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Elk Petroleum Set To Release Capital Raising Details

Elk Petroleum (ASX: ELK) has said that it envisages announcing capital raising details on Monday 29th July 2013.

The ASX this morning allowed Elk more time following on from the trading halt on Wednesday.

In other Elk news - earlier in the month the company 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.

Elk has been progressing its Grieve enhanced oil recovery project with operator Denbury Resources (NYSE: DNR) starting water injection in mid-May to accelerate re-pressurising of the Grieve Muddy oil reservoir. It has a 35% interest in Grieve.

The Grieve project is fully funded and is expected to produce up to 1,000 barrels of oil per day net within three years, and possibly up to 5,000 barrels of oil per day by five years from estimated proved and probable reserves of 18.6 million barrels of oil in the target Muddy reservoir.

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