Evolution Petroleum Corporation (EPM)

PennyBuyer (< 20) Submitted: 12/11/07 3:40 PM

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When is the Delhi field going to be ready for extraction?

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TradeWindsSeaDog (< 20) Submitted: 12/14/07 10:26 PM

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I read this post and didn't know what CO2 recovery was, so I found the info at EPM's web site: http://www.evolutionpetroleum.com/solutions/recovery.php

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TradeWindsSeaDog (< 20) Submitted: 12/14/07 11:21 PM

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At EPM's website, there is a news page with a slide show from November 8, 2007 (http://www.evolutionpetroleum.com/news/index.php) that projects a time line for the Delhi Field Development. EPM projects CO2 injection to occur in the second quarter of 2008. EPM uses existing oil fields that "matured prior to modern technology and the . . . . increase in oil and gas prices." Anyone can obtain EPM's disclosures to the SEC concerning their oil reserves by calling EPM at 713-935-0122 and requesting EPM's filings with the SEC. EPM has to be careful what they imply concerning their oil reserves, not to mislead investors. They could get into trouble for that. Management owns 19% of the company, (See slide show) so I guess they are betting on being successful.

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vb123 (30.14) Submitted: 12/16/07 1:55 PM

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EPM has gone from 2.25 to 4.25 in the past 3 Mo's. You really think it can get that much further in the near term.

On the other hand, I can't argue with your track record ..

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luvb2b (99.95) Submitted: 12/17/07 4:29 PM

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Thanks for your comments and questions. Of course I'm not the expert here... Denbury is the true expert in CO2 extractions. http://www.denbury.com/operations.htm

"During the last seven years, we have learned a considerable amount about tertiary operations and working with carbon dioxide (“CO2”) and our knowledge continues to grow. We like these tertiary operations because (i) tertiary investments provide a reasonable rate of return, even at relatively low oil prices of around $30 per barrel, (ii) tertiary flooding exhibits a lower risk profile than conventional exploration and development, and (iii) to date, in our region of the United States, we have not encountered any industry competition. Generally, from the Texas Gulf Coast to Florida, there are no known significant natural sources of carbon dioxide except our own, and these large volumes of CO2 are the foundation for our entire tertiary program."

With regards to Delhi, Denbury says:

"Currently, Phase V is our last firmly scheduled phase and consists of Delhi Field, a Louisiana field we acquired in May 2006 for $50 million, plus a 25% reversionary interest to the seller after we have achieved $200 million in net operating revenue, as defined. We believe that Delhi Field has over 35 MMBbls of potentially recoverable oil from tertiary operations. Before flooding can commence, we need to extend the CO2 line to be built to Tinsley Field in 2007 (as more fully discussed in Phase III above) by building a 68 mile 20 inch extension to Delhi Field with completion for this segment currently anticipated during the first half of 2008. Our goal is for initial oil production from tertiary operations to begin during 2009."

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