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$61.7m
Last closeA$0.07
High / Low (52 weeks)A$0.1 / A$0.1
Stock market listingAU
Forecast net debt (US$m)61.7
Forecast gearing ratio (%)287
TeamResources - Oil & Gas
SectorOil & Gas

Price performance

%1m3m12m
Actual9.116.1(5.3)
Relative *8.015.7(8.4)

* % Relative to local index

Other companies in sector Show

88 Energy Activa Resources
ADX Energy Afren
African Petroleum Corporation AJ Lucas Group
Aminex Andes Energia
Antares Energy Athabasca Resources
AusTex Oil AWE
Azonto Petroleum Bankers Petroleum
Bitesize Briefing BNK Petroleum
Bowleven Bridge Energy
Buru Energy Cairn Energy
Canacol Energy Canadian Overseas Petroleum
Canoel International Energy Cap Energy
Carbon Energy Carnarvon Petroleum
CBM Asia Development Central Petroleum
Challenger Energy Coastal Energy
Columbus Energy Resources Cooper Energy
Core Laboratories Cue Energy
Denbury Resources DEO Petroleum
Deutsche Rohstoff Dragon Oil
Drillsearch Energy Egdon Resources
Energy XXI Exillon Energy
Exoma Energy Falkland Oil & Gas
Faroe Petroleum Fastnet Oil & Gas
Forum Energy Gasol
Genel Energy Genie Energy
Great Eastern Energy Corporation Green Dragon Gas
Greka Drilling Gulf Keystone Petroleum
Gulfsands Petroleum Hawkley Oil & Gas
High Peak Royalties Hurricane Energy
Hydrodec Group IPB Petroleum
Ithaca Energy JKX Oil & Gas
Karoon Gas Kea Petroleum
Kina Petroleum Kreuz Holdings
Lansdowne Oil & Gas Leed Petroleum
Leigh Creek Energy LGO Energy
Lion Energy Liquefied Natural Gas Ltd
Lochard Energy Madagascar Oil
Madalena Energy MEC Resources
Mediterranean Oil & Gas MEO Australia
Mosman Oil and Gas Nautical Petroleum
New Standard Energy New Zealand Oil & Gas
Nido Petroleum Nighthawk Energy
North Sea Energy Northern Petroleum
Norwest Energy Otto Energy
Pacific Rubiales Parex Resources
Petrel Energy Petroceltic
Petromanas Energy Petrominerales
Po Valley Energy Premier Oil
President Energy Pura Vida Energy
Quadrise Fuels International Ramba Energy
Range Resources Real Energy
Real Energy Corporation Regal Petroleum
Rockhopper Exploration SacOil Holdings
Salamander Energy SDX Energy
Sefton Resources Senex Energy
Sequa Petroleum ShaMaran Petroleum
Simba Energy SOCO International
Solo Oil Sound Oil
Sterling Energy Stratic Energy
Tethys Petroleum Touchstone Exploration
Tower Resources TransAtlantic Petroleum
TransGlobe Energy Valiant Petroleum
Victoria Oil & Gas Wentworth Resources
WestSide Corporation Xcite Energy
Y/E Jun Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (fd) (c) P/E (x) P/CF (x)
2015A 0.0 (3.1) (3.6) (1.9) N/A N/A
2016A 0.0 (5.0) (5.7) (2.2) N/A N/A
2017E 6.3 (2.4) (4.5) (0.6) N/A N/A
2018E 31.0 14.0 (2.9) (0.5) N/A N/A

Last updated on 15/08/2017

Latest research

Investment summary

Elk Petroleum (ELK) is an ASX-listed oil and gas producer and developer with a focus on enhanced oil recovery (EOR) from mature fields. The company’s current focus is on CO2 EOR projects in Wyoming, US, where it’s first EOR development project, Grieve, is due on stream in late 2017/ early 2018. Grieve, combined with the recent acquisition of a c 14% interest in the Madden gas field is due to turn ELK into a producer and material CO2 resource owner. We visited both Grieve and Madden in July 2017, which helped highlight a number of opportunities management is actively engaged in targeting. These include resource upside at both Grieve and Madden, numerous high IRR infrastructure optimisation opportunities and CO2 EOR opportunities in the vicinity of ELK’s operated assets. Our valuation of ELK reduces from A$0.11/share to A$0.09/share due to a reduction in Edison’s long term oil price assumption from $80/bbl (2022) to 70$/bbl.

Last updated on 14/08/2017

Industry outlook

At current low oil prices, many fields suitable for EOR are uneconomic for conventional oil. EOR is a tertiary recovery method to target the substantial residual oil remaining in mature or life expired fields. The low oil price environment may assist ELK cost-effectively, securing additional oil acreage.

Last updated on 03/08/2017

Key management

Brad Lingo , CEO
Alexander Hunter, CFO

Company address

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