Ridiculous valuation on Elk

Not even DJ Car's report agrees with copperpot's wild valuations. They only see a value of 22 cents per share.

IMO that is still way over the top.

Ash Creek is valued at $5 million - IMO they would have to pay someone to take it away. The project needs millions more to get it produce any oil and there is no guarantee that it will produce anything.

Exploration is valued at some wild figure of $16 million or so................with no explanation how or what the assets are behind that figure.

IMO, and as stated before, I think that ELK would be lucky to get $30 million for the entire package of which I put ALL the value on Grieve and then debt would have to be paid with the funds.

I have to laugh at the pipeline valuation. figures being tossed about here and there with nothing to back them up. For an 8 inch pipeline of 30 miles or so in length what is the minimum amount of oil needed to operate the line?

If and when Grieve ever produces oil a 100 barrels a day won't even coat the inside of the pipeline!!

And copperpot's statement that a cost of $6 to 8 a barrel to truck oil would make the project 'unviable' is more than laughable - it is crazy.

First of all if a cost of $6 to 8 per barrel based on $100 oil would make the project 'unviable' then the entire project is unviable from the start.

That cost per barrel is cheap. IIRC in North Dakota the cost per barrel is around $10.

Furthermore, if the cost of $6 to 8 is unviable then that puts a cap on the amount the pipeline could charge. Even using a cheap rate of $4 per barrel and a daily transport of 2000 barrels per day would not allow the buyers of the pipeline to recover their costs for about three years. (And even more laughable is the thought that a difference of $2 per barrel in transport costs would make it 'viable"!!))

No wonder the pipeline wasn't sold at Elk's asking price.for the asset wasn't met. The research report puts a value of $5 million on it and again IMO that is too high.