reclassification of 18.6 million barrels to 2p, page-5

It's not a given but IMO, I see no reason why Ryder Scott would not reclassify Grieve's 18.6m bbls to 2P particularly considering Denbury's historical success rate with EOR projects and the speed at which they have progressed Grieve since the BLM approval to go ahead.

Using a conservative $10/bbl for 2P reserves, Elk's 35% share of Grieve alone would be valued at:

35% of 18.6m = 6.51mbbls
@ $10/bbl = $65.1million
Diluted # of shares = 155million

= 42cents/ share

The above valuation does not take into consideration Ash Creek which is targeted for Chemical injection in November 2012 or the additional Grieve acreage acquired recently which could likely result in a larger reserve for Grieve in the near future.

Probably explains why the share price is being re-rated. Up 137% from its low of 12 cents in under 3 months.

All the best to all holders.