material capital raising, page-23

IMO the directors of Elk have let down shareholders numerous times.

I sure hope that they are NOT going to raise capital with shares unless it is at a multiple of the current price and in this type of market highly unlikely.

Better options would have been to:

1. JV the project when oil was higher.

2. Sell the field and retain an ORRI

3. Sell the entire company


If they sell shares at around the current price then:

Why didn't they raise the cash for future operations when the shares were over 50 cents? 75 cents?

This 'capital raising' IMO also shows why the directors have not been buying shares on the open market.

Incompetance: all you have to do is look at the share price: 16 cents!

Sentiment: Hold - It would be dumb to sell now.