HOUSTON,
March 30, 2015 /PRNewswire/ --
Evolution Petroleum Corporation (NYSE MKT: EPM) today provided an
update on operations and litigation.
Operations
As previously projected, the operator of the Delhi Field
has decreased CO2 purchases to a February rate of
approximately 101 million cubic feet per day (MMCFD) from the
temporary surge to approximately 125 MMCFD in the latter months of
calendar 2014. The surge in CO2 purchases was intended
to partially restore reservoir pressure to optimize oil recovery.
Since the purchase of CO2 is the largest operating cost
for the field, the reduction in the recurring level of purchases
should significantly reduce operating expense going forward until
the natural gas liquids plant is brought on line and the enhanced
oil recovery project is expanded further into the eastern half of
the field.
Litigation
In the litigation styled James H.
Jones ("Jones") et al versus Evolution Petroleum et al, the
plaintiffs have agreed to voluntarily dismiss all claims with
prejudice and relinquish all claims to the royalty interest that
Jones sold to us in early 2006. No compensation or other
consideration was paid or provided to the plaintiffs by any of the
defendants other than an agreement to not sue for malicious
prosecution or defamation, or seek sanctions.
Discovery continues in our lawsuit against the operator of
the Delhi Field, Denbury Onshore LLC, which we recently amended to
expand our damage claims. The trial date has been tentatively moved
to October of this year.
Robert Herlin, Chief
Executive Officer, said, "We are pleased to be moving forward
without the distraction and legal costs of defending against the
Jones lawsuit, and we are particularly gratified and vindicated by
the outcome. The Delhi Field continues to improve from the reduced
production level that resulted from the 2013 environmental event,
but is still well below the peak production level reached by the
project prior to the event. We look forward to the projected
substantial increases in production after the 2016 completion of
the natural gas liquids plant and expansion of the CO2
flood thereafter. Thanks to our conservative financial
management and strong balance sheet, we believe that we will be
able to meet our currently projected capital expenditure
obligations without having to raise additional
funds."
About Evolution Petroleum
Evolution Petroleum Corporation develops incremental petroleum
reserves and shareholder value by applying conventional and
specialized technology to known oil and gas resources, onshore in
the United States. Principal
assets include interests in a CO2-EOR project in
Louisiana's Delhi Field and a
patented technology designed to extend the life and increase
ultimate recoveries of depletion drive oil and gas wells.
Additional information, including the Company's annual report on
Form 10-K and its quarterly reports on Form 10-Q, is available on
its website at www.evolutionpetroleum.com. Additional information
regarding GARP® is available on the www.garplift.com
website.
Cautionary Statement
All statements contained in this press release regarding
potential results and future plans and objectives of the Company
are forward-looking statements that involve various risks and
uncertainties. There can be no assurance that such statements will
prove to be accurate and actual results and future events could
differ materially from those anticipated in such statements. The
Company undertakes no obligation to update or review any
forward-looking statement, whether as a result of new information,
future events, or otherwise. Factors that could cause actual
results to differ materially from our expectations include, but are
not limited to, those factors that are disclosed under the heading
"Risk Factors" and elsewhere in our documents filed from time to
time with the United States Securities and Exchange Commission and
other regulatory authorities. Statements regarding our ability to
complete transactions, successfully apply technology applications
in the re-development of oil and gas fields, realize future
production volumes, realize success in our drilling and development
activity and forecasts of legal claims, prices, future revenues,
income, expenses, cash flows, dividends and other statements that
are not historical facts contain predictions, estimates and other
forward-looking statements. Although the Company believes that its
expectations are based on reasonable assumptions, it can give no
assurance that its goals will be achieved and these statements will
prove to be accurate. Many factors could cause actual results to
differ materially from those included in the forward-looking
statements.
Company Contact:
Randy
Keys, President and CFO
(713) 935-0122
rkeys@evolutionpetroleum.com
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SOURCE Evolution Petroleum Corporation