Some simple calculationsELK has an 18.6M barrel Ryder Scott...

Some simple calculations

ELK has an 18.6M barrel Ryder Scott certified resource

At $120 a barrel thats $2.23B of oil

If this was a gold project that would equate to a 2.55M Ounce Jorc resource

ELK has 62M shares at todays price of 49c gives it a market cap of $30.3M

So this would equate to buy a 2.55M JORC gold resource at $11 an ounce

But wait it gets better...............

The cap and opex over the life of the project is estimated to be $120M

So this would be the equivalent of mining the gold $47 per ounce

Even better I notice in the Fin review today that (pag 25) that Goldmans are predicting $150-200 oil within 2 years

Thats like predicting gold $1300-1500 and ounce

At $200 per barrel Elk would own the equivalent of 4.2m JORC ounces of gold (@875)

And all Elk needs to do is to stick a pipe in the ground , pump the reserve full of Co2 (the pipeline runs past its front door) and they are in production at 12000 barrels a day

They dont have to build a mine, they dont have buy trucks, dozer's, dont have to employ miners all they have to do is build a co2 pumping station and connect to the co2 that runs past their front door and call the man from Exxon to come pick the stuff up

How many miners can be in production in 2 years time ?

For a $31M market cap you get all the above and more through ELKS various US based gas projects

ELK is one of the outstanding spec buys on the ASX