ELK (ASX) GM takeouts

Originally posted by danpech ↑

RJ

Brad didn't elaborate regarding the hedges as to the mechanics of any rebasing, however there is no need to action on Grieve because ELK has full exposure to the upside .

As to the price ELK will get for Grieve , I was surprised when he said they will get a small premium to WTI, but I see no reason for Brad to say that if this is not going to be the case.

From what I understand , Elk can redeem the referred stock at a 20 % premium to the issue price so they will need to pay $13 million extra to redeem the $65 million prefs.... basically 1.25 years interest in advance but worth it to get that s#@t paper off the books.

They way Brad was talking about the operations at Aneth, IMO, ELK are going to eke out some significant low cost incremental production in the short-medium term ... we shall have to wait and see.

Cheers

Dan

Expand

Actually, I should have been more specific when talking about Grieve, they bought all those puts and they lost several million on them IIRC.................I can't remember the exact amount, but the puts were for $45 a barrel.

And if you want to see the price of oil at various locations in the USA use the following link:

https://oilprice.com/oil-price-charts/block/1

Wyoming crude prices as of 28 June in Wyoming:

Column 1 Column 2 Column 3 Column 4 Column 5 Column 6

0 Wyoming

1
Wyoming General Sour
55.00
+0.75
+1.38%
(28 Jun)

2
Wyoming General Sweet
68.00
+0.75
+1.12%
(28 Jun)

So both are considerably under the price of WTI - Sweet by some $6/barrel and Sour by around $19 per barrel.

	Column 1	Column 2	Column 3	Column 4	Column 5	Column 6
0	Wyoming
1		Wyoming General Sour	55.00	+0.75	+1.38%	(28 Jun)
2		Wyoming General Sweet	68.00	+0.75	+1.12%	(28 Jun)

Actually, I should have been more specific when talking about...