grieve development, page-20

Listless

Agreed that cashflow and Elk's cash position are their main problem. Based on the last quarterly, they are spending about $1.5m/ quarter. This should leave us with approx. $1.3m left in the bank by the end of the June quarter with hardly enough left to last us till the end of the Sept quarter. I suspect that is probably the main reason holding the share price back especially when you consider that the Grieve deal alone values ELK at between $60 to $100m and our current market cap is only $24m.

Ash Creek is one of the keys to solving our cash flow problems in the short term but it needs to exceed the performance of SDS for it to make a differerence IMO. As stated in the Ash Creek update dated 31 March 2011, "It is anticipated that (flow) rates will increase from the impact of Trusler #9 water injection. This can take AT LEAST three months to be reflected in improved oil production as seen in 1964 when water was last injected in Trusler #9 and increased production from Trusler #8."

It has now been 3 months since the above announcement so hopefully we should be due for an announcement regarding Ash Creek's stabilised flow rates soon.