Things were getting desperate again and although the agreements...

Things were getting desperate again and although the agreements are not overly impressive they are agreements none the less and a step forward, sure beats seeing 1/3 of my holding wiped out at 9c...

Interesting That ELK took Kakadu to Nape asking $600k + 2 wells for entry into the project. Early this year I complained bitterly that ELK would not meet the market on JVs. Now they have suddenly decided to negotiate. It would appear they have lowered the JV requirements to
re-entering one well as opposed to drilling 2 and paying for only the prime acreage which comprises only 1/4 of the land....So it would appear that the JV has acquired entry into the jewel of Kakadu/didgeridoo for a 1/4 of the price, as for the rest of the acreage at this point in time it is worth bugger all. Definately not worth the wait, a deal should have been done early in the year before the capital raising....

Ash creek....Quite simply the JV will give ELK an approx us$700k loan for 6-12months and insure ELK against the project risk, in return the JV will receive 2/3 of the field, of which ELK invested time money and effort. ELK gets to pay the JV back when the field comes online. Considering the field was shut in while still producing and the lower shannon was never water flooded, I beleive the risk of the field not producing is bucklys or none. Amazing how last tuesday ELK released an investor presentation showing ELK producing from Ash creek this quarter and owning 100% and 6days later we only own 1/3rd !!!!....

If you didnt participate in the capital raising you have gone from 100% of Ash creek to 22%....100% of Kakadu to 33% this year alone....

I do beleive that ELK have made a botch up of the way they have gone about their projects this year and the order they have approached them...Poor Chris must be pulling out his hair!!..........

Still success is success and I am happy to take anything at the moment...
Cheers