I've held elk from a buy at 46c av much higher than most traders I know...i've sat back and seen big profits evaporate...just to se them come back again...its one of those stocks that i've considered longer term but not very long...
when the adverse trading appeared I just walked away went out for lunch...why...because this is just so promising...oil ...after all it's gold...useful gold not like metallic gold...its rubbish but the market loves it...it's insurance...but it won't keep you warm...it won't make your car run..etc...at days end ..the world comes back to necessities...what feeds you what keeps you warm..what keeps you alive...
now elk 8 to 12 ,000 b/day at the expectant $100 b/day good profits...limitations for nor 8,000 b/day due to pipe line restrictions...but that can be fixed..
the fact is this field already produces oil..its profitable ..without co2 injection...with co2 injection it becomes incredibily profitable...
energy producers for the moment think they can make a profit from selling co2.....the time is approaching...wnen they will be required to to pay a tax for not disposing of co2 in a greenhouse frendy way...consequently ..the alternative is ..like in australia...they will have to pay to dispose of the deadly co2...it's inevitable...and they know it
now we have a known producing field...the Ceo spent millions of dollars to top up to 19.8% holding of the company....would you do that...and if so..when would you do it...
...you know something that no one else knows....u have to remember the state Govt of Wymoing is behind this...it needs this..it's had dwindwing supplies...dwindling revenue...this will be the stimulis to bring in the explorers and producers...
...all the data to date looks good..from impeccable sources...
....23 mill barrells of oil at a min of 8,000b/day at an expected price of $100 per/b less expenses...we are not talking millions of dollars we are looking at billions...and the stock is a 60mill share listed... don't forget they already produce oil..under natural pressure with pumps...
add co2 the upper levels will produce sooner the lowest levels wil come into production in around 2 yrs to squueze out the last drop...thats right...the 2 to 2.5 yrs means they will get out the last drops from the lowest levels...the upper levels will flow much sooner...
..don't believe me...u can set up your own model at home...don't worry about using co2 use water user o2...it's quite simple on a small scale....set up a plasticb bag partially filled with oil ...make sure it has different levels... pressurise it it o2 ..or water ..and see what happens...thats the simplistic example...but it works...been there done it...
so whats changed...just the scale of the project...the dollars stack up.. ...now its a case of dollars profit per year multiplied by a reasonable pe say a safe 7 but should be a 10....
we have more reports to come....the final one will be a co2 contract...but I don't think anyone even doubts that will come...there are plenty of c02 producers in the region...now they have to cut a good deal...
..bottom line...the Ceo of elk just spent millions buying up the companys shares...would you do that...and when would you do that...!!!!
good hunting
ELK Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
