Hi guys,Does anyone know why ELK achieved a substantially lower...

Hi guys,

Does anyone know why ELK achieved a substantially lower price per barrel then spot prices? Has it to do with the quality or do they sell into future contract prices?

78k odd barrels for ~$68 per barrel is well below the average price over FY0708.

Going forward, with their three prong intiative to increase oil production based on existing wells alone... (say they achieve 30% increase, and oil price averages $120/barrel next year)

FY0809 revenue will look like this?:

100k barrels x $120/barrel = $12 million revenue.

Cost going forward should be relatively stable as they run quite a tight ship. Anyone has detailed forecasts for Net profit margin going forward?

IMHO Turning out to be quite sustainable profit generating producer as they replicate their niche strategy over new land purchase.