material dilution, page-2

Good points Davo. This raising is not just for working capital, it is for acquisitions and I think they are looking at around 40-50m new shares which would be a disaster for shareholders.

I've just re-read the Strachan report and note the part about the niobrara,

"ELK is likely to expand its Niobrara interests in the region and then attract a suitably qualified farm-in partner to assist with project funding and technical development of the asset".

That tells me that ELK never seriously looked to get a farm-in (remember it was first mentioned in January). They probably intended some time ago to increase acreage and then market a bigger asset. That would be ok if they can manage to buy leases at $300 an acre and then do a farm-in at $3,000 per acre, but I can"t see them doing that.