It was all very positive with lots of prospects on the go.
We can expect an annoucement on Friday with the results of the Trussler #8 well testing the Eagle formation. All involved were very optimistic regarding the prospect. The "forensic" analysis showed a high probability of oil in place.
Of interest
CO2 is off the agenda due to availiabiliy and cost. The good news is that the Chemical flood could potentially have a higher NPV than a CO2 flood. Pilot test in April 2009 would result in reserves being reclassifed as a combination of 1P and 2P.
Ash Creek may have up to 21mb ooip in upper Shannon formations and potentially the same in the lower formation. (this is huge and new to my understanding of Ash Creek)
SDS Potentially testing new gas formation mid April 2009. Previously flowed at 5mmcfd in 1950. Elk plan to drill and test to determine potential reserves.
Uluru This could be the company maker and they will definetely farm out drilling in 2009. Elk mentioned that they would need to drill 1 well per 160 acres. (Chris Mullens said potentially 1 well per 40 acres if sucessful) Gas shows already evident from existing water wells.
Kakadu-Didgeridoo Shallow gas and deep gas and Oil plays. Sesismic drilling late 2009 - high potential for later part of the year.
Outback Still has potential however no activity forecast until after ASh Creek Eagle test.
It was asked whether ELK would consider capital raising and the response was unlikely as the corporate strategy is to farm out costs for individual assets rather than raise more equity.
My sense from the meeting is that ELK is still the best Oil and gas play on the ASX with a committed management team and the next 12 months will be huge with multiple opportunities on the go.
Cheers DJ
ELK Price at posting:
16.5¢ Sentiment: LT Buy Disclosure: Held
