patersons report

I have just finished reading Patersons stockbrokers report on Aussie juniors in the US, released 5th DEC. I thought it may be interesting to see how ELK would compare if SDS production was taken into account and when it gains reserves certification which should not be far off. Unnoficial estimations put the phosphoria at 1mill barrels of proven producing reserves, the tensleep I have allowed .5 mill bo.
Total 1.5 mbo
The report credits ElK with 30 mil boe 3p reserves. It mainly focuses on 2p reerves which ELK did not have any but i will add them anyway to see the results.

The comparison is between 42 aussie juniors in the US

The first chart has a score out of 5 for Cashflow, risk, upside ,funding. ELK rated 20/42 companies. Based on current cashflow, cash on hand and 1.5mbo 2p reserves ELK would be 1/42

Elk had the 2nd largest 3p reserves 30mbo. Marion had 50mboe and also has 135mill market cap. ELK also had the 2nd cheapest 3p reserves,miles ahead of the rest of the pack.

Based on 1.5 mbo, it placed 8/42 for size of 2p reserves. size of reserves versus market cap, 1/42 and significantly cheaper than all but 1 other.

Their comments on production were
Marion energy - 1 mboe pa, production expected to rise strongly.
Elk - minor oil production 1mbo per annum. ( that was there take on it )
ELK production is currently about $7.5 mill per annum and is expected to rise rapidly, so Marion will need to drill quickly to get in front.

The largest holder of 2p reserves was AMU with 16mboe, it has an EV $271 mill. This is equal to SDS + Muddy 50% + 1 larger upper sand or 2 smaller upper sands.

Based on this report ELK could double or triple based on just SDS. The upper sands could increase the market cap over tenfold.

Cheers Davo22

DYOR Just my interpretation