# ELK - Elk Petroleum



## Ken (4 December 2006)

Hi,

Elk petroleum has come up. I read it in a magazine 12 months ago. Was at around 25 cents.  It has seen close to $1 but some disappointing results have caused it to slip back down to 30 cent range.  Management seems pretty positive above future operations.

Just wondering what anyones take is on this junior explorer.  

I am not a shareholder and am currently doing some background work.

Has anyone done some research on it?


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## Alien (10 January 2007)

Has anyone done any research on ELK Petroleum? 

Announcement today shows that production from their Sand Draw South Oil field has reached 340 BOPD. Market Cap is around $20 million and they have cash on hand of about $8 million. 

Doing the maths 340 BOPD X $70AUD = $23800 or next quarter they should have production worth $2.14 million from this field in Oil alone. 

I notice Directors have been buying up lately as well. 

Seems grossly undervalued. Am i missing something here?   

Announcement today: 

Further Production Increases at Sand Draw South
HIGHLIGHTS
Ã˜ The company is pleased to advise that it has successfully completed the
2006 workover programme at the Sand Draw South Oil Field.
Ã˜ During the last week, test production at the field has reached 340
barrels of oil per day (BOPD) after completing the last well in the
workover programme.
Ã˜ The Company now has 5 oil producing wells at Sand Draw South.
Ã˜ Current oil production levels will contribute significantly to the
Company’s cash flow and profitability.
Ã˜ Re-processing of the Sand Draw South 3-D seismic is underway.
Ã˜ Further well workovers to be conducted during the Northern
Hemisphere Spring in 2007 are expected to add further to Sand Draw
South production.
Oil & Gas Production
The Company’s current daily gross production rates are approximately 360
BOPD. This comprises 20 BOPD from Grieve and 340 BOPD from Sand
Draw South. This is up from 80 BOPD prior to commencement of the
workover programme.
Sand Draw South Oil Field
The Company has significantly increased its daily production at Sand Draw
South by completing three new well workovers and enhancing production
from the two existing wells. Wells 6, 7 and 10 are producing from a
combination of the Tensleep and Phosphoria Formations. Wells 3 and 11
are producing solely from the Lower Phosphoria Formation and are
available for Tensleep production after this appraisal period.
Planning for the Spring workover program is underway with the
identification already of several other abandoned wells suitable for re-entry.
The aim of this program will be to increase production from the Tensleep
and Lower Phosphoria Formations as well as test the potential of the Upper
Phosphoria Formation in structurally attractive existing wells.
Re-processing of the purchased South Sand Draw 3-D seismic data is
scheduled to be completed by late February. The re-processing using latest
technology is expected to reveal further opportunities at Sand Draw South.
Rick Wood
Chief Executive Officer


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## exgeo (10 January 2007)

360 BOPD * (USD 55 BBL Oil price - USD 17 BBL production cost) * 365 days = 5.0M USD (this is 6.66M AUD using 75c exch. rate). Guesstimate 2M AUD in tax, leaves 4.66M AUD NPAT.

60.7m shares on issue, including escrowed.

This gives an EPS of 7.7cps (AUD). Of course this is on an annualised basis; for the earlier part of the FY they were producing less. Also they've been spending money on redeveloping the field, but this gives some idea of what to expect from steady-state operation at this production level. They seem to have more formations that have as yet been untapped (unrecognised as productive intervals by the previous owner). Also the company states that the field is more "compartmentalised" than previously recognised. This means that there is more faulting in the field than they thought, so the field may not have been drained as much as previously thought if the production wells were not optimally sited.

The production cost estimate of USD 17/BBL comes from a presentation of 21.3.06. Presumably when spread across more barrels of oil it might be lower, so this is conservative. At the time this estimate was made they were producing more like 80 BBL/day.


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## Alien (10 January 2007)

Thanks ExGeo for your valuation. You certainly know the Oil industry. (hence the name i guess   

ELK are currently producing around 20 BOPD from their Grieve Oil field of which has 12.5million BO reserve. 

Your forecast of At 7.7c earnings annualised plus the small Grieve production and additional upside with further exploration on Sand Draw South makes 34c look like a good investment. Good cash on hand and current production will self fund further exploration & deveolpment.

P/E 4.41 (.34/.077) 

I am in at these levels. Good luck to all....   

DYOR before investing as always...


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## exgeo (10 January 2007)

Well actually I don't know a lot about oil; during my career I was more of a hardrock geo (base metals, gold), so that's why I subscribe to Peter Strachan's newsletter. He genuinely is an oil guru. I just did simple arithmetic from publicly available figures, such as the oil price and number of days in a year! Here's Peter's site, I thoroughly recommend a sub. I made my dough back on NXS already having bought at 108c on his recommendation:

http://www.stockanalysis.com.au/

If I'd subscribed earlier then I wouldn't have followed the dozy director who bought at 90c!! Having said that, I've bought them now, and it seems like the downside is very limited, if any. Warren Buffets' 2 rules of investing:

Rule 1/ Never lose money

Rule 2/ Never forget rule number 1!


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## Alien (25 January 2007)

Up 8.96% today on increased volume. Closed at 36.5c.

Good to see somebody else seeing value.

Quarterly due out soon.


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## Alien (29 January 2007)

Further gains to 40c on good volume. Expect positive news from the next quarterly report due out in the next couple of days. 

ELK going strong


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## Alien (29 January 2007)

Up 22% to 44.5c so far today. Plenty of buy support as well. 

I am holding long term.


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## exgeo (29 January 2007)

Perhaps some of the instos that bought shares early last year have finally noticed that ELK have become reasonable value now. Especially as ELK are in production from the continental US, right next to the world's largest market and don't have to worry about wars, fickle governments or hurricanes. In fact one reason I bought them is that they'd actually benefit from a hurricane-induced oil price spike. There were no more Katrinas in 2006 though.


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## silence (29 January 2007)

Now above the resistance trendline established in August. Let's see where it heads to from here. I'm in, but closely watching.


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## Ken (9 May 2007)

Thought I'd bring this one up again.

Very interesting that citigroup has become  a substantial holder.

This is an oiler in production and a fair way of peak production.

Looks very undervalued compared to its peers.


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## Ken (9 May 2007)

Just doing some research on this.

Currently producing 244 BOPD from 4 wells.

-expects to be back at 340 bopd after pump change on 5th well.
-plan to workover additional abandoned wells (april/may) - expected to add 100 BOPD
- plan to undertake a new infill well into untapped section of reservioirs (july.August) - average historical SDS intial production rate was 235 BOPD - expects to add 160 BOPD.

Target production is 600 BOPD from SDS by 2007 USD winter.

GRIEVE EOR -
Grieve Muddy Reservoir Original Oil in Place 85 million barrels.
50 % percent recover factor will ultimatley produce 42.5 Million barrels.
recovery is quick and dramatic in extent.
there are wells in the field ideally positioned for injection and production.

POTENTIAL MODEL ECONOMICS

ASSUMPTIONS
LIFE OF PROJECT 20 YEARS
START OF CO2 INJECTION Q3 2007
START OF PRODUCTION Q1 2008
PEAK PRODUCTION RATE 4,000 BOPD
CRUDE PRICE REVEIVED $US 45
CAPITAL REQUIRED OVER PROJECT LIFE 28 MILLION
CO2 EXPENSE COSTS AND OPEX $18 US BBL

NPV @ 10 PERCENTS OF 100 % OF PROJECT aud $155 mm


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## Ken (10 May 2007)

Some big sells today.

I watched it most of the day. and someone wants to offload ELK.

Dont know why. Whatever it is they want out.


Several orders poppped up for a buy @ 26 cents, and they were filled straight away. Theres a sell order sitting for 350 000 shares at 27 cents. whi i think will cap the stock.

I believe a ceasing in substantial holdings will be on the cards soon.

I believe its the same people who sold it down the other day.

Worth watching.

ELK does need some positive news however.

For those holding long, we are approaching a buy price.

But it doesn't look good at the moment.


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## ta2693 (10 May 2007)

Ken said:


> Some big sells today.
> 
> I watched it most of the day. and someone wants to offload ELK.
> 
> ...




I think the seller is more likely from index fund. The energy sector is very weak today. Index fund know nothing about inside information. I am willing to buy some if it keeps on falling tomorrow.


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## Ken (10 May 2007)

I disagree,  the stock has dropped 30% in 1 month after looking like it was ready to run again.

30% is a lot to wipe off a stock considering it had a solid buid up from 22 cents in december.

Volume has also picked up considerably after an extended period of low trading days.  which went on for the most of march.

The last time we saw 1 million shares traded in a day before the start of this month (I think may 2) the share price went to $1.25.

Citigroups position in ELK could be something to watch closely.

Whether to buy, hold or sell, you be the judge.


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## Ken (11 May 2007)

ELK definitley hit the SIN  bin.

Being dumped really hard.

Big volume selling.

The question is why?

Ceasing of substantial holder very close.  How much does this person have to get rid of????


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## exgeo (11 May 2007)

In the next set of accounts it can be anticipated that the production increase to around 300 BBL/day will start to show up (average prod'n last year was 50 BBL/day). ELK state in their announcement of 28/2/07 that they are receiving AUD $42.57 BBL.

If you are a believer in the stock then the fact that some idiot is dumping them ought to be the perfect time to load up on some more. It seems to me that there's little to go wrong with this stock (hopefully these are not famous last words!), providing they can keep ratcheting up production. They are not dependent on some wildcat well coming up a gusher for example.


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## Ken (12 May 2007)

The one thing i have learnt from past experiences is that if you follow the crowd you get burnt.

When people were selling bhp  at 24 i was buying. 
When people were selling tls  3.50 i was buying
When people were selling oxr  2.6o i was buying
When people were selling coe at 40 cents i was buying.

When people were buying BLT and  I jumped on for the ride I got caught out
Enough to make re think the way I operate.

With speculative stocks such as ELK I am a fan of there opertations.  A report i read indicates to me that at some point in time success will be had.

I have watched the stock a few days now.  And the sellers have dominated. The buys on this have been tentative at best.  nothing of any authority.  The stock bounced from 25 cents to 30 cents, but since then there has been more selling. We have had some 1 million share days of selling.

I had a think about this.  And came up with END of year Tax write offs. There have been some big losses on ELK.  So my theory is tax purposes is the reason for the increased selling volume. this is just the way I am looking at the stock now.  

I may be wrong but thats my theory. The fundamentals of this company are not the worst. There are companies out there that you would say, dont compare to ELK in terms of cash flow and exploration potential....  ELK to be 26 cents.... not so great... out of favour etc.

But if the aim is too find value before the train leaves the stations then ELK is the kind of stock I am looking at.  The opportunity we have is there to purchase at low levels.

its Out of favour, turn around story would be needed.

Depending on the time frame for investors, ELK may not be suitable.

To me something doesnt add up. The report released looks positive.  The potential is there, and it appears they are not far away from being cash flow positive. 

- I find it strange that citigroup becomes a substantial holder.

- I find it strange that the price has dropped 30%

ELK may not be appealing to investors in a current copper/uranium/ nickell bull market.. oil is out of favour to some extent, the spec money is going elsewhere. 

But purely as a case study the past 12 months for ELK have been extraordinary.

A low of 22 cents, a high of $1.20. a capital raising at 65 cents.  There would be instos that have lost millions of dollars.  


Its only a stock but it has me perplexed how ELK is being traded at the moment. 

In 12 months time i will revisit the ELK thread just to see where its at.

Just something that doesn;t add up i am still learning a lot about stocks and the way they operate.  I have never picked a multibagger and my goal is to go through ELK with toothbrush and understand the business so i can get ahead of the sheep that may follow the crowd when ELK's time comes, if it does at all.

I will attempt to make my research thorough and easy to read.

Just a project.

Go blue boys


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## Ken (14 May 2007)

ELK petroleum for next 6- 12 months

Sand Draw South Field  -

Currently production is at 340 barrels per day. this is significant cash flow to the company of $15,000 to $17,000 per day. and yearly equates to over $4 million in cash flow per year. The sale per barrel fluctuates in the winter and summer months around $50 Aus per barrel.

The increase in production  to 340 bopd, from recompleted old wells at sand draw south field, more than met objectives that were set out where 5 wells were completed inside of 4. Theres additonal potential in respect to old wells that are planned to be looked at.

During the winter months ELK will be concentrating on gearing up its operations to prepare for CO2 flooding of its Grieve oil field,  where they have estimated a resource of 12.5 million barrels of oil. 

ELK will be seeking CO2 and a partnership for this part of there operation. 

Now according to my calculations.... Spring has Arrived in the Northern Hemisphere. 

The announcements that we should expect are, 

- Elk PETROLEUM  sources carbon Dioxide
- ELl PETROLEUM SIGNS Farm-out Agreement
- ELK PEtROLEUM begins CO2 FLOODING
- ELK PETROLEUM DRILLS More wells at Sand Draw South field

If I am missing anything let me know.  all this info came from the director via this link

http://www.brr.com.au/event/ELK/1693/18027

So it would seem its a better time to be buying than selling if you believe they succeed.

12.5 million barrels equates to of $625 million dollars worth of oil.

There are 60,710,503 shares on offer plus another 16 million to be released from escrow in June.  

Market cap it $15 million any gurus can help me out to what its worth per share.


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## Ken (20 May 2007)

Just did some research into other junior developers.

MAE is a company that is looking to produce $20-$30 thousand worth of gas per day. it is trading at  69 cents.  and that has a market cap of $170 million, compared to ELK which has a market cap of under $15 million....

So in effect ELK is producing, revenue at around $4 million dollars a year.  

MAE is not producing at all, but plans to and revenue is set to be $4 million +.

MAE has a 11 times  the market cap of ELK, so you would say that either ELK is under valued, or MAE is overvalued.  I know there is other plays for both companies, but simply put there seems to be a difference in the way the companies are being valued.

At present, it would seem ELK is significantly undervalued compared to MAE in my opinion.

Anyone else agree? or disagree?


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## PureCoco (21 May 2007)

Hi Ken, I am writing so you don't think you are talking to your self.  I did buy a small parcel last week at a price it just touched on.  This is my first oil / gas purchase.  

From your information and my own research I believe that they do have strong fundamentals. At least they are well underway with production.  Keep up your the study .  Thanks.


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## Ken (22 May 2007)

I sense we are very close to announcement from ELK.

I get the impression it could be a delayed one which may punish the share price a little bit more. Hopefully I am wrong, but an announcement is days away I think.

Hopefully they inform us that production has increased and they have secured CO2.

They are still making $15,000 + a day, which is a little bit less than MAE plans to, which hasn't produced a single barrel yet, and it is trading way above ELK's market cap.

The sell off in share price is probably from the silence on the announcement side of things, along with tax time coming around.


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## Ken (28 May 2007)

Volume is dropping off with ELK.

To me it says the big sellers have finished.  

The market depth has thinned out a little also.  So less downwards pressure.

Some positive news would be handy within the next few days I think.


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## Robert_Q (28 May 2007)

I've been following Elk for quite some time and believe it has potential. You are right Ken, the sellers look like they have finally thinned out a bit. I've read through the analysis on this site and want to point out a couple of things.

Elk is producing oil and according to the last qtrly report is now operationally cash positive. Most production comes from the SDS field which is heavy oil and sells at a discount to WTI. It looks like it sells about USD40-45 per barrel. Now that it is finally producing in some volume the marginal cost of production is getting lower. There are some announcements I've been waiting for and these include:

 - the 2 workover wells at SDS
 - the appraisal well for the upper sands at Grieve
 - securing CO2 supply for Grieve
 - definition of reserves and development plan for the EOR at Grieve
 - announcement of JV partner for Grieve
 - new well at SDS for virgin oil
 - new reserve estimate for SDS

Positive news from any of these should be positive for the share price. 


The company took a battering last year because the appraisal of the upper sands didn't go well. It was inconclusive because mostly due to mechanical problems, hence the new well which should be drilled any day now. It is shallow and will only take a week to drill.

Also, last week I did a search on google and happened upon an add for a petroleum engineer at Elk. Does this mean they are expanding or just filling a vacated postion?


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## Ken (29 May 2007)

Do we have any ideas whether we have any farm in partners coming on board?


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## Robert_Q (29 May 2007)

That is one of the announcements we are waiting for. I guess once the CO2 is secured then it would be easier (and on better terms for ELK) to negotiate a JV with a third party.

It's very frustrating waiting for things to happen but for us that believe in this company, we need to have plenty of patience.

Did you know that the CO2 pipeline running through the Grieve lease is owned by Anadarko and they have built a reputation as being a leader in CO2 as an EOR technique for mature fields. They are one of the leading producers in the USA using CO2. Have a look at their website. They could offer alot of expertise to ELK.

I read somewhere that Anadarko bought the Salt Creek field (near Grieve) back in 2002 for USD250M for 50MBLS of oil. That was $5/barrel inground value when oil prices were half what they are today. when I read things like this I really think Elk is not being fully valued but hopefully that will change when it starts to develop Grieve.


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## Ken (29 May 2007)

ELK was mentioned on the same page as YML in the smart investor magazine in 2005.

I am sure the author knew what he was writing about.


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## Robert_Q (29 May 2007)

I haven't seen that article. What did it say about Elk?

I noticed that MAE has gone up again, now valued over $220M. Hard to comprehend value there and makes ELK look grossly undervalued. At least ELK is producing oil, making money, has cash on hand and has alot of potential through oil not gas.

Don't forget that Grieve oil is light sweet so will command WTI price, currently about USD65 / barrel.


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## Robert_Q (4 June 2007)

I was hoping to see some announcement by now, especially regarding the workover at SDS and the new well into the upper sands at Grieve.

I did some research and there is a company called Rancher Energy redeveloping some oilfields near Greive with CO2. Similar situation as Elk. Rancher have already secured CO2 from Anadarko and are building a 50 mile pipeline.

I found a presentation by EORI and they make a mention of companies looking to use CO2. Elk rates a mention.

http://eori.gg.uwyo.edu/downloads/Tech_Transfer.ppt


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## Ken (4 June 2007)

Its hard to say what is going on with ELK. Very silent.

It being bumped down the last few days but is closing at .28 more often that not. So not sure why that would be the case.

I will continue to hold in the hope that a good announcement is sooner rather than later. 

It has never been a company to gloss things up in the hope of drawing in new investors.  


You never whats around the corner, keep the faith.


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## Alien (4 June 2007)

Hey Ken, 

Keep the faith. Grabbed this from another forum. The delay on approval for Upper Grieve is over. Bureau has approved the drilling, so we should get an ANN real soon. Included in this upcoming ANN should be the affect from the #1 well workover at SDS. This should add another 50 BOPD onto the current prod of about 300.

Here is the info about the approval. Not sure of its source, but assume BOLM?? I expect these pieces of news to bring out some support.

Permit to drill received 1/6/07, news soon.

Permits To Drill 
Reporting Period 05/20/2007 - 06/03/2007 

49-025-23515 
ELK PETROLEUM INC 
GRIEVE No. 31-21 
NW NE Sec 21 T32N R85W 560 FNL & 2130 FEL 
Received 05/31/2007 Approved 06/01/2007


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## Alien (4 June 2007)

Thanks for the info on Rancher Energy - Robert Q. 

Anyone interested in ELK Petroleum should listen to their CEO's podcast at a presentation on CO2 recovery. 

http://www.rancherenergy.com/newsstory.asp?newsID=19

Very interesting to hear of what constitutes a decent field suitable for CO2 injection and the fact that it is so important to have a field located closely to a CO2 source or pipeline. Apparently CO2 cannot be piped/transported too far when it is compressed for CO2 injection due to its weight.

The company has a market cap of about US$100m and spoke about its plans to purchase field in its own blueprint (Wyoming). I would think that Elk/Grieve would make a cheap purchase at current prices.  

On other interesting notes, Rancher Energy paid US$25,000,000 for the Big Muddy field in Wyoming to be used for CO2 injection. This field produced 52MMBO, so is not that disimilar to that of Grieve. 

Let me know your thoughts on the podcast.


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## Robert_Q (5 June 2007)

Hi Alien,

The podcast is very interesting and is very applicable to Elk. Grieve field is only 3 miles from the CO2 pipeline so it will not cost much to build a connection. 

Also, ineteresting about the carbon trading and the potential to get half the costs back from carbon trading when it happens (and it will the way things are going).

I guess the SDS field could also benefit from CO2 injection. I think it is also pretty close to the pipeline.

I am hoping the announcements coming soon and we see an uplift in the price.


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## Robert_Q (5 June 2007)

Hey Ken, I noticed MAE is up again today. Now their market cap is about $340M.

Certainly makes ELK looks very undervalued!


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## Ken (5 June 2007)

Yogi!  if your out there would be great if you could do a time line for ELK.

All things taken into consideration, it would take an aggressive buyer or seller to send the share price a fair way in either direction. Market depth is very similar to that of a newly listed uranium stock.


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## ta2693 (5 June 2007)

http://www.rancherenergy.com/newsstory.asp?newsID=19
in the audio, the director mentioned they can purchase oil field similar to ELK at 51c/barrel. 
ELK has 12million barrel in is main project.
So the market value is only around 6.12m

It is not very exciting from my point of view.


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## Ken (6 June 2007)

Market depth does seem to be thinning out, which I like to see.

It may not be exciting, but ELK has bounced between 25 cents and 40 cents before.


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## Robert_Q (6 June 2007)

It's good to see an announcement finally! Although it wasn't the one I was hoping for it did manage to kick the price up a little.

I think we'll have some result from this new well in about 2-3 weeks. It'll take a week to prepare and a week to drill.

It seems the going rate for old depleted fields is less than USD1 per barrel because they need to be redeveloped to get the oil out. CO2 is an effective way of recovering oil and if you don't have a source then the oil is worthless. Once ELK secures the supply it should be rerated.

Rancher's new pipeline is costing about $18m to build, by my estimates ELK's connection will be less than $1m ($30,000 per inch mile, 30mmcfd capacity will need 8inch pipe size for 3 miles). The feasability seems to stack up.

ELK has production, is cash flow positive and SDS has reserves of at least 3MBLS. I still think the company is undervalued.


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## Ken (6 June 2007)

ELK is not a takeover target so it doesn't really matter how much others are willing to pay for an inground oil well, that is not producing.

ELK has got a possible 12 million barrels of oil that they can sell for $50 a barrel.  Potential there for 600 million dollars in revenue.

Obviously there are just gearing up,  and its not all going to get pumped out in one hit. 

ELK has no political risk, which is also another positive. 

31 cents is still a long way off old highs, but I guess you could say its 20 per cent higher than where it was a few weeks ago.


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## Robert_Q (6 June 2007)

I agree with you Ken. I think there is loads of potential.

It's interesting to note Rancher Energy's presentation. They say that CO2 recoveries typically range from 15% to 25% of OIP. They are using 20% to calculate their reserves. ELK is being conservative in using 15%. That means Grieve could have anywhere from 12MBLS to 20 MBLS of light sweet crude worth around USD60 per barrel.

I think they will announce CO2 supply and reserves confirmation at the same time so that it is more enticing to JV partner.

Then there is the potential in upper sands and SDS!


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## ta2693 (6 June 2007)

Ken said:


> ELK is not a takeover target so it doesn't really matter how much others are willing to pay for an inground oil well, that is not producing.
> 
> ELK has got a possible 12 million barrels of oil that they can sell for $50 a barrel.  Potential there for 600 million dollars in revenue.
> 
> ...



Only proven reserve and easy to explore reserve can be sold at $50 a barrel. 
The crude oil price on market is only $60 a barrel.
The reserve like ELK 's fair value is 51c a barrel instead of $50/barrel.

Where is the indicator that takeover is going to happen? I agree it is a potential takeover target but there are a lot takeover targets on market, we can not speculate on just potential.


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## Robert_Q (6 June 2007)

Oil reserves are classified as P1, P2 and P3. P1 being commercially extractable with a high degree of confidence.

The bulk of ELK's reserves in Grieve are classified as P3 because they are not able to be extracted commercially at the moment. Hence the valuation at less than $1 per barrel.

When the company secures the CO2 supply it moves a step closer to commerciability and the P3 reserves can be ultimately reclassified as P2 and P1. 

The going market value of oil inground in the US is about USD16 per barrel. Do the sums and the long-term view is there is alot of upside in this field if and when the CO2 is secured and injection begins.


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## Alien (6 June 2007)

ta2693 said:


> Only proven reserve and easy to explore reserve can be sold at $50 a barrel.
> The crude oil price on market is only $60 a barrel.
> The reserve like ELK 's fair value is 51c a barrel instead of $50/barrel.
> 
> Where is the indicator that takeover is going to happen? I agree it is a potential takeover target but there are a lot takeover targets on market, we can not speculate on just potential.




But we can compare ELK to what Rancher is paying for Leases that meet the criteria for CO2 injection in the Wyoming area i.e. Strong Reserves, close to CO2 pipeline, also ELK have done studies with University of Wyoming on the makeup of Grieve. If Rancher paid US$25,000,000 for Big Muddy then a 50% JV for Grieve would surely be enticing at a fraction of the price. And they have said that they want to expand there footprint within the Wyoming area.  

A JV partner would send the SP nothward very quickly. In the meantime ELK can continue being cash flow positive from their earnings at SDS of 300+BOPD. Plus the potential of Grieve Upper Sands next week. All together with their $20mil market cap.


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## Ken (7 June 2007)

I dont think its a takeover target.


Either way I hold, and theres some buying going on at the moment.  So obviously someone is keen on it. Definitley some momentum at the moment.

Its up in a down market. and there are very few shares on offer now, so the price movements are going to be substantial either way.


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## ta2693 (7 June 2007)

I have to agree with you robert q, Alien. Based on elk's performance and your analysis, I think you are right. I got it at 32.5c, hopefully it is not too expensive.


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## Robert_Q (7 June 2007)

Welcome on board Ta. I've bought a few times and my average price is about where it is now.

I was a bit disappointed with today's reports. Reserves at SDS less than I expected and the presentation didn't give anything new. I guess the next big announcement will be the well into the upper sands. If it is succesful they have already planned 3 appraisals, so that would put a rocket under the shares.

There was a lot of support today and you're right Alien, market down but ELK up. Let's hope it keeps going in the right direction!


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## Ken (12 June 2007)

up 4 cents nothing to sneeze at!

It has traded in a range of 30 to 40 cents for sometime,  so i really think a break above 40 cents would signal a real uptrend.  June is set to have a few announcements with there drilling program, as stated in the investor update, 

The last time ELK went from 30 cents to 80 cents it happened in one day, and it soon went to $1.20. so with the sector running hot in oil and gas.

any views on where we will end up with the elker!


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## quarky (12 June 2007)

this looks interesting... 
reading the 07 June 2007 Investor Report now - here
but i don't think the share price will rise above 0.40 after the announcements as they're still some studies going on and negotiating a CO2 supply.

yet, they plan to increase production through well optimisation...so that could be the rise this share needs.


----------



## Robert_Q (12 June 2007)

I agree with you Ken, a bit of good news and this will run up fast.

The appraisal well into the upper sands at Grieve should spud this week and take a week to drill and another 2 weeks to assess. Being a specifically drilled well and located after reassessment of seismic this seems to have a good chance of success. These sands all produce in nearby fields in Wyoming and I think the chance would be reasonably good that at least one will have oil. 

A flow of 100 or 200 bopd would easily push ELK up to last year's levels. Appraisal drilling would follow quickly I think and production could be quite substantial on success.

Grieve EOR will fall into place soon I'm sure, so I am holding for the medium term.


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## Ken (13 June 2007)

Up in a down market is a positive sign.

Very tempted to book profits with ELK.  36 cents was my target, as it was in the range ELK was trading at before the sell off, but with so much going on, I am continuing to hold long on to this as I still reckon its under valued.


Its easy to buy a stock, its easy to sell a stock, can be harder to hold.

Dont want greed to get the better of me though.



Sticking with ELK.


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## Robert_Q (13 June 2007)

I think the price will stay strong while they are drilling their new well over the next week or two.

I still think there is a good chance of oil in those upper sands so I will also hold longer term.

We know from last year that these shares can surge on good news.


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## Robert_Q (23 June 2007)

The new well spudded last thursday and there should be some initial result next week.

If there are oil shows during drilling the price will go up and testing will probably follow over the next 2 weeks.

I'm taking a punt on this one, payoff could be high if successful.


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## Ken (26 June 2007)

Looks like its pay day!!!

Nothing better than a fast moving low liquid stock on the rise...

Dont need the big volume for good returns.

If it breaks 42 cents we will be away.


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## Robert_Q (26 June 2007)

This is one of the announcements we've been waiting for.

Closed at 38.5 traded upto 40. Oil shows in 3 zones so this confirms there's oil in those upper sands and this one might race up if testing confirms volumes and rates. They plan 3 appraisals if this is successful so they could get production up quickly and cheaply. This well only cost $300K to drill.

This stock is not so liquid so you are right Ken it can move up fast. I'm holding on for the ride.

We've seen some small oilers have their market cap shoot up recently, eg. CVN $160M, MAE $300M, SAE $80M. ELK is only valued at $24M so plenty of blue sky.


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## Lachlan6 (28 June 2007)

(ELK) caught my attention recently and I thought I'd post a few technicals on it.  I am going to look at the weekly perspective as there is significant resistance at $0.41 and if this is broken then that will susequently be the completion of this very nice loking double bottom formation. It tried to today, getting up to 45c before sellers came back in. However signs are looking good that it will eventually break up, look at the big positive divergence with MACD and the recently weeks huge volume. Watching closely.


----------



## Robert_Q (28 June 2007)

I don't know much about the charts but if testing on the current well at Grieve comes up with the goods it will really break out.

Only 60M shares on issue and it owns 100% of the field so it is very leveraged to success. 

Anyone have any guess on how far it will go? I've done some analysis based on asset valuation and earnings and I am sitting tight.


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## quarky (29 June 2007)

Robert_Q said:
			
		

> Only 60M shares on issue and it owns 100% of the field so it is very leveraged to success.




leveraged to success?
price dropped to $0.22 today.
stark contrast to it reaching 0.41 yesterday.
that's a ~40% drop


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## Hawkeye (29 June 2007)

Bad news Announcement has really sent ELK plummeting - a pity...they're a great little company and with no luck in the Upper Grieve - we might not see this one climb out of todays hole until next year.


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## Ken (29 June 2007)

There was never any support in the mid 30's. Went up too fast for my liking.

The market depth to me looked thin....

I think the run was overdone.

Still good value. but for me change in approach leaves me out of elk.

22 cents is its 52 week low.

Funny how it got there again and bounced...

Someone could be sitting on some big gains today...


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## oil bull (7 August 2007)

Ken you are on the money, ELK has huge potential. A good chance of $3+ by xmas if they can contract the co2.
Cheers


----------



## oil bull (7 August 2007)

Ken I take that back your going to be out of the money. First time ive been on this forum didnt see the latest posts. Your all missing the point. do some research on co2 recovery.
Cheers


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## doctorj (7 August 2007)

Welcome to ASF oilbull.  Could you please provide some justification/analysis for your 300cps figure.  It'd be great if you could also help out and let everyone that's missing the point know exactly what it is they are missing. 

Cheers in advance.


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## oil bull (7 August 2007)

DoctorJ
I have posted it on a couple of forums under Davo22, however I joined this forum a long time ago and have the name oilbull.

EORI (enhanced oil recovery institute)  joint producers meeting on june 26, released a presentation "co2 demand estimates for major oilfields in wyoming basins" In this presentation they had 2 pages devoted to gravity stable co2 injection, the technique that ELK are planning to use in the muddy formation at Greive. The EORI estimate recoveries of >70% for gravity stable production. Which would mean recovery rates of >30mil barrels for ELK. EORI are currently modelling greive so one assumes that they would attribute recovery rates >70% and therefor  reserves to ELK of over 30mil barrels. They also had a graph based on the Muddy formation, it did not mention the field but it may well have been Greive. When co2 is contracted the reserves will move to 2p status. 

At current useage only 10% of co2 reserves at La Barge would be used over the next 60 years. They are currently venting significant amounts into the atmosphere that they cannot sell. So co2 supply should not be a problem. 

30mil barrels of 2p reserves would likely be valued at above $300mil by the market. current market cap $15mil

Great story, just waiting for the right announcements.

Cheers Davo


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## ta2693 (7 August 2007)

oil bull said:


> DoctorJ
> I have posted it on a couple of forums under Davo22, however I joined this forum a long time ago and have the name oilbull.
> 
> EORI (enhanced oil recovery institute)  joint producers meeting on june 26, released a presentation "co2 demand estimates for major oilfields in wyoming basins" In this presentation they had 2 pages devoted to gravity stable co2 injection, the technique that ELK are planning to use in the muddy formation at Greive. The EORI estimate recoveries of >70% for gravity stable production. Which would mean recovery rates of >30mil barrels for ELK. EORI are currently modelling greive so one assumes that they would attribute recovery rates >70% and therefor  reserves to ELK of over 30mil barrels. They also had a graph based on the Muddy formation, it did not mention the field but it may well have been Greive. When co2 is contracted the reserves will move to 2p status.
> ...




I have to say it sounds very good and It is a very interesting company. I have enough ELK in my holding. I believe the news in EORI will spread out gradually. Even if the story will not come true, we are holding a low risk one at current price 24c.


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## ta2693 (5 October 2007)

Here we go. Announcement is out. Co2 injection success.

The Company is pleased to advise that the initial runs of the
simulation of the Grieve Muddy reservoir by the EORI have
arrived at a forecast recovery of 23 million barrels of oil.
This represents an overall recovery factor of 71.1% from the
Grieve Muddy reservoir, with 30.8% being achieved from the
CO2 flood.
The EORI was engaged earlier this year to develop a
reservoir model to simulate a gravity stable carbon dioxide
(“CO2”) flood of the Grieve Muddy reservoir. A full field
simulation model has now been developed and a number of
simulations run to evaluate the impact of a CO2 flood.
Because of the long producing history in the Grieve Field a
very good history match of actual production to reservoir
pressures throughout the life of the field was able to be
achieved. This has given both the EORI and Elk
considerable confidence in the model.


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## exgeo (5 October 2007)

> In the next set of accounts it can be anticipated that the production increase to around 300 BBL/day will start to show up (average prod'n last year was 50 BBL/day). ELK state in their announcement of 28/2/07 that they are receiving AUD $42.57 BBL.




Annual production will depend on how quickly the 23m BBL reported in the EORI report can be produced. Even assuming 500,000 BBL/yr which would mean the field would produce this amount - on average - for 46 years, is about five times the current production level. Current production around 300 BBL/day = 109,500 BBL/yr.

42.57 * 500,000 = AU $21.3m = *AU 34.9c/share* *

Presumably the field would produce more in the earlier years and tail away in the later years - this is a real back of the envelope calculation. This calculation takes no account of tax etc of course. Looking at a presentation on the EORI website, it seems that from a real-world example, the post CO2 flood production peaked at about 1/3 of the original field production rate, before tailing away with a similar rate of drop to the original production curve.


*61m shares on issue, about 3m options.


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## moneymajix (5 October 2007)

Current share price - 42c (up over 127%)

In the news:


http://uk.reuters.com/article/oilRpt/idUKSYD3803920071005


http://www.bloomberg.com/apps/news?pid=20601081&sid=adPQsod2X8tI&refer=australia


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## Robert_Q (5 October 2007)

> Annual production will depend on how quickly the 23m BBL reported in the EORI report can be produced. Even assuming 500,000 BBL/yr which would mean the field would produce this amount - on average - for 46 years, is about five times the current production level. Current production around 300 BBL/day = 109,500 BBL/yr.
> 
> 42.57 * 500,000 = AU $21.3m = AU 34.9c/share *
> 
> Presumably the field would produce more in the earlier years and tail away in the later years - this is a real back of the envelope calculation. This calculation takes no account of tax etc of course. Looking at a presentation on the EORI website, it seems that from a real-world example, the post CO2 flood production peaked at about 1/3 of the original field production rate, before tailing away with a similar rate of drop to the original production curve.




The oil at Grieve is light sweet (as opposed to SDS which is heavy oil) and attracts WTI price less about $5-$10 discount. My guess at current prices about $US70+ per barrel.

Yesterday's announcement of 23M BBLS is about double what was previously thought to be recoverable. Based on company's estimates peak production was to have been 4,000BOPD, now it could be as much as 8,000BOPD. At $US70per BBL. That could be gross revenue of $US560,000 per day once peak production is achieved.

CO2 supply is still being negotiated and once that is secured the 23M BBLS should be booked as 2P reserves. A valuation of $10 per BBL values the reserve at $230M, $15 per BBL is $345M. Elk owns 100% of the feld and has 61M shares on issue.

A final report is expected mid-Oct with production profile and forecasts. See link below.

Next steps will be CO2 supply and JV partner.

http://www.uwyo.edu/news/showrelease.asp?id=17743


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## Spaghetti (5 October 2007)

I bought some ELK due to hype. I am nervous now because it is not my area of expertise (well what is lol) but I am reading left right and centre trying to value this and getting all sorts of mixed signal. I followed the trading today and seemed many day traders and panic selling but does nothing to say what the market will value ELK at. Sounds very good to me and somehow I have 80c in my brain but cannot substantiate at all. I really appeal to any oil expert to step in here and give honest talk about a stock well clouded in hype atm.

Cheers and ty


----------



## exgeo (5 October 2007)

> Yesterday's announcement of 23M BBLS is about double what was previously thought to be recoverable. Based on company's estimates peak production was to have been 4,000BOPD, now it could be as much as 8,000BOPD. At $US70per BBL.




Even better then: ((8000 * 365) * 70) = US $204m = AU $230m = (23000c / 61m shares) = *AU $3.78* / share *

I'd be a happy camper if this scenario played out!



*Using 88c AUD/USD. 61m shares, undiluted.


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## ta2693 (5 October 2007)

Hi mate, I feel very strange why market only give 40c for elk today. I expect it will shoot above $1 in a day on news like this. In addition, I find Citibank was actually selling their shares before announcement. It is very suspicious. Are they stupid? or Am I too greedy? I am out today and waiting for more information coming out.


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## Joe Blow (6 October 2007)

Spaghetti said:


> Sounds very good to me and somehow I have 80c in my brain but cannot substantiate at all




Why?



ta2693 said:


> I expect it will shoot above $1 in a day on news like this.




Why?

Do I have to remind everyone constantly that posted price targets *must* be backed up with some analysis? What purpose does it serve to throw around price targets that are simply plucked out of thin air? Absolutely none, of course, other than to ramp up the stock.

Posts containing price targets without any analysis will be removed from the forums.

See this thread for more details: https://www.aussiestockforums.com/forums/showthread.php?t=4118


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## oil bull (6 October 2007)

Joe Blow
quite simply-
The current market cap puts approx $1 of value per barrel of oil. The oil is as good as proven oil, due to the fact that it is an old field that has some 50years of production history behind the reserve estimates. They are using technology that has been proven for the last 4 decades. 

The market in general attributes upwards of $15 a barrel for 2p reserves, which these will be once the co2 is acquired. So it would appear that 15x yesterdays close is on the cards sometime in the not to distant future. As for the price this week or next week fundamental analysis is irrelevant as it is anyones guess where the market wants to take it. 

The news released by the company was not new news as such rather an upgrade, however the market had chosen to ignore the old estimates anyway and this announcement jolted it back in to their minds. 

Why the surge yesterday? Well when people started to buy it created a rush. End of next week 50c or $4 it could go anywhere. Posting on another chat site I can tell you that the hype being generated there has the potential to carry this straight to $6.Which would equate to $15 a barrel and put it at the low end of where companies are valued. It is being seriously ramped but until it goes over $20 a barrel really it is not overvalued. so at these low prices it is purely a matter of guessing who will reign, new buyers or profit takers. Analysis is irrelevant. Those price targets you mention may be able to be put in the category of downramping as they may well prove to be misleadingly low,.
Elk has been completely ignored for a long time, i think it just became a market darling. If you are unsure take a look at the INP chart.
Cheers


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## moneymajix (6 October 2007)

Oil Bull

Thanks for posting. 

Food for thought!


I bought a few on Friday. It seemed to resemble recent price movement of INP. 



Media coverage yesterday included radio, television and print media which should be bring this stock to more ppls attention.



http://www.theage.com.au/news/busin...r-elk-petroleum/2007/10/05/1191091366670.html


http://au.biz.yahoo.com/071005/19/1fg7z.html


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## jtb (6 October 2007)

Spaghetti said:


> I bought some ELK due to hype. I am nervous now because it is not my area of expertise (well what is lol) but I am reading left right and centre trying to value this and getting all sorts of mixed signal. I followed the trading today and seemed many day traders and panic selling but does nothing to say what the market will value ELK at. Sounds very good to me and somehow I have 80c in my brain but cannot substantiate at all. I really appeal to any oil expert to step in here and give honest talk about a stock well clouded in hype atm.
> 
> Cheers and ty




Spag',

I'm no expert by any stretch of the imagination but I've included an excerpt from ELK's ann early last year (Feb') regarding the suspected recoverable resource from the Grieve sands.

I've tacked a chart on so you can see the impact on the shareprice.

Something that should remain uppermost in everyones mind (imo) is that the data being quoted are all from computer models.

CO2 flooding is also a lot more technical and intricate than oil exiting under its   own steam (forgive the pun). Who knows how the depleted field is going to react to megatons of CO2 being forced into every nook and crannie.

That being said if we ignore  crazy valuations, 90c to a dollar a share would still cap the company around a conservative 60mil and may present a happy medium between upside and unproven performance.

"NEW HYDROCARBON RESERVOIRS
IDENTIFIED
The Company is very pleased to announce the identification of
new hydrocarbon reservoirs located within the Upper Sand Units
at the Grieve Oil Field in Wyoming USA. The Company has
received an independent report from MHA Petroleum
Consultants, Inc (MHA) of Denver, Colorado confirming the
Company’s belief that significant volumes of hydrocarbons are
present within the Upper Sand Units. MHA has estimated the
original oil in place (OOIP) in four of the Upper Sand Units of
approximately:
51.4 Million Barrels.
The OOIP is derived from recently completed RST well logs
(with carbon-oxygen mode run on selected identified zones of
interest), in conjunction with the re-analysis of historic well logs.
Confidence in this assessment is enhanced by hydrocarbon
shows reported in the Upper Sand Units during the drilling of
historic wells, production in these horizons in nearby oil fields,
and by recent oil shows observed by the Company in a number
of temporarily abandoned wells.
The Company will now undertake an appraisal programme to
define proven recoverable reserves for the Upper Sand Units.
The historic oil recovery from the currently producing Muddy
Formation OOIP is approximately 35% with total production
from the Muddy Formation of approximately 30 million barrels
of oil. Equivalent recovery rates in the Upper Sand Units
reviewed by MHA would result in recoverable oil of
*approximately 18 million barrels of light sweet crude*".


----------



## Robert_Q (6 October 2007)

jtb,

This extract relates to the upper sands in the Grieve field. These have had some testing but much more is needed to substantiate if the 18m BBLS exist.

The Grieve field has been producing from the Muddy formation for over 50 years and primary/secondary extraction has produced about 30m BBLS. The company had planned all along to inject CO2 as a tertiary recovery method and had estimated that 12m BBLS could be recoverable. Thursday's announcement by EORI has now upgraded that estimate to 23m BBLS and that in itself makes the whole project so much more attractive.

The use of CO2 as an EOR method is proven and has been around for about 40 years. Anadarko is a big producer of oil by this method and spent alot of money 3 or 4 years ago to build a 126 mile pipeline to carry the CO2 to its oil firelds. It is making big money now from this activity.

Elk needs to secure the CO2 supply (most likely from Anadarko) and that will really make this project take off. Anadarko's pipeline runs about 3 miles from Grieve so it will be inexpensive and quick to build a spur line from it.

Yesterday's increase in sp values Elk at $25m. Don't forget it has 1m BBLS proven at SDS (say at $15 / BBL) which is producing about 240 BOPD and about $3m in cash. That means the 23m BBLS at Grieve is valued by the market at about 30 cents /BBL.

It seems to me that it is undervalued at the moment and when CO2 is secured it will be grossly undervalued at these levels.


----------



## Robert_Q (6 October 2007)

jtb, just about every oil field development now undergoes computer modelling to evaluate reserves and production forecasts. The parameters used in the modelling are all attained during drilling. Everyone thinks flow testing is the main criteria for oil field evaluation but it is only one part. Have you noticed that many oil wells are never flow tested? Logging plays a very big part in evaluation.

Secondly, CO2 injection is a proven technology. It makes the oil thin and moves easily through the reservoir. Letting a field flow under it's own steam often encounters problems. Pressure may quickly drop, sand flow may clog the well or waxy residues in the oil can build up and reduce flow rates. In my research these problems do not occur with CO2 injection. In fact flow rates increase over time as the field becomes repressurised.

Another interesting point I was thinking of was the value of carbon credits. Has anyone done any research on this?


----------



## jtb (6 October 2007)

Robert_Q said:


> jtb, just about every oil field development now undergoes computer modelling to evaluate reserves and production forecasts. The parameters used in the modelling are all attained during drilling. Everyone thinks flow testing is the main criteria for oil field evaluation but it is only one part. Have you noticed that many oil wells are never flow tested? Logging plays a very big part in evaluation.
> 
> Secondly, CO2 injection is a proven technology. It makes the oil thin and moves easily through the reservoir. Letting a field flow under it's own steam often encounters problems. Pressure may quickly drop, sand flow may clog the well or waxy residues in the oil can build up and reduce flow rates. In my research these problems do not occur with CO2 injection. In fact flow rates increase over time as the field becomes repressurised.
> 
> Another interesting point I was thinking of was the value of carbon credits. Has anyone done any research on this?




G'day Rob,

Yes I'm aware of the value of modelling but in this instance (being an old field)  I personally would like to see some flowrates (1000's of bopd) actually coming out of ground- call me old school

Also what sort of costs would you expect for CO2 infrastructure/consumption?

As you mention CO2 increases the mobility of the crude and we can assume that that would be due to saturating it with CO2- thus decreasing its density?

I assume we then also require stripping technology of some type?
This will be a negative cost benefit I imagine as opposed to say stripping condensate out gas?

My post was more a reply for spag's benefit on what the market may price this most recent ann' at.
We can also see the impact of the market losing interest over time.

I agree, I think ELK are undervalued @ 25M and some forward progress will definitely rectify this.

As ta said though, why would Citibank sell 1% of the company 2 days before the ann' for such a low price.


----------



## Robert_Q (6 October 2007)

hi jtb,

Elk put a summary of NPV for Grieve in one of their presentations a few months ago. They calculated total capex over the life of the project at $28M and cost of production at about $18/BBL (that includes CO2 costs). They used a long-term oil price of $US45 / BBL and the NPV was about $150m. I would expect it to be signicantly more now with oil price and reserves much higher and more than offsetting the change in exchange rates.

CO2 does make the oil less dense and the oil unsticks from the source rocks so more of it flows to the well. That's why in a gravity stable flood (like Grieve) high recovery rates can be achieved.

The CO2 will be injected into the reservoir and most will be sequestered (carbon credits would be a by-product and additional revenue) but some will be produced with the oil and re-injected. You are right that this is not revenue enhancing like condensate, but it is a very simple process to separate from the oil. Many oil wells produce some natural gas and this is usually re-injected into the reservoir...same process with CO2.

EORI will come out with forecasts on production rates around mid-Oct. I suspect many investors will get set in Elk before that report and interest will continue for at least the coming weeks.

When CO2 is contracted, I would expect Elk to have a value around $4 ps

This is how I calculate it:

23m BBLS at Grieve @ $10 / BBL         $230m
1m BBLS at SDS @ $10 /BBL                $10m

$230m / 61m shares = $3.93 ps


----------



## Spaghetti (7 October 2007)

My apology to Joe Blow, thought I had made it clear I had no clue what I was doing though. Was quite silly to buy in without DYOR and I advise all and everyone never to do this, makes for nervous times! At the very least I have learned a little about oil in a very short space of time. I thank those contributors that have shared there knowledge. Still have a way to go before I can contribute anything of any value but am working on it. Looks like I may have jumped in the deep end on winner, so may come out unscathed this time but will not be in a hurry to repeat the experience. Out with the research for me.

Cheers and good luck to everyone for the following days, weeks or however long it takes for ELK to find it's market value.

And thanks for those who responded to my panic.


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## Robert_Q (7 October 2007)

Good luck to you too spag,

I am hoping tomorrow will see a lift in sp. This is usually a very illiquid stock yet 50% of issued shares were traded on Friday. There may not be as many quick traders tomorrow and if that is the case then sellers (like citigroup) may have dried up and sp will break out.

I think more good news will follow in Oct re JV and production forecasts.


----------



## jtb (7 October 2007)

Robert_Q said:


> hi jtb,
> 
> Elk put a summary of NPV for Grieve in one of their presentations a few months ago. They calculated total capex over the life of the project at $28M and cost of production at about $18/BBL (that includes CO2 costs). They used a long-term oil price of $US45 / BBL and the NPV was about $150m. I would expect it to be signicantly more now with oil price and reserves much higher and more than offsetting the change in exchange rates.
> 
> ...




Cheers bro, yes the numbers are compelling aren't they
Will be watching with interest, onwards and upwards hey?


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## jtb (8 October 2007)

Gee a big vote of support from those in the know today isn't it

Two substantial shareholders bailing out and a director quitting


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## mark70920 (8 October 2007)

jtb said:


> Gee a big vote of support from those in the know today isn't it
> 
> Two substantial shareholders bailing out and a director quitting




50 million shares have changed hands today (only 60 million on issue). Someone had to be selling so all this buying could happen, I hope to see some notices concerning new substantial shareholders either today or tomorrow. Its all good I'm still well in the black on this one.


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## exgeo (8 October 2007)

I guess the instos are kicking themselves now!

Citigroup ceased to be a substantial shareholder on 4th Oct 2007
Baker McKenzie ceased to be a subs shareholder on 9th Oct 2007 (date of last trade 4/10/07). 

The EORI study was released to the market after close of trading on 4/10/07. At least it shows that ELK doesn't have any newsleaks.


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## exgeo (9 October 2007)

An email I wrote to ELK, and the reply I received:

Hi,

I am a pretty substantial shareholder in ELK. The announcement of the EORI study is interesting, but I guess most shareholders are going to be more interested in what the likely impact will be on daily production rather than final recoveries. I guess you could probably produce at 2BBL/Day for thousands of years, to take a silly example.

Regards,

James Pearson


Jim,

Thank you for your support.  

The EORI work is still continuing and they are investigating the optimum number of CO2 injection wells and producing wells as well as various rates of CO2 injection which all impact on the production profiles but for the various runs they have done to date, do not affect the ultimate 23 MMBbls recovery.  Once they had advised us of that figure and were prepared to endorse it, it was market sensitive information that we were aware of and hence, obliged to release to the ASX.  The production profile for various well combinations and CO2 injection rates will be included in the EORI report which we expect later this month. As we have indicated in earlier investor advice on the subject, once first oil production is seen from the CO2 injection, the production rate will climb quickly to rates that are in the order of 1,000’s BOPD.  You can look at Denbury’s West Mallalieu Field and Anadarko’s Monel (or Patrick Draw) results where the field production pre-CO2was in the 10’s BOPD and is now multiple 1,000’s BOPD and rising.

Regards,

Bob Cook
Executive director


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## Robert_Q (9 October 2007)

Thanks Exgeo,

That's a very interesting reply, although it just confirms my belief in this company.

The day traders have been playing with Elk for the last few days. I hope now it consolidates, ready for a run up when the study comes out.


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## greenfs (9 October 2007)

Does anyone know the story behind Mr Richard Wood's recent resignation from his position as Chief Executive & Director? 

Whilst I am now a holder of this stock and have a medium term bullish outlook, unless we know why the resignation eventuated I will remain a little concerned (something is not right in Denmark and/or sinking ship etc).


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## oil bull (13 October 2007)

What do shareholders get for their $26.4 mil market cap?

$2mill in cash. rough guess.

SDS
1mill barrel of 2p reserves producing and creating revenue around $1mil per quarter. Upside in the potential to investigate other sands, potential for new well locations. Further exploration potential in an adjoining 1900 acres at 25% WI.

Greive
When co2 is contracted and Ryder Scott confirm reserves, Elk should have 23mill barrels of 2p reserves. NPV of $155mil based on 12mil barrels and $45 oil price. Compare that to 2p reserves held by large companies and you will get the idea this will have a dramatic impact on the SP. Potential to bring in JV to fund costs.

Of 8 upper sands, only the top 4 have been tested (only 1 was contained in the MHA report). The lower 4 are yet to be tested and 3 of those 4 are the sands that MHA assessed to have 51mil barrels of OOIP, 
March 2006 update......"Oil observed flowing at pressure to surface from 4 wells. 3 were
temporarily abandoned and the 4th had a cast iron bridge plug." this gives a strong indication at least one sand will be commercial. Range between 3.5-6.3mil barrels recoverable per sand.

Deeper sands- A couple of sands hold interest,including the cloverly formation, updip from where they previously tested it. 

Ash Creek..... 50% WI in a field that produced 8mil barrels, was shut in while still producing 30bopd work over potential of original sand, with a couple of higher sands to be tested. similiar to SDS where ELK worked over the Tensleep and brought the undeveloped Phosphoria online. Also not too far from the sempra proposed co2 pipeline (could this be on the cards later on).

2 x 10,000acre exploration acreage, ELK has previously added properties with potential for good upside hopefully these 2 acquisitions will prove to be the same. Annual report mentioned drilling a well before the end of the year.

Cheers


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## Wilson! (14 October 2007)

oil bull, thanks for the quality update and info on what ELK has going.
I think its important to see, so we have a complete picture. 

This weeK should be interesting, and looking forward to the ryder scott report due out any time now.


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## oil bull (17 October 2007)

Such a good story,  DYOR has a big future ahead. Oil prices set to rise significantly over the next few years. Oil field discovery has been in decline since the 1960s. Tertiary recovery is at the beggining of  massive growth within the industry.
Cheers


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## oil bull (18 October 2007)

This is a report by the US Department of Energy on Co2 EOR in the Rockies. They estimate that with a high oil price of ....wait for it......$40 and high cost co2 that 2080mill barrels would be economically recoverable in the Rockies using state of the art co2 technology such as gravity stable production. 


"Five significant EOR Field projects are
currently underway, one in Colorado (Rangely Field), two in Utah (ex. Greater Aneth
Field) and two in Wyoming (ex. Lost Soldier Field)." So the boom is only just about to begin. Elk will be there at the begining.

They also named a list of their favourite fields for co2 flooding and guess which fields are there........Greive + Ash Creek.  


This is a must read for anyone interested in ELK......

http://www.fossil.energy.gov/programs/oilgas/publications/eor_co2/Rocky_Mountain_Basin_Document.pdf

When people read reports like this and start to understand the process the Elk shareprice will be in the $$$$$.  

Cheers


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## oil bull (18 October 2007)

Some people are worried about ELK getting, if you look at the facts it would appear to be a dead certainty. And that will allow reserves to move into the 2p category.

1- Pipeline runs within 2miles of Greive

2- plenty of pipeline capacity. 2006 average 50mmcfd..pipline capacity 290mmcfd.

3- La Barge alone has reserves greater than 100TCF. At current rates it would take 60 years to use 10%.

4- Sempra have planned an extension of the pipeline up through the powder river basin through Montana and into North Dakota.

5- There are a number of other sources expected to be added as there is a demand.

6-Exxon currently venting 200mmcfd into the atmosphere.

7-Strong government support within the state of Wyoming.

8- Elk will be ready for early offtake.

A few good presentations on the co2 in wyoming and planned pipelines.

http://www.wyopipeline.com/information/pre...files/frame.htm

http://eori.uwyo.edu/downloads/Boylesscoping.pdf

http://www.wyopipeline.com/information/pre...July 2006.ppt

Cheers


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## oil bull (20 October 2007)

Companies that use CO2-EOR to extract stranded oil:

Amerada Hess (HES)
Anadarko Petroleum (APC)
Apache Corporation (APA)
Cano Petroleum (CFW)
Chevron (CVX)
ConocoPhillips (COP)
Denbury Resources (DNR)* 
Devon Energy (DVN)
EnCana (ECA & ECA.TO) 
Energen (EGN)
Enhanced Oil Resources (EOR.V)*
Evolution Petroluem (EPM)
ExxonMobil (XOM)
Kinder Morgan Energy Partners (KMP)*
Occidental Petroleum (OXY)*
Rancher Energy (RNCH)
Royal Dutch Shell (RDS.A & RDS.B) 
Statoil (STO)
Whiting Petroleum (WLL)
XTO Energy (XTO)


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## ta2693 (1 November 2007)

Anyone here know where is Healey, Robert Anthony and associates from?
that are the biggest shareholder of ELK now.


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## ta2693 (1 November 2007)

ta2693 said:


> Anyone here know where is Healey, Robert Anthony and associates from?
> that are the biggest shareholder of ELK now.




another 10%, what they are going to do? M&A? 
anyone knows Healey? are they involved in M&A business?
their appearance looks very suspicious. I think they must want ELK to do something.


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## oil bull (1 November 2007)

R Healey is very successful  private investor....I did a google search and came up with over $100mil worth of speccy stock top 20s such as Oxiana and Paladin (from memory over 10% in PDN).... Can only assume he is worth hundreds of millions once you add the blue chips and property portfolios....He is at the limit of how many shares he can have without making a takeover bid, even if he did he would never get the company as too many shares are tied up by people who beleive the company has significant upside.......still it would be a nice way to increase his shareholding........It is certainly a strong endorsement of the companies potential. I beleive he has been a holder since the float, obviously thinks now is the time it is all going to happen.
Cheers


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## ta2693 (1 November 2007)

It is very hard for me to get back something at 70c which I kicked off at 50c.
But time has changed, I am very bullish on ELK now.


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## petervan (14 November 2007)

Elk has recieved final report confirming 23 million barrels of recoverable oil. Production rate of 8000-12000 barrels of oil per day. Full production in just over 2 years.Been buying the last few days and should be an interesting ride tommorow morning.


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## oil bull (14 November 2007)

This sets up the next rise in shareprice. Surely will break $1 tomorrow. I was very impressed that 80% of the oil or 18mil barrels will be recovered within the first 8.5 years. That is an average of about $200mil revenue per annum for those 8 years.  $1.6bill over the next 8years.....for a $42mil dollar company....add co2 and I would expect the NPV from Ryder to be $5+ per share.....exciting times.
Cheers


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## ta2693 (15 November 2007)

Good news out. 
Elk has received the final report from the Enhanced Oil
Recovery Institute (EORI) of the University of Wyoming
covering their evaluation of the gravity stable CO2 flood
of the Muddy reservoir of the Grieve Field.
 The report provides further detail confirming the earlier
reported 23 million barrels of recoverable oil possible
from the Muddy reservoir.
 The report indicates that a production rate of 8,000 -
12,000 barrels of oil per day (BOPD) is achievable once
the field is re-pressurised.
 Re-pressurisation, as modelled, is expected to take at
least 2 ¼ years.
 An actual residual oil saturation test performed by
Chemical Tracers Inc provided a close correlation to
simulated results.
 The Company has appointed an Engineering Manager.
I am happy I got an average of 65c ELK.


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## oil bull (21 November 2007)

The final EORI report

http://eori.gg.uwyo.edu/reports/EORI Sim...20Field_rev.pdf

According to the production graph the 3rd scenario would at 2 1/4 years start producing initially at 4000bopd and peak at 13,600bopd  in 5years........

I beleive Elk will start to produce earlier from wells higher up the field and also open the taps up at a lower pressure rather than wait until it is ready to blow out at 4000bopd. also they expect to only produce around 8000bopd due to field production facilities capacity.
Cheers


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## chookfat (31 December 2007)

Its been awhile since I've heard any announcements from Elk. I don't understand why. Everything has been fairly positive with the run of good announcements over 2-3 months around October. But lately I haven't hear a peep. just wondering......

Regards

D.


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## oil bull (5 January 2008)

Sept quarter saw Elks revenues around $1mil for a loss of $250,000.......December quarter saw generally higher oil prices and I expect lower expenses, So a good chance of a profit for the december quarter. Which would push cash above $3mil....

Wyoming sour has just recently spiked to around $80Aus a barrel...if that price is sustained Elk would be looking at around $1.5mill net revenue for the march quarter. And with no drilling activity, expect a good profit..Which should make the market look more favourably on Elk.

Elk have been acquiring acreage so any significant purchases may impact the above ....

of course its just small change compared to co2 and JV.... 
cheers


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## Biggle (23 January 2008)

Interesting Read:-

In January the Institute hosted the first joint meeting of our newly formed Technical Advisory Board and the EOR Commission. The Board consists of Charlie Carlisle, Chemical Tracers, Inc.; Dr. Gary Pope, University of Texas, Austin; Dr. George Hirasaki, Rice University, Dr. Peter Hennings, Conoco/Phillips; Dr. James Griffin, Texas A&M University; Dr. Paul Willhite, University of Kansas; Dr. Randy Seright, New Mexico Tech.; and Steve Melzer, Melzer and Associates. The meeting inspired a spirited discussion of the EORI mission and how to best attain our goals, and provided impetus to move ahead on several fronts. As a result, plans are in place to begin a fracture characterization program, beginning with the Tensleep Sandstone in Wyoming. We are also in the formulating stages of an applied research program in chemical EOR techniques and will be expanding our studies of low-salinity water flooding with an eye toward a pilot study.
       Negotiations among Wyoming producers have apparently resulted in making CO2 available for more EOR projects. Elk Petroleum (Casper) is planning a gravity-stable CO2 injection of the Muddy Sandstone reservoir at Grieve Field in the southeastern Wind River Basin. Rancher Energy is planning a CO2 flood of the 2nd Wall Creek reservoir at Big Muddy Field in the southern Powder River Basin. Both companies have entered into discussions with us concerning reservoir characterization studies and plan on acquiring the necessary CO2. We are excited to be involved in these two projects, both of which are consistent with our mission to promote EOR in Wyoming.    

http://eori.uwyo.edu/update.asp

I find the paragraph "Negotiations among Wyoming producers have apparently resulted in making CO2 available for more EOR projects" very interesting, and I wonder if this had anything to do with the spike in ELK today.


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## oil bull (28 January 2008)

Gday biggle
I am certain that is a january 2007 report......

This was from casper tribune

By BOB MOEN
Associated Press writer
Thursday, January 24, 2008 2:05 AM MST 

CHEYENNE -- After hearing Gov. Dave Freudenthal tell them Wyoming needs to be out front in regulating new ways of permanently storing greenhouse gas underground, a legislative committee Wednesday endorsed two proposed measures dealing with carbon capture and sequestration in the state.

The Legislature's Joint Judiciary Interim Committee endorsed proposals that would give the state Department of Environmental Quality regulatory oversight of CO2 storage in the state and recognize that surface owners control the underground voids where the gas would be stored.

Both proposals will be considered by the Legislature when it meets next month.

Freudenthal told a panel of lawmakers that carbon capture and sequestration will be vital to Wyoming's economy, which is heavily dependent on producing coal for power generation facilities in the state and elsewhere.

Burning coal produces carbon dioxide, which scientists say contributes to global warming. Growing concern over global warming has led to the idea of capturing carbon dioxide and injecting it into vast, deep geological formations where it can't be released into the atmosphere.

The federal government will be involved in developing policy and regulation of carbon capture and sequestration, so it is important that Wyoming have some influence over what happens, Freudenthal said. 

"The best way to do that is to have something in place first, instead of having the federal government come and say, 'Well, you're not doing anything now, do exactly what we tell you,"' he told reporters after addressing the panel. "I think we have a better chance of defining how this issue is treated in a way that makes sense for Wyoming if we act now."

Freudenthal said it was important that lawmakers not become bogged down in details and delay acting on the proposals.

"We're going to be at this a long time," he said. "I think this nation's going to be at this issue for a long time. Start with some small steps and then you move forward."

Freudenthal and state DEQ Director John Corra said DEQ is equipped to handle regulation of sequestration facilities.

But they said it should be clear that the carbon proposals not include the practice of pumping CO2 underground while drilling for oil and gas. Oil and gas companies use the CO2 to recover oil and gas that cannot be brought to the surface under conventional drilling practices. Some CO2 is trapped underground in the process.

Regarding ownership of the underground voids where the gas would be stored, Freudenthal said there is going to be a "major transfer of wealth in this country" as a result of carbon capture and sequestration.

"I would rather that wealth go to our citizens than to the federal government," he said.

Laurie Goodman, president of the Landowners Association of Wyoming, suggested that the proposals needed clarification to better protect landowners from possible liability should something go wrong with the underground storage.

"Somewhere the surface landowner needs to be held harmless," Goodman said


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## oil bull (22 February 2008)

This looks great for ELK.....

Rancher had signed a deal for co2 with Annadarko about 18months ago.....Annadarko had significant volumes of co2 contracted and was meant to be onselling to third partys.......however the Rancher contract was apparently not a very reliable one.....well Rancher have gone directly to Exxon, who were venting significant amounts of co2......The pressure being applied by the Wyoming government may have been the reason this went through so suddenly as it was only a few weeks ago that the Wyoming goverment proposed changing the laws with regard to co2.....could we see a similiar contract for ELK with Exxon? If Annadarko got it then the Wyoming governments pinup field, Greive, most certainly will....looking good.


Rancher Energy Corp. (OTCBB: RNCH) today announced it has signed a CO2 (carbon dioxide) sale and purchase agreement with ExxonMobil Gas & Power Marketing Company, a division of Exxon Mobil Corporation (NYSE: XOM). Under terms of the agreement, ExxonMobil will provide Rancher Energy with 70 MMSCFD (million standard cubic per day) of CO2 for an initial 10-year period, with an option for a second 10 years. 

Under terms of the agreement, ExxonMobil will supply Rancher Energy with CO2 for use in Rancher Energy's enhanced oil recovery (EOR) program in Wyoming's Powder River Basin. Rancher Energy intends to enhance production at three historically productive oil fields, including the Big Muddy, Cole Creek South and South Glenrock B fields. The CO2 will be supplied from ExxonMobil's LaBarge gas field in Wyoming. Rancher Energy intends to build a pipeline connecting its properties to the CO2 source. 

And then two weeks after the government meeting but before the co2 contract, Rancher entered into a JV with an unamed industry leader in return for $83.5 mil....so it would appear that the co2 is available and so are the JV partners....

cheers


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## aussie86 (27 March 2008)

Well todays activity was interesting, the largest volumes we've seen in a while.  

As the ASX Price Query stated, the price has risen from $0.35 on 18 march to a high of $0.615 today.  Volume was 802,503, much higher than typical.

As the company stated in the reply to the Price Query, the company is awaiting receipt of the Ryder-Scott reserves report for Grieve, expected in April......Maybe someone knows something about this report that we do not?

Lets hope the news is positive when this report does come out.


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## quarky (12 May 2008)

looks like the director is buying up some stocks.
sign that this stock might be on an upward trend then. 



- http://www.elkpet.com/pdf/announcement/Appendix3YGlendaMcLoughlin06May08.pdf

*Change of Director’s Interest Notice*

Name of Director:  Glenda McLoughlin

Date of change: 2 May 2008
No. of securities held prior to change:

G McLoughlin – 150,800 ordinary shares and 300,000 20 cent options.
W Hartnell (indirect) – 25,000 shares

Number acquired:  35,000

Value/Consideration:  $16,100

No. of securities held after change:
G McLoughlin – 185,800 ordinary shares and 300,000 20 cent options.
W Hartnell (indirect) – 25,000 shares


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## exgeo (26 May 2008)

Directors dealing in ELK ordinary shares so far this year:

........Name...........Date.........Shares purch.......Price (c).....Total Spent ($)
Peter Power.........23.01.08........24,526................35..................8560
Glenda McLoughlin.02.05.08........35,000................46..............16,100
Peter Power.........30.04.08......250,000.................54.............135,000
Andrew Rigg.........09.05.08......100,000.................49..............49,310
Robert Cook.........09.05.08........50,000.................52..............26,135
Peter Power.........22.05.08........33,300.................50..............16,650
----------------------------------------------------------------------
Total:........................................492,826................51c..........$251,755


Do you think this is telling us anything?


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## exgeo (20 June 2008)

Updated directors' dealings (spent an extra $173,000 since my last post):


........Name.............Date.........Shares purch.......Price (c).....Total Spent ($)
Peter Power.............23.01.08........24,526.................35.................8560
Glenda McLoughlin...02.05.08........35,000.................46..............16,100
Peter Power.............30.04.08......250,000.................54............135,000
Andrew Rigg.............09.05.08......100,000.................49..............49,310
Robert Cook.............09.05.08........50,000.................52..............26,135
Peter Power.............22.05.08........33,300.................50..............16,650
Peter Power.............26.05.08........38,315.................50..............19,158
Peter Power.............28.05.08......100,000.................56..............56,065
Peter Power.............10.06.08......178,385.................55..............98,246
----------------------------------------------------------------------
Total:.......................................... 809,526.............52.5c..........$425,224


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## Max_ob (30 June 2008)

have been looking more into this company. . . . since so much buying has been occurring from directors. . . . and the price seems to be holding more stable now. . . 

their presentation 29th May didn't seem to excite a lot of people apart from the directors themselves. . . 


anyone else think that this could be promising. . . . short term or long term. . . . 


any comments would be greatly appreciated. . . .


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## exgeo (4 July 2008)

Based on today's production and revenue forecast, I came up with the following figures. The company should approximately break even this year. I simply doubled the figures for admin. costs etc, from the last half-year report to Dec 07 (ann. on 13th March 2008) to work up full-year numbers.


Est. 12 month results based on today's production and revenue forecast
...........................Current..AU$(m)..............Prev (last HY results*2)
Revenue from sale of O&G.....5.40
Cost of O&G sold..................(2.56)
Gross profit...........................2.84
Admin. costs........................(2.20)
D&A....................................(1.00)
Tax......................................0.00......................0.00
Net Loss.............................(*0.36*)..................(2.35)
EPS cents..........................(*0.58c*).................(3.84c)


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## Denny Crane (7 July 2008)

Hi guys,

Does anyone know why ELK achieved a substantially lower price per barrel then spot prices? Has it to do with the quality or do they sell into future contract prices?

78k odd barrels for ~$68 per barrel is well below the average price over FY0708.

Going forward, with their three prong intiative to increase oil production based on existing wells alone... (say they achieve 30% increase, and oil price averages $120/barrel next year)

FY0809 revenue will look like this?:

100k barrels x $120/barrel = $12 million revenue.

Any guesses of when they'll start raking sales equivalent to their current market cap of $30 million...? Or when production will reach 250k barrels assuming price remains the same:

250k barrels x $120/barrel = $30 million revenue

Cost going forward should be relatively stable as they run quite a tight ship. Anyone has detailed forecasts for Net profit margin going forward?

IMHO Turning out to be quite sustainable profit generating producer as they replicate their niche strategy over new land purchases and JVs.


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## oil bull (29 August 2008)

Denny Crane
SDS crude is low quality sour and trades at a discount.......and on top of that Rocky mountain crude trades at a discount...I think they are roughly getting ....$95bo at SDS.....$105bo at Greive......versus the current $115WTI price.....
I expect current revenue to roughly stay the same/decline slowly until a new project is brought on line........the first chance of new oil would be the work over of ash creek upper sands.......most of the other projects look to be a fair way off before they are likely to produce revenue..
Cheers


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## exgeo (25 October 2008)

........Name.............Date.........Shares purch.......Price (c).....Total Spent ($)
Peter Power.............23.01.08........24,526.......... .......35.................8560
Glenda McLoughlin...02.05.08........35,000............... ..46..............16,100
Peter Power.............30.04.08......250,000........... ......54............135,000
Andrew Rigg.............09.05.08......100,000............ .....49..............49,310
Robert Cook.............09.05.08........50,000........... ......52..............26,135
Peter Power.............22.05.08........33,300.......... .......50..............16,650
Peter Power.............26.05.08........38,315.......... .......50..............19,158
Peter Power.............28.05.08......100,000........... ......56..............56,065
Peter Power.............10.06.08......178,385........... ......55..............98,246
Peter Power.............16.09.08......165,879........... ......30..............49,764
Peter Power.............18.09.08........34,121.......... .......30..............10,236
----------------------------------------------------------------------
Total:..................................... ..1,009,526..................48c. ........$485,224


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## quarky (5 June 2009)

this stock is currently hovering at the 52wk lows of 0.09 (52Wk High: 0.60) and with oil prices at fresh highs (US$69.28)

NYMEX Crude Oil







wondering why ELK hasn't risen, like say Carnarvon (  )?

or is this stock, one of those potential-to-break-out types, because i've been watching this for over a year now, but feel like jumping in now.


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## quarky (10 June 2009)

quarky said:


> this stock is currently hovering at the 52wk lows of 0.09 (52Wk High: 0.60) and with oil prices at fresh highs (US$69.28)
> 
> NYMEX Crude Oil
> 
> ...




since i pointed this stock out a few days ago, it's already jumped around 35% from 0.09 to 0.125 now. i've been trying to find anything about this company or stock and why it's slow, ascent.
so, if anyone knows anything... show me where to get some information from.
i'd be interested in investing in this stock, for the long-term (i.e. more than a year...) as it's got good potential, i think.


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## quarky (11 June 2009)

ELK hit a high of 0.15 today (and it was just 0.09 a few days ago)
damn...missed a good chance to get into it.
i think they've all agreed to issue new shares, which was released yesterday

_
ELK Petroleum Limited Announces Issue Of Shares 
 -- http://www.google.com/finance?cid=699645&morenews=10&rating=1&newsbefore=2009-06-12

ELK Petroleum Limited announced that the shares to be issued following shareholder approval of Resolutions 2-6 at the General Meeting on May 22, were allotted on June 10, 2009._

tried to buy some today but couldn't get in.
will need to try again tomorrow...err....profit-taking Friday.


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## doogie_goes_off (2 July 2009)

Grieve #39 looks like a leaky hole -  faulted or no decent cap rocks at depth. I'm not holding my breath for the flow rates. Strangely the market seems to think this is good


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## quarky (16 October 2009)

doogie_goes_off said:


> Grieve #39 looks like a leaky hole -  faulted or no decent cap rocks at depth. I'm not holding my breath for the flow rates. Strangely the market seems to think this is good



well, this is out today...

_
*Friday 16th October 2009*
Update; Hereford #1 Gas Appraisal Testing
HIGHLIGHTS
●
The test program for the commingled productive gas zones of the Greybull and Lakota reservoirs has been completed.
●
A maximum stabilised gas flow rate of 10.323 million cubic feet per day was achieved on a 48/64” choke with a maximum unstabilised gas flow rate of 12.483 million cubic feet per day on a 1” choke.
●
Standard gas analyses have been completed from both the Greybull interval and the commingled Greybull and Lakota reservoirs that show a gas composition consistent with reports from the original test results in 1956.
●
Gas samples have been sent to the Federal Helium Project in Amarillo, Texas for noble gas analysis.
●
Further updates will be provided when the test data collected have been analysed for well deliverability and Absolute Open Flow (AOF)._



looking good for ELK and with a JV, their share price should go a bit higher.


i've been watching ELK since 0.09, about 5 months ago...and i missed out at that price.

picked up some at 0.12 and then a lot more at 0.175

unfortunately, i got out a couple of days ago at 0.225, only to see the share price rise to 0.29 today, which is fresh 52 week  highs.... d'oh !


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## quarky (19 October 2009)

quarky said:


> looking good for ELK and with a JV, their share price should go a bit higher.
> 
> 
> i've been watching ELK since 0.09, about 5 months ago...and i missed out at that price.
> ...



why oh why, did i sell out at 0.225


opens at 0.355 today
and reaches a high of 0.395

crazy.
i'd have been up by over 100%.... boo hoo.


ELK is still promising i'd say, given their prospects...


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## TradeDaily (3 December 2009)

Whats happening with this stock? I had not looked at it for a while and now its back down to 0.17 from the high on 0.39... :s


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## exgeo (3 December 2009)

17th November capital raising at 17c. D'ya reckon that might be it?...................................


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## ectoplasm (9 January 2010)

exgeo said:


> 17th November capital raising at 17c. D'ya reckon that might be it?...................................




Hi exgeo,

*Those funds raised by the capital raising will be used for:* (source ELK PETROLEUM LIMITED company announcements 17/11)
● the initial field and administrative work required for the pre-drilling part of the Phase 1 Grieve Chemical Flood development in Wyoming. This largely consists of surveying the exact bottom-hole locations for the existing wells, which will be used for either injection or production during the Phase 1 field development. These exact locations are required to finalise the Surtek history matching for the field. It also consists of preparing applications for 13 new drilling locations (10 injectors and 3 producers), and preliminary site preparation for the drilling pad to be used for all the new wells.
● the final facilities design to be used in the Phase 1 Grieve Chemical Flood development.
● the finalisation of Joint Venture and/or funding negotiations for the Phase 1 Grieve development
● the evaluation of alternatives, and most likely installation of a replacement pump for the Sand Draw South (SDS) #11 production well
● the development and appraisal planning, and gas marketing for the Hereford gas discovery in Montana
● the acquisition of additional acreage on trend with the Hereford gas discovery, and
● working capital

Some of those results are bearing fruit "_10/12/2009   Grieve - Surtek Final Lab Results  3_ " with another report due early this year ~ and so the share price should respond appropriately IMO



Daily chart: seems to have found support & based out, indicators looking OK too..


----------



## ectoplasm (14 January 2010)

ectoplasm said:


> Hi exgeo,
> 
> Daily chart: seems to have found support & based out, indicators looking OK too..




FWIW ELK looks to be in the process of breaking out - increasing volume and price action ~ not a bad sign IMO

anyone else following it?

Daily chart:


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## copperpot (16 January 2011)

*Re: ELK - Elk Petroleum - New Board, New Management and New Share Price Re-rating*

With Ash Creek to produce first oil later next week and the potential of the massive Grieve Field ( 27 million barrels of oil in place) and the new board & management combined with Oil trending upwards, ELK is set to head back to 50 cents.


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## grandia3 (19 January 2011)

Let's pray Ash Creek will be successful


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## grandia3 (27 January 2011)

today announcement made the SP raise to a high of 0.26, and closing at 0.195 

I'm hoping it will raise again when Ash Creek is in production


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## grandia3 (9 February 2011)

Sometimes it's a bit sad to trade at stocks which don't get much discussion (unlike AUT for example  )

So, regarding the recent director's change of interest. He just bought more shares on the market. He should know best what the company is up to. Do you think we can expect that Ash Creek going to produce oil soon?


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## grandia3 (16 February 2011)

well, talking to myself again it seems...

Ash Creek is now in production
The CEO said the production rate will be announced later
should see some volume in the next days


----------

