I’ve been away a few days and am just catching up on the news. The new acreage in Montana looks very promising.
I did some searching on the net and found this article about a company called Kodiak Energy that has 135,000 acres in Montana. Although it is a couple of years old, it gives some indication of what to expect in terms of drilling costs, production rates and reserves from shallow gas plays.
It looks like the ELK team is using cash surplus from current production to steadily buy up leases and build up a substantial portfolio that it can commercialise. This is a smart move because it maintains its cash balance and IMO this new gas play can be a company maker.
I think we’ll get the RS in the week before Anzac Day. Then the quarterly report the week later will give an update about drilling in the upper sands and CO2 contract. They’ll probably put out a new investor presentation in early May which will include a new NPV.
ELK Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
