email to company and their reply - comments???

First of all I have not had any buy or sell orders in the market today for Elk shares.

Elk shares again fell today and this time by over 10%. To be exact they fell by 10.7%.

IMO the poor performance of Elk shares is due to the management and BOD of Elk and the poor decisions implemented by the company as well as the BOD failing in their fiduciary responsibility to ordinary shareholders.

Earlier today I sent an email to the company expressing my displeasure about the state of affairs at the company.

One section of the email stated:

"Shareholders have waited patiently for years to see the Grieve Field put into production and all we have seen are millions in expended shareholder funds, delays, and broken deadlines. In one of the recent announcements the company indicated that an April deadline for funding was needed to begin work in October."

Another indicated that I would explore the possibility of
expanding the BOD or undertake actions to explore the possibility of calling an EGM.

The reply in its entirety from Mr Rigg is shown below. You can make up your own minds as to the state of the Grieve Field plans and the Hereford well (How many months has it been since it was drilled??)

As you will also notice, not one word was said about a new Director or Directors to safeguard ordinary shareholders' interests or an EGM. I guess that pretty much sums up what Mr. Rigg thinks about us ordinary shareholders and what we can do: Nothing.


Email reply as follows:

"Dear XXX

As usual, thanks very much for your email.

The last quarterly report had quite a lot of new information in it, as verified by a number of shareholders who have contacted the Company complimenting us on keeping the shareholders informed in this manner, especially when some do not have either ready access or the time to regulalry visit our website and/or the ASX releases made during the quarter. Of particular interest to some was the role that the final Surtek report (received in late April and for which the Company review of this almost 300-page report was completed in early May) was going to have in the due diligence information package being prepared by the Company and our financial advisors aimed at securing funding for the project. Also of interest was the updated information on the outputs from the Surtek work and the robust economics prepared by Elk for the project as well as the Ash Creek update. As usual, all the production, sales and revenue information provided is also new information.

As to Hereford, we are progressing the gas marketing discussions with third parties which we have previously announced. There has been quite a bit of local interest in the marketing options we are pursuing both as to the full gas stream (after separation of the helium) as a low BTU gas, as well as separating out the Nitrogen for separate marketing. This has taken on a much lower priority for the Company whilst we have been heavily involved for the last 4 months in getting the Surtek work on Grieve completed, preparing all of the development plan and due diligence documentation and for the last 6 weeks also getting set for and undertaking the Ash Creek re-entry program. When you have a very small technical team as Elk does, prioritisation of some tasks means that others cannot be progressed at the same intensity. Had there been any substantial progress with Hereford marketing, it would have been mentioned.

As to the deadline for funding for Grieve, this has firmed slightly with each of the receipt of the Surtek final report, the progress of final design drawings for the facilities from FabTech, and some facilities requirement and procurement assessment work we have been conducting also with FabTech. At the moment, there is nothing that suggests that securing of funding for the project is likely to delay our last announced timeline of having the surface facilities installed in the field before the onset of the 2010-2011 winter. If there is any change to this position, it will be advised to the ASX.

Once again, thanks for your questions.

Regards

Andy Rigg"


So there you have it.

Comments?

Are shareholders interested in pursuing action to see if we can get a director or new directors on the Board?

Are shareholders interested in try to call an EGM to replace all or part of the Board?

Or do we let the BOD continue on the current path which appears to be running the share price and the company into the ground?

I'm afarid that pretty soon the share price will again be in the single digits and we'll see our share of the company diluted down to nothing............

IMO the ONLY thing that is going to save the company is funding for Grieve and that funding must come very soon. Unlike the comments in the email reply, I am not confident that Elk can undertake the necessary actions to meet the winter deadline based on numerous deadlines that they have missed in the past.

The Elk share price is disgusting and even more so given the huge potential of the Grieve field.

So much potential has turned into the "Elk nighmare on ASX".