Had a quick look at the report. As far as debt is concerned,...

Had a quick look at the report.

As far as debt is concerned, they give a number , but the Preferred Stock is shown as $60 million in the ELK report dated 31 December 2017 and not $55 million as in the analyst report.

The interest payable on the Preferred Stock can not be calculated as it determined in part by production of oil and gas by the company.

(Data taken from page 25 and 26 of Elk Half Year Report, 31 December 2017)

So correct me if I am wrong, but it appears that ELK get zero profit from Madden until the Series B is paid and then pays 25% of the Net profit from Madden forever.

If Grieve production goes up then the cost of Series A payment goes up. And it appears that 5% is taken off the top.

The report also indicates that $28 million in interest is payable on page 5, but then in the chart on page 6 in the Profit and Loss Table it only shows Net Interest expense of $14.9 million in 2018 estimated, $14.2 million estimated in 2019, and $11.6 million estimated in 2020.

The report also talks about the increase in value of Elk if the current price of WTI is used. IMO that is ridiculous as Elk is hedged at much lower prices and Elk as with other companies in the sector would rarely get anything near the WTI price when selling their production.