Elk Petroleum (ELK)

Business description

Elk Petroleum is an EOR company focused on low-cost tertiary recovery of residual oil. Elk now has production from its Madden/Lost Cabin gas and CO2 project interest. Elk’s Grieve CO2 EOR oil project in the US is targeted for first production in late CY17/early CY18.

Stock data

Market cap.A$83.2m
Last closeA$0.06
High / Low (52 weeks)A$0.1 / A$0.1
Stock market listingAU
Forecast net debt (US$m)208.6
Forecast gearing ratio (%)654
TeamResources - Oil & Gas
SectorOil & Gas

Price performance

Relative *(3.4)(15.4)(10)

* % Relative to local index

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Company news

Elk Petroleum Limited (EKPTF) New Corporate Overview Video

Sun, 19 Nov 2017 22:07:30 GMT

Elk Petroleum concludes transformative acquisition of oil project in the US

Tue, 07 Nov 2017 00:45:00 GMT

Did Resolute Energy Get A Good Price For Aneth?

Sun, 17 Sep 2017 07:57:39 GMT

Elk Petroleum raising cash for the acquisition of Greater Aneth Oil Field, Utah

Mon, 18 Sep 2017 00:45:00 GMT

Elk Petroleum to acquire the Aneth Oil Field in Utah for US$160M

Fri, 15 Sep 2017 04:55:31 GMT

Y/E Jun Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (fd) (c) P/E (x) P/CF (x)
2016A 0.0 (4.7) (5.2) (2.0) N/A N/A
2017A 5.0 (5.2) (8.1) (0.9) N/A N/A
2018E 56.9 26.1 2.3 0.0 N/A 10.9
2019E 131.8 65.9 30.4 2.0 2.4 1.2

Last updated on 14/11/2017

Latest research

Investment summary

Elk Petroleum’s (ELK) acquisition of a 63.7% operated interest in the Aneth Rocky Mountain CO2 EOR project from Resolute Energy transforms the company into one of the largest producers on the ASX. Management forecasts 2018 net production of 11mboe/d. At US$160m, the deal is priced at a discount to our 1P estimate of proven developed reserve value of US$178m (excluding US$23m, which ELK retains in escrow to cover abandonment costs). The Aneth transaction was funded through new equity and debt, with rapid debt paydown expected from Grieve, Madden and Aneth cash flows. We update our valuation to reflect forecast Aneth cash flows, with our NAV rising to $A0.12/share from $A0.09/share.

Last updated on 13/11/2017

Industry outlook

Alongside field operators Denbury and ConocoPhillips, ELK management has identified numerous field optimisation opportunities at Grieve and Madden with high risk-adjusted returns (many in the 50-100% IRR range). ELK continues to consolidate Rocky Mountain CO2 EOR projects.

Last updated on 02/11/2017

Key management

Brad Lingo , CEO
Alexander Hunter, CFO

Company address

Level 1, Suite 101
10 Bridge Street
NSW, 2000
+61 2 9093 5400
View website