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IPAA OGIS – Evolution Petroleum Corp.

Evolution Petroleum Corp. · Sep 26, 2011 · 35 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 Presentation September 2011 (NYSE Amex: EPM) Evolution Petroleum Corporation 1
  2. IPAA OGIS – Evolution Petroleum Corp. – slide 2
    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 value per share by: Identifying development…
  3. IPAA OGIS – Evolution Petroleum Corp. – slide 3
    Quick Facts about EPM Ticker Symbols Common EPM (NYSE AMEX) Perpetual Preferred EPM-PA (NYSE AMEX) Fiscal Year-end June 30 Market Cap* 195 MM, as of 9/19/11 (7.07/share, excludes derivatives) Enterprise Value* 191 MM, based on…
  4. IPAA OGIS – Evolution Petroleum Corp. – slide 4
    Moving into 3rd Phase of Our Growth Delhi & Giddings cash flows redeploying into development of OK, Delhi net proceeds South TX, technology re-invested to & other projects acquire & test shale Positive operating gas,…
  5. IPAA OGIS – Evolution Petroleum Corp. – slide 5
    Oil & Gas Core Assets (Net Reserves at 6/30/2011) Eastern OK Unconventional Gas Delhi Field - producing Leasehold targeting Woodford and unconventional gas CO2 EOR - 100% oil 10.9 MMBO Proved 5.8 MMBO Probable 41% of 2P is develd…
  6. IPAA OGIS – Evolution Petroleum Corp. – slide 6
    EPM Valuation Metrics Oil and gas reserves (as of 6/30/2011) Proved: 13.8 MMBOE 84% oil 39% developed Probable: 6.2 MMBOE 100% oil 31% developed Valuation Metrics * Included PV-10 PV10 per Future Capex (net of capex) diluted share…
  7. IPAA OGIS – Evolution Petroleum Corp. – slide 7
    EPM is Undervalued Relative to Peers EPM vs Peers (as of 9/19/2011) Enterprise Value as % of Proved PV10 250% 200% 150% 100% 50% 0% EPM RAM WRES REN DNR MHR AREX PQ Enterprise Proved SEC Proved Mkt Cap Value Reserves…
  8. IPAA OGIS – Evolution Petroleum Corp. – slide 8
    Why Own EPM Now Proved PV10 of 375 million compared with enterprise value of 191 million Growing value and cash flow at Delhi: Net oil production growing up 48% in FYQ4 from FYQ3 to 219 bopd from Phase I & early Phase II…
  9. IPAA OGIS – Evolution Petroleum Corp. – slide 9
    EPMs Core Asset Delhi Holt Bryant Unit CO2 Based Enhanced Oil Recovery Project 10
  10. IPAA OGIS – Evolution Petroleum Corp. – slide 10
    EOR - Delhi Field CO2 Project Delhi Gross Historical Production 192 MMBO Projected EOR Recovery, 13% Proved % of original oil in place (OOIP) 4% Probable Unit Size 13,636 acres Jackson Dome Acquired by EPM in 2003 Paid 2.7 mil + spent…
  11. IPAA OGIS – Evolution Petroleum Corp. – slide 11
    EPMs Delhi Farm-out Agreement We own royalty interests equal to 7.4% of gross production EPM receives 7.4% of gross revenues from day one EPM pays no capital expenditures and no operating costs, ever Project is exempt from state…
  12. IPAA OGIS – Evolution Petroleum Corp. – slide 12
    O ct 1,000 10,000 100,000 1 10 100 -0 Fe 3 b- 0 Ju 4 n- EPM buys Delhi 0 O 4 ct -0 Fe 4 b- 0 Ju 5 n- 0 O 5 ct -0 Fe 5 b- 0 Ju 6 n- 0 O 6 ct -0 Fe 6 b- 0 Ju 7 Farmout to DNR n- 0…
  13. IPAA OGIS – Evolution Petroleum Corp. – slide 13
    Significant Cash Flow Growth from Delhi EPM Annual Pretax Cash Flow Net of Capex Royalty Reversionary WI 3.00 / diluted share 2.00 1.00 - 11 12 13 14 15 16 17 18 19 20 21…
  14. IPAA OGIS – Evolution Petroleum Corp. – slide 14
    Delhi Present Value Increases Over Time EPM Residual PV10 + Cumulative Pretax CF PV10 Remaining Cumulative Pretax NCF 30 25 /diluted share 20 15 10 5 - 11 12 13 14 15 16 17 18 19 20 21 22 20 20 20 20 20 20 20…
  15. IPAA OGIS – Evolution Petroleum Corp. – slide 15
    Delhi PV10 Sensitivity to Price & Recovery Ultimate EOR Recovery Oil Price Impact on EPM Share Price Impact on EPM Share Price PV10* vs Gross Oil Recovery PV10* vs 2011 Oil Price (flat pricing) / diluted / diluted share share…
  16. IPAA OGIS – Evolution Petroleum Corp. – slide 16
    Positioning for Growth Track Record for Project Development & Near Term Operating Plan 17
  17. IPAA OGIS – Evolution Petroleum Corp. – slide 17
    Successful Team Track Record (through 6/30/2011) 8.3 MM of common Generated 66 MM in cash + equity invested Proved PV10 value of 375 MM Delhi EOR 6.8 MM 50 MM cash price + 5 MM cash from opns, pretax + Proved PV10 = 334 million…
  18. IPAA OGIS – Evolution Petroleum Corp. – slide 18
    Operating Plan & Catalysts for Fiscal 2012 5 million base plan to: Continue development in Giddings Resume development of Lopez Field oil project in South Texas Commence 3rd party demonstrations of GARPtm artificial lift technology…
  19. IPAA OGIS – Evolution Petroleum Corp. – slide 19
    Redeployment of Delhi Cashflow Current Projects: Neptune Oil Projects in S Texas Low Cost, Mid-depth Woodford Shale GARPtm Artificial Lift Technology Giddings Oily Drilling Locations 20
  20. IPAA OGIS – Evolution Petroleum Corp. – slide 20
    Oil Reserves Development in S. Texas 100% WI in 3 leases within Lopez Field in Webb County, Tx Field historically produced 32 MMBO from primary and secondary recovery EPM initiated testing in calendar 2010. Delay in obtaining water…
  21. IPAA OGIS – Evolution Petroleum Corp. – slide 21
    Unconventional Gas in Woodford Shale EPM owns 5,500 net acres in Haskell EPM County in Eastern Oklahoma Acreage Woodford Shale between 4,000 & 6,000 in depth targeting F&D cost of 1.25 per Mcfe Tulsa Commercial development on three…
  22. IPAA OGIS – Evolution Petroleum Corp. – slide 22
    TM GARP Patented Artificial Lift Technology Our Technology Gas Assisted Rod Pump Mobilizes remaining fluid to the pump Cost 75K - 150K per application Successfully applied in own wells in Giddings Field versus: Conventional…
  23. IPAA OGIS – Evolution Petroleum Corp. – slide 23
    Giddings Field, Central Texas Attractive Drilling Economics Drilling locations Avg. Gross 2P Recovery Avg. cost/well Cost per net BOE 10 proved re-entries 183 MBOE/well 1.5 MM 10.25 3 proved grassroot 352 MBOE/well 3.0 MM…
  24. IPAA OGIS – Evolution Petroleum Corp. – slide 24
    Results Our historical record speaks for itself 25
  25. IPAA OGIS – Evolution Petroleum Corp. – slide 25
    EPM Growth Record Since Inception Net Reserves in MMBOE Revenues in (000) 25 8,000 7,000 20 6,000 15 5,000 4,000 10 3,000 2,000 5 1,000 0 0 4 5 6 7 8 9 0 1 2 00 2 00 2 00 2 00 2 00 2 00 2 01 2 01 2004 2005 2006 2007 2008…
  26. IPAA OGIS – Evolution Petroleum Corp. – slide 26
    Positive Trend in Fiscal Year 2011 FY 2011 Quarterly Cash Flow FY 2011 Quarterly Net Income 2,000 600 400 1,500 200 1,000 0 500 -200 0 -400 -500 -600 Q1 Q2 Q3 Q4 1Q 2Q 3Q 4Q 27
  27. IPAA OGIS – Evolution Petroleum Corp. – slide 27
    Results of Fiscal 2011 Continued production growth at Delhi at premium oil price Completed first Giddings JV confirmed Grimes County potential Positive test in Lopez Field (S Tx) restored proved reserves and 100% oil potential in…
  28. IPAA OGIS – Evolution Petroleum Corp. – slide 28
    In Summary - Why own EPM Proved PV10 of 375 million compared with enterprise value of 191 million Growing value and cash flow at Delhi Redeploying cash flow to develop upside potential in other projects: Renewed opportunity to…
  29. IPAA OGIS – Evolution Petroleum Corp. – slide 29
    Exhibits Definitions Abbreviated Balance Sheet Management Team Board of Directors 30
  30. IPAA OGIS – Evolution Petroleum Corp. – slide 30
    Definitions EOR Enhanced oil recovery 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 PbDP Probable developed producing reserves are…
  31. IPAA OGIS – Evolution Petroleum Corp. – slide 31
    EPM Liquidity* 6/30/2011 Assets Current Assets 6,574,312 Properties & Equipment, net 33,516,826 Other Assets 77,287 Total Assets 40,168,425 Long Term Liabilities & Equity Long Term Debt 0 Current Liabilities 2,428,404 Other…
  32. IPAA OGIS – Evolution Petroleum Corp. – slide 32
    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…
  33. IPAA OGIS – Evolution Petroleum Corp. – slide 33
    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…
  34. IPAA OGIS – Evolution Petroleum Corp. – slide 34
    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…
  35. IPAA OGIS – Evolution Petroleum Corp. – slide 35
    (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 36

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