grieve worth $95million - 50 cents a share, page-2

Copperpot,

I wish that were the case but the NPV calculation of $95milliom was done ages ago when ELK was expecting Grieve to start producing in 2014. It is also based on 18MBO. While 18MBO is based on a study done by Ryder Scott, Denbury have a lower estimate, if im not mistaken.

IMO, it is more realistic to use the lower end of the NPV estimates ie approx. $50million, which assumes delayed production and 12MBO. Unfortunately, no buyer is going to pay full price for an asset especially knowing the position ELK is in so it will most likely be less than $50million (less than 26cents per share). A lot will depend on how good the Meagher Energy Advisors are at negotiating a good price for Grieve and the overall state of the market when negotiations take place.

I personally wouldnt allocate much value if any to the pipeline or Ash Creek as they have been up for sale for quite some time now with clearly no interest at least at the price the Board is willing to accept.

Nevertheless, Grieve, IMO, should at least sell for more than ELK's current market cap of $19million and the decision to try to finalise the sale by early October means that hopefully, we won't have to wait till 2016 to see any appreciation in the share price.