Nice rise in HH price over the last month now over US$3.40 per...

Nice rise in HH price over the last month now over US$3.40 per MCF .... may be approaching a price management could decide to hedge a portion of the Madden production IMO.

Elk receive a U$ 22 cent discount to HH per MCF which equates to US$3.19 for today's price. Last quarter they received $2.87 per MCF which gave them a profit margin of US$ 0.72 per MCF so you can extrapolate a profit margin of around US $1 / MCF give or take a few cents today.

Interesting that the share price is heading south as the gas price is heading north..... considering the terms of the deal were struck when the price of gas was hovering around US$2 an MCF , I'm convinced the market is not up to speed on the significance of the Madden / Lost Cabin acquisition in terms of the bargain basement price , quantum of PDP reserves and inherent strategic value.

Cheers

Dan