Evolution Petroleum Corp., a company focused on the application of conventional and specialized technology to the oil and gas industry, today reported operational developments for two key projects in the company’s third fiscal quarter ended March 31, 2011.
The company said that in March 2011, phase II of the CO2 enhanced oil recovery project achieved its first oil production response. The phase II development is comprised of 61 producer and injector wells and is about double the size of the phase I development that produced an average 930 barrels of oil sales per day during the quarter ended December 31, 2010. Phase III of the project will be the same size as phase II and is slated for installation during calendar 2011.
“We are pleased that phase I production volumes in the Delhi development program have substantially increased since last quarter and that we have already achieved initial oil response from the larger phase II development. The initial results from our joint-venture drilling program in Giddings also appear attractive in the aggregate, and we are particularly gratified by the strong initial rate from our Dodd well, as we have several drilling locations under lease nearby,” Robert Herlin, president and CEO of Evolution Petroleum stated in the press release.
The company holds a 7.4 percent royalty interest share of Delhi production, bearing no operating expense or capital costs. Once total project net cash flow from the field reaches $200 million, the company will earn an additional 24 percent working revenue interest.
As of June 30, 2010, net reserves to the company’s interests at Delhi were reported to be 9.4 million barrels of proved oil reserves and 5.7 million barrels of probable oil reserves.
The company also reported on its joint-venture agreement for its Giddings Field operations in central Texas, where the company drilled the Dodd#1H in northern Grimes County and installed flow lines and production facilities for two purchasers.
Per the joint venture, Evolution Petroleum paid 10 percent of the drilling and completion costs for a 20 percent working interest before payout, and a 38 percent working interest after payout.
For more information visit www.evolutionpetroleum.com
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