co2

Rancher no longer has co2........ELK was unable to do the deal at $100+ oil, so completely irrelevant now..........




"On April 3, 2009, Rancher Energy Corp. (the “Company”) was informed by ExxonMobil Gas & Power Marketing Company (“ExxonMobil”), a division of Exxon Mobil Corporation, that ExxonMobil is terminating, effective immediately, the Carbon Dioxide Sale & Purchase Agreement, dated February 1, 2008, between the Company and ExxonMobil for the supply of carbon dioxide (CO2) by ExxonMobil to the Company. The Agreement was filed with the SEC as Exhibit 10.1 to the Current Report on Form 8-K that was filed with the SEC on February 14, 2008.


ExxonMobil’s purported termination is based on the Company not providing performance assurances in the form of a letter of credit. The Company believes that the Agreement does not obligate the Company to provide any performance assurances until the start-up of CO2 delivery, which will not occur in 2009. Accordingly, the Company disagrees with ExxonMobil’s rationale for purportedly terminating the Agreement and believes in good faith that Exxon’s termination of the Agreement has not occurred pursuant to the terms of the Agreement and is unlawful. The Company has informed ExxonMobil of its position."