Just did some rough calculations of cash flow for April and May...

Just did some rough calculations of cash flow for April and May based on published production figures. My reckoning is they have a cash surplus of about $AU760K for these two months. If we assume similar performance and prices for June I think ELK would be sitting on a cash surplus of about $1.1M for the quarter.

This would be more than enough for admin expenses, payment for the RS report and maybe more lease acquisitions.

Perhaps they will drill the new well in North Wyoming by themselves. If they hit gas they will be able to farm-out on much better terms or not have to farm-out at all!.


April May Total
SDS - Gross 6,201 4,985 11,186
Grieve - Gross 396 380 776
Total - Gross 6,597 5,365 11,962

SDS - Net 5,333 4,287 9,620
Grieve - Net 360 346 706
Total - Net 5,693 4,633 10,326

Ave WTI 120 130
Ave Wyoming crude 105 115
Ave prod cost 35 45
Gross margin 70 70

Gross op profit 398,525 324,303 722,828
Exchange @ 0.95 419,500 341,372 760,872