Hi Davo,Great to hear from you appreciate your thoughts,here is...

Hi Davo,
Great to hear from you appreciate your thoughts,here is a link to the release from the ELK website - http://clients.weblink.com.au/clients/elkpet/article.asp?asx=ELK&view=6459241

here is a juicy bit, but the full release is below

Elk's Managing Director Andy Rigg said, "these arrangements
will allow Elk to progress both these very attractive assets at no cost to the Company and still retain a
significant equity interest; the fact that we had 100% working interest in these projects has allowed Elk to
form Joint Ventures and extract value from, and to share risk associated with, these particularly attractive
assets.


This is it..........


Agreements Executed
Hereford #1 Gas Appraisal testing and Kakadu/Didgeridoo acreage Joint Venture
Ash Creek Oil Field Development Joint Venture
HIGHLIGHTS
Elk Petroleum has entered into a Letter of Intent to form a Joint Venture over much of the
Kakadu project acreage in Montana which will allow the testing of the Hereford #1 gas well to
proceed at no cost to Elk.
The same agreement provides an option for forming a Joint Venture across all of the remaining
Elk acreage in the Kakadu and Didgeridoo projects in Montana with this option to be exercised
by June 2010
Elk Petroleum has also entered into a Letter of Intent to form a Joint Venture for development of
the Ash Creek oil field in Wyoming which will allow 4 existing, but plugged and abandoned,
wells to be re-entered, a new development well to be drilled and assuming successful
outcomes, put on production. The cost of this work program as well as any resulting
production facilities for the five wells will be conducted at no cost to Elk
These agreements are subject to finalisation of documentation expected no later than 30 days
from 3rd September 2009.
It is expected that the testing of the Hereford #1 well will take place as soon as documentation is
completed, and that a significant part of the Ash Creek program will be undertaken before
winter.
BACKGROUND
Over the last 4 years, Elk Petroleum ("Elk", the "Company"; ASX: ELK) has acquired a large equity
position in a portfolio of mature oil fields as well as exploration assets in both Wyoming and Montana.
During the last 2 1/2 years the Company, has established and maintained cash flow from its producing
fields at both Sand Draw South and Grieve in the Wind River Basin Wyoming, and has also been focused
on progressing a substantial Enhanced Oil Recovery (EOR) project also at the Grieve Field. Elk has
been seeking Joint Venture participants for its 100% working interest (WI) in Kakadu and Ash Creek, and
75% WI in Didgeridoo;. The Kakadu prospect contains an abandoned well (Hereford #1) that in 1966
tested at a total rate which equated to an absolute open flow (AOF) of 81 MMSCFD. The composition of
the gas stream is unknown but an earlier test of the lower zone contained approximately 57% nitrogen.
The Ash Creek field was abandoned in 1997 producing 30 BOPD. Elk has conducted an extensive
review of the history of the field and has identified wells worthy of re-entry and areas of possible bypassed
attic oil.
AGREEMENTS
On September 3, 2009 Elk executed 2 separate Letters of Intent to Joint Venture both the
Kakadu/Didgeridoo project and the Ash Creek Field. The main features of these 2 agreements are as
follows.
Kakadu/Didgeridoo
Joint Venture Participant (JVP) agrees to fully test the Lakota and Greybull Sandstone reservoirs
in the Hereford #1 gas well according to the Elk procedure and fully carry Elk for the budgetted
cost of testing estimated to be US$164,000.
JVP will pay Elk an agreed price per acre for a 50% WI in the main Hereford lease of 12,237
acres.

JVP will have until 1 June 2010 to exercise an option to lease 50% of the remaining Kakadu and
Didgeridoo leases again at an agreed price per acre.
If this option is exercised, then JVP and Elk will establish an Area of Mutual Interest (AMI) for all
of the Kakadu and Didgeridoo project areas
This is still subject to completion of documentation in 30 days (Joint Venture Operating
Agreement, Assignment of Interests, and an Area of mutual Interest (AMI) over the total
Kakadu/Didgeridoo area)
If in 45 days the Hereford #1 well is untested then either party can terminate the agreement
Ash Creek Oil Field
Joint Venture Participant (JVP) agrees to re-enter 4 plugged and abandoned wells for the
purposes of testing the Upper or Lower Shannon Formation reservoir considered by Elk to have
remaining oil production potential
JVP also agrees to drill a minimum of one new well for the same purpose
JVP also assumes the costs for production facilities for the five wells
All of these activities will be at 100% cost to JVP; Elk will be fully carried through this program
If successful JVP will receive 80% of the revenue and Elk 20% until JVP has recovered its
investment
Thereafter the working interests and revenue interests will revert to JVP 66 2/3% and Elk 33 1/3%
This is still subject to completion of documentation in 30 days (JVOA, Assignment of Interests,
and an AMI over the field area)
If in 45 days from 3rd September the terms of the JOA are not agreed then either party can
terminate the agreement.
Once this documentation is completed, further details of the agreements will be provided as will an
expected timetable for the work program under both agreements. However it is currently expected that
the testing of the Hereford #1 well will take place immediately after documentation is completed, and Elk
is already preparing for field operations associated with this extensive testing program. It is also
expected that a significant part of the Ash Creek development program will be completed before winter.
In commenting on these significant events, Elk's Managing Director Andy Rigg said, "these arrangements
will allow Elk to progress both these very attractive assets at no cost to the Company and still retain a
significant equity interest; the fact that we had 100% working interest in these projects has allowed Elk to
form Joint Ventures and extract value from, and to share risk associated with, these particularly attractive
assets. We are really looking forward to completing the documentation and starting the work program as
soon as possible, and establishing a long lasting, productive and profitable relationship with our new
partner in these assets. With these arrangements in place, Elk will continue to concentrate its attention on
bringing the Grieve EOR project to fruition.
On behalf of the Board.
Andy Rigg
Managing Director/Chief Executive Officer