Elk Petroleum Limited is an oil producer and developer with assets located in the US States of Wyoming and the four corners area of Utah. Corporate Headquarters are in Sydney Australia, with US Operations run out of offices in Denver Colorado and a field offices in Cortez Colorado and Casper Wyoming. Elk Petroleum’s strategy is to acquire and redevelop mature oil fields utilizing proven enhanced oil recovery (EOR) technology in this region utilizing the existing infrastructure and pipeline network.

This Risk Framework gives direction as to the use of strategic risk management processes and procedures to reduce exposure to risks associated with these activities, and identify opportunities while ensuring compliance to all relevant national legislation and regulations.

The prescribed processes of this Framework shall be carried out in accordance with the principles of fiduciary duties, regardless of where the locations of operational activities, or proposed operational activities may be located.

Nothing in this Framework shall relieve any individual of Elk of the duties and responsibilities required of a corporation under the third edition of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations (the Recommendations).


This Framework will specify:

• The Governance structure of risk management and duties of persons directly involved with these processes
• The duties and responsibilities of the Risk Committee
• Reporting
• Risk Management Methodology to be adopted
• Any required templates to be adopted


An ASX Company, Elk Petroleum is overseen by a Board consisting of a Chairman and three Members. In addition, there are two Executive Management level positions, namely the Chief Financial Officer and the Chief Operating Officer.

As a Committee of the Board, the Risk Committee will comprise:

• Two Board Members
• Either the CFO or the CEO

All Risk Committee Members are to be appointed in writing by the Chairman of the Board, with the Chairman of the Risk Committee coming from any of the three positions nominated above. A quorum will be considered achieved only when all three members or their nominated proxies are present. There may be a limit of one proxy at each meeting.

Duties and Responsibilities of the Risk Committee

As the lead organisation within Elk Petroleum for identifying risk and opportunity, the Risk Committee will meet to consider risk:

• At least quarterly
• When the Company proposes to undertake new activities or significantly enhance existing activities
• When external stakeholders or the market indicates the Company’s risk profile has changed
• If legislative or regulatory change requires it
• When the Company’s capitalisation is changed
• When in doubt as to the Company’s risk profile
• As directed by the Chairman

In accord with the processes of ISO31000: 2009 Risk Management, the Risk Committee at each meeting have the responsibility for:

• Ensuring the Risk Matrix and its associated values are in accord with the Company’s existing capitalisation and exposures
• Identifying existing and future risks to the stated aims of the Company
• Identifying existing and future risks to the operations of the Company
• Proposing where possible mitigations to the above
• Reporting their findings formally to the Chairman of the board and the Company Secretary
• Preparing minutes of all constituted meeting and forwarding the same to the Company Secretary for appropriate distribution

Risk risk wheel

Elk's Risk Wheel


All Risk Committee meetings are to be minuted and after the minutes are agreed to by the members or their proxy, forwarded without delay to the Company Secretary.

Annually, prior to the Company Annual General meeting, the Risk Committee shall produce an Annual Risk Report containing at a minimum:

• A brief report of proceedings of the Risk Committee for the previous twelve months
• Confirmation the Risk Matrix is appropriate for the Company’s capitalisation and exposures
• The Company strategic level Risk Register
• Details of all high risks (greater than 12 as per the Risk Matrix) and associated mitigations (existing or proposed)
• The Risk Committee’s assessment of the ability of the Company in the previous 12 months to mitigate its risk exposure
• The Risk Committee’s assessment of the ability of the Company in the succeeding 12 months to mitigate its risk exposure as well as an outlook over a longer period perhaps to a 1, 3 or 5-year planning schedule

The above report is to be raised and submitted in accordance with existing Board practices.

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Head Office

Australia Square
Level 40, Suite 4001
264 George Street
Sydney NSW 2000
Tel: +61 2 9093 5400

Registered Office

Level 5
126 Phillip Street
Sydney NSW 2000
Tel: +61 2 9299 9690
Fax: +61 2 9251 7455

USA – Denver Office

1700 Lincoln
Suite 2550
Denver, CO
80203 USA
Tel: +1 (303) 861-6255