Strategy

Strategic Focus:

• Acquire and then redevelop mature oil fields using either conventional techniques or improved extraction techniques.

• Expand CO₂ flood project base capitalising on Grieve experience

• Maintain regional focus around CO2 distribution network

• Pursue emerging Niobrara play and opportunities in the above area

Elk’s strategy has been to acquire and redevelop mature oil fields in the USA using both conventional and new extraction techniques

• Grieve Field – current plans are for an EOR project. In January, 2011 Elk signed an agreement with ExxonMobil for the supply of CO₂. In April, 2011 Elk signed an agreement with Anadarko to purchase a pipeline to transport the CO₂. In May, 2011 Elk signed and agreement with Denbury Resources to Joint Venture the project. The agreement was finalised in June, 2011 with Denbury assuming a 65% position and operatorship and Elk 35%.

• Ash Creek Field – current plan is for an EOR project using Chemical Flooding techniques.

• Exploration assets in Wyoming and Montana – current plans are to assess the commercial viability of the Hereford gas.