Sounds like to me a rehash of the same ole same ole that you were spouting about another company: NAV.
That share price went the same way: down, down, down.
In both cases the market has seen differently and trashed the share prices of both companies.
Is NAV worth more than 30 cents a share? Yes, but not with the current management in place.
ELK? IMO the same story.
Elk has a field with anywhere from 5 million to almost 20 million barrels of oil recoverable in it.
Even with today's sub $50 a barrel price one would think that any smart, rational company could get a couple bucks a barrel for flogging the entire field and a decent ORRI on top of that.
ELK is trading at about 60 cents US a barrel for that oil based on the current market cap using a mid point of 10 million barrels. US$2 a barrel would triple the current market cap.
IMO unless the 'capital raising' is a sale of the company any flogging of shares at the current of lower market prices is ridiculous. Endorsement of that type of action beggars belief.
ELK Price at posting:
16.0¢ Sentiment: Hold Disclosure: Held
