Ann: Quarterly Activities and Cashflow Report, page-12

I'm taking a long term view on Elk as has always been my plan .

- the oil is not so super-light like the shale plays so there should be more of a market for it at less of a discount to world prices .

- this is engineering rather than exploration . Exploration is m0re loss making than ever and the shale plays are drilling out their best acreage at very low oil prices . At some point , enhanced oil recovery has to become flavour of the month .

- there are very few enhanced oil recovery opportunities to invest in . Plenty of supposed entrepreneurs have "done it before" but most of them were just in the right place at the right time . Brad Lingo is the real deal .

- Elk's headcount went up significantly with the Aneth acquisition . Elk will have to expand it's operations and will start more E.O.R. projects and get better at identifying them .

Of course I have concerns ; operational - that the sellers of the projects knew something , that Grieve might leak and also financial ; interest rates and the P.O.O.

However , the shale genie is looking dormant and not likely to reawaken to cause mindless over production due to the investor fatigue , deteriorating geology of new drill areas , state of the pressure pumping industry .

Let's not get away from the fact that Elk have established themselves as a player in double quick time . There are going to be hiccups .