Ann: Grieve EOR Project Progess Report , page-6

I like it. This is very encouraging.

One would expect some sort of JV to be announced at the conclusion of the Surtek Report. I am hoping for the share price to be at the 50cents level by end of the month. This is good progress finally for ELK. Other projects should also be reported on soon.

Highlights again:

Based on a minimum OOIP of 71.7 MMBbls, this infers a minimum 14.3 MMbbls recoverable.

• The remaining core floods will be conducted in early November with the final report from Surtek on all the tests expected by the end of November. With the majority of the laboratory work completed this has now confirmed that the project is both technically and economically attractive.

• The Company has made its decision to proceed with Grieve Phase 1 chemical flood EOR development and is pursuing multiple alternatives for Phase 1 project funding.

• The first stage of the Phase 1 development plan for the field includes well surveys, additional engineering and design optimisation, and progressing new injector and production well approvals

DYOR

The Colonel