elk must be worth $500 million

IMO Elk is worth at least $400 million in market cap.

Why?

1. 3P Reserves

Well if other companies in the sector are getting $15/boe for 3P reserves and others are getting that amount for 1P boe of oil & NG then ELK with its 3P oil of 20 million barrels should work out to $300 million for that.

Add in the fact that ELK doesn't need to drill upteen wells to get that oil and the FACT that it is ALL oil should mean that ELK deserves a premium on its oil

2. The Niobrara

La-la land estimates and future EUR's based on pie-in-the-sky well spacing and no completions to date should also allow ELK to value its undrilled Niobrara acres at the same metrics.

ELK has 3000 acres and we'll be conservative with 17 wells based on 160 acre spacing and a estimated NPV of $10,000,000 per well - the same as other companies - gives a NPV of $170,000,000

3. Other Assets

As long as we are giving future values to undrilled and unproven land the exercise should continue for Ash Creek. Say 300 bopd and a value of $100,000 per barrel of flowing oil gives another $30,000,000.

There of course are other assets and cash as well.

So in the world of blue-sky and hype ELK should be valued the same as other companies in the sector.

$500 million and about 110 million shares works out to around $4.50 per share........similar to my other esimates and one that shows ELK is substantial undervalued.