news out, page-6

Slide 22:

1. Grieve Field ASP Phase 1 - from looking at graph Company needs about US$15M to fund phase 1 by 2010;

2. "At current oil prices (US$50/bbl), 100% of Phase 1 of the project is worth around US$30 million" - Don't know what this oil sells for - however currenty forward prices has oil selling for US$69 per barrel. ELK could forward sell some production once they were certain of getting the production and lock in the higher forward rates. using graph on slide 2 - at oil prices of US$70 per barrel phase1 is worth about US$70 million.

Regards

SP