Andy mentioned that chemical flooding is now preferred over CO2 due to the lower capex and that advancements in the technology has greaterly increased recovery rates in recent years. It may even be possible that recovery amounts may bve similar and with lower upfront the NPV could even be better than CO2
The reason for the delay in testing the Eagle formation is that ELK only started the forensic investigation once they took 100% ownership of the field earlier this year.
Wickerman - yes the cement bonding held under pressure testing which was the biggest risk in the process. They expect results tomorrow morning and will announce as soon as they go to market.
Very exciting times and 2009 could see the beginning of a very differnt company if even one the projects are in the money.
DJ
ELK Price at posting:
16.5¢ Sentiment: LT Buy Disclosure: Held
