Elk Petroleum Ltd has entered into a non-binding Letter of Intent (LOI) with Denbury Onshore LLC (Denbury) for the restructuring of the Grieve CO2 Enhanced Oil Recovery (EOR) Project (Grieve Project). The Grieve Project is the Company's flagship CO2 EOR project and is located in the Northern Rocky Mountain region - one of North America's principal CO2 enhanced oil production fairways.

Following extensive negotiations, Elk and Denbury have agreed to indicative terms that will enable the timely completion of the Grieve Project at a fixed cost. The LOI also provides for a firm commitment to complete the project and all facilities necessary to commence first oil production by the end of the third quarter 2017.

Tags: Denbury Resources Inc., Elk Petroleum Limited