the trading halt is over, page-12

sorry the rest
The following table compares two forecast production results from the similar EORI and Nitec simulations:
Initial CO2 Injection Rate EORI MMBbls* Nitec MMBbls*
110 MMSCFD** 23.2 21.0 * MMBbls=million barrels
50 MMSCFD** 19.8 18.9
** MMSCFD=million standard cubic feet per day
There was good agreement between the two models which were developed independently and used different approaches
to the forecasting simulation. The close correlation between the results has permitted a reasonable level of confidence by
Ryder Scott to use the studies to arrive at its reserve determination.
Ryder Scott indicated that elevation of the reserve classification to the “Probable” (2P) category per the SPE Reserves
Definitions would require a successful pilot. Ryder Scott then went on to observe that conducting a pilot on a depressured
reservoir is impractical and therefore reclassification to “probable” (2P) by this route is also impractical. Ryder
Scott indicated an up-grade of the reserve classification to “Proven” (1P) is expected when full-scale CO2 flooding has
been implemented and production responses achieved.
ECONOMIC EVALUATION
The Ryder Scott report also included an extensive economic evaluation. This evaluation provided a base case valuation of
the project of USD $305m (unrisked NPV 10). This valuation assumed an oil price of US $85 per barrel and no CO2
sequestration benefits or resale after use. Ryder Scott found the project to have very robust economics.
DEVELOPMENT PLANS
Elk has made considerable progress in negotiations with potential CO2 suppliers and is well advanced in discussions to
acquire and transport the required CO2. There continues to be considerable political pressure within the State of
Wyoming for CO2 currently vented, to be utilised in tertiary oil recovery projects.
REVISED RESERVE POSITION
The Company’s current certified reserve position is as follows:
Certification Previous Revised
1P 590,000 barrels 590,000 barrels
2P 920,000 barrels 920,000 barrels
3P 948,000 barrels 19,548,000 barrels
INDEPENDENT RESERVE ASSESSMENT
Reserves for tertiary oil recovery within the Muddy Reservoir at Grieve have been determined by Ryder Scott (Denver)
and have been prepared in accordance with the current standards of the Society of Petroleum Engineers (SPE) Reserves
Management System. Ryder Scott has consented to the release of this announcement