brent crude flying at 1.08, page-4

Based on net production of 208 bopd, production costs of $US35 per barrel (from half-yearly report) and an average oil price of say $US85 and exchange rate of 0.92, I have calculated ELK as making a gross profit of over $AU1M for the quarter. That’s $4m operating profit p.a. or 6.5cps. Reserves at SDS would support more than 10 years production at current levels. This is a nice little earner and management are using surplus funds to buy more leases.

The sp at around $0.60 only reflects current production and takes no account for the future of Grieve (EOR or upper sands) or the large gas play with the new acreage.