Grieve is on the path to production. Denbury are the operator and ELK will receive 35% cash flow of a major project soon, without having to lift a finger.
Singleton and everything around is the next project for ELK to package up, acquire all of the other fields in and around the field/co2 source cheaply, then farm out out again for a material stake in a materially producing fled.... This is exactly what they did at Grieve, only now the company will have cash flow to fund its growth organically without significant capital dilution.
There has been a long lead time with this one, but with the new CEO and significantly material cash flow coming from Grieve as soon as late 2014, this company is simply ridiculously undervalued.
ELK Price at posting:
15.0¢ Sentiment: Buy Disclosure: Held
