rancher energy, page-2

Gday Ozalien
Unfortunately I can't listen as my speakers dont work.

As for Rancher acquiring ELK/Greive it would never happen. Directors hold too much of the company, and would know the potential that exists at Greive. And as for farm in, Elk have stated they were looking for an experienced co2 company, otherwise they could just bring in anyone with money.

The price paid for Big Muddy of $25mil US goes to show how undervalued ELK is. BM has already undergone secondry production, Greive has not (Elk tried to waterflood but found Greive too faulted) so (and I am guessing here) Greive may have similiar potential to the BM, however as Greive is smaller (acres) the economics would be significantly better. The industry puts total recovery rates at approximately 60-65% of OOIP after co2. Considering Greive had such high initial recovery this may be higher. Elk are looking at a gravity stable flood ( University of Wyoming mention in their monthly report) which should also improve the recovery rates.

We have an asset currently worth tens of millions (potentially 100s of millions) and the market has it valued at $000. Remember in their February investor presentation ELK had a NPV $155mil on the Muddy formation.
Cheers