october, page-26

Hi Wickerman - i found your post, here it is...

I was reading through the last quarterly report again this morning and picked up on something that I hadn’t noticed when I first read it.

The university of Oklahoma will also look at a chemical flood of the Shannon at Ash Creek. This had an OOIP of 21MMbbls so if they come to the conclusion of 15% recovery (which seems to be a very likely figure for chemical floods) then this will add another 3MMbbls for ELK.

Grieve is likely to be 76 X 15% = 11.4MMbbls so ELK could have a total of 14.4MMbbls based on a conservative recovery of 15% for both fields. Chemical flooding will be a lot cheaper and quicker to perform.

Maybe they can go ahead and flood Ash Creek first, get a good cash flow from that and leave Grieve for later.