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IPAA OGIS – Evolution Petroleum Corp.

Evolution Petroleum Corp. · Oct 12, 2010 · 30 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. IPAA OGIS – Evolution Petroleum Corp. – slide 1
    IPAA Oil & Gas Investment Symposium October 2010 (NYSE Amex: EPM) Evolution Petroleum Corporation 1
  2. IPAA OGIS – Evolution Petroleum Corp. – slide 2
    Quick Facts about EPM Ticker Symbol EPM Fiscal Year-End June 30 Market Cap 163 million as of 9/30/2010 (6.01/shr) Enterprise Value 158 MM Shares 27.4 MM shares outstanding 33.3 MM shares fully diluted 42 % owned by…
  3. IPAA OGIS – Evolution Petroleum Corp. – slide 3
    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…
  4. IPAA OGIS – Evolution Petroleum Corp. – slide 4
    Oil & Gas Core Assets (Net Reserves at 6/30/2010) East OK Woodford Shale testing Delhi Field-producing 17,000 net acres targeting shallow Woodford CO2 EOR - 100% oil 9.4 MMBO Proved 5.7 MMBO Probable Total Proved 83% oil 8% ngl…
  5. IPAA OGIS – Evolution Petroleum Corp. – slide 5
    EPM Metrics Substantial oil and gas reserves 12.4 MMBOE Proved Each fully diluted common share owns 7.2 MMBOE Probable 60% of 1 BOE of net reserves Oily 2P reserves are 84% oil and 6% NGL Valuation Metrics at 6/30/2010: (SEC…
  6. IPAA OGIS – Evolution Petroleum Corp. – slide 6
    Why own EPM Proved reserves PV10 substantially exceeds current market valuation Growing value in Delhi CO2 EOR project based on reserves report: Currently producing with expected steadily increasing cash flows PV10 accretes by…
  7. IPAA OGIS – Evolution Petroleum Corp. – slide 7
    Why own EPM Upside potential in other projects underway: 20 development drilling locations (18 PUD) in Giddings with active JV drilling first 5 locations (1st well completed, 2nd well drilling) Proprietary artificial lift…
  8. IPAA OGIS – Evolution Petroleum Corp. – slide 8
    Successful Team Track Record We generated, as of 6/30/10 From what 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 field + Proved PV10* = 41…
  9. IPAA OGIS – Evolution Petroleum Corp. – slide 9
    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
  10. IPAA OGIS – Evolution Petroleum Corp. – slide 10
    EPM Assets: Delhi CO2 EOR Project Milestones Achieved Oil production response 3/2010 averaged 800+ gross bopd in April from Phase I only CO2 injection began 11/2009 Installing Phases II and III in calendar 2010 78 mile Delta…
  11. IPAA OGIS – Evolution Petroleum Corp. – slide 11
    EOR - Delhi Field CO2 Project Delhi Tinsley Reserves*: Proved 9.4 MMBO 224 MM PV10 Probable 5.7 MMBO 51 MM PV10 2P 15.1 MMBO 276 MM PV10 (* SEC NYMEX price 76.21/BO) Jackson Gross Historical Production 192 MMBO Dome Projected EOR…
  12. IPAA OGIS – Evolution Petroleum Corp. – slide 12
    EPMs Delhi Assets We purchased Delhi Field in 2003 for 2.8 MM, spent 2.5 MM to increase production from 18 BO per day to 145 BOE per day, purchased royalty interests for 1.5 MM, then farmed out our working interest to Denbury for 50 MM…
  13. IPAA OGIS – Evolution Petroleum Corp. – slide 13
    Delhi PV10 Increases With Time Cash Flows from DeGolyer & MacNaughton 7/1/10 SEC Reserves Report. Residual PV10 is the PV10 of remaining cash flows from given year to project end. 14
  14. IPAA OGIS – Evolution Petroleum Corp. – slide 14
    Delhi Sensitivity Analysis PV/Share Impact by PV/Share Impact by Oil Price Levels of Recovery and Inflation EPM stock & oil price at 9/30/10 * Varying 2P Reserves; prices & costs escalating * Varying initial oil price with…
  15. IPAA OGIS – Evolution Petroleum Corp. – slide 15
    Additional Delhi Sensitivity Analysis Note: escalated cash flows based on 2P SEC reserves 16
  16. IPAA OGIS – Evolution Petroleum Corp. – slide 16
    Giddings Field, Central Texas 7/1/10 Net Proved Reserves = 3.0 MMBOE 41.3 MM PV10* Net Probable Reserves = 1.0 MMBOE 11.8 MM PV10* 4.0 MMBOE 53.1 MM PV10* Drilling locations Ave. Gross Recovery Ave. cost/well Cost per net BOE 13…
  17. IPAA OGIS – Evolution Petroleum Corp. – slide 17
    Gas Shales in Eastern Oklahoma EPM owns over 17,000 net acres in Woodford EPM Wagoner and Haskell Counties, OK Completions Acreage Wagoner Woodford between 1,200 & 1,800 in depth Tulsa Haskell Woodford between 4,000 & 6,000 in…
  18. IPAA OGIS – Evolution Petroleum Corp. – slide 18
    Our OK Gas Shales: Shallow Low Cost EPM is targeting a development cost of 0.90 - 1.25 per MCFe Shallow depth = small rig and low fracturing horsepower = low day rates Expect vertical wells in Wagoner for…
  19. IPAA OGIS – Evolution Petroleum Corp. – slide 19
    Neptune Oil Infill Lopez Field, South Texas 100% WI in 1,710 net acres in Duval & Wynn Counties Lopez Field produced 32 MMBO from 380 wells on 10 acre spacing 21 gravity oil with high water production Downspacing to 5 acres in…
  20. IPAA OGIS – Evolution Petroleum Corp. – slide 20
    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…
  21. IPAA OGIS – Evolution Petroleum Corp. – slide 21
    Operating Plan for FY 2011 A 4 million base case capital expenditure program to: Drill up to 5 horizontal wells in Giddings joint venture Re-enter and frac Woodford Shale in two mid-depth vertical wells in Haskell Conduct two…
  22. IPAA OGIS – Evolution Petroleum Corp. – slide 22
    Catalysts for growth in FY2011 Continued production growth at Delhi Drilling success in Giddings Positive shallow & mid-depth tests in Woodford Shale Positive tests in Lopez Field New joint venture to apply artificial lift…
  23. IPAA OGIS – Evolution Petroleum Corp. – slide 23
    Exhibits Definitions Liquidity EPM Annual Revenues Management team Board of Directors 24
  24. IPAA OGIS – Evolution Petroleum Corp. – slide 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…
  25. IPAA OGIS – Evolution Petroleum Corp. – slide 25
    EPM Liquidity 6/30/2010 Selected Assets Current Assets 6,229,351 Properties & Equipment, net 30,905,059 Other Assets 60,665 Total Assets 37,195,075 Long Term Liabilities & Equity Long Term Debt 0 Current Liabilities 1,287,699…
  26. IPAA OGIS – Evolution Petroleum Corp. – slide 26
    EPM Revenues Revenues in thousands 2007 revenues decreased by farm-out to DNR June 30 fiscal year-end 27
  27. IPAA OGIS – Evolution Petroleum Corp. – slide 27
    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…
  28. IPAA OGIS – Evolution Petroleum Corp. – slide 28
    Our Management Team Daryl Mazzanti, VP-Operations Joined team in mid-2005; 22 years of experience in oil & gas industry Former Manager of US Business Development for Anadarko Former Production Manager, Austin Chalk for Anadarko/UPRC…
  29. IPAA OGIS – Evolution Petroleum Corp. – slide 29
    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…
  30. IPAA OGIS – Evolution Petroleum Corp. – slide 30
    (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

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