shane75

I find your projected valuation of AZZ to be quite amusing..all based on basically one field of NG.

Now if you REALLY think that AZZ should be valued that way then apply the same valuation 'techniques' to ELK and see what you'd come up with.

In fact, I'll even do the work for you.

ELK has a possible 23 mmbo and right now oil sells at about US$90 a barrel which IMO is nice, but a little too high for valuation purposes so we'll wipe off a little there.

Now when you 'valued' AZZ, you were using NG. Right now the price of oil is more than twice the NG boe value.

So some calcs:

AZZ's 50% of 200bcf works out to about 17 million boe. (I'll even give them a 100% recovery rate too which we all know is total and complete BS!)

ELK has 23 mmboe so take twice the value of NG and 1.35 times as much product so applying your 'neat' valuation of $500 million to AZZ we would come up with:

1.35 x 2 x $500 million for an equivalent 'valuation' of $1.35 billion for ELK.

Now given that in ELK's case the 23 mmbo is the recoverable number and AZZ's it is gross, ELK would be even more undervalued given your approach.

So with ELK's market cap of less than $30 million (AZZ's market cap is $80 million plus they have that debt as well) it appears that ELK would be a 40 bagger.........

Now of course that is all plain ole BS and cr apola for both AZZ and ELK.................

But I'd say that ELK is more undervalued than AZZ.