Right now, no one is interested in gas in the US. With talk of gas falling to as low as $1 in the US this winter, gas just isn't what it used to be. Personally this find is good for the longer term, but ELK, like many other small companies needs to commercialise these discoveries now to add additional cashflow to the bottom line and not years down the track. Fingers crossed that the next zones flow at higher rates. I should note that I am not sure what the value of nitrogen gas is in the US, maybe if it is significantly higher than normal gas, then the field may have a little more value in the short term.
ELK Price at posting:
16.5¢ Sentiment: ST Buy Disclosure: Held
