Fluffy,$10/bbl is actually very conservative for ELK. In October...

Fluffy,

$10/bbl is actually very conservative for ELK. In October 2011, an acquisition for a US onshore unconventional (not EOR) oil company went for $11.87/bbl of 2P reserves. However, in that example, the buyer would still need to spend money to extract the oil. ELK on the otherhand is free carried all the way to first production! Can't get any better than that.

Also from a worst case scenario perspective, if you listen to Denbury's latest webcast, you will find that even if oil drops to $50/bbl, Co2 EOR projects will still achieve an IRR of 15%.

Good stuff.