The issue with anyone looking to hang with Elk or any other bottom dweller is that the speculator can not rely on the information presented. In Elk's case, few if any press releases have been found to contain reliable, complete disclosure of material changes in circumstances. Nothing can be taken at Face Value. So whereas allegedly Aneth might be refinanced, there is no mention of how Grieve would be refinanced, regardless of how many times they have the same wet behind the ears group to do a geological survey. An honest company would have had a 2nd assessor long ago to bolster the credibility of Grieve. As stated a year ago, without cash flow gushing from Grieve, the math will and has never worked. An honest company does not repeatedly spend money on paid brokers to push out analyst papers at wildly inflated future oil price averages ie in the 70s as Elk did, to dupe speculators/investors. The whole issue around Grieve allegedly being starved of CO2 necessary to accelerator the oil recovery, should have been disclosed as much as a year ago. Complete transparency of the rolling hedge instruments given their punative impact on cash flow should have been clearly disclosed.
So for those hoping for a miracle at Elk or other like entities, in the absence of being able to rely on the representations of management as controlled by a Board, which in Elk's case it is not possible, you are really flying blind. This is where the regulator should be active. the ASX should not just be a casino for small caps as it then starves other bonafide companies of capital. This is the tragedy.
ELK Price at posting:
2.0¢ Sentiment: Sell Disclosure: Not Held
