preserving/creating value per share

Until Elk are self funding or the shareprice rises significantly management need to be creative to preserve/create value for shareholders...The board have been doing a very good job recently but I suggest the next 6 months will be a bigger test than the last 6..

Indirectly the deal unlocked $1 NPV per share.....Elk has a valuable asset in the co2 development...However the direct value of the Grieve deal was low and this is what I believe sellers have focussed on and led to a fall in the shareprice to 30c.....

Unlike the Evolution deal ELK received no cash, so with around $1.8 mil expected to be left in the kitty at the end of the quarter Elk will be in the position of needing to find cash by the end of next quarter. To raise money at the current price would destroy significant value per share. It would appear we only have one asset to deal with that has the potential to raise the shareprice by any reasonable amount in the short term, the Niobrara. So it is very important that management farm this out in the near term.

I believe Elk also need to secure a line of credit over the Grieve field to acquire/develop additional assets. EEG had $150mil line of credit with a market cap around $15mil, no reason why Elk should be unable to secure at least $10mil... It would also appear Elk are going to need significant cash to develop Ash creek when the time comes.....We need to make progress but at the same time need to avoid dilution.


Within the next few weeks I would like to see management share the strategy going forward with shareholders...I would also like to see the company actively promoted...

Cheers