Previous Statements by EPM
» Evolution Petroleum Corporation F3Q10 (Qtr End 03/31/10) Earnings Call Transcript
» Evolution Petroleum Corporation F2Q10 (Qtr End 12/31/09) Earnings Call Transcript
» Evolution Petroleum Corp F1Q10 (Qtr End 30/09/09) Earnings Call Transcript
» Evolution Petroleum Corporation, F2Q09 (Qtr End 12/31/08) Earnings Call Transcript
Information reported on the call today is valid only as of today, February 10, 2011 and therefore time sensitive information may no longer be accurate as of the date of any replay.Today management is going to say certain topics that may contain forward-looking information, which are based on management believes as well as assumptions made by management and information currently available to them. Forward-looking information includes statements regarding expected future dealing results production and expenses. Although management believes that these expectations reflect in such forward-looking statements are reasonable they can get no assurance that such expectations footprint to be correct. Such statements are subject to certain risks and uncertainties and assumptions, which are listed and described in the company’s filings with the Securities Exchange Commission. If one or more of these risks materialize or should underline expansions to prevent correct actual results may differ materially from those expected. Also, today’s call may include discussions of probable or possible reserves or use terms like volumes, reserve potential or recoverable reserves. Please note that these estimates are non-proved reserves or resources all by their very nature more respectively different estimates of proved resources and reserves and accordingly, our subjects – greater risks. Now with that, I would like turn the call over to Bob Herlin Evolution’s Chief Executive Officer. Bob. Robert Herlin Thanks, Lisa. Please excuse, I’ve got a cold today as my voice (inaudible). Good morning to everybody and thank you for joining us today. As Lisa mentioned, this morning we released our financial operating results for the fiscal second quarter. So we’re just going to review some of the key events and numbers and projects. Sterling McDonald our CFO will provide some additional information on the financial number and then will take the question. In the second quarter, we focused on continuing the development of our field acreage under our joint venture. We also drilled our first well in the mid-depth Haskell County, Oklahoma Shale project. We further benefited from the growing production at Delhi, which is continuing strongly as we enter calendar 2011.
As we bring on new productions in the Giddings Field in the Haskell County, Oklahoma over the next few weeks and as our Delhi production continues to grow, our cash flow and bottom line should improve substantially, obviously subjected to commodity prices.Now, let me give an update on our various projects. At Delhi, we realized a 37% increase in production volumes. They totaled 6266 net barrels of oil in second quarter as more of the producer wells in initial Phase I respond to injected CO2, these volumes continue to grow and we expect to see much higher sales volume in Q3 based on production today that we’ve seen in Q3 of ‘011. We are also pleased that the first CO2 injections in Phase II began in late December. The Phase II is more than doubled the size of Phase I in terms of total number of wells. We should see production as far as for the Phase II later this year. Phase III, which is similar in size of Phase II is being installed in the field down to 2011 and the remaining two Phases IV and V will similarly follow. Our independent reservoir engineer has agreed with us but there is a good potential for expanding the project other reservoirs within the year. As previously announced we have 9.4 million barrels of approved reserves and 5.7 million barrels of probable reserves obviously all 100% oil and a third of that is coming from our non-cost-bearing royalty interest. We currently expect not to bear any capital expenditures associated with accrued reserves. At Giddings Field, our production experienced normal decline, first what has been a temporary loss of production from one well. The overall production from the 10n wells was about 51% oil and natural gas liquids. Read the rest of this transcript for free on seekingalpha.com