In its quarterly report, Elk this morning said it has made “significant progress” towards becoming operationally cash-flow positive at the start of this year.

Oil production for the December quarter was 8572 barrels, or 13,275bbl in the year to date, with sales up 82% on the previous quarter.

Also at Sand Draw, the company said it had finished planning the next workover program, which is expected to start in the next few months.

In addition, re-processing results from the purchased 3D seismic data are expected at the end of next month and will be incorporated into this year’s Sand Draw South work program, Elk said.

Elsewhere in Wyoming, the company has consulted three expert groups to accelerate planning for the enhanced oil recovery program at its Grieve oil field.

“They will determine the production profile, confirm reserves and suggest the optimal field development plan to access the potential 12.5 million barrels from the Muddy Formation,” Elk said.

A new shallow well will be drilled at Grieve, as part of the 2007 work program, designed to test particular Upper Sand formations.