EPM is focused on an overall strategy of acquiring controlling working interests in oil and gas resources within established fields and redeveloping those fields through the application of capital and technology to convert the oil and gas resources into profitable producing reserves. Within this overall strategy, we have established three specific business initiatives:

1. Enhanced oil recovery (EOR) Initiative, using miscible and immiscible gas flooding to extract tertiary resources;
2. Bypassed Resource Initiative, using technology-based redevelopment of overlooked primary resources in mature oil and gas fields; and
3. Unconventional Gas Resource Initiative, using modern stimulation and completion technologies to economically produce tight gas formations.

Our strategy is intended to generate scalable development opportunities at normally pressured depths, exhibiting relatively low completion risk, generally longer and more predictable production lives, less expenditures on infrastructure and lower operational risks. We believe that the benefits of this approach include:

• Reduced exposure to the risk of whether resources are present;
• Reduced capital expenditures per net BOE for infrastructure, such as roads, water handling facilities and pipelines;
• Large inventory of development opportunities, which provides a more predictable future stream of drilling activity and production;
• Reduced operational risks and costs associated with lower pressures and lower temperatures; and
• Control of operations, development timing and technology applied.

Evolution Petroleum began operations in 2003 under the name Natural Gas Systems, Inc. and began trading under the symbol NGSY:OB in 2004. In 2006, we were listed on the American Stock Exchange under the symbol EPM. Our fiscal year end is June 30.

We have approximately 26.8 million shares outstanding, of which approximately 19% is held by management and employees on a fully diluted basis, and 42% is held by nonmanagement directors and their affiliates. Offices are located in Houston, Texas, and our principal assets are located in Texas, Louisiana and the Mid-Continent region of the United States.

During the early years since we formed the company, our focus has been on generation of asset value per share. While continuing this effort, we now also are transitioning into increasing production, revenues and income growth.

Business Plan

Forward-Looking Statements
The content of this website, including any projections herein, contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward-looking statements give our current expectations or forecasts of future events. They include statements regarding our future operating and financial performance. Although we believe the expectations and forecasts reflected in these and other forward-looking statements are reasonable, we can give no assurance they will prove to have been correct. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. You should understand that the following important factors, could affect our future results and could cause those results or other outcomes to differ materially from those expressed or implied in the forward-looking statements relating to: (1) amount, nature and timing of capital expenditures; (2) drilling of wells and other planned exploitation activities; (3) timing and amount of future production of oil and natural gas; (4) increases in production growth and proved reserves; (5) operating costs such as lease operating expenses, administrative costs and other expenses; (6) our future operating or financial results; (7) cash flow and anticipated liquidity; (8) our business strategy, including leasing and the availability of leasing and acquisition opportunities; (9) hedging strategy; (10) exploration and exploitation activities and property acquisitions; (11) marketing of oil and natural gas; (12) governmental and environmental regulation of the oil and gas industry; (13) environmental liabilities relating to past or potential pollution arising from our operations or operations by others for which we may have contractual obligation; (14) our level of indebtedness; (15) timing and amount of future dividends; (16) industry competition, conditions, performance and consolidation; (17) natural events such as severe weather, hurricanes, floods, fire and earthquakes; and (18) availability of drilling rigs and other oil field equipment and services. 

We caution you not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release, and we undertake no obligation to update such information. We, through two wholly owned subsidiaries, also have been included in a multi-defendant environmental lawsuit by certain landowners alleging unspecified environmental damages in the Delhi Field since the field’s discovery in 1940’s. The potential impact on us cannot be determined at this time, but we are vigorously defending against the litigation.

Cautionary Note to U.S. Investors Regarding Oil and Gas Reserve Estimates:
The U.S. Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only “Proved” reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. The Company is prohibited from disclosing other categories of reserves in its SEC filings. When used by financial analysts covering the oil and gas sector, PV-10 means a present value of the estimated future net revenues, computed by applying current prices of oil and gas reserves (with consideration of price changes only to the extent provided by contractual arrangements) to estimated future production of proved oil and gas reserves as of the date of the date of presentation, less estimated future expenditures (based on current costs to be incurred in developing and producing the proved reserves) computed using a 10% per annum discount factor and assuming continuation of existing economic conditions. PV-10 is also the pre-tax component of the Standardized Oil and Gas Measure prescribed by the SEC and FASB. We use certain terms in this press release such as “other than proved,” "Probable” or “Possible” oil and gas reserves that the SEC’s guidelines strictly prohibit us from including in filings with the SEC. U.S. investors are urged to consider closely the disclosure in our SEC filings, available from us at 2500 CityWest Blvd, Suite 1300, Houston, Texas 77042; Telephone: 713-935-0122. You can also obtain these filings from the SEC by calling 1-800-SEC-0330 or by obtaining them online at www.sec.gov. The Proved reserve quantities reflected above were prepared by W. D. Von Gonten & Company and the other than proved reserve quantities were estimated by the Company, both using the 1997 definitions and standards of the Society of Petroleum Engineers and World Petroleum Congresses. These definitions and standards may result in estimates of proved reserves which are materially different from those disclosed in the Company’s filings with the SEC.