due for an update, page-6

This is an interesting article that shows some recent transactions in the niobrara at upto $5,000 per acre.

http://www.fool.com/investing/general/2011/07/06/hungry-for-niobrara-shale-exposure.aspx

It says the reason that Niobrara leases sell for less than leases in the Eagle Ford is that the Niobrara is unproven. Hopefully, the fact that ELK drilled Grieve 39A and intersected 65m of oil bearing Niobrara shale is enough proof to potential investors to pay similar prices.

A price of $5,000 per acre puts the undeveloped value on the Niobrara at Grieve at close to $20m. We should hear soon about the progress of the farmout and I'm still hoping to get a well drilled before the northern winter.