So far ELK have a perfect track record for destroying asset backing per share every time they raise capital. They are in effect selling Grieve and the other assets at a guess between 12-16c a considerable discount to the amount of money spent on them. I have already lost 80% of my shares exposure to Grieve and guess now it will likely be close to 90% in the end. The exposure I had to SDS per share when it was producing over 150bopd with 60mil shares on issue would likely be equivalent to having a 500+or-bopd field post this issue.
What happened to the Niobrara farmout?? Why could our team not implement a simple waterflood of Ash creek??? Why did they not secure a loan to ease the selling pressure on the stock from investors expecting them to flog of shares on the cheap??? why did they not do something with Kakadu?? all of which would have put ELK in a stronger position now. While I thought the above were important to be resolved, the fact the directors were aware of an impending raising made those issues critical. I thought we may get through to Grieve with minimal dilution, it appears I was wrong.
ELK have 15% placement they are likely to use which would be worth around $2.5mil, how much on top of that are they chasing??? I hate to think!!!!!!!!!!!!!
ELK Price at posting:
20.0¢ Sentiment: None Disclosure: Held
