read it and weep: elk 2012 annual report, page-8

Robynjackson,

The ELK/Denbury JV requires that Elks share of revenue from the Grieve project is accrued against the future expenditures of the project relating to the costs associated with CAPEX and the significant cost of first Co2. However, as I insinuated in my response post to you, the CAPEX that ELK were obligated to pay as part of the JV should be covered until first material oil production. As such, ELK's revenue share from Grieve that was to be accrued against future expenditures will not be required as ELK's costs to first material production is free carried as the costs on CAPEX to date are significantly below budget...... (please read ELK's previous and recent announcements).

In other words, the revenues earned during the interim period (up until material oil production from Grieve) will be provided as a credit to ELK post first material production from Grieve.

Ultimately, as I have posted before Denbury are notoriously conservative in forecasting their EOR Projects. Grieve should be producing material oil by mid 2013 based on other Denbury Co2 project (again research Denbury's announcements and past performance of projects).

As such, with the recently completed positive capital raising ($5 million), potential of partial divestment of the 100% owned Grieve pipeline as well the ramp up of Ash Creek production, there will be no need for any future capital raisings (apart from for specific project related acquisition costs).

Apologies if I offended with the term "ïncompetence". I am just getting sick of pretenders who fail to understand the incredible value of ELK and do not understand the great deals they have done recently.....