Renegade....an investment decision is not expected until the 3rd quarter...by which time Rancher will probably be well and truly bankrupt...and Exxon and Annadarko will need to move a significant amount of co2.....I suspect there would be a good chance of doing a good deal....
Very early on in the piece when CO2 was first talked about I questioned management about chemical flooding, wanting to know that there would be a fallback plan if co2 was to not eventuate.......of course there was no question of whether or not ELK could get co2, it was a dead certainty!!!
back then chemical flooding was seen as the ugly sister to co2, no where near as attractive and once you had been there you could never go back to the more attractive option....however if you tried Cinderella first with no success you always had the option of having a crack at her ugly sister..............Now the ugly sister is seen as more viable becouse Cinderella was playing hard to get.....however Cinderella is starting to get a bit desperate so could well lower her standards now she can see one of her last options is hitting on her sister and not her....
Cheers
ELK Price at posting:
13.5¢ Sentiment: Buy Disclosure: Held
