Ok fellow ELK'ers.
I just topped up my holdings. Actually had to sell some shares in another company to do so. But i just did the figures again from the last quarter and it is amazing just how much value is here.
$1.72 million AUD were the sales for the recent QTR and that is with some problems with the #11 SDS well during the qtr.
Assuming it would be quite easy for ELK to produce sales of $2m per quarter, thats $8m per annum. Not bad considering that is what the company is valued at when you subtract cash on hand from the current market cap of $12m.
Throw in the #1 well that is currently drilling which could add another 40-80 BOPD and not to mention the upside on any Co2 negotiations + muddy drilling upcoming, which due to sightings of crude on the surface management are confident of good results. Even without the Co2 this company is extremely undervalued.
Management have also increased their holdings lately and it is great to be able to purchase at a discount to Directors.
I would be interested in others thoughts and views on the value on offer here.
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great opportunity available
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