Track topics on Twitter Track topics that are important to you
Edison Investment Research - Oil & Gas - Elk Petroleum: Elk Petroleum (ELK) has completed a period of material inorganic growth with the acquisition of equity in the Madden gas field and assumption of operatorship at the Aneth CO2 enhanced oil recovery (EOR) project. ELK’s engineering review of Aneth has uncovered numerous near-term development opportunities that offer IRRs ranging from 22% to 87% at US$60/bbl WTI, at an average cost of US$6.8/boe. Projects are low technical risk asset enhancements, however, contingent on ELK’s re-financing expected in H2 CY18. ELK’s partner in Aneth, Navajo Nation Oil and Gas company (NNOGC), gained access to a US$80m debt facility in June 2018 to fund its share of Aneth development capex. Our risked valuation increases from A$0.12 per share to A$0.19 per share (61%) driven by the inclusion of near-term development potential, as well as higher short-term oil prices that we base on EIA forecasts (in the long term we remain at US$70/bbl). Funding of identified growth projects and refinancing of the company’s complex capital structure are key management objectives for CY18.
Original Article: Elk Petroleum (ELK) - Transition to organic growth: Low hanging fruitNEXT ARTICLE
Mergers & Acquisitions
Commercial and market reports on mergers and acquisitions in the biotechnology, pharmaceutical, medical device and life-science industries. Mergers and acquisitions (abbreviated M&A;) is an aspect of corporate strategy, corporate finance and manageme...
Collaborations in biotechnology
Commercial and academic collaborations are used throughout the biotechnology and pharmaceutical sector to enhance research and product development. Collaborations can take the form of research and evaluation agreements, licensing, partnerships etc. ...