IPAA OGIS New York April 2011 (NYSE Amex: EPM) Evolution Petroleum Corporation 1
Quick Facts about EPM Ticker Symbol EPM (NYSE AMEX) Fiscal Year-End June 30 Market Cap* 214 million as of 3/31/2011 (7.80/shr) Enterprise Value 211 MM (based on 12/31/10 FS) Shares 27.5 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) East OK Woodford Shale testing Delhi Field-producing 15,000 net acres targeting shallow Woodford CO2 EOR - 100% oil 9.4 MMBO Proved 5.7 MMBO Probable Giddings Field producing…
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 Proved reserves are 83% black oil and 8% NGL Valuation Metrics at fiscal…
Why own EPM Proved PV10 76 oil current enterprise value Growing value at Delhi: Producing for 1+ years production continues to increase PV10 grows 40+% in 5 years while generating 140 MM of pretax cash (based on 76 oil) Long…
Why own EPM Upside potential in other projects underway: 15 remaining development drilling locations (13 PUD) in Giddings, of which up to 2 may be included in current joint venture Exposure to new Eagle Ford / Woodbine play…
Successful Team Track Record Using 8.3 MM of paid-in equity, We generated, as of 6/30/10 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…
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 Tinsley 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…
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 Value Increases Over Time EPM's Delhi Residual 2P PV10 and Cumulative Pretax Cash per Fully Diluted Share, at 76 oil Residual PV10 Cumulative Pretax Cash Generated w/o Reinvestment 25 20 PV10 / Dilutable Share Growing…
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 16…
Giddings Field, Central Texas Attractive Drilling Economics Drilling locations Ave. Gross Recovery Ave. cost/well Cost per net BOE 10 proved re-entries 146 MBOE/well 1.5 MM 12.40 3 proved grassroot & 305 MBOE/well 2.7 MM 11.00 2…
Gas Shales in Eastern Oklahoma EPM owns 14,900 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 Gas Shales: Shallow Low Cost EPM is targeting a development cost of approximately 1 per MCFe Shallow depth = small rig and light acid fracs = low day rates Haskell Woodford at 4,000-6,000 depth vertical wells targeting 500+…
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…
Operating Plan for FY 2011* A 4 million base case capital expenditure program to: Drill up to 5 horizontal wells in Giddings joint venture (3 completed to date) Re-enter and frac Woodford Shale in two mid-depth vertical wells in…
Catalysts for growth in FY2011 Continued production growth at Delhi at premium oil price Drilling success in Giddings Positive tests in Woodford Shale New joint venture(s) to apply artificial lift technology Additional…
Exhibits Definitions Annual Revenues Abbreviated Balance Sheet Management team Board of Directors 23
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 by farm-out to DNR June 30 fiscal year-end 25
EPM Liquidity 12/31/2010 Assets Current Assets 7,437,525 Properties & Equipment, net 32,707,583 Other Assets 45,308 Total Assets 40,190,416 Long Term Liabilities & Equity Long Term Debt 0 Current Liabilities 4,241,714 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; 22 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 30
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