Global Hunter Securities Conference July 2011 (NYSE Amex: EPM) Evolution Petroleum Corporation 1
Quick Facts about EPM Ticker Symbol EPM (NYSE AMEX) Fiscal Year-End June 30 Market Cap* 204 MM as of 7/12/2011 (7.38/shr) Enterprise Value 200 MM (based on 3/31/11 FS) Common Stock 27.6 MM shares outstanding 33.1 MM shares fully…
Our Business EPM generates and implements domestic, onshore oil & gas development projects utilizing our expertise and modern technology. Our business model is focused on building share value by: Generating development ideas…
Oil & Gas Core Assets (Net Reserves at 6/30/2010) Eastern OK Unconventional Gas testing Delhi Field-producing Leasehold targeting Woodford and unconventional gas CO2 EOR - 100% oil 9.4 MMBO Proved 5.7 MMBO Probable S Lopez…
EPM Metrics Substantial oil and gas reserves (as of 6/30/2010) 12.4 MMBOE Proved Each fully diluted common share owns 7.2 MMBOE Probable 60% of 1 BOE of net reserves Oily Proved reserves are 83% black oil and 8% NGL Valuation…
Why own EPM 6/30/2010 Proved PV10 76 oil substantially exceeds current enterprise value Growing value at Delhi: Producing since 3/2010, now exceeds 2,000 bopd gross PV10 projected to grow 40+% in 5 years while generating 140 MM…
Why own EPM Upside potential in other projects underway: 14 remaining proved development drilling locations in Giddings Exposure to new Eagle Ford / Woodbine play Proprietary artificial lift technology Low cost unconventional…
Successful Team Track Record Using 8.3 MM of paid-in common We generated, as of 6/30/10 equity, we invested Delhi EOR 6.8 MM 50 MM cash pretax + Proved PV10 = 224 million 2P PV10 = 276 million Giddings 26.7 MM 9.7 MM cash from…
EPM Reserves Growth (MMBOE) Reserves as at fiscal year end of June 30 Does not include other resource or technology potential 2009 downward revisions primarily due to commodity prices 10
EPM Assets: Delhi CO2 EOR Project Milestones: Nov 2009: Phase I CO2 injection begins Mar 2010: Early first oil production from Phase I Dec 2010: Phase II CO2 injection begins Jan 2011: Phase I production continues to increase…
EOR - Delhi Field CO2 Project Delhi Reserves*: Proved 9.4 MMBO 224 MM PV10 Probable 5.7 MMBO 51 MM PV10 2P 15.1 MMBO 276 MM PV10 (* At 6/30/10 SEC NYMEX price 76.21/BO) Jackson Dome Gross Historical Production 192 MMBO Projected EOR…
EPMs Delhi Assets We purchased Delhi Field in 2003 for 2.8 MM, expended 2.5 MM in field, later purchased royalty interests for 1.5 MM, then farmed out our working interest for 50 MM cash + commitment to install EOR project at operators…
Delhi Present Value Increases Over Time EPM's Delhi Residual PV10 by Year + Cumulative Pretax Cash (Proved + Probable per fully diluted share, at 76 oil) Residual PV10 Cumulative Pretax Cash Generated without Reinvestment 25 20…
Delhi Sensitivity Analysis Delhi PV/Share Impact by Delhi PV/Share Impact by Oil Price Levels of Recovery and Inflation PV10 Esc* vs Gross Oil Recovery PV10* vs 2011 Oil Price / FD Share / FD Share 14 20 2P PV10 Esc 3% 18 13…
Additional Delhi Analysis EPM's 2P Pretax Annual Cash Flows From Delhi Pretax Cash Flow s at 76.21/BO, escalated 3% annually / FD Share Pretax Cash Flow s at 76 oil, no escalation 3.00 2.50 2.00 1.50 1.00 0.50 -…
Giddings Field, Central Texas Attractive Drilling Economics Drilling locations Ave. Gross 2P Recovery Ave. cost/well Cost per net BOE 9 proved re-entries 155 MBOE/well 1.5 MM 12 5 proved grassroot 350 MBOE/well 2.8 MM 10…
Gas Shales in Eastern Oklahoma EPM owns 10,000 net acres in Haskell EPM Woodford and Wagoner Counties, OK Completions Acreage Haskell Woodford between 4,000 & 6,000 in depth Tulsa Wagoner Woodford between 1,200 & 1,800 in depth EPM…
Our OK Unconvential Gas: Shallow Low Cost EPM is targeting a development cost of approximately 1.25 per MCFe Shallow depth = smaller rig and less frac horsepower Haskell targets two zones at 4,000-6,000 depth vertical wells targeting…
Proprietary Artificial Lift Technology Conventional artificial lift Either fluid level eventually drops to a level where rod pump or gas lift are no longer effective, or Low level of fluid production in gas well builds and…
Results of FY2011 Continued production growth at Delhi at premium oil price Drilling results in Giddings Positive tests in Haskell OK unconventional gas project Joint venture to demonstrate artificial lift technology…
Preliminary Operating Plan for FY 2012 10-15 million projected capital expenditure program to: Continue development in Giddings via joint venture(s) Develop gas potential in OK utilizing innovative water disposal technology and joint…
Catalysts in FY2012 Continued production growth at Delhi at premium oil price New joint venture(s) in Giddings utilizing our leasehold New joint venture in OK utilizing our leasehold Restart oil development in S Texas…
Exhibits Definitions Annual Revenues Abbreviated Balance Sheet Management team Board of Directors 24
Definitions EOR Enhanced oil recovery WAG Water alternating gas type of CO2 EOR BOE Barrel of oil equivalent CF Cubic feet of natural gas at standard conditions M Thousands MM Millions NGL Natural gas liquids PUD Proved undeveloped 2P…
EPM Revenues Revenues in thousands 2007 revenues decreased due to farm-out to DNR June 30 fiscal year-end 26
EPM Liquidity 3/31/2011 Assets Current Assets 5,148,795 Properties & Equipment, net 33,227,523 Other Assets 54,117 Total Assets 38,430,435 Long Term Liabilities & Equity Long Term Debt 0 Current Liabilities 2,093,837 Other…
Our Management Team Robert Herlin, CEO & Chairman Co-founded EPM in 2003 and built company using 8.3 million of equity capital 28 years of leadership experience in M&A, development, operations and finance in public and private…
Our Management Team Daryl Mazzanti, VP-Operations Joined team in mid-2005; 25 years of experience in oil & gas industry Former Manager of US Business Development for Anadarko Former Production Manager, Austin Chalk for Anadarko/UPRC…
Our Board of Directors Robert Herlin, CEO, Chairman & Co-founder Laird Cagan, Director & Co-founder Managing Director Cagan McAfee Capital Partners Formerly with Goldman Sachs and Drexel Burnham Lambert E.J. DiPaolo, Director Energy…
(NYSE AMEX: EPM) Company Contact: IR Contact: Sterling McDonald, VP & CFO Lisa Elliott / lelliottdrg-e.com (713) 935-0122 Jack Lascar / jlascardrg-e.com smcdonaldevolutionpetroleum.com DRG&E / 713-529-6600 31
Loading...
