The more i think about it the more I beleive there is a good...

The more i think about it the more I beleive there is a good chance ELK could have an economic well at Grieve.....

To justify spending the money I expect we would need the well to payout within 6months, preferably 4 as at current rates we will not need that money before then..... I suspect $100k would cover the costs of perforating and fraccing the well... 90% of the cost has already been incurred (drilling the well)... .... No oil was found in the upper sands, Elks releases suggested it was from shales/siltstones......shales have low permeability but the latest technology has turned a number of them into highly sought after plays.... ..
I assume production costs would be low as coming from a source rock there would be no water issues......SDS/Grieve has to produce approx 50/130 barrels of water for every barrel of oil...this results in high production costs.....


I suspect 10bopd+ would be a worthwhile project and add to ELKs revenue....there is also gas potential, a sustained 200mcfd a day would create similiar revenue to 10bopd....Shale gas has bommed in the US over the past few years.....