largest shareholder takes stake to 25.2%

Elk Petroleum’s largest shareholder takes stake to 25.2%
Thursday, March 14, 2013 by Bevis Yeo


Elk Petroleum’s (ASX: ELK) largest shareholder Robert Healy has increased his stake in the company to 25.23% from 23.37%.

In a bullish sign, Healy had spent $1.25 million on both on market purchases and a recent company funding to acquire 8.25 million additional shares, bringing his total shareholding up to 42.36 million shares.

Elk and its operating partner Denbury Resources (NYSE: DNR) have recently started carbon dioxide injection at their Grieve Enhanced Oil Recovery Project in Wyoming and are poised to ramp up injection to about 40 million cubic feet per day.

This is up from the original 30MMcfd of CO2 that the joint venture had intended to inject into the Grieve Muddy reservoir and should accelerate the repressuring of the reservoir, allowing the remaining oil to be produced.

Water injection is also on the cards to further speed up this process.

Grieve has proved and probable reserves of 18.6 million barrels of oil.

Elk has A$3 million in cash though it is fully funded through development of the Grieve project.

http://www.proactiveinvestors.com.au/companies/news/40799/elk-petroleums-largest-shareholder-takes-stake-to-252-40799.html