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EPIC: ELK
Market: ASX
52-week High/Low: A$0.10 / A$0.06
Sector: Mining
Market Cap: A$120.82M
Website: elkpet.com
ELK Petroleum Ltd

ELK Petroleum Ltd

ELK Petroleum Ltd (ASX:ELK) is focused on enhanced oil recovery projects in the Rocky Mountains of the U.S.

ELK Petroleum Ltd

elkpet.com

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Big picture - Why invest in ELK Petroleum Ltd


ELK Petroleum Ltd Snapshot

Elk Petroleum Limited (ASX:ELK) is an oil and gas producer and developer with assets located in one of the richest onshore oil regions of the USA: the northern Rocky Mountains.

Listed on the ASX in 2005, Elk’s strategy is focused on applying established enhanced oil recovery (EOR) technologies to mature oil fields. This strategy significantly de-risks the process of exploiting mature oil field reserves.

Elk’s current projects use EOR technology that involves injecting CO2 into the reservoir at pressure and temperature conditions where the CO2 and remaining oil become miscible with each other and act as one phase whereby previously immobile remaining oil commences to flow again and incremental oil recovery is possible at levels approaching what was obtained from the field in the primary phase of a field’s development.

Grieve Field

The Grieve Field is located in the Wind River Basin and is approximately 50 miles west of Casper in Wyoming, USA. The Grieve Field is to be the subject of an enhanced oil recovery (EOR) using carbon dioxide (CO2) flood technology.



History of the Field

The Grieve Oil Field was discovered in 1954 by Forest Oil and has produced 30.2 million barrels of oil with the peak rate of 12,000 barrels of oil per day (BOPD) achieved in 1960.

In January 2011, Elk signed an agreement with ExxonMobil for the supply of CO and a transport agreement with Anadarko in April 2011to convey the CO2 in a pipeline to the vicinity of the field.

In May 2011, Elk signed an agreement with leading US EOR player Denbury Resources to joint venture the project. Under the agreement, finalised in June 2011, Elk holds a 35% working interest in the Grieve EOR Project with Denbury holding a 65% working interest and is Operator.


PRODUCTION


The production history and forecast production from the CO2 flood is contained in the following figure.




(click here for more information on this project)


GRIEVE OIL EXPORT PIPELINE

Elk owns 100% of the oil export pipeline, which runs approximately 32 miles from the Grieve CO2-EOR project to the west side of the city of Casper in Wyoming, USA. The 8” diameter pipeline, which previously carried oil from Grieve and a number of other nearby oil fields to Casper in the early phases of the field’s history, has been in maintained in a “mothballed” state for a number of years. Some modest modifications will be conducted before the pipeline is brought back into an operating condition before first EOR oil commences at Grieve. The pipeline route is shown below.



This pipeline is the sole export route approved by the Bureau of Land Management (BLM) as part of gaining BLM clearance for the EOR project to proceed. Use of this pipeline to transport Grieve oil provides the opportunity for Elk to generate supplementary income by charging a tariff to transport Grieve oil to Casper. Casper has a number of points of sale for Grieve oil either to the local refinery or to refineries at other locations within or beyond Wyoming through an extensive network of oil pipelines and rail lines that pass through Casper and capable of wider distribution of Grieve oil.

Elk is considering options to monetise this pipeline before first oil from Grieve and apply realised funds for other purposes.


SINGLETON OIL FIELD

Elk Petroleum acquired a 100% working interest in the Singleton Unit in Nebraska and became the operator of the unit in May 2014. The unit has produced 10.9 million barrels of oil and has 18 wells that can be used in an enhanced oil recovery project. The Singleton Unit was acquired as the basis for a future CO2 project for Elk to implement after the company receives fee cash flow from the Grieve project, or sooner if alternative funding can be arranged for the project.



The initial screening of the Singleton Unit indicates that the property is an excellent candidate for a CO2 flood, and is capable of producing 2 to 4 million barrels of oil as a CO2 project. The existing reservoir pressure is close to the minimum miscible pressure (MMP) required for CO2 to dissolve in the oil and mobilize the remaining recoverable reserves, so an extended period of re-pressurization is not expected to be required to achieve oil production after CO2 injection commences.

Elk signed a CO2 supply contract with Bridgeport Ethanol LLC at the end of 2013 that will provide the source of the CO2 for the project. The CO2 contract is for ten years, with CO2 purchases starting in late 2016. The agreement includes a lease option on a 5-acre parcel adjacent to the Bridgeport ethanol plant where the CO2 dehydration and compression facilities would be constructed.



Last updated 20th January 2016.


Mr Brad Lingo
Managing Director and CEO, Sydney

Mr Lingo has over 25 years experience in all phases of the oil & gas business ranging from business development, new ventures, exploration, development and production as well as mergers and acquisitions, equity capital raising and debt financing for both listed and private companies.  Currently he is the Chairman of Mont Dór Petroleum, a private oil and gas exploration and production company with operations on Indonesia and New Zealand.  Mr Lingo was the former Managing Director & CEO of Drillsearch Energy Ltd and former CEO of Sunshine Gas Ltd.



Dr Neale Taylor
Chairman and Director, Melbourne

Dr Taylor has over 40 years of technical, operating and commercial experience in oil and gas exploration, production, planning and evaluation, acquisition and joint venture management with Esso, Nexus Energy, and Cambrian Oil and Gas. He is currently Chairman of Tap Oil and is a director of Xtract International and Xtract Oil (oil shale). He was a director of the South Australian Government-owned Terra Gas Trader until it was privatised. He is a member of the Society of Petroleum Engineers (SPE) and a Fellow of the Australian Institute of Company Directors (AICD).



Mr Russell Krause
Non-Executive Director, Melbourne

Mr Krause has over 25 years experience in Stockbroking and Investment Management with a primary focus on the resources sector.  He has held a number of Directorships and Senior Management positions with a number of Australia’s leading firms, including firms with US oil and gas assets.  For the past ten years he has worked on a number of North American oil and gas projects in relation to Capital Raising and Corporate Advisory.



Mr Matt Healy
Non-Executive Director, Sydney

Mr Healy currently holds a management position at one of Australia’s foremost property development and infrastructure groups, is an active investor in the resources sector and has over 15 years of experience working in management and operational roles primarily working on project development of large and complex assets. Mr Healy has a degree in construction engineering and holds a post-graduate MBA (Exec) from the Australian Graduate School of Management in Sydney. Mr Healy is an associate of Elk’s major shareholder.



Mr Timothy Hargreaves
Non-Executive Director, Sydney

Mr Hargreaves has over 35 years experience in technical and managerial roles in the petroleum and mining sectors in Asia and the Middle East for major companies including BHP, Fletcher Challenge and Union Texas Petroleum as well as start ups and small to mid-sized independents. He has led successful exploration and commercialisation campaigns in Pakistan and Egypt, which were dependent upon technical and commercial innovation in complex regulatory environments. Since 2009 he has been Research Director of Resources for Republic Investment Management, manager of a Singapore-based investment fund, which is a major investor in ELK and the major participant in the Convertible Secured Loan Facility for funds recently raised by the Company (announced on 16 April 2015) and, until recently, he was a Director of The Environmental Group Limited (ASX : EGL).



Dr J. Scott Hornafius
President, Elk Petroleum Inc. Denver

Dr. Hornafius has 32 years of exploration, technical, management, and funding experience in the oil and gas industry including 16 years with Mobil in the US, PNG and UK before founding MegaEnergy in 2000. As President of MegaEnergy, he was responsible for joint ventures involving play identification, land acquisitions, drilling and development programs and major funding programs and developed a 100,000 acre position over the Marcellus shale gas play in the Appalachian Basin which was ultimately divested for over $100 million. He is a founding Director of Canning Petroleum Pty Ltd, which now holds very large onshore permit areas in WA.



Last updated 20th January 2016.

REGISTERED OFFICE
Suite 4, Level 9
341 George Street
SYDNEY NSW 2000
AUSTRALIA

Tel: +61 2 9299 9690+61 2 9299 9690
Fax: +61 2 9299 9629
Email: [email protected]
Web: elk.dev

REGISTERED OFFICE
Suite 4, Level 9
341 George Street
SYDNEY NSW 2000
AUSTRALIA

Tel: +61 2 9299 9690+61 2 9299 9690
Fax: +61 2 9299 9629
Email: [email protected]
Web: elk.dev

JOINT COMPANY SECRETARIES
David Franks and Andrew Bursill

AUDITORS
BDO East Coast Partnership
1 Margaret Street
SYDNEY NSW 2000
Australia

SHARE REGISTER

COMPUTERSHARE INVESTOR SERVICES PTY LTD
Yarra Falls
452 Johnston Street
Abbotsford VIC 3067
Australia

Tel: 1300 659 5701300 659 570
Overseas Callers +61 3 9415 4064+61 3 9415 4064
Fax: +61 3 9473 2500



Last updated 20th January 2016.

ELK Petroleum Ltd Timeline

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