Evolution Petroleum Reports Delhi CO2 Project Update
08 Julho 2009 - 5:52PM
PR Newswire (US)
HOUSTON, July 8 /PRNewswire-FirstCall/ -- Evolution Petroleum
Corporation (NYSE Amex: EPM) today reported that all claims in the
lawsuit filed in late 2005 against two of its wholly owned
subsidiaries, along with 11 other previous operators and owners of
the Delhi Field, have been dismissed following settlement. The
obligations of the Company's subsidiaries under the settlement are
limited to a cash contribution to the cost of completing certain
lease remediation operations. The amount of the cash contribution
is contractually limited, and the maximum contribution was fully
expensed in the quarter ended March 31, 2009. In exchange for the
cash contribution, the Company's subsidiaries received a waiver of
any indemnity claim by the active predecessor operator, who is
obligated to carry out the remediation operations. Although other
previous operators may attempt to assert indemnity claims against
subsequent operators for their settlement costs, including the
indirect subsidiary of the Company that operated the field, the
Company believes that such claims against its indirect subsidiary
would be without merit. Robert Herlin, President of Evolution
Petroleum, stated "While we did not believe that the claims against
our subsidiaries were warranted, we are pleased to have disposed of
this uncertainty for a portion of the actual cost of a limited
remediation. The settlement also ends the defense costs that have
burdened our financial performance." Mr. Herlin added "Evolution is
now poised to begin reaping the benefits from its Delhi CO2-EOR
project with Denbury's recent completion of the CO2 pipeline to the
field and near term initiation of the first redevelopment phase. We
expect CO2 injection to begin shortly, followed by an oil
production response approximately six months thereafter.
Consequently, we expect to begin generating significant revenues
from our 7.4% overriding royalty and mineral interests during
fiscal 2010, while also beginning the process of earning our
additional 25% reversionary working interest (20% revenue
interest), for a total revenue interest of 27.4%. Since our
overriding royalty and mineral interests do not bear any operating
costs, that revenue will fall directly to our pretax bottom line."
About Evolution Petroleum Evolution Petroleum Corporation
(http://www.evolutionpetroleum.com/) acquires known, onshore oil
and gas resources and applies conventional and specialized
technology to accelerate production and develop incremental
reserves and value. With no debt and a strong balance sheet, the
Company is well positioned to continue its development projects in
CO2 based EOR, bypassed resources and low cost shale gas. Principal
assets as of July 1, 2008 include 4 MMBOE of proved and 3.1 MMBOE
of probable reserves in the Giddings Field of central Texas,
approximately 13 MMBO of probable reserves associated with the
13,636 acre Delhi Field Holt Bryant Unit currently being
redeveloped with CO2-EOR technology in northeast Louisiana, and
leases covering approximately 17,600 net acres in two shallow
Woodford Shale gas projects in Oklahoma and 1,500 net acres in an
oil development project in South Texas. Additional information,
including the Company's annual report on Form 10-KSB and its
quarterly reports on Form 10-Q, can be accessed on its 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. Important 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 and income and cash flows 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. Important factors could cause actual results
to differ materially from those included in the forward-looking
statements. Company Contact: Sterling McDonald, VP & CFO (713)
935-0122 Lisa Elliott / Jack Lascar / DRG&E / 713-529-6600
DATASOURCE: Evolution Petroleum Corporation CONTACT: Sterling
McDonald, VP & CFO of Evolution Petroleum Corporation,
+1-713-935-0122, ; or Lisa Elliott, , or Jack Lascar, , both of
DRG&E, +1-713-529-6600, for Evolution Petroleum Corporation Web
Site: http://www.evolutionpetroleum.com/
Copyright