comments

Having been a 'long term' holder of ELK and one of the few to post comments on the company before the big increase in the share price, I am not surprised at the number of new people posting about the company.

Overall the posts from these new people have been full of lies, downramping and generally unsubstantiated
CR APOLA.

Those that have put up such posts have blown whatever little credibility they may have had on HC.

The facts are quite simple.

On major shareholders selling:

1. Major shareholders of ELK have been selling down their stakes over a long period of time causing the share price to fall.

2. They have blown millions of dollars of their customers' money by doing so.

On the reserves:

It is quite clear to me that the majority of those posting about the ELK operations and reserves have absolutely no knowledge about enhanced CO2 recovery whatsoever.

The company is following in the footsteps of many other major US oil companies that that have used enhanced recovery techniques over a long period of time.

One of the biggest in the business and one that has used the CO2 technique to grow its business is Denbury Petroleum (DNR). I suggest that those posting complete BS on the ELK thread take a wander and look up the company's operations. Then post any reasonable questions on this board about the technique instead of spewing garbage.

Relative valuation:

ELK has been beaten down by the actions of its major shareholders to the detriment of the smaller holders.

Those of us that were smart enough to buy into the company months ago by reading and understanding fundamentals surrounding the company are quite amazed at the further lack of understanding of the TRUE value of the company by the numerous downrampers.

Unlike other companies that have nothing but hype and hot air, ELK has a proven producing field with a number of barrels of oil that can be recovered which in this instance are stated to be some 23 million.

One of the questions that needs to be asked is what price did the study use to determine that those number of barrels are recoverable?

IMO I think many will be surprised to find out that the dollar figure used is going to be much LOWER than the current price of oil.

And the importance of that number?

It means that the REAL number of barrels tht are going to be recoverable is going to be much higher. When Ryder certifies the reserves, you can be sure that the number is going to be so conservative that it won't be able to come back and hit them on the head.

So how to value ELK? Is the oil worth $1 a barrel? $2 a barrel? I would gladly pay only $1 or $2 per barrel of oil in the ground. And I think that the number of barrels is understated as well resulting in a much larger value that can be assigned to the company.

In summation, the only thing I can say is that if the many 'newbies' posting the negative comments about ELK on HC really believe what they are posting then:

1. They have no business in shares

2. They are quite D U M B

3. They are as I would term them IJIOTS

I maintain a postion in the company and a LT buy at these prices.