Gee, its amazing how little ppl think about these things!
It will not take 2.25yrs to get oil out of the ground - there will be a year (maybe less) where a JV partner is found, a CO2 contract signed, pipeline built, additional holes drilled (for the CO2 gas insertion and oil extract rigs), time for gas to flow into the reservoir, etc. However, oil should start to flow soon after that as pressure rises - slowly at first peaking in a couple years time.
All this will be in the report/s. However, what is not being realised is that the recovery rate will be very big after 2 years - prediction is 8,000bopd, for which the income will (probably) be over US$130m+ annually and continue for 5 or 6 YEARS!
That is what ELK is worth today, so the sp price is up to US$1.50 now, US$2.5+ when all contracts are in place and US$"who nows how far" once all flow rates, etc are fnialyy determined (and the true NPV calculated).
In other words patience!
ELK Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
