HOUSTON, TX / ACCESSWIRE / January 29, 2018 / Evolution Petroleum Corporation (NYSE American: EPM) today announced a meaningful improvement in operating results in the Delhi field. Gross oil production for the quarter ended December 31, 2017 averaged almost 7,400 barrels of oil per day (BOPD), up from approximately 6,900 BOPD in the prior quarter. Field production recovered from lower levels seen in the late summer that were caused by hot weather and facility downtime. Production exceeded our initial expectations for the quarter, as we saw encouraging results from tests of higher quantities of CO2 injection and recycle rates without increasing the use of purchased CO2.
We have also seen a significant improvement in our crude oil pricing. This resulted from a substantial increase in the base West Texas Intermediate (WTI) oil price and an expanded premium for our Louisiana Light Sweet (LLS) crude. During the most recent quarter, our net realized oil price in the Delhi field moved from a discount to WTI, which in fiscal 2017 had averaged $2.35 per barrel less than WTI, to a premium of almost $2.00 per barrel over WTI. The LLS premium has narrowed somewhat since the end of the quarter, but we are still enjoying some of the best realized oil prices we have seen in three years.
Another very positive development during the quarter was the passage of the 2017 Tax Cuts and Jobs Act, which lowered the federal corporate income tax rate from 34% to 21% and provided accelerated deductions related to capital spending. We expect the enactment of the bill to result in significantly lower income tax expenses (both GAAP and cash) going forward compared to the previous tax regime. Consequently, we will record an expected one-time non-cash benefit of approximately $6.0 million in the fiscal second quarter, as we adjust our liability for deferred income taxes to the lower current rate.
Earnings Release and Conference Call
Evolution will release its full financial and operational results for the quarter ended December 31, 2017 (its second fiscal quarter of 2018) after the market closes on Wednesday, February 7, 2018. An investor conference call to review the results will be held on Thursday, February 8, 2018 at 10:00 a.m. Central (11:00 a.m. Eastern). The call will be hosted by Randy Keys, President and CEO and David Joe, Chief Financial Officer.
Date: Thursday, February 8, 2018
Time: 10:00 a.m. Central (11:00 a.m. Eastern)
Call: 1-855-327-6838 (United States & Canada)
Call: 1-604-235-2082 (International)
To listen live via webcast over the Internet, go to http://www.evolutionpetroleum.com.
A replay will be available two hours after the end of the conference call through February 15, 2018, and will be accessible by calling 1-844-512-2921 (US & Canada); 1-412-317-6671 (International) with the passcode 10004190.
Upcoming Investor Conferences
Evolution will be presenting and hosting meetings at the following investor conferences during the next three months:
EnerCom Dallas - Dallas, TX, February 21, 2018, 10:55 a.m. Central Time
Roth Capital Conference - Dana Point, CA, March 12-13, 2018, (TBA)
Scotia Howard Weil Energy Conference - New Orleans, LA, March 26-28, 2018, (TBA)
IPAA OGIS Conference, New York, NY, April 9-10, 2018, (TBA)
Our presentation at EnerCom Dallas will be webcast live and may be accessed at the conference website, www.enercomdallas.com, or on the home page of the Company's website: www.EvolutionPetroleum.com. The presentation materials will be available on the Company's website the day of the event. In addition to the Dallas conference, EnerCom also hosts The Oil and Gas Conference in Denver in August of each year.
About Evolution Petroleum
Evolution Petroleum Corporation develops and produces petroleum reserves within known oil and gas reservoirs in the U.S., with a focus on maximizing value per share. Our principal asset is our interest in a CO2 enhanced oil recovery project in Louisiana's Delhi Field. Additional information, including the Company's most recent annual report on Form 10-K and its quarterly reports on Form 10-Q, is available on its website at www.EvolutionPetroleum.com.
All forward-looking statements contained in this press release regarding potential results and future plans and objectives of the Company involve a wide range risks and uncertainties. Statements herein using words such as ''believe,'' ''expect,'' ''plans,'' and words of similar meaning are forward-looking statements. Although our expectations are based on engineering, geological, financial and operating assumptions that we believe to be reasonable, many factors could cause actual results to differ materially from our expectations and we can give no assurance that our goals will be achieved. These factors and others are detailed under the heading ''Risk Factors'' and elsewhere in our periodic documents filed with the SEC. The Company undertakes no obligation to update any forward-looking statement.
Randy Keys, CEO
SOURCE: Evolution Petroleum Corporation