Profile: Evolution Petroleum Corp (EPM_pa.A)
17 May 2013
Evolution Petroleum Corporation (EPM), incorporated on January 1, 2002, is a petroleum company engaged primarily in the acquisition, exploitation and development of properties for the production of crude oil and natural gas, onshore in the United States. The Company acquires known, underdeveloped oil and natural gas resources and exploits them. The assets that the Company exploits includes project opportunities, such as enhanced oil recovery (EOR), bypassed primary resources and unconventional development.
The Company’s mineral interests in the Delhi Holt Bryant Unit in the Delhi Field, located in Northeast Louisiana, are its principal assets. The Unit is redeveloped as an EOR project following its farm out to a subsidiary of Denbury Resources, Inc. The Company owns two types of interests in the unit, such as 7.4% of overriding and mineral royalty interests that are in effect throughout the life of the project, free of all operating and capital cost burdens, and a 23.9% reversionary working interest with an associated 19.1% net revenue interest.
In 2012, the Company entered into a joint venture with Orion Exploration, the joint venture is operated by Orion and engaged in the horizontal development of the Mississippian Lime reservoir in Kay County, Oklahoma within the north central Oklahoma and western Kansas. The Company’s leasehold position is located in the eastern, oily side of the play. The joint venture has been gradually adding to the initial 11,700 net acre position. The Company holds a 45% share of the interest held by the joint venture. The Company had drilled one gross salt water disposal well and reached total depth on its first two horizontally drilled wells in the Mississippian Lime formation, including lateral lengths of approximately 4,100 feet in the Sneath #24-1 and 4,800 feet in Hendrickson #1-1. The Company’s artificial lift technology trademarked as GARP (gas assisted rod pump) focuses to extend the life of horizontal wells with gas, oil or associated water production.
The Company, in its Giddings Field holds 5,005 net developed acres and approximately 3,145 net acres as undeveloped and associated with its drilling locations as of June 30, 2012. As of June 30, 2012, it had thirteen producing wells, eleven of which it drilled and two, of which it restored to production through workovers. During the fiscal year ended June 30, 2012 (fiscal 2012), the Company also farmed out its Woodbine rights in approximately 900 net acres. The Company owns leases on approximately 891.6 net acres in the Lopez Field. During fiscal 2012, it drilled two salt water injection wells and two oil producer wells.
Evolution Petroleum Corp
Suite 1300, 2500 CityWest Blvd.
HOUSTON TX 77042