ELK are issuing up to 60% more shares, in return for this...

ELK are issuing up to 60% more shares, in return for this massive dilution they have given very little detail of how they plan to spend the money and we all know how that has gone in the past...

Ash Creek - Based on Grieve (needed $20mil+) Ash creek would likely be $10mil+ does this mean another capital raising in 6months??? $500k would probably cover the core well. No ballpark figures of how much or how the money will be spent, no time frames nothing.

Niobrara- "Elk would like to retain at least a 50% working interest in any joint venture appraisal and/or
development of the Grieve Niobrara. Based on this, participation at this commitment level will
require some funding to be sourced by Elk."
Based on this statement ELK are impling that the Niobrara is worth less than $1k an acre even with all the infrastructure pipelines etc in place and significant information on the field. Which would suggest it is not viewed by the industry in a favourable light. In which case maybe ELK should JV at market rather than spend precious cash on a high risk project. Unless they are looking at some backended deal that will reward all those sophs!!! No estimate of how much money they need or the terms they are after. ELK failing to meet the market on the Grieve flood years ago destroyed so much share value. A 6% royalty interest in Grieve 4 years ago would have put early holders in a much better position than the 35%wi today.

Hereford- "Early production and income should be possible from this project." They had no plan for development when they drilled it, just another project whose value at the time was to keep the masses quiet. For all the studys that have been done we get nothing, no costings no development plan, is this becouse it is borderline/sub economic. Yet apparently they are raising money for it, how much of the money is put toward this project, is it a wise use of capital or is it just another project to keep the masses at bay and it will end up being mothballed. Very reminiscent of when they tried to raise capital for long lead time items for the chemical flood at Grieve when for months no one had been willing to fund the project.

"The possibility already for shallow gas prospects, in
the leased acreage containing Elk?s Hereford gas field." Give me a break!!!! At sub $4 gas prices you must be joking!!! How much was that pipeline again that made the current 60bcf stranded.

"Some of the opportunites, which are described above, have the potential to achieve first production
and income at a similar time as the Grieve EOR project." They are not even targeting early cash flow.

ELK needed to ideally farm out the Niobrara on the terms that were available. Ash creek needed to have a low cost waterflood started in the lower shannon, everything else is far to late is a tradeoff between certain value destruction versus possible value increase.