more of Madden?, page-3

Hi barret81

If you apply the same metrics to the original price US $20 million paid for their 14%, ELK would be up for US$ 66 million for the 46%.

Keeping in mind when ELK were negotiating the original purchase they were doing so with a gas price around US$ 2 per MCF, they were dealing with a vendor who had no interest in the asset from the get go, just wanted out of the oil/gas scene and had no real idea how much gas they were selling.,

When the ELK guys met with ConPhil Madden people, they were told they got an absolute bargain and they should have paid at least double.

So with that in mind, even though they may be willing to sell to ELK, I doubt ConPhil will part with their interest cheaply.... I would guess ELK would have to pay around US$100 -110 million for the full 46%.... probably funded by 400 million shares at 5.5 cents and debt of around US$ 90 million.

That would buy them around 80 MMCFGPD and proved producing reserves of 500 BCF gas and 160 BCF CO2.

Does that sound like a good deal when they issued around 400 million shares and raised US$58 million to complete the Grieve development?

As I said, just stirring the pot.

Cheers

Dan