project, IMO that faciity will have to be increased and that depends on DNR.
All they have to do is deny any increase and ELK has to find more funds for its required expenditures.
2. Fund the ongoing expenses of the company. Right now they have basically no income and huge costs. They also have basically used up the line of credit from the bank as well. Where are they going to get the funds?
It sure isn't going to be from a CR when the share price is 3 cents below the that. Maybe there will be some people that are so smart that they will buy the shres and have an automatic loss of 25%.........
3. Fund the refurbishment of the pipeline which has basically very little value as DNR has elected not to use it.
4. Fund the next pie-in-the-sky project............
All that glorious cash flow if and when it ever comes is initially earmarked for repayment of DNR.
And finally:
"The salaries don't seem unreasonable"
Right they are 'not unreasonable' - they are ridiculous.
IMO those options will expire worthless along with the value of ELK shares.
ELK Price at posting:
9.0¢ Sentiment: LT Sell Disclosure: Not Held
