Sydney, Australia, Mar 15, 2017 - (ABN Newswire) - The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'Group') consisting of Elk Petroleum Ltd (ASX:ELK.AX - News) (OTCMKTS:EKPTF - News) (referred to hereafter as the 'Company' or 'Parent entity') and the entities it controlled at the end of, or during, the half-year ended 31 December 2016.
The Company specialises in developing enhanced oil recovery ("EOR") projects. During the half year, the principal activities of the Company consisted of the development of a CO2 EOR project at the Grieve oil field in Wyoming, USA, and continuation of operations at the Singleton Unit in Nebraska. The Grieve CO2 EOR project is operated by Denbury Onshore LLC and current operations are focused on development of facilities and on CO2 and water injection to re-pressure the Grieve field prior to commencing first oil production expected in late CY2017/ early CY2018.
Review of Operations
The first half of the 2017 Financial Year has been one of a rapid and dramatic positive transformation of the Company. This period was dominated by the following major events - the comprehensive commercial restructuring of the Grieve CO2 EOR Project (the "Grieve Project"), the significant re-capitalization of the Company to assure that the Grieve Project was for the first time fully funded through to completion and first oil production, and substantial corporate focus on finalising the acquisition of a significant working interest in the Madden Gas and CO2 Field - the 33rd biggest gas field in the United States by Proven Reserves as rated by the US Government - and the Lost Cabin Gas Plant. The Company announced the acquisition days after the half-year period end, resulting in the Company becoming a significant cash-flow positive natural gas and CO2 producer in CY2017.
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About Elk Petroleum Limited:
Elk Petroleum Limited (ASX:ELK.AX - News) (OTCMKTS:EKPTF - News) is an oil and gas company specialising in Enhanced Oil Recovery (EOR), with assets located in one of the richest onshore oil regions of the USA, the Rocky Mountains. Elk's strategy is focused on applying proven EOR technologies to mature oil fields, which significantly de-risks the Company's strategy of finding and exploiting oil field reserves.
Brad Lingo Managing Director/CEO T: +61-2-9093-5400 E: firstname.lastname@example.org Alex Hunter Chief Financial Officer T: +61-2-9093-5400 E: email@example.com
Elk Petroleum Limited
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