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Elk4 update 6 part 2

May 14th, 2008 · No Comments

We rushed our first update a little, and what we surmised in our previous entry can now be confirmed. This shallow in the well (they only drilled 60 meters into the limestone so far!) the DST showed almost identical gas pressure as the first DST test at Elk1. 

We think this bodes EXTREMELY well for upcoming test in a couple of weeks when they will have reached total depth a good 200 meters down.

Perhaps even more significant, they seem to think there is a pretty good chance that there is an oil leg below the gas. If that’s true, the share price will explode…

Stay tuned, these are going to be very exciting weeks. We have the quarterly results coming up after the close, and the conference call tomorrow morning.

We think it’s likely the refinery will have improved further, as this is the first quarter with the pricing restraints removed.

Tags: IOC