Announcement appears to already confirm that they will be going ahead with Chemical Flooding. The share price will start moving up now, once people understand the significance of this announcement and once all remaining disgruntled shareholders have sold out.
At 16.5cents, Elk now has a market cap of only $15.38million.
The latest announcement indicates that incremental recoverable volume from chemical flooding could amount to 13.7 million barrels.
As Chemical Flooding is expected to be profitable even at $40/bbl, current oil price of $71/bbl will result in a total profit on the Grieve field of ($71/bbl less $40/bbl) x 13.7million bbls which equates to $424.7million.
Hope they are good at public speaking when they present in New York later today.
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