ELK PETROLEUM LIMITED Suite 4, Level 9 341 George Street Sydney NSW 2000

Tel+61 28256 3262 Email IR@elkpet.com Website www.elkpet.com

Elk Petroleum Ltd ABN 38 112 566 499

ASX / Media Release 13 March 2012

Grieve Update by Denbury at the 6th Annual CO2 Conference in Casper, Wyoming, USA

Elk Petroleum Ltd (ASX Code: ELK) wishes to advise that Denbury Resources Inc (Denbury) presented the attached material at the 6th Annual Wyoming CO2 Conference on Thursday 12th March 2012. The presentation provides an update of work carried out at the Grieve field, in which Elk holds a 35% working interest and Denbury holds the remaining interest. As pointed out in the presentation, the Bureau of Land Management (BLM) is expected to conclude the Environmental Assessment (EA) of the project by the end of July. A favourable decision on the EA will allow construction of the CO2 pipeline to commence along with other work at the Grieve field; injection of CO2 is expected to commence later in the year. This EA timing will allow the project to advance in line with the schedule provided in a recent Investor Presentation (ASX release on 24th April 2012). For further information please contact: Elk Petroleum Investor Relations +61 2 8256 3262 or, IR@elkpet.com

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NYSE: DNR

Grieve Update July 12, 2012

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Location of Grieve Field

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Map of Grieve Field and Development Layout

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Progress To Date

● 16 Existing Well Workovers completed:

9 CO2 Injection Wells

3 Production Wells

3 Wells P & A’ed

● Further Field Work is awaiting BLM Environmental Assessment

expected by the end of July.

● Further Technical Planning & Design:

Geo

● Static Model

● 3D Seismic

Reservoir

● History Match

● Material Balance

● Reservoir Simulation

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Technical Work In Progress

● Start of simulation study

● Goal is to answer gas recycling requirements

● Grieve has High dip, high perm, but is in a single reservoir

● Additional studies:

PVT, MMP, and swelling experiments

Effects of recycling CO2 with methane

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Current Reservoir CO2 Study

● Fine layering with average layer thickness 2 ft.

Preserve reservoir heterogeneity

● New Lab swelling and slim-tube tests will validate

EOS for CO2 flooding predictions.

● Detailed history matching will be conducted to

quantify reservoir parameters (phi, K, aquifer, etc) for

realistic predictions

● Effect of methane contamination in the CO2 recycle

stream will be evaluated

● New SCAL lab work is being planned end of year to

quantify Sorw

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Static Modeling (Geology)

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Depositional Scenario of Valley fill deposits: Example

from Grieve Field

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Depositional Facies and Facies Groups

Marine

Estuarine

Fluvial

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Surfaces Marine Estuarine Fluvial

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Cross Sections and Correlations

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A`

A A`

Marine Estuarine Fluvial

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Facies Histograms

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Porosity Histograms

Good Quality Sand Facies Moderate Quality Sand Facies

Min 0.10

Max 0.23

Mean 0.16

Min 0.14

Max 0.29

Mean 0.21

SIMPLE_EXTEND/POR_PHI

Copy_of_indicators Min Max Mean Std Min Max Mean Std Min Max Mean Std Min Max Mean Std Min Max Mean Std

Upper_GQ 0.1 0.3 0.19 0.03 0.1 0.31 0.19 0.04 0.1 0.3 0.19 0.04 0.1 0.3 0.19 0.04 0.1 0.3 0.19 0.04Upper_MQ 0.1 0.31 0.2 0.04 0.1 0.26 0.19 0.03 0.1 0.3 0.19 0.04 0.1 0.29 0.19 0.04 0.1 0.3 0.19 0.04

Lower_GQ 0.1 0.32 0.21 0.03 0.1 0.33 0.21 0.03 0.1 0.31 0.2 0.03 0.1 0.29 0.2 0.03 0.1 0.31 0.2 0.03Lower_MQ 0.1 0.33 0.21 0.04 0.1 0.27 0.2 0.04 0.1 0.28 0.2 0.03 0.11 0.29 0.2 0.03 0.1 0.31 0.21 0.03

ZoneRealization 1 Realization 2 Realization 3 Realization 4 Realization 5

Upper

Lower

* Upper Zone = Marine + Estuarine, Lower Zone= Fluvial

GQ= Good Quality Facies, MQ= Moderate Quality Facies

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Permeability Histograms

Min 0.1

Max 203.8

Mean 40.0

Min 0.1

Max 1389

Mean 298

* Upper Zone = Marine + Estuarine, Lower Zone= Fluvial

GQ= Good Quality Facies, MQ= Moderate Quality Facies

SIMPLE_EXTEND/PERM

Copy_of_indicators Min Max Mean Std Min Max Mean Std Min Max Mean Std Min Max Mean Std Min Max Mean Std

Upper_GQ 0.1 1389 295.3 164.5 0.1 1389 293.67 162.73 0.1 1389 298.45 186.2 0.1 1390 302.78 191.67 0.1 1390 303.3 191.8

Upper_MQ 0.1 203.8 35 38.12 0.1 204 34.39 37.74 0.1 194 26.64 16.61 0.1 199 26.98 17.05 0.1 196 27.46 17.88

Lower_GQ 0.1 784.9 303.7 151 0.1 785 308.77 155.03 0.1 785 307.09 153.6 0.1 785 304.02 154.45 0.1 785 303.9 150.5Lower_MQ 0.1 187.5 50.23 36.76 0.1 187 52.07 38.13 0.1 581 66.81 85.04 0.1 354 55.95 52.2 0.1 580 74.64 94.51

Realization 5

Upper

Lower

ZoneRealization 1 Realization 2 Realization 3 Realization 4

Good Quality Sand Facies Moderate Quality Sand Facies

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POR-Kh All Sand Facies

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POR-Kh Good Quality Sand Facies

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GU#14

8A Morton

GU#12

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GU#30 GU#1

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8A Morton

GU#41 GU#9

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POR-Kh Moderate Quality Sand

Facies

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Dynamic Modeling

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Gravity Segregation

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Gas Breakthrough Time (box model)

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EOS calculated Swelling Psat & 1 D Slim-Tube Simulation

Results—not Validated by Lab yet

2500

3000

3500

4000

4500

0.00 0.20 0.40 0.60 0.80 1.00

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Composition (mol fraction)

Swelling Calc.

•A validated EOS will help design field

development plans

Needs to be validated

with lab swelling test

Need to be validated with

lab slim-tube test

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Plans Moving Forward

● 2012

Grieve plant site to be cleared and prepared.

CO2 injection manifold installed.

Installation of CO2 supply (3 mile) pipeline to Grieve from

Anadarko’s CO2 pipeline.

Tie-in to Anadarko’s pipeline.

Installation of field CO2 distribution system and flowlines and the

produced fluid gathering system and flowlines.

Drill and complete 2 Madison water source wells.

Installation of power supply (substation & transmission lines)

Commencement of CO2 injection in November.

● 2013

5 Recompletions.

Continue CO2 injection

Installation of Grieve processing and compression plant.

First oil estimated for Mid Year 2014.

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