at present - I do not think its "investable" b/c the preff shares get a return, while the ord's get very very little (oil price dependant ......circa above 65 ....) ......
if they get the AB punters to agree to redeem preff's (at premia .......lol), then the total capital requirement is circa 260mUS ........
imho - this is "why" we have seena 6 month delay (basically hoping that grieve would come good - so that it could be incld in the borrowing base......)
as ive previously said - this is a (very) high risk play ........and value is dependant upon OP and gas prices ........its also depednat upon grieve.......and also further redevelopment of Aneth........
there is "value" ........but very high risk .....
the question is "how much" of the value does ELK management have to give up to get the thing back on a reasonable financial footing ........
I rekon it will take some more (equity) capital .....and hence il be waiting !
rgds
V_H
ELK Price at posting:
4.0¢ Sentiment: None Disclosure: Held
