Elk puts Wyoming assets up for sale

Australia-listed Elk Petroleum has put its assets in the US state of Wyoming up for sale.

Elk revealed on Thursday it had engaged Meagher Energy Advisors to market all of its Wyoming assets which include a 35% stake in the Grieve carbon dioxide – enhanced oil recovery project and it’s 100% stakes in the Grieve oil pipeline, Grieve Niobrara development rights and its wholly-owned Ash Creek field.

The company said the sale would establish a fair market value of its US assets and provide a basis for a rerating of its share price.  

“The board has reviewed the company’s strategy and concluded that it is in the best interests of Elk’s shareholders to pursue monetising the value of the company’s Grieve and other Wyoming assets in a market and industry sector where such projects are numerous and well known in the United States,” Elk chief executive Scott Hornafius said.

“It is the company’s intention that net realised funds would be used to refocus the company around its more recently acquired Nebraska assets as well as consider a material cash distribution to shareholders or a share buyback programme.”

Elk said it had no intention to offload the Nebraska assets it acquired in April this year where it plans to carry out EOR techniques at the Singleton oilfield.

The marketing of Elk’s Wyoming assets will start later this month and closing of acceptable bids is expected to take place in late September or early October.

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