Elk Petroleum (ASX: ELK), Australia's only enhanced oil recovery company, is preparing to release details of a capital raising program, with the company granted a trading halt by the ASX today - with its shares placed in pre-open.
Earlier in the month Elk reached an agreement to sell its Grieve oil export pipeline in Wyoming to Natrona Pipeline LLC for US$9 million, or up to US$5.325 million after it acquires a 35% stake in the pipeline operator.
Natrona will operate the pipeline, which will transport oil from the Grieve CO2 enhanced oil recovery project to Casper for sale.
Elk has committed to enter a transportation agreement, whereby its share of oil from the Grieve EOR project will be transported through the pipeline for a tariff of US$2.60 per barrel.
The sale allowed Elk to realise some of the value it has created from its work on restoring it to full operation while maintaining a substantial stake to protect its own interests.
The halt will last until the earlier of an announcement being made to the market, or the opening of trade on Thursday 26th July 2013.
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