Sydney - Friday - July 4: (RWE Australian Business News) - Elk...

Sydney - Friday - July 4: (RWE Australian Business News) - Elk
Petroleum Ltd (ASX:ELK) today announced unaudited net sales revenues
from its US oilfields were estimated to be $A5.35m in the 2007/08 year.
This represents a 96pc increase over the net sales revenue of
$2.73m in 2006/07 and a 388pc increase over $1.09m in 2005/06.
Gross production volumes from the company's 100pc-owned
oilfields at Sand Draw South and Grieve in the Wind River Basin in
Wyoming are estimated to be 79,582 barrels.
This is up 39pc from the 57,229 barrels produced in 2006/07 and
300pc from the 19,890 barrels produced in 2005/06.
Preliminary gross sales volumes from the above fields are
estimated to be 78,457 barrels, up 33pc from the 58,927 barrels sold in
2006/07 and 293pc from the 19,989 barrels sold in 2005/06.

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Managing director Mr Andy Rigg said, "These figures are
obviously very satisfying for the company and continue to demonstrate
the value that can be derived from working over mature oilfields in the
USA at times when oil prices are high.
"It is very pleasing to see that Sand Draw South production has
stabilised in the 18,500 to 20,500 barrels a quarter range since 3Q
2006-2007 other than for the last quarter, when we experienced some pump
problems, and we are currently looking at ways to increase this
production rate further, either by additional fine-tuning of equipment
in the field, perforating additional shallower zones, or even
potentially drilling another in-field production well.
"We also expect that the final sales numbers will be close to
production as our ability to haul oil at the end of May was impaired by
bad road conditions, and much of this was hauled in June."