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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Jun. 30, 2012	Sep. 11, 2012	Dec. 31, 2011
Document and Entity Information
Entity Registrant Name	EVOLUTION PETROLEUM CORP
Entity Central Index Key	0001006655
Document Type	10-K
Document Period End Date	Jun. 30, 2012
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 0
Entity Common Stock, Shares Outstanding		28,840,163
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	FY

Consolidated Balance Sheets - USD ($)	Jun. 30, 2012	Jun. 30, 2011
Current assets
Cash and cash equivalents	$ 14,428,548	$ 4,247,438
Certificates of deposit	250,000	250,000
Restricted cash from joint interest partner		118,194
Receivables
Oil and natural gas sales	1,343,347	1,559,404
Joint interest partner	96,151	86,105
Income taxes	92,885	28,680
Other	190	167
Deferred tax asset	325,235
Prepaid expenses and other current assets	233,433	67,852
Total current assets	16,769,789	6,357,840
Property and equipment, net of depreciation, depletion, and amortization
Oil and natural gas properties - full-cost method of accounting, of which $6,042,094 and $2,940,199 at June 30, 2012 and 2011, respectively, were excluded from amortization	40,476,172	33,447,564
Other property and equipment	92,271	69,262
Total property and equipment	40,568,443	33,516,826
Advances to joint interest operating partner	1,366,921
Other assets	250,333	77,287
Total assets	58,955,486	39,951,953
Current liabilities
Accounts payable	407,570	514,177
Due to joint interest partner	3,217,975	105,567
Accrued payroll	1,005,624	682,850
Royalties payable	294,013	742,651
State and federal taxes payable	91,967	82,122
Other current liabilities	71,768	84,565
Total current liabilities	5,088,917	2,211,932
Long term liabilities
Deferred income taxes	6,205,093	3,330,266
Asset retirement obligations	968,677	859,586
Deferred rent	70,011	85,412
Total liabilities	12,332,698	6,487,196
Commitments and contingencies (Note 14)
Stockholders' equity
Common stock; par value $0.001; 100,000,000 shares authorized; issued 28,670,424 shares; outstanding 27,882,224 shares and 27,612,916 shares as of June 30, 2012 and 2011, respectively	28,670	28,400
Additional paid-in capital	29,416,914	20,761,209
Retained earnings	18,058,909	13,557,170
Stockholders equity before treasury stock	47,504,810	34,346,779
Treasury stock, at cost, 788,200 shares as of June 30, 2012 and June 30, 2011	(882,022)	(882,022)
Total stockholders' equity	46,622,788	33,464,757
Total liabilities and stockholders' equity	58,955,486	$ 39,951,953
Series A Cumulative Preferred Stock
Stockholders' equity
Preferred stock, par value $0.001; 5,000,000 shares authorized: 8.5% Series A Cumulative Preferred Stock, 1,000,000 shares designated, 317,319 shares issued and outstanding at June 30, 2012, with a total liquidation preference of $7,932,975 ($25.00 per share)	$ 317

Consolidated Balance Sheets (Parenthetical) - USD ($)	12 Months Ended
Consolidated Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2012	Jun. 30, 2011
Oil and natural gas properties, excluded from amortization (in dollars)	$ 6,042,094	$ 2,940,199
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, issued shares	28,670,424	28,670,424
Common stock, outstanding shares	27,882,224	27,612,916
Treasury stock, shares	788,200	788,200
Series A Cumulative Preferred Stock
Cumulative Preferred Stock (as a percent)	8.50%
Preferred stock, shares designated	1,000,000
Preferred stock, shares issued	317,319
Preferred stock, shares outstanding	317,319
Preferred stock, total liquidation preference	$ 7,932,975
Preferred stock, liquidation preference (in dollars per share)	$ 25.00

Consolidated Statements of Operations - USD ($)

12 Months Ended

Jun. 30, 2012

Jun. 30, 2011

Jun. 30, 2010

Revenues

Crude oil

$ 16,547,415

$ 5,672,471

$ 2,188,259

Natural gas liquids

620,187

893,525

1,079,383

Natural gas

794,436

964,879

1,754,259

Total Revenues

17,962,038

7,530,875

5,021,901

Operating Costs

Lease operating expenses

1,708,235

1,298,650

1,616,767

Production taxes

66,764

80,677

48,312

Depreciation, depletion and amortization

1,136,974

563,104

1,818,110

Accretion of asset retirement obligations

77,505

59,913

61,054

General and administrative expenses

^[1]

6,143,286

5,335,384

5,092,243

Total operating costs

9,132,764

7,337,728

8,636,486

Income (loss) from operations

8,829,274

193,147

(3,614,585)

Other

Interest income

25,728

14,214

55,054

Interest (expense)

(21,950)

Net income (loss) before income tax provision (benefit)

8,833,052

207,361

(3,559,531)

Income tax provision (benefit)

3,700,922

448,914

(1,171,824)

Net income (loss) attributable to the Company

5,132,130

(241,553)

(2,387,707)

Dividends on Preferred Stock

630,391

Net income (loss) attributable to common shareholders

$ 4,501,739

$ (241,553)

$ (2,387,707)

Earnings (loss) per common share

Basic (in dollars per share)

$ 0.16

$ (0.01)

$ (0.09)

Diluted (in dollars per share)

$ 0.14

$ (0.01)

$ (0.09)

Weighted average number of common shares outstanding

Basic (in shares)

27,784,298

27,437,496

27,004,066

Diluted (in shares)

31,609,929

27,437,496

27,004,066

[1]	General and administrative expenses for the year ended June 30, 2012, 2011 and 2010 included non-cash stock-based compensation expense of $1,475,995, $1,536,007 and $2,148,400, respectively.

Consolidated Statements of Operations (Parenthetical) - USD ($)	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010
Consolidated Statements of Operations
General and administrative expenses, non-cash stock-based compensation expense	$ 1,475,995	$ 1,536,007	$ 2,148,400

Consolidated Statements of Cash Flow - USD ($)	12 Months Ended
Consolidated Statements of Cash Flow - USD ($)	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010
Cash Flows From Operating Activities
Net income (loss) attributable to the Company	$ 5,132,130	$ (241,553)	$ (2,387,707)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization	1,150,454	563,104	1,818,110
Stock-based compensation	1,475,995	1,536,007	2,148,400
Accretion of asset retirement obligations	77,505	59,913	61,054
Settlement of asset retirement obligations	(61,936)	(1,847)
Deferred income taxes	2,549,592	380,386	(771,437)
Deferred rent	(15,401)	3,777	3,777
Other		32,080	5,717
Changes in operating assets and liabilities:
Receivables from oil and natural gas sales	216,057	(1,023,038)	(4,048)
Receivables from income taxes and other	(64,194)	687,228	1,512,041
Due to/from joint interest partners	139,705	(87,743)
Prepaid expenses and other current assets	(165,581)	90,652	3,947
Accounts payable and accrued expenses	379,873	497,783	65,144
Royalties payable	(448,638)	521,589	2,585
Income taxes payable	9,845	36,778	(112,402)
Net cash provided by operating activities	10,375,406	3,055,116	2,345,181
Cash Flows from Investing Activities
Proceeds from asset sales	799,610	231,326
Development of oil and natural gas properties	(3,291,921)	(2,509,652)	(3,280,425)
Acquisitions of oil and natural gas properties	(3,768,162)	(997,279)	(517,530)
Capital expenditures for other equipment	(61,176)	(864)
Advances to joint venture operating partner	(224,206)
Maturities of certificates of deposit		1,100,000	2,059,147
Purchases of certificates of deposit			(1,350,000)
Other assets	(35,056)	(48,702)	(13,220)
Net cash used in investing activities	(6,580,911)	(2,225,171)	(3,102,028)
Cash Flows from Financing Activities
Proceeds from issuance of preferred stock, net	6,930,535
Proceeds from issuance of restricted stock		28	42
Proceeds from the exercise of stock options		106,049	3,300
Preferred stock dividends paid	(630,391)
Deferred loan costs	(163,257)
Windfall tax benefit	249,728	173,157
Net cash provided by financing activities	6,386,615	279,234	3,342
Net increase (decrease) in cash and cash equivalents	10,181,110	1,109,179	(753,505)
Cash and cash equivalents, beginning of period	4,247,438	3,138,259	3,891,764
Cash and cash equivalents, end of period	$ 14,428,548	$ 4,247,438	$ 3,138,259

Consolidated Statements of Changes in Stockholders' Equity - USD ($)	Total	Preferred	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock
Balance at Jun. 30, 2009	$ 31,756,594		$ 27,318	$ 16,424,868	$ 16,186,430	$ (882,022)
Balance (in shares) at Jun. 30, 2009			26,530,317
Increase (Decrease) in Stockholders' Equity
Issuance of common stock to certain employees in lieu of cash payment of 2010 and 2009 bonus	370,440		$ 138	370,302
Issuance of common stock to certain employees in lieu of cash payment of 2010 and 2009 bonus (in shares)			138,224
Issuance of restricted common stock	42		$ 387	(345)
Issuance of restricted common stock (in shares)			386,914
Exercise of stock warrants			$ 133	(133)
Exercise of stock warrants (in shares)			133,005
Exercise of stock options	3,300		$ 3	3,297
Exercise of stock options (in shares)			3,000
Forfeiture of restricted common stock			$ (130)	130
Forfeiture of restricted common stock (in shares)			(130,084)
Stock-based compensation	1,561,367			1,561,367
Windfall tax benefit	173,157			173,157
Net income (loss)	(2,387,707)				(2,387,707)
Balance at Jun. 30, 2010	31,477,193		$ 27,849	18,532,643	13,798,723	(882,022)
Balance (in shares) at Jun. 30, 2010			27,061,376
Increase (Decrease) in Stockholders' Equity
Issuance of common stock to certain employees in lieu of cash payment of 2010 and 2009 bonus	587,033		$ 107	586,926
Issuance of common stock to certain employees in lieu of cash payment of 2010 and 2009 bonus (in shares)			106,927
Issuance of restricted common stock	28		$ 303	(275)
Issuance of restricted common stock (in shares)			303,603
Exercise of stock warrants			$ 58	(58)
Exercise of stock warrants (in shares)			58,350
Exercise of stock options	106,049		$ 87	105,962
Exercise of stock options (in shares)			86,875
Forfeiture of restricted common stock			$ (4)	4
Forfeiture of restricted common stock (in shares)			(4,215)
Stock-based compensation	1,536,007			1,536,007
Net income (loss)	(241,553)				(241,553)
Balance at Jun. 30, 2011	33,464,757		$ 28,400	20,761,209	13,557,170	(882,022)
Balance (in shares) at Jun. 30, 2011			27,612,916
Increase (Decrease) in Stockholders' Equity
Issuance of preferred stock	7,932,975	$ 317		7,932,658
Issuance of preferred stock (in shares)		317,319
Preferred stock issuance costs	(1,002,440)			(1,002,440)
Issuance of restricted common stock	34		$ 196	(162)
Issuance of restricted common stock (in shares)			196,106
Exercise of stock warrants			$ 66	(66)
Exercise of stock warrants (in shares)			65,261
Exercise of stock options			$ 8	(8)
Exercise of stock options (in shares)			7,941
Stock-based compensation	1,475,995			1,475,995
Windfall tax benefit	249,728			249,728
Net income (loss)	5,132,130				5,132,130
Preferred Stock dividends	(630,391)				(630,391)
Balance at Jun. 30, 2012	$ 46,622,788	$ 317	$ 28,670	$ 29,416,914	$ 18,058,909	$ (882,022)
Balance (in shares) at Jun. 30, 2012		317,319	27,882,224

Organization and Basis of Preparation

12 Months Ended

Jun. 30, 2012

Organization and Basis of Preparation

Organization and Basis of Preparation

Note 1 — Organization and Basis of Preparation

Nature of Operations. Evolution Petroleum Corporation (“EPM”) and its subsidiaries (the “Company”, “we”, “our” or “us”), is an independent petroleum company headquartered in Houston, Texas and incorporated under the laws of the State of Nevada. We are engaged primarily in the acquisition, exploitation and development of properties for the production of crude oil and natural gas. We acquire properties with known oil and natural gas resources and exploit them through the application of conventional and specialized technology to increase production, ultimate recoveries, or both.

Principles of Consolidation and Reporting. Our consolidated financial statements include the accounts of EPM and its wholly-owned subsidiaries: NGS Sub Corp and its wholly owned subsidiary, Tertiaire Resources Company, NGS Technologies, Inc., Evolution Operating Co., Inc. and Evolution Petroleum OK, Inc. All significant intercompany transactions have been eliminated in consolidation. The consolidated financial statements for the previous year include certain reclassifications that were made to conform to the current presentation. Such reclassifications have no impact on previously reported income or stockholders’ equity.

Use of Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates include reserve quantities and estimated future cash flows associated with proved reserves, which significantly impact depletion expense and potential impairments of oil and natural gas properties, income taxes and the valuation of deferred tax assets, stock-based compensation and commitments and contingencies. We analyze our estimates based on historical experience and various other assumptions that we believe to be reasonable. While we believe that our estimates and assumptions used in preparation of the consolidated financial statements are appropriate, actual results could differ from those estimates.

- Definition

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

+ References

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Reference 14: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Research Bulletin (ARB)
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Summary of Significant Accounting Policies

12 Months Ended

Jun. 30, 2012

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Note 2 — Summary of Significant Accounting Policies

Cash and Cash Equivalents. We consider all highly liquid investments, with original maturities of 90 days or less when purchased, to be cash and cash equivalents.

Allowance for Doubtful Accounts. We establish provisions for losses on accounts receivables if it is determined that collection of all or a part of an outstanding balance is not probable. Collectability is reviewed regularly and an allowance is established or adjusted, as necessary, using the specific identification method. As of June 30, 2012 and 2011, no allowance for doubtful accounts was considered necessary.

Oil and Natural Gas Properties. We use the full cost method of accounting for our investments in oil and natural gas properties. Under this method of accounting, all costs incurred in the acquisition, exploration and development of oil and natural gas properties, including unproductive wells, are capitalized. This includes any internal costs that are directly related to property acquisition, exploration and development activities but does not include any costs related to production, general corporate overhead or similar activities. Gain or loss on the sale or other disposition of oil and natural gas properties is not recognized, unless the gain or loss would significantly alter the relationship between capitalized costs and proved reserves.

Oil and natural gas properties include costs that are excluded from costs being depleted or amortized. Excluded costs represent investments in unproved and unevaluated properties and include non-producing leasehold, geological and geophysical costs associated with leasehold or drilling interests and exploration drilling costs. We exclude these costs until the project is evaluated and proved reserves are established or impairment is determined. Excluded costs are reviewed at least quarterly to determine if impairment has occurred. The amount of any evaluated or impaired oil and natural gas properties is transferred to capitalized costs being amortized (the “Full-cost Pool”).

Limitation on Capitalized Costs. Under the full-cost method of accounting, we are required, at the end of each fiscal quarter, to perform a test to determine the limit on the book value of our oil and natural gas properties (the “Ceiling Test”). If the capitalized cost of our oil and natural gas properties, net of accumulated amortization and related deferred income taxes (the “Net Capitalized Costs”), exceed the “Ceiling”, this excess or impairment is charged to expense and reflected as additional accumulated depreciation, depletion and amortization or as a credit to oil and natural gas properties. The expense may not be reversed in future periods, even though higher oil and natural gas prices may subsequently increase the Ceiling. The Ceiling is defined as the sum of: (a) the present value, discounted at 10 percent, and assuming continuation of existing economic conditions, of 1) estimated future gross revenues from proved reserves, which is computed using oil and natural gas prices determined as the unweighted arithmetic average of the first-day-of-the-month price for each month within the 12-month period prior to the end of the reporting period (with consideration of price changes only to the extent provided by contractual arrangements including hedging arrangements pursuant to SAB 103), less 2) estimated future expenditures (based on current costs) to be incurred in developing and producing the proved reserves; plus (b) the cost of properties not being amortized (pursuant to Reg. S-X Rule 4-10 (c)(3)(ii)); plus (c) the lower of cost or estimated fair value of unproven properties included in the costs being amortized; net of (d) the related tax effects related to the difference between the book and tax basis of our oil and natural gas properties. Our Ceiling Test did not result in an impairment of our oil and natural gas properties during the years ended June 30, 2012, 2011 and 2010, or any other year since our inception.

Other Property and Equipment. Other property and equipment includes buildings, data processing and telecommunications equipment, office furniture and equipment, and other fixed assets. These items are recorded at cost and are depreciated using the straight-line method based on expected lives of the individual assets or group of assets, which ranges from three to seven years. Repairs and maintenance costs are expensed in the period incurred.

Deferred Costs

The Company capitalizes costs incurred in connection with obtaining financing. These costs are included in Deferred costs and other assets on the Company’s Consolidated Balance Sheet and are amortized over the term of the related financing using the straight-line method, which approximates the effective interest method.

Asset Retirement Obligations. An asset retirement obligation associated with the retirement of a tangible long-lived asset is recognized as a liability in the period incurred, with an associated increase in the carrying amount of the related long-lived asset, our oil and natural gas properties. The cost of the tangible asset, including the asset retirement cost, is depleted over the useful life of the asset which is considered a level 3 fair value measurement. The asset retirement obligation is recorded at its estimated fair value, measured by reference to the expected future cash outflows required to satisfy the retirement obligation discounted at our credit-adjusted risk-free interest rate. Accretion expense is recognized over time as the discounted liability is accreted to its expected settlement value. If the estimated future cost of the asset retirement obligation changes, an adjustment is recorded to both the asset retirement obligation and the long-lived asset. Revisions to estimated asset retirement obligations can result from changes in retirement cost estimates, revisions to estimated inflation rates and changes in the estimated timing of abandonment.

Fair Value of Financial Instruments. Our financial instruments consist of cash and cash equivalents, certificates of deposit, accounts receivable, and accounts payable. The carrying amounts of these approximate fair value, due to the highly liquid nature of these short-term instruments.

Stock-based Compensation. We record all share-based payment expense in our financial statements based on the fair value of the award on the grant date. We use the Black-Scholes option-pricing model as the most appropriate fair-value method for our stock option awards. Restricted stock awards are valued using the market price of our common stock on the grant date. We record compensation cost, net of estimated forfeitures, for stock-based compensation awards over the requisite service period on a straight-line basis as the awards vest. As each award vests, an adjustment is made to compensation cost for any difference between the estimated forfeitures and the actual forfeitures related to the vested awards.

Revenue Recognition. We recognize oil and natural gas revenue from our interests in producing wells at the time that title passes to the purchaser. As a result, we accrue revenues related to production sold for which we have not received payment.

Depreciation, Depletion and Amortization. The depreciable base for oil and natural gas properties includes the sum of all capitalized costs net of DD&A, estimated future development costs and asset retirement costs not included in oil and natural gas properties, less costs excluded from amortization. The depreciable base of oil and natural gas properties is amortized using the unit-of-production method. Other property including, leasehold improvements, office and computer equipment and vehicles which are stated at original cost and depreciated using the straight-line method over the useful life of the assets, which ranges from three to seven years.

Income Taxes. We recognize deferred tax assets and liabilities based on the differences between the tax basis of assets and liabilities and their reported amounts in the financial statements that may result in taxable or deductible amounts in future years. The measurement of deferred tax assets may be reduced by a valuation allowance based upon management’s assessment of available evidence if it is deemed more likely than not some or all of the deferred tax assets will not be realizable. We recognize a tax benefit from an uncertain position when it is more likely than not that the position will be sustained upon examination, based on the technical merits of the position and will record the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement with a taxing authority.

Earnings (loss) per share. Basic Earnings (loss) per share (“EPS”) is computed by dividing earnings or loss by the weighted-average number of common shares outstanding less any non-vested restricted common stock outstanding. The computation of diluted EPS is similar to the computation of basic EPS, except that the denominator is increased to include the number of additional common shares that would have been outstanding if potential dilutive common shares had been issued. Our potential dilutive common shares are our outstanding stock options, warrants, and non-vested restricted common stock. The dilutive effect of our potential dilutive common shares is reflected in diluted EPS by application of the treasury stock method. Under the treasury stock method, exercise of stock options and warrants shall be assumed at the beginning of the period (or at time of issuance, if later) and common shares shall be assumed to be issued; the proceeds from exercise shall be assumed to be used to purchase common stock at the average market price during the period; and the incremental shares (the difference between the number of shares assumed issued and the number of shares assumed purchased) shall be included in the denominator of the diluted EPS computation. Potential dilutive common shares are excluded from the computation if their effect is anti-dilutive. Including potential dilutive common shares in the denominator of a diluted EPS computation for continuing operations always will result in an anti-dilutive per-share amount when an entity has a loss from continuing operations and no potential dilutive common shares shall be included in the computation of diluted EPS when a loss from continuing operations exists.

Recent Accounting Pronouncements

12 Months Ended

Jun. 30, 2012

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Note 3 — Recent Accounting Pronouncements

New Accounting Standards. We disclose the existence and potential effect of accounting standards issued but not yet adopted by us or recently adopted by us with respect to accounting standards that may have an impact on us in the future.

Fair Value. In May 2011, the FASB issued Accounting Standards Update (“ASU”) No. 2011-04, “Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs” (“ASU 2011-04”). ASU 2011-04 changes some fair value measurement principles under GAAP, including a change in the valuation premise and the application of premiums and discounts. It also contains some new disclosure requirements under GAAP. It is effective for interim and annual periods beginning after December 15, 2011. The Company does not expect the adoption of this new guidance to have a significant impact on its financial position, cash flows or results of operations.

Offsetting Assets and Liabilities. In December 2011, the FASB issued ASU No. 2011-11, “Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities” (“ASU 2011-11”), which requires entities to disclose both gross and net information about instruments and transactions eligible for offset in the statement of financial position as well as instruments and transactions subject to an agreement similar to a master netting arrangement. In addition, the standard requires disclosure of collateral received and posted in connection with master netting agreements or similar arrangements. ASU 2011-11 is effective for interim and annual periods beginning on or after January 1, 2013. The Company does not expect the adoption of this new guidance to have any impact on its financial position, cash flows or results of operations.

- Definition

The entire disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Direct Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6510796

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6507316

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6801783&loc=d3e22583-107794

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Indirect Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6515603

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.10-01.(b)(6))
-URI http://asc.fasb.org/extlink&oid=6958853&loc=d3e46468-122699

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-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Accounting Change
-URI http://asc.fasb.org/extlink&oid=6503790

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6801783&loc=d3e22499-107794

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Retrospective Application
-URI http://asc.fasb.org/extlink&oid=6523989

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 01
-Paragraph b
-Subparagraph 6
-Article 10

+ Details

Property and Equipment

12 Months Ended

Jun. 30, 2012

Property and Equipment

Property and Equipment

Note 4 — Property and Equipment

As of June 30, 2012 and June 30, 2011 our oil and natural gas properties and other property and equipment consisted of the following:

	June 30, 2012			June 30, 2011
Oil and natural gas properties
Property costs subject to amortization	$	40,874,244		$	35,860,517
Less: Accumulated depreciation, depletion, and amortization	(6,440,166		)	(5,353,152		)
Unproved properties not subject to amortization	6,042,094			2,940,199
Oil and natural gas properties, net	$	40,476,172		$	33,447,564

Other property and equipment
Furniture, fixtures and office equipment, at cost	$	322,514		$	261,340
Less: Accumulated depreciation	(230,243		)	(192,078		)
Other property and equipment, net	$	92,271		$	69,262

Unproved properties not subject to amortization includes unevaluated acreage of $6.0 and $2.2 million as of June 30, 2012 and June 30, 2011, respectively, consisting of properties in the Mississippi Lime in Oklahoma as of June 30, 2012 and in the Woodford Shale trend in Oklahoma as of June 30, 2011. Unproved properties include $0.7million as of June 30, 2011 of participating interests through royalty and overriding royalty interests aggregating 7.4% in the Delhi Holt Bryant Unit of the Delhi Field in Louisiana and a 23.9% after payout reversionary working interest in the Delhi Holt Bryant Unit along with a 23.9% working interest in certain other depths in the Delhi Field. Our evaluation of impairment of unproved properties occurs, at a minimum, on a quarterly basis.

The following table provides a summary of costs that are not being amortized as of June 30, 2012, by the fiscal year in which the costs were incurred:

			During the Year Ended June 30,
Costs excluded from amortization	Total		2012		2011		2010		2009		2008

Leasehold acquisition costs and other	$	6,042,094	$	6,042,094	$	—	$	—	$	—	$	—

During the year, the Company received proceeds totaling $799,610, and the retention of overrides and back-in interests, for the farmout of some of its Woodbine rights at Giddings.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References + Details

Joint Interest Agreement

12 Months Ended

Jun. 30, 2012

Joint Interest Agreement

Joint Interest Agreement

Note 5 — Joint Interest Agreement

Effective April 17, 2012, a wholly owned subsidiary of the Company entered into definitive agreements with Orion Exploration Partners, LLC (“Orion”) to acquire and develop an undivided 45% interest in oil and gas leases, associated surface rights and related assets located in the Mississippian Lime formation aggregating 11,700 acres (5,265 net acres) in 38 sections in Kay County in North Central Oklahoma. The Company has agreed to contribute cash and a drilling carry to maintain its 45% non-operating interest in the joint venture. Orion is contributing the leases, its portion of the drilling capital, its operating expertise in the area and the Mississippian Lime play. The agreement commits the parties to drill between six and fourteen gross wells by April 17, 2013.

In April we made our initial $4,083,780 cash outlay for the purchase of our 45% share of the JV leasehold and partial prepayment of our drilling and completion costs of the first three commitment wells. Our acquisition cost also includes carrying our partner for a portion of their drilling and completion costs over the next year, not to exceed approximately $2.2 million, which is subject to a security agreement.

Field operations began in May 2012 with the drilling of a water disposal well, followed by the drilling of two producer wells with the first commencing in June 2012 and the second commencing in July 2012.

Our participation in this joint venture is reflected on our June 30, 2012 balance sheet by the items below. Included in the $1.4 million advance to our joint interest operating partner is an accrued $1,142,716 drilling cash call, which is also reflected in the due to joint interest partner balance.

	June 30, 2012

Advances to joint interest operating partner	$	1,366,921
Due to joint interest partner	3,217,975

Asset Retirement Obligations

12 Months Ended

Jun. 30, 2012

Asset Retirement Obligations

Asset Retirement Obligations

Note 6 — Asset Retirement Obligations

Our asset retirement obligations represent the estimated present value of the amount we will incur to plug, abandon and remediate our producing properties at the end of their productive lives in accordance with applicable laws. The following is a reconciliation of the beginning and ending asset retirement obligation for the years ended June 30, 2012 and 2011:

	Year Ended
	2012			2011
Asset retirement obligations — beginning of period	$	859,586		$	811,635
Liabilities incurred	175,943			15,000
Liabilities settled	(61,936		)	(1,847		)
Accretion	77,505			59,913
Revisions to previous estimates	(82,421		)	(25,115		)
Asset retirement obligations — end of period	$	968,677		$	859,586

Stockholders' Equity

12 Months Ended

Jun. 30, 2012

Stockholders' Equity

Stockholders' Equity

Note 7 — Stockholders’ Equity

Common Stock

On September 8, 2009, the Board of Directors authorized and the Company issued 138,224 unrestricted and fully vested shares of common stock from the 2004 Stock Plan to certain employees for the payment of fiscal 2009 bonuses. The value of the shares issued was $370,440, based on the fair market value on the date of issuance, or $2.68 per share. The amount of bonus was accrued as of June 30, 2009 and recognized as a long-term liability. On September 8, 2009, when the shares were issued, the liability was reclassified to stockholders’ equity. See Note 8.

On September 8, 2009, the Board of Directors authorized and the Company issued 324,597 shares of restricted common stock from the 2004 Stock Plan to employees as a long-term incentive award. Total unrecognized stock-based compensation expense of $869,917 related to the long-term incentive award will be recognized ratably over a four year vesting period. See Note 8.

On October 27, 2009, 119,795 shares of common stock were issued through a net cashless exercise of a placement warrant. The placement warrant, which was issued to Cagan McAfee Capital Partners, LLC (“CMCP”), a related party (See Note 11), on May 26, 2004 in connection with a financing transaction, gave CMCP the right to purchase 165,000 shares, with an exercise price of $1.00 per share.

On November 10, 2009, 5,833 shares of common stock were issued through a net cashless exercise of a placement warrant. The placement warrant, issued on November 30, 2004 in connection with a financing transaction, gave the holder the right to purchase 10,000 shares, with an exercise price of $1.50 per share.

On December 9, 2009, a total of 42,317 shares of restricted common stock were issued to four outside directors as part of their board compensation for calendar year 2010. The value of the shares issued was $168,000, based on the fair market value on the date of issuance. All issuances of common stock were subject to vesting terms per individual stock agreements, which is generally one year for directors. See Note 8.

On February 6, 2010, a total of 38,182 shares of restricted common stock were forfeited by an employee. Total unrecognized stock-based compensation expense related to the shares was $187,965. The shares were cancelled and are available for a future grant in the 2004 Stock Plan. See Note 8.

On March 5, 2010, a total of 20,000 shares of restricted stock were issued to a new employee as long-term incentive compensation. The value of the shares issued was $90,000, based on the fair market value on the date of issuance. The shares are subject to a four year vesting term. See Note 8.

On April 14, 2010 and April 16, 2010, a total of 7,377 shares of common stock were issued through a net cashless exercise of a placement warrant. The placement warrants, issued on June 22, 2006 in connection with a financing transaction, gave the holder the right to purchase 12,000 shares, with an exercise price of $2.25 per share.

On June 14, 2010, an employee of the Company exercised 3,000 stock options granted in 2005 at an exercise price of $1.10. See Note 8.

On June 19, 2010, a total of 91,902 shares of restricted common stock were forfeited by an employee. Total unrecognized stock-based compensation expense related to the shares was $436,522. The shares were cancelled and are available for a future grant in the 2004 Stock Plan. See Note 8.

On July 2, 2010, an employee of the Company exercised 6,875 stock options granted in 2007 at an exercise price of $2.33 per share. See Note 8.

On July 2, 2010, a total of 4,215 shares of restricted common stock were forfeited by an employee. Total unrecognized stock-based compensation expense related to the shares was $11,621. The shares were cancelled and are available for a future grant in the 2004 Stock Plan. See Note 8.

On August 9, 2010, a total of 30,233 shares of restricted stock were issued to a new employee as long-term incentive compensation. The value of the shares issued was $156,000, based on the fair market value on the date of issuance. The shares are subject to a four year vesting term. See Note 8.

On September 10, 2010, the Board of Directors authorized and the Company issued 106,927 shares of common stock from the 2004 Stock Plan to certain employees for the payment of fiscal 2010 bonuses. The value of the shares issued were $587,033, based on the fair market value on the date of issuance, or $5.49 per share. The amount of bonus was accrued as of June 30, 2010, and recognized as a long term liability. On September 10, 2010, the date of the share issuance, the liability was reclassified to additional paid-in capital.

On September 10, 2010, the Board of Directors authorized and the Company issued 240,478 shares of restricted common stock from the 2004 Stock Plan to certain employees as a long-term incentive award. Total unrecognized stock-based compensation expense of $1,320,224 related to the long-term incentive award will be recognized ratably over a four year period as the restricted common stock vests. See Note 8.

On October 1, 2010, a total of 4,845 shares of restricted stock were issued to a new employee as long-term incentive compensation. The value of the shares issued was $29,118, based on the fair market value on the date of issuance. The shares are subject to a four year vesting term. See Note 8.

On December 9, 2010, a total of 28,047 shares of restricted common stock was issued to four outside directors as part of their board compensation for calendar year 2011. The value of the shares issued was $168,000, based on the fair market value on the date of issuance. All issuances of common stock were subject to vesting terms per individual stock agreements, which is generally one year for directors. See Note 8

On December 21, 2010, an employee of the Company exercised 30,000 stock options granted in 2003 at an exercise price of $0.001 per share. See Note 8.

On February 28, 2011, a former consultant of the Company exercised 50,000 stock options granted in 2005 at an exercise price of $1.80 per share. See Note 8.

On March 31, 2011, 58,350 shares of common stock were issued through a net cashless exercise of placement warrants. The placement warrants, which were issued to Laird Cagan, a related party (See Note 11), in 2004 in connection with a financing transaction, gave Mr. Cagan the right to purchase 66,943 shares, with a weighted average exercise price of $1.00 per share.

On September 9, 2011, a contractor of the Company net exercised 20,000 stock options issued under the 2004 Stock Plan for a net issuance of 7,941 shares of our common stock. The options were granted in March 2008 at an exercise price of $4.10 per share. See Note 8.

On August 31, 2011, the Board of Directors authorized the issuance of 161,861 shares of restricted common stock from the 2004 Stock Plan to all employees as a long-term incentive award. Total unrecognized stock-based compensation expense of $1,029,436 related to the long-term incentive award will be recognized ratably over a four year period as, if and when the restricted common stock vests. See Note 8.

On December 5, 2011, a total of 34,245 shares of our restricted common stock were issued pursuant to the 2004 Stock Plan to five outside directors as part of their annual board compensation for calendar year 2012. The value of the shares issued was $249,955, based on the fair market value on the date of issuance. All issuances of our common stock were subject to vesting terms per individual stock agreements, which is one year for directors. See Note 8.

On May 3, 2012, we issued Laird Cagan 65,261 shares of common stock through a net cashless exercise of a placement warrant. On May 6, 2005, in connection with a financing transaction, the Company issued the placement warrant to Mr. Cagan, a related party (see Note 11), that gave him the right to purchase 91,200 shares of common stock with an exercise price of $2.50 per share.

Series A Cumulative Perpetual Preferred Stock

During the year ended June 30, 2012, we sold 317,319 shares of our 8.5% Series A Cumulative (perpetual) Preferred Stock at a weighted average sales price of $23.80 per share, with a liquidation preference of $25.00 per share. All shares were underwritten or sold through McNicoll Lewis & Vlak LLC (MLV), 220,000 of which were sold in an underwritten public offering and 97,319 shares of which were sold under an at-the-market sales agreement (ATM), providing aggregate net proceeds of $6,930,535 after- market discounts, underwriting fees, legal and other expenses of the offerings. The Series A Cumulative Preferred Stock cannot be converted into our common stock and there are no sinking fund or redemption rights available to holders thereof. Optional redemption can only be made by us on or after July 1, 2014 for the stated liquidation value of $25.00 per share plus accrued dividends, or by an acquirer under a change of control prior to such date at redemption prices ranging from $25.25 to $25.75 per share. With respect to dividend rights and rights upon our liquidation, winding-up or dissolution, the Series A Preferred Stock ranks senior to our common shareholders, but subordinate to any of our existing and future debt. Dividends on the Series A Cumulative Preferred Stock accrue and accumulate at a fixed rate of 8.5% per annum on the $25.00 per share liquidation preference, payable monthly at $0.177083 per share, as, if and when declared by our Board of Directors.

During the year ended June 30, 2012, we paid dividends of $630,391 to holders of our Series A Preferred Stock.

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
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-Subparagraph (SX 210.4-08.(d),(e))
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
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Reference 20: http://www.xbrl.org/2003/role/presentationRef
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 23: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
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-Article 3

+ Details

Stock-Based Incentive Plan

12 Months Ended

Jun. 30, 2012

Stock-Based Incentive Plan

Stock-Based Incentive Plan

Note 8 — Stock-Based Incentive Plan

We have granted option awards to purchase common stock (the “Stock Options”), restricted common stock awards (“Restricted Stock”), and/or unrestricted fully vested common stock, to employees, directors, and consultants of the Company and its subsidiaries under the Natural Gas Systems Inc. 2003 Stock Plan (the “2003 Stock Plan”) and the Evolution Petroleum Corporation Amended and Restated 2004 Stock Plan (the “2004 Stock Plan” or together, the “EPM Stock Plans”). Option awards for the purchase of 600,000 shares of common stock were issued under the 2003 Stock Plan. The 2004 Stock Plan authorized the issuance of 6,500,000 shares of common stock. No shares are available for grant under the 2003 Stock Plan and 1,012,111 shares remain available for grant under the 2004 Stock Plan as of June 30, 2012.

We have also granted common stock warrants, as authorized by the Board of Directors, to employees in lieu of cash bonuses or as incentive awards to reward previous service or provide incentives to individuals to acquire a proprietary interest in the Company’s success and to remain in the service of the Company (the “Incentive Warrants”). These Incentive Warrants have similar characteristics of the Stock Options. A total of 1,037,500 Incentive Warrants have been issued, with Board of Directors approval, outside of the EPM Stock Plans. We have not issued Incentive Warrants since the listing of our shares on the NYSE MKT (formerly, the American Stock Exchange) in July 2006.

Short-term Incentive Compensation

On September 10, 2010, the Board of Directors authorized the issuance of 106,927 shares of common stock from the 2004 Stock Plan to certain employees for the payment of fiscal 2010 bonuses in lieu of cash. The value of the shares issued was $587,033, based on the fair market value on the date of issuance, or $5.49 per share. The amount of bonus was accrued as of June 30, 2010, and recognized as a long term liability. On September 10, 2010, the liability was reclassified as additional paid-in capital.

Stock Options and Incentive Warrants

Non-cash stock-based compensation expense related to Stock Options and Incentive Warrants for the years ended June 30, 2012, 2011 and 2010 was $327,776, $715,027and $985,060, respectively.

There were no Stock Options granted during the years ended June 30, 2012, 2011 and 2010. During the year ended June 30, 2009, we granted Stock Options to purchase 591,090 shares of common stock under the 2004 Stock Plan with a weighted average exercise price of $4.27. The exercise price was determined based on the market price of the Company’s common stock on the date of grant. The Stock Options granted during the years ended June 30, 2009 generally vest quarterly, on a straight line basis, over a period of four years. The Stock Options granted during the year ended June 30, 2009 have a contractual life of seven years. The weighted average assumptions used to calculate the fair value of these Stock Options and the weighted average fair value of each option granted are as follows:

Expected volatility	87.1		%
Expected dividends	—
Expected term (in years)	4.6
Risk-free rate	3.10		%
Fair value	$	2.62

We estimated the fair value of Stock Options and Incentive Warrants issued to employees and directors at the date of grant using a Black-Scholes-Merton valuation model. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant. The expected term (estimated period of time outstanding) of Stock Options and Incentive Warrants is based on the “simplified” method of the estimated expected term for “plain vanilla” options allowed by the SEC Staff Accounting Bulletin (“SAB”) No. 107 and SAB No. 110, and varied based on the vesting period and contractual term of the Stock Options or Incentive Warrants. Expected volatility is based on the historical volatility of the Company’s closing common stock price and that of an evaluation of a peer group of similar companies trading activity. We have not declared any cash dividends on the Company’s common stock.

The following summary presents information regarding outstanding Stock Options and Incentive Warrants as of June 30, 2012, and the changes during the fiscal year:

	Number of Stock Options and Incentive Warrants		Weighted Average Exercise Price		Aggregate Intrinsic Value (1)		Weighted Average Remaining Contractual Term (in years)

Stock Options and Incentive Warrants outstanding at July 1, 2011	5,392,820		$	1.85

Granted	—		—
Exercised	(20,000	)	$	4.10
Cancelled or forfeited	—		—
Expired	—		—

Stock Options and Incentive Warrants outstanding at June 30, 2012	5,372,820		$	1.83	$	34,957,022	3.4

Vested or expected to vest at June 30, 2012	5,372,820		$	1.83	$	34,957,022	3.4

Exercisable at June 30, 2012	5,353,898		$	1.83	$	34,875,456	3.4

(1) Based upon the difference between the market price of our common stock on the last trading date of the period ($8.34 as of June 30, 2012) and the Stock Option or Incentive Warrant exercise price of in-the-money Stock Options and Incentive Warrants.

For the year ended June 30, 2012, 20,000 Stock Options were exercised having an aggregate intrinsic value of $54,000. There were 86,875 Stock Options exercised during the year ended June 30, 2011 with an aggregate intrinsic value of $493,923. There were 3,000 Stock Options exercised during the year ended June 30, 2010 with an aggregate intrinsic value of $13,620.

A summary of the status of our unvested Stock Options and Incentive Warrants as of June 30, 2012 and the changes during that year ended are presented below:

	Number of Stock Options and Incentive Warrants		Weighted Average Grant- Date Fair Value

Unvested at July 1, 2011	173,877		$	2.20

Granted	—		—

Vested	(154,955	)	$	2.17

Unvested at June 30, 2012	18,922		$	2.45

During the years ended June 30, 2012, June 30, 2011 and 2010, there were 154,955, 375,580, and 539,330 Stock Options and Incentive Warrants that vested with a total grant date fair value of $336,252, $739,893, and $1,024,727, respectively.

The total unrecognized compensation cost at June 30, 2012, relating to non-vested Stock Options and Incentive Warrants was $26,273. Such unrecognized expense is expected to be recognized over a weighted average remaining service period of 0.25 years.

Restricted Stock

Stock-based compensation expense related to Restricted Stock grants for the years ended June 30, 2012, 2011 and 2010 was $1,148,219, $820,980, and $576,307, respectively. See Note 7 for a detail of Restricted Stock transactions during the years ended June 30, 2012, 2011 and 2010.

The following table sets forth the Restricted Stock transactions for the year ended June 30, 2012:

	Number of Restricted Shares		Weighted Average Grant-Date Fair Value

Unvested at July 1, 2011	495,689		$	4.30

Granted	196,106		$	6.52

Vested	(239,195	)	$	4.51

Unvested at June 30, 2012	452,600		$	5.60

During the years ended June 30, 2012, June 30, 2011 and 2010, there were 239,195, 206,858, and 243,954 shares of Restricted Stock that vested with a total grant date fair value of $1,078,769, $794,335, and $551,336, respectively.

At June 30, 2012, unrecognized stock compensation expense related to Restricted Stock grants totaled $2,118,741. Such unrecognized expense will be recognized over a weighted average remaining service period of 2.3 years.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 50
-Section 50
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Supplemental Disclosure of Cash Flow Information

12 Months Ended

Jun. 30, 2012

Supplemental Disclosure of Cash Flow Information

Supplemental Disclosure of Cash Flow Information

Note 9 — Supplemental Disclosure of Cash Flow Information

Our supplemental disclosures of cash flow information for the year ended June 30, 2012, 2011 and 2010 are as follows:

	Year Ended
	June 30,
	2012			2011			2010
Income taxes paid	$	895,000		$	229,802		$	329,800

Income tax refunds and net operating loss carry-back received	$	—		$	979,177		$	2,095,126

Non-cash transactions:
Change in accounts payable used to acquire oil and natural gas leasehold interests and develop oil and natural gas properties	$	(196,396	)	$	(91,483	)	$	(62,532	)
Change in due to joint venture partner used to acquire oil and natural gas leasehold interests and develop oil and natural gas properties	$	1,958,029		$	—		$	—

Accrued advance in due to joint venture partner	$	1,142,715		$	—		$	—

Oil and natural gas property costs attributable to the recognition of asset retirement obligations	$	93,522		$	15,000		$	85,871

Windfall tax benefit recognized in income taxes recoverable	$	—		$	—		$	173,157

Income Taxes

12 Months Ended

Jun. 30, 2012

Income Taxes

Income Taxes

Note 10 — Income Taxes

We file a consolidated federal income tax return in the United States and various combined and separate filings in several state and local jurisdictions.

There were no unrecognized tax benefits nor any accrued interest or penalties associated with unrecognized tax benefits during the year ended June 30, 2012, 2011 and 2010. We believe that we have appropriate support for the income tax positions taken and to be taken on the Company’s tax returns and that the accruals for tax liabilities are adequate for all open years based on our assessment of many factors including past experience and interpretations of tax law applied to the facts of each matter. The Company’s tax returns are open to audit under the statute of limitations for the years ending June 30, 2008 through June 30, 2011 for federal tax purposes and for the years ended June 30, 2008 through June 30, 2011 for state tax purposes.

As a result of our net operating losses during the tax years ended June 30, 2010, 2009, and 2008, and the refunds we claimed as a result of our carry backs of those losses to our tax years ended June 30, 2006 and 2007, we are under a limited scope IRS audit. The IRS limited scope audit is pending joint committee review. We do not expect that the limited scope audit will have a significant effect on our financial condition and results of operations.

The components of our income tax provision (benefit) are as follows:

	June 30, 2012		June 30, 2011			June 30, 2010
Current:
Federal	$	309,632	$	(64,068	)	$	(608,339	)
State	841,698		132,596			207,952
Total current income tax provision (benefit)	1,151,330		68,528			(400,387		)
Deferred:
Federal	2,542,662		360,174			(553,326		)
State	6,930		20,212			(218,111		)
Total deferred income tax provision (benefit)	2,549,592		380,386			(771,437		)
Total income tax provision (benefit)	$	3,700,922	$	448,914		$	(1,171,824	)

The 2012 effective tax rate is in excess of the federal statutory rate primarily due to the incentive based stock compensation and increased Louisiana state income tax (due to the increased Delhi revenue). The 2011 effective rate is well in excess of the federal statutory rate primarily due to the reversal of permanent deductions take in prior years that were recomputed as a result of the federal NOL carryback claims as well as incentive based stock compensation. The rate appears abnormally high as a result of the fixed dollar nature of the permanent items in relation to the nearly breakeven pretax book income. The 2010 effective tax rate is slightly below the federal statutory rate primarily due to a pretax book loss offset by a permanent addition for incentive based stock compensation. The following is a reconciliation of statutory income tax expense to our income tax provision (benefit):

	June 30, 2012			June 30, 2011			June 30, 2010
Income tax provision (benefit) computed at the statutory federal rate:	$	3,003,238		$	70,503		$	(1,210,241	)
Reconciling items:
State income taxes, net of federal tax benefit	560,095			100,853			(10,413		)
Stock-based compensation (primarily incentive stock options)	83,115			140,620			105,402
Expiring NOLs related to 2004 reverse merger	4,348,495
Deferred tax asset valuation adjustment	(4,348,495		)	—			—
Reversal of Section 199 deductions as a result of carry-backs	—			141,920			—
Rate adjustment	—			(7,172		)	(42,651		)
Other	54,474			2,190			(13,921		)
Income tax provision (benefit)	$	3,700,922		$	448,914		$	(1,171,824	)

Deferred income taxes primarily represent the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets and liabilities are classified as either current or noncurrent on the balance sheet based on the classification of the related asset or liability for financial reporting purposes. Deferred tax assets and liabilities not related to specific assets or liabilities on the financial statements are classified according the expected reversal date of the temporary difference or the expected utilization date for tax attribute carryforwards. The change in the NOL is primarily due to expiring NOLs related to the 2004 reverse merger as well as utilization of NOL to offset potential current year taxable income. The components of our deferred taxes are detailed in the table below:

	June 30, 2012			June 30, 2011			June 30, 2010
Deferred tax assets:
Non-qualified stock-based compensation	$	774,720		$	959,547		$	866,035
Net operating loss carry-forwards**	1,336,769			5,910,275			5,389,065
AMT credit carry-forward*	714,571			682,456			645,938
Other	29,929			23,626			21,306
Gross deferred tax assets	2,855,989			7,575,904			6,922,344
Valuation allowance	(893,410		)	(5,187,983		)	(5,187,983		)
Total deferred tax assets	1,962,579			2,387,921			1,734,361
Deferred tax liability:
Oil and natural gas properties	(7,842,437		)	(5,718,187		)	(4,684,241		)
Total deferred tax liability	(7,842,437		)	(5,718,187		)	(4,684,241		)
Net deferred tax liability	$	(5,879,858	)	$	(3,330,266	)	$	(2,949,880	)

* Total AMT credit carry-forward is $844,440. Our net deferred tax liability does not include $129,869 of AMT credit carry-forward associated with the windfall tax benefit.

** Excluded from our net tax liability is an estimated tax benefit of $394,487 related to net operating losses associated windfall tax benefits.

We recovered approximately $1.0 million in federal income taxes as a result of the carry-back of tax losses incurred during June 30, 2010. The loss carry-back was primarily the result of significant intangible drilling costs incurred during that year, which we deducted for federal income tax purposes.

At June 30, 2012, we have a federal tax loss carry-forward of approximately $3.9 million, exclusive of the $1.1 million non-benefitted NOL related to unutilized windfall tax benefits. Included in the deferral tax loss carry-forward is approximately $3.1 million that we acquired through the reverse merger in May 2004, of which, approximately $0.4 million is available to us to use in equal amounts through 2023. We have applied a valuation allowance against the portion of the federal tax loss carry-forward that has been disallowed through IRC Section 382.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

+ Details

Related Party Transactions

12 Months Ended

Jun. 30, 2012

Related Party Transactions

Related Party Transactions

Note 11 — Related Party Transactions

Laird Q. Cagan, a member of our Board of Directors, is a Managing Director and co-owner of Cagan McAfee Capital Partners, LLC (“CMCP”). CMCP has performed financial advisory services to us pursuant to a written agreement amended in December 2008. Also pursuant to the Agreement, Mr. Cagan, as a registered representative of Colorado Financial Services Corporation and as a partner of CMCP, could serve as our placement agent in private equity financings, wherein CMCP could earn cash fees equal to 8% of gross equity proceeds, declining to 4% subject to the amount of equity raised through CMCP, and a fixed 4% warrant fee. We have not paid placement fees to CMCP under this agreement since May 2006.

On October 27, 2009, we issued CMCP 119,795 shares of common stock through a net cashless exercise of a placement warrant. The placement warrant, which was issued to CMCP on May 26, 2004 in connection with a financing transaction, gave CMCP the right to purchase 165,000 shares of common stock, with an exercise price of $1.00 per share.

On March 31, 2011, 58,350 shares of common stock were issued through a net cashless exercise of placement warrants. The placement warrants, which were issued to Laird Cagan, a related party, in 2004 in connection with a financing transaction, gave Mr. Cagan the right to purchase 66,943 shares, with a weighted average exercise price of $1.00 per share.

On May 3, 2012, we issued Laird Cagan 65,261 shares of common stock through a net cashless exercise of a placement warrant. The placement warrant, which was issued to Mr. Cagan on May 6, 2005 in connection with a financing transaction, gave him the right to purchase 91,200 shares of common stock, with an exercise price of $2.50 per share.

See also Note 7 for equity transactions with related parties.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39603-107864

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Net Income (Loss) Per Share

12 Months Ended

Jun. 30, 2012

Net Income (Loss) Per Share

Net Income (Loss) Per Share

Note 12 — Net Income (Loss) Per Share

The following table sets forth the computation of basic and diluted net income (loss) per share:

	Year Ended
	June 30,
	2012		2011			2010
Numerator
Net income (loss) attributable to common shareholders	$	4,501,739	$	(241,553	)	$	(2,387,707	)

Denominator
Weighted average number of common shares — Basic	27,784,298		27,437,496			27,004,066

Effect of dilutive securities:
Common stock warrants issued in connection with equity and financing transactions	63,319		—			—
Stock Options and Incentive Warrants	3,762,312		—			—
Total weighted average dilutive securities	3,825,631		—			—

Weighted average number of common shares and dilutive potential common shares used in diluted EPS	31,609,929		27,437,496			27,004,066

Net income (loss) per common share — Basic	$	0.16	$	(0.01	)	$	(0.09	)

Net income (loss) per common share — Diluted	$	0.14	$	(0.01	)	$	(0.09	)

* Potential dilutive common shares are excluded from the computation of net loss per common shares because their effect will always be anti-dilutive.

Outstanding potentially dilutive securities as of June 30, 2012 are as follows:

Outstanding Potential Dilutive Securities	Weighted Average Exercise Price		Outstanding at June 30, 2012

Common stock warrants issued in connection with equity and financing transactions	$	2.50	1,165
Stock Options and Incentive Warrants	$	1.83	5,485,820
Total	$	1.83	5,486,985

Outstanding potentially dilutive securities as of June 30, 2011 are as follows:

Outstanding Potential Dilutive Securities	Weighted Average Exercise Price		Outstanding at June 30, 2011

Common stock warrants issued in connection with equity and financing transactions	$	2.50	92,365
Stock Options and Incentive Warrants	$	1.85	5,392,820
Total	$	1.86	5,485,185

Outstanding potentially dilutive securities as of June 30, 2010 are as follows:

Outstanding Potential Dilutive Securities	Weighted Average Exercise Price		Outstanding at June 30, 2010

Common stock warrants issued in connection with equity and financing transactions	$	1.87	159,308
Stock Options and Incentive Warrants	$	1.83	5,482,820
Total	$	1.83	5,642,128

Unsecured Revolving Credit Agreement

12 Months Ended

Jun. 30, 2012

Unsecured Revolving Credit Agreement

Unsecured Revolving Credit Agreement

Note 13 - Unsecured Revolving Credit Agreement

On February 29, 2012, Evolution Petroleum Corporation entered into a Credit Agreement (the “Credit Agreement”) with Texas Capital Bank, N.A. (the “Lender”). The Credit Agreement provides the Company with a revolving credit facility (the “facility”) in an amount up to $50,000,000 with availability governed by an Initial Borrowing Base of $5,000,000. A portion of the facility not in excess of $1,000,000 is available for the issuance of letters of credit.

The facility is unsecured and has a four year term. The Company’s subsidiaries guaranteed the Company’s obligations under the facility. The proceeds of any loans under the facility are to be used by the Company for the acquisition and development of Oil and Gas Properties (as defined in the facility), the issuance of letters of credit, and for working capital and general corporate purposes.

Semi-annually, the Borrowing Base and a Monthly Reduction Amount are re-determined from reserve reports. Requests by the Company to increase the $5,000,000 initial amount are subject to the Lender’s credit approval process, and are also limited to 25% of the value Oil and Gas Properties.

At the Company’s option, borrowings under the facility bear interest at a rate of either (i) an adjusted LIBOR rate (LIBOR rate divided by the remainder of 1 less the Lender’s Regulation D reserve requirement), or (ii) an adjusted Base Rate equal to the greater of the Lender’s prime rate or the sum of 0.50% and the Federal Funds Rate. A maximum of three LIBOR based loans can be outstanding at any time. Allowed loan interest periods are one, two, three and six months. LIBOR interest is payable at the end of the interest period except for six-month loans for which accrued interest is payable at three months and at end of term. Base Rate interest is payable monthly. Letters of credit bear fees reflecting 3.5% per annum rate applied to their principal amounts and are due when transacted. Their maximum term is one year.

A commitment fee of 0.50% per annum accrues on unutilized availability and is payable quarterly. The Company is responsible for certain administrative expenses of the Lender over the life of the Credit Agreement as well as for compensating the Lender $50,000 for incurred loan costs upon closing.

The Credit Agreement also contains financial covenants including a requirement that the Company maintain a current ratio of not less than 1.5 to 1; a ratio of total funded Indebtedness to EBITDA of not more than 2.5 to 1, and a ratio of EBITDA to interest expense of not less than 3 to 1. The agreement specifies certain customary covenants, including restrictions on the Company and its subsidiaries from pledging their assets, incurring defined Indebtedness outside of the facility other that permitted indebtedness, and it restricts certain asset sales. Payments of dividends for the Series A Preferred are only restricted by the EBITDA to interest coverage ratio, wherein Series A dividends are a 1X deduction from EBITDA (as opposed to a 3:1 requirement if dividends were treated as interest expense). The Credit Agreement contains customary events of default. If an event of default occurs and is continuing, the Lender may declare all amounts outstanding under the Credit Agreement to be immediately due and payable.

As of June 30, 2012, the Company had no borrowings and no outstanding letters of credit issued under the facility, resulting in an available borrowing base capacity of $5,000,000. The Company was in compliance with all the covenants of the Credit Agreement.

In connection with this agreement the Company incurred $163,257 of debt issuance costs, which have been capitalized in Other Assets and are being amortized on a straight-line basis over the term of the agreement.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References + Details

Commitments and Contingencies

12 Months Ended

Jun. 30, 2012

Commitments and Contingencies.

Commitments and Contingencies

Note 14 — Commitments and Contingencies

We are subject to various claims and contingencies in the normal course of business. In addition, from time to time, we receive communications from government or regulatory agencies concerning investigations or allegations of noncompliance with laws or regulations in jurisdiction in which we operate. We disclose such matters if we believe it is reasonably possible that a future event or events will confirm a loss through impairment of an asset or the incurrence of a liability. We establish reserves if we believe it is probable that a future event or events will confirm a loss and we can reasonably estimate such loss. Furthermore, we will disclose any matter that is unasserted if we consider it probable that a claim will be asserted and there is a reasonable possibility that the outcome will be unfavorable. We expense legal defense costs as they are incurred.

On March 29, 2012, the Fifth District Court of Richland Parish Louisiana dismissed the case against the Company and our wholly owned subsidiary NGS Sub Corp. brought by John C. McCarthy et. al. (the “plaintiffs”) in July 2011. Plaintiffs alleged, among other claims, that we fraudulently and wrongfully purchased plaintiffs’ income royalty rights in the Delhi Field Unit in the Holt-Bryant Reservoir in May 2006. The Court found that plaintiffs had “no cause of action” under Louisiana law. The plaintiffs have filed an appeal.

On July 26, 2012, we agreed to settle a lawsuit filed by Frederick M. Garcia and Lydia Garcia in December 2010 in which the plaintiffs alleged failure to maintain the lease beyond its primary term due to no production. Although we believed that the claims were without merit, we chose to settle for $67,000 in return for an extension of the lease, an amount less than our expected cost to prevail in court.

On August 23, 2012, we, and our wholly owned subsidiary NGS Sub Corp and Robert S. Herlin, our President, were served with a lawsuit filed in federal court by James H. and Kristy S. Jones (the “Jones lawsuit”). The plaintiffs allege primarily that the defendants wrongfully purchased the plaintiffs’ 0.048119 overriding royalty interest in the Delhi Unit in January 2006 by failing to divulge the existence of an alleged previous agreement to develop the Delhi Field for EOR. We believe that the claims are without merit and are not timely, and we intend to vigorously defend against the claims. Counsel has advised us that, based on information developed to date, the risk of loss in this matter is remote.

Lease Commitments. We have a non-cancelable operating lease for office space that expires on August 1, 2016. Future minimum lease commitments as of June 30, 2012 under this operating lease are as follows:

For the year ended June 30,
2013	159,011
2014	159,011
2015	159,011
2016	159,011
Thereafter	13,251
Total	$	649,295

Rent expense for the year ended June 30, 2012, 2011 and 2010 was $147,233, $146,263 and $138,823, respectively.

Employment Contracts. We have entered into employment agreements with the Company’s three senior executives. The employment contracts provide for a severance package for termination by the Company for any reason other than cause or permanent disability, or in the event of a constructive termination, that includes payment of base pay and certain medical and disability benefits from six months to a year after termination. The total contingent obligation under the employment contracts as of June 30, 2012 is approximately $588,000.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14435-108349

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 440
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Concentrations of Credit Risk

12 Months Ended

Jun. 30, 2012

Concentrations of Credit Risk

Concentrations of Credit Risk

Note 15 — Concentrations of Credit Risk

Major Customers. We market all of our oil and natural gas production from the properties we operate. The majority of our operated gas, oil and condensate production is sold to a variety of purchasers under short-term (less than 12 months) contracts at market-based prices. The following table identifies customers from whom we derived 10 percent or more our net oil and natural gas revenues during the years ended June 30, 2012, 2011 and 2010. Based on the current demand for oil and natural gas and availability of other customers, we do not believe the loss of any of these customers would have a significant effect on our operations or financial condition.

	Percent of Total Revenue
Customer	Year Ended June 30, 2012		Year Ended June 30, 2011		Year Ended June 30, 2010

Plains Marketing L.P. (includes Delhi production)	84	%	60	%	12	%
Enterprise Crude Oil LLC	7	%	15	%	31	%
ETC Texas Pipeline, LTD.	3	%	12	%	19	%
DCP Midstream, LP	2	%	6	%	15	%
Copano Field Services/Upper Gulf Coast, L.P.	3	%	7	%	23	%
Flint Hills Resources, LP	1	%	—	%	—	%

Accounts Receivable. Substantially all of our accounts receivable result from uncollateralized oil and natural gas sales to third parties in the oil and natural gas industry. This concentration of customers may impact our overall credit risk in that these entities may be similarly affected by changes in economic and other conditions.

Cash and Cash Equivalents and Certificates of Deposit. We are subject to concentrations of credit risk with respect to our cash and cash equivalents, which we attempt to minimize by maintaining our cash and cash equivalents in high quality money market funds. At times cash balances may exceed limits federally insured by the Federal Deposit Insurance Corporation (“FDIC”). Our certificates of deposit are below or at the maximum federally insured limit set by the FDIC.

- Definition

The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6327-108592

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 20
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13531-108611

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 20
-URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6404-108592

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
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-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6442-108592

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 18
-URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6351-108592

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13537-108611

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 94-6
-Paragraph 21, 22, 24
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15A
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Retirement Plan

12 Months Ended

Jun. 30, 2012

Retirement Plan

Retirement Plan

Note 16 — Retirement Plan

Effective February 1, 2007, we implemented a 401(k) Savings Plan which covers all full-time employees. At our discretion, we may match a certain percentage of the employees’ contributions to the plan. The matching percentage is currently 100% of the first 6% of each participant’s compensation, vesting fully upon our contributions. Our matching contribution to the plan was $84,738, $77,168 and $87,846 for the years ended June 30, 2012, 2011 and 2010, respectively.

Supplemental Disclosures about Oil and Natural Gas Producing Properties (unaudited)

12 Months Ended

Jun. 30, 2012

Supplemental Disclosures about Oil and Natural Gas Producing Properties (unaudited)

Supplemental Disclosures about Oil and Natural Gas Producing Properties (unaudited)

Note 17 — Supplemental Disclosures about Oil and Natural Gas Producing Properties (unaudited)

Costs incurred for oil and natural gas property acquisition, exploration and development activities

The following table summarizes costs incurred and capitalized in oil and natural gas property acquisition, exploration and development activities. Property acquisition costs are those costs incurred to lease property, including both undeveloped leasehold and the purchase of reserves in place. Exploration costs include costs of identifying areas that may warrant examination and examining specific areas that are considered to have prospects containing oil and natural gas reserves, including costs of drilling exploratory wells, geological and geophysical costs and carrying costs on undeveloped properties. Development costs are incurred to obtain access to proved reserves, including the cost of drilling. Development costs also include amounts incurred due to the recognition of asset retirement obligations, of $93,522, $15,000 and $85,871, during the years ended June 30, 2012, 2011 and 2010, respectively.

	For the Years Ended June 30
	2012		2011		2010
Oil and Natural Gas Activities
Property acquisition costs:
Proved property	$	115,637	$	465,176	$	391,785
Unproved property	5,544,217		523,591		185,154
Exploration costs	3,016,924		215,660		2,354,239
Development costs	238,463		2,200,905		890,116
Total costs incurred for oil and natural gas activities	$	8,915,241	$	3,405,332	$	3,821,294

Estimated Net Quantities of Proved Oil and Natural Gas Reserves

The following estimates of the net proved oil and natural gas reserves of our oil and gas properties located entirely within the United States of America are based on evaluations prepared by third-party reservoir engineers. Reserve volumes and values were determined under the method prescribed by the SEC for our fiscal years ended June 30, 2012, 2011 and 2010, which requires the application of the previous 12-month unweighted arithmetic average first-day-of-the-month price, and current costs held constant throughout the projected reserve life, when estimating whether reserve quantities are economical to produce

Proved oil and natural gas reserves are estimated quantities of crude oil, natural gas and natural gas liquids that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. Proved developed oil and natural gas reserves are reserves that can be expected to be recovered through existing wells with existing equipment and operating methods. There are uncertainties inherent in estimating quantities of proved oil and natural gas reserves, projecting future production rates, and timing of development expenditures. Accordingly, reserve estimates often differ from the quantities of oil and natural gas that are ultimately recovered.

Estimated quantities of proved oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves for each of the periods indicated were as follows

	Crude Oil (Bbls)		Natural Gas Liquids (Bbls)		Natural Gas (Mcf)		BOE
Proved developed and undeveloped reserves:
June 30, 2009	945,948		1,054,294		6,358,788		3,060,040
Revisions of previous estimates	(113,487	)	(19,147	)	430,145		(60,943	)
Improved recovery, extensions and discoveries	9,451,758		29,300		381,695		9,544,674
Production (sales volumes)	(29,749	)	(27,820	)	(407,674	)	(125,515	)
June 30, 2010	10,254,470		1,036,627		6,762,954		12,418,256
Revisions of previous estimates	1,475,918		(84,154	)	3,273,846		1,937,405
Improved recovery, extensions and discoveries	—		—		779,556		129,926
Sales of minerals in place	(104,577	)	(221,469	)	(1,173,850	)	(521,688	)
Production (sales volumes)	(57,965	)	(18,704	)	(238,607	)	(116,437	)
June 30, 2011	11,567,846		712,300		9,403,899		13,847,462
Revisions of previous estimates	84,219		(212,677	)	(1,295,893	)	(344,440	)
Improved recovery, extensions and discoveries	137,634		5,461		18,925		146,249
Sales of minerals in place	—		—		—		—
Production (sales volumes)	(151,081	)	(12,611	)	(266,775	)	(208,155	)
June 30, 2012	11,638,618		492,473		7,860,156		13,441,116

Proved developed reserves:
June 30, 2009	104,731		141,372		1,106,028		430,441
June 30, 2010	706,053		157,302		1,536,858		1,119,498
June 30, 2011	4,986,337		100,900		1,543,401		5,344,471
June 30, 2012	7,670,934		111,978		1,499,382		8,032,809

During our fiscal year ended June 30, 2012, total proved reserves decreased 0.4 million BOE from 13,847,462 BOE at June 30, 2011 to 13,441,116 BOE at June 30, 2012. The decrease is primarily attributable to our production, downward revisions of 127 MBOE for our Woodford properties in Oklahoma and 369 MBOE for lease terminations in Giddings Fields, partially offset by a 210 MBOE upward revision at Delhi and 146 MBOE for extensions in South Texas and acquired well bores in the Giddings Fields. The upward revision in proved oil reserves in the Delhi Field is due primarily to a slight acceleration in the projected reversion date of our approximately 24% working interest based on performance to date.

During our fiscal year ended June 30, 2011, total proved reserves increased 1.4 million BOE from 12,418,256 BOE at June 30, 2010 to 13,847,462 BOE at June 30, 2012. The increase is primarily attributable to upward revisions in both the Delhi Field and our Giddings Field, partially offset by sales in place of reserves in the Giddings Field. The upward revision of 1,475,918 BO in proved oil reserves is due primarily to a more than two year acceleration in the projected reversion date of our 24% working interest, based on operating performance to date. The upward revision of 3,273,846 Mcf is primarily due to re-categorizing probable reserves into the proved category for our properties in the Giddings Field, as a result of drilling results during the year. Sales in place of 521,688 BOE in the Giddings Field are primarily due to the industry drilling joint venture we entered into early in the year.

Total proved reserves increased 9.4 million BOE from 3,060,040 BOE at June 30, 2009 to 12,418,256 BOE at June 30, 2010. The increase is primarily attributable to improved recovery of 9,411,841 barrels of proved oil reserves added to our properties in the Delhi Field, based on approximately $300 million of development capital spent by the Operator since project inception, the start-up of CO2 injection operations during fiscal year 2010, and oil production response during fiscal year 2010. The additions to our properties in the Delhi Field along with extensions in Giddings and Oklahoma of 127,905 BOE, were offset by production of 125,515 BOE and negative revisions of 60,943 BOE primarily related to the transfer of four well locations in the Lopez Field in South Texas from the proved classification to probable during 2010.

Standardized Measure of Discounted Future Net Cash Flows

Future oil and natural gas sales and production and development costs have been estimated using prices and costs in effect at the end of the years indicated, as required by ASC 932, Disclosures about Oil and Gas Producing Activities (“ASC 932”). ASC 932 requires that net cash flow amounts be discounted at 10%. Future production and development costs are computed by estimating the expenditures to be incurred in developing and producing our proved oil and natural gas reserves assuming continuation of existing economic conditions. Future income tax expenses are computed by applying the appropriate period-end statutory tax rates to the future pretax net cash flow relating to our proved oil and natural gas reserves, less the tax basis of the related properties. The future income tax expenses do not give effect to tax credits, allowances, or the impact of general and administrative costs of ongoing operations relating to the Company’s proved oil and natural gas reserves. Changes in the demand for oil and natural gas, inflation, and other factors make such estimates inherently imprecise and subject to substantial revision. The table below should not be construed to be an estimate of the current market value of our proved reserves.

The standardized measure of discounted future net cash flows related to proved oil and natural gas reserves as of June 30, 2012, 2011 and 2010 are as follows:

	For the Years Ended June 30
	2012			2011			2010
Future cash inflows	$	1,355,686,188		$	1,161,278,060		$	827,902,260

Future production costs and severance taxes	(458,716,938		)	(379,493,392		)	(222,826,052		)

Future development costs	(38,458,724		)	(40,571,895		)	(34,024,112		)

Future income tax expenses	(296,703,838		)	(278,455,798		)	(213,063,769		)
Future net cash flows	561,806,688			462,756,975			357,988,327
10% annual discount for estimated timing of cash flows	(278,209,195		)	(234,309,020		)	(196,361,678		)

Standardized measure of discounted future net cash flows	$	283,597,493		$	228,447,954		$	161,626,649

Future cash inflows represent expected revenues from production of period-end quantities of proved reserves based on the previous 12-month unweighted arithmetic average first-day-of-the-month commodity prices for each year and reflect adjustments for lease quality, transportation fees, energy content and regional price differentials.

	Year Ended June 30,
	2012				2011				2010
	Oil (Bbl)		Gas (MMBtu)		Oil (Bbl)		Gas (MMBtu)		Oil (Bbl)		Gas (MMBtu)
Commodity prices used in determining future cash flows	$	95.67	$	3.15	$	90.09	$	4.21	$	75.76	$	4.10

The NGL price that was utilized was based on the historical price received versus the NYMEX basis oil price.

A summary of the changes in the standardized measure of discounted future net cash flows applicable to proved crude oil, natural gas liquids, and natural gas reserves is as follows:

	For the Years Ended June 30
	2012			2011			2010
Balance, beginning of year	$	228,447,954		$	161,626,649		$	23,549,791
Net changes in sales prices and production costs related to future production	76,942,613			57,178,860			3,935,863
Changes in estimated future development costs	6,340,123			(16,028,728		)	(3,502,403		)

Sales of oil and gas produced during the period, net of production costs	(16,187,039		)	(6,151,549		)	(3,356,822		)

Net change due to purchases of minerals in place	—			—			—

Net change due to extensions, discoveries, and improved recovery	1,606,122			623,446			236,828,138

Net change due to revisions in quantity estimates	(11,975,496		)	56,766,220			(934,602		)

Net change due to sales of minerals in place	—			(8,233,734		)	—

Development costs incurred during the period	(2,639,398		)	2,416,565			—

Accretion of discount	22,568,868			26,597,834			3,582,622

Net change in discounted income taxes	(15,026,628		)	(42,490,270		)	(91,991,767		)

Other	(6,479,626		)	(3,857,339		)	(6,484,171		)

Balance, end of year	$	283,597,493		$	228,447,954		$	161,626,649

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Jun. 30, 2012

Summary of Significant Accounting Policies

Principles of Consolidation and Reporting

Use of Estimates

Cash and Cash Equivalents

Cash and Cash Equivalents. We consider all highly liquid investments, with original maturities of 90 days or less when purchased, to be cash and cash equivalents.

Allowance for Doubtful Accounts

Oil and Natural Gas Properties

Limitation on Capitalized Costs

Other Property and Equipment

Deferred Costs

Deferred Costs

Asset Retirement Obligations

Fair Value of Financial Instruments

Stock-based Compensation

Revenue Recognition

Depreciation, Depletion and Amortization

Income Taxes

Earnings (loss) per share

Updates to Oil and Gas Accounting Rules

Property and Equipment (Tables)

12 Months Ended

Jun. 30, 2012

Property and Equipment

Schedule of oil and natural gas properties and other property and equipment

	June 30, 2012			June 30, 2011
Oil and natural gas properties
Property costs subject to amortization	$	40,874,244		$	35,860,517
Less: Accumulated depreciation, depletion, and amortization	(6,440,166		)	(5,353,152		)
Unproved properties not subject to amortization	6,042,094			2,940,199
Oil and natural gas properties, net	$	40,476,172		$	33,447,564

Other property and equipment
Furniture, fixtures and office equipment, at cost	$	322,514		$	261,340
Less: Accumulated depreciation	(230,243		)	(192,078		)
Other property and equipment, net	$	92,271		$	69,262

Schedule of summary of costs that are not being amortized by the fiscal year in which the costs were incurred

			During the Year Ended June 30,
Costs excluded from amortization	Total		2012		2011		2010		2009		2008

Leasehold acquisition costs and other	$	6,042,094	$	6,042,094	$	—	$	—	$	—	$	—

Joint Interest Agreement (Tables)

12 Months Ended

Jun. 30, 2012

Joint Interest Agreement

Schedule of amounts pertaining to participation in joint venture

	June 30, 2012

Advances to joint interest operating partner	$	1,366,921
Due to joint interest partner	3,217,975

Asset Retirement Obligations (Tables)

12 Months Ended

Jun. 30, 2012

Asset Retirement Obligations

Schedule of reconciliation of the beginning and ending asset retirement obligation

	Year Ended
	2012			2011
Asset retirement obligations — beginning of period	$	859,586		$	811,635
Liabilities incurred	175,943			15,000
Liabilities settled	(61,936		)	(1,847		)
Accretion	77,505			59,913
Revisions to previous estimates	(82,421		)	(25,115		)
Asset retirement obligations — end of period	$	968,677		$	859,586

Stock-Based Incentive Plan (Tables)

12 Months Ended

Jun. 30, 2012

Stock-Based Incentive Plan

Schedule of weighted average assumptions used to calculate the fair value of Stock Options and the weighted average fair value of each option granted

Expected volatility	87.1		%
Expected dividends	—
Expected term (in years)	4.6
Risk-free rate	3.10		%
Fair value	$	2.62

Summary of information regarding outstanding Stock Options and Incentive Warrants and the changes during the fiscal year

	Number of Stock Options and Incentive Warrants		Weighted Average Exercise Price		Aggregate Intrinsic Value (1)		Weighted Average Remaining Contractual Term (in years)

Stock Options and Incentive Warrants outstanding at July 1, 2011	5,392,820		$	1.85

Granted	—		—
Exercised	(20,000	)	$	4.10
Cancelled or forfeited	—		—
Expired	—		—

Stock Options and Incentive Warrants outstanding at June 30, 2012	5,372,820		$	1.83	$	34,957,022	3.4

Vested or expected to vest at June 30, 2012	5,372,820		$	1.83	$	34,957,022	3.4

Exercisable at June 30, 2012	5,353,898		$	1.83	$	34,875,456	3.4

Summary of the status of unvested Stock Options and Incentive Warrants and the changes during the year

	Number of Stock Options and Incentive Warrants		Weighted Average Grant- Date Fair Value

Unvested at July 1, 2011	173,877		$	2.20

Granted	—		—

Vested	(154,955	)	$	2.17

Unvested at June 30, 2012	18,922		$	2.45

Schedule of Restricted Stock transactions

	Number of Restricted Shares		Weighted Average Grant-Date Fair Value

Unvested at July 1, 2011	495,689		$	4.30

Granted	196,106		$	6.52

Vested	(239,195	)	$	4.51

Unvested at June 30, 2012	452,600		$	5.60

Supplemental Disclosure of Cash Flow Information (Tables)

12 Months Ended

Jun. 30, 2012

Supplemental Disclosure of Cash Flow Information

Schedule of supplemental disclosures of cash flow information

	Year Ended
	June 30,
	2012			2011			2010
Income taxes paid	$	895,000		$	229,802		$	329,800

Income tax refunds and net operating loss carry-back received	$	—		$	979,177		$	2,095,126

Non-cash transactions:
Change in accounts payable used to acquire oil and natural gas leasehold interests and develop oil and natural gas properties	$	(196,396	)	$	(91,483	)	$	(62,532	)
Change in due to joint venture partner used to acquire oil and natural gas leasehold interests and develop oil and natural gas properties	$	1,958,029		$	—		$	—

Accrued advance in due to joint venture partner	$	1,142,715		$	—		$	—

Oil and natural gas property costs attributable to the recognition of asset retirement obligations	$	93,522		$	15,000		$	85,871

Windfall tax benefit recognized in income taxes recoverable	$	—		$	—		$	173,157

Income Taxes (Tables)

12 Months Ended

Jun. 30, 2012

Income Taxes

Schedule of components of income tax provision (benefit)

	June 30, 2012		June 30, 2011			June 30, 2010
Current:
Federal	$	309,632	$	(64,068	)	$	(608,339	)
State	841,698		132,596			207,952
Total current income tax provision (benefit)	1,151,330		68,528			(400,387		)
Deferred:
Federal	2,542,662		360,174			(553,326		)
State	6,930		20,212			(218,111		)
Total deferred income tax provision (benefit)	2,549,592		380,386			(771,437		)
Total income tax provision (benefit)	$	3,700,922	$	448,914		$	(1,171,824	)

Schedule of reconciliation of statutory income tax expense to income tax provision (benefit)

	June 30, 2012			June 30, 2011			June 30, 2010
Income tax provision (benefit) computed at the statutory federal rate:	$	3,003,238		$	70,503		$	(1,210,241	)
Reconciling items:
State income taxes, net of federal tax benefit	560,095			100,853			(10,413		)
Stock-based compensation (primarily incentive stock options)	83,115			140,620			105,402
Expiring NOLs related to 2004 reverse merger	4,348,495
Deferred tax asset valuation adjustment	(4,348,495		)	—			—
Reversal of Section 199 deductions as a result of carry-backs	—			141,920			—
Rate adjustment	—			(7,172		)	(42,651		)
Other	54,474			2,190			(13,921		)
Income tax provision (benefit)	$	3,700,922		$	448,914		$	(1,171,824	)

Schedule of components of deferred taxes

	June 30, 2012			June 30, 2011			June 30, 2010
Deferred tax assets:
Non-qualified stock-based compensation	$	774,720		$	959,547		$	866,035
Net operating loss carry-forwards**	1,336,769			5,910,275			5,389,065
AMT credit carry-forward*	714,571			682,456			645,938
Other	29,929			23,626			21,306
Gross deferred tax assets	2,855,989			7,575,904			6,922,344
Valuation allowance	(893,410		)	(5,187,983		)	(5,187,983		)
Total deferred tax assets	1,962,579			2,387,921			1,734,361
Deferred tax liability:
Oil and natural gas properties	(7,842,437		)	(5,718,187		)	(4,684,241		)
Total deferred tax liability	(7,842,437		)	(5,718,187		)	(4,684,241		)
Net deferred tax liability	$	(5,879,858	)	$	(3,330,266	)	$	(2,949,880	)

* Total AMT credit carry-forward is $844,440. Our net deferred tax liability does not include $129,869 of AMT credit carry-forward associated with the windfall tax benefit.

** Excluded from our net tax liability is an estimated tax benefit of $394,487 related to net operating losses associated windfall tax benefits.

Net Income (Loss) Per Share (Tables)

12 Months Ended

Jun. 30, 2012

Net Income (Loss) Per Share

Schedule of computation of basic and diluted loss per share

	Year Ended
	June 30,
	2012		2011			2010
Numerator
Net income (loss) attributable to common shareholders	$	4,501,739	$	(241,553	)	$	(2,387,707	)

Denominator
Weighted average number of common shares — Basic	27,784,298		27,437,496			27,004,066

Effect of dilutive securities:
Common stock warrants issued in connection with equity and financing transactions	63,319		—			—
Stock Options and Incentive Warrants	3,762,312		—			—
Total weighted average dilutive securities	3,825,631		—			—

Weighted average number of common shares and dilutive potential common shares used in diluted EPS	31,609,929		27,437,496			27,004,066

Net income (loss) per common share — Basic	$	0.16	$	(0.01	)	$	(0.09	)

Net income (loss) per common share — Diluted	$	0.14	$	(0.01	)	$	(0.09	)

* Potential dilutive common shares are excluded from the computation of net loss per common shares because their effect will always be anti-dilutive.

Schedule of outstanding potentially dilutive securities

Outstanding Potential Dilutive Securities	Weighted Average Exercise Price		Outstanding at June 30, 2012

Common stock warrants issued in connection with equity and financing transactions	$	2.50	1,165
Stock Options and Incentive Warrants	$	1.83	5,485,820
Total	$	1.83	5,486,985

Outstanding potentially dilutive securities as of June 30, 2011 are as follows:

Outstanding Potential Dilutive Securities	Weighted Average Exercise Price		Outstanding at June 30, 2011

Common stock warrants issued in connection with equity and financing transactions	$	2.50	92,365
Stock Options and Incentive Warrants	$	1.85	5,392,820
Total	$	1.86	5,485,185

Outstanding potentially dilutive securities as of June 30, 2010 are as follows:

Outstanding Potential Dilutive Securities	Weighted Average Exercise Price		Outstanding at June 30, 2010

Common stock warrants issued in connection with equity and financing transactions	$	1.87	159,308
Stock Options and Incentive Warrants	$	1.83	5,482,820
Total	$	1.83	5,642,128

Commitments and Contingencies (Tables)

12 Months Ended

Jun. 30, 2012

Commitments and Contingencies.

Schedule of future minimum lease commitments under the operating lease

For the year ended June 30,
2013	159,011
2014	159,011
2015	159,011
2016	159,011
Thereafter	13,251
Total	$	649,295

Concentrations of Credit Risk (Tables)

12 Months Ended

Jun. 30, 2012

Concentrations of Credit Risk

Schedule of customers from whom the entity derived 10 percent or more of net oil and natural gas revenues

	Percent of Total Revenue
Customer	Year Ended June 30, 2012		Year Ended June 30, 2011		Year Ended June 30, 2010

Plains Marketing L.P. (includes Delhi production)	84	%	60	%	12	%
Enterprise Crude Oil LLC	7	%	15	%	31	%
ETC Texas Pipeline, LTD.	3	%	12	%	19	%
DCP Midstream, LP	2	%	6	%	15	%
Copano Field Services/Upper Gulf Coast, L.P.	3	%	7	%	23	%
Flint Hills Resources, LP	1	%	—	%	—	%

- Definition

Tabular disclosure of the nature of a concentration, a benchmark to which it is compared, and the percentage that the risk is to the benchmark.

+ References + Details

Supplemental Disclosures about Oil and Natural Gas Producing Properties (unaudited) (Tables)

12 Months Ended

Jun. 30, 2012

Supplemental Disclosures about Oil and Natural Gas Producing Properties (unaudited)

Schedule of costs incurred and capitalized in oil and natural gas property acquisition, exploration and development activities

	For the Years Ended June 30
	2012		2011		2010
Oil and Natural Gas Activities
Property acquisition costs:
Proved property	$	115,637	$	465,176	$	391,785
Unproved property	5,544,217		523,591		185,154
Exploration costs	3,016,924		215,660		2,354,239
Development costs	238,463		2,200,905		890,116
Total costs incurred for oil and natural gas activities	$	8,915,241	$	3,405,332	$	3,821,294

Schedule of estimated quantities of proved oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves

	Crude Oil (Bbls)		Natural Gas Liquids (Bbls)		Natural Gas (Mcf)		BOE
Proved developed and undeveloped reserves:
June 30, 2009	945,948		1,054,294		6,358,788		3,060,040
Revisions of previous estimates	(113,487	)	(19,147	)	430,145		(60,943	)
Improved recovery, extensions and discoveries	9,451,758		29,300		381,695		9,544,674
Production (sales volumes)	(29,749	)	(27,820	)	(407,674	)	(125,515	)
June 30, 2010	10,254,470		1,036,627		6,762,954		12,418,256
Revisions of previous estimates	1,475,918		(84,154	)	3,273,846		1,937,405
Improved recovery, extensions and discoveries	—		—		779,556		129,926
Sales of minerals in place	(104,577	)	(221,469	)	(1,173,850	)	(521,688	)
Production (sales volumes)	(57,965	)	(18,704	)	(238,607	)	(116,437	)
June 30, 2011	11,567,846		712,300		9,403,899		13,847,462
Revisions of previous estimates	84,219		(212,677	)	(1,295,893	)	(344,440	)
Improved recovery, extensions and discoveries	137,634		5,461		18,925		146,249
Sales of minerals in place	—		—		—		—
Production (sales volumes)	(151,081	)	(12,611	)	(266,775	)	(208,155	)
June 30, 2012	11,638,618		492,473		7,860,156		13,441,116

Proved developed reserves:
June 30, 2009	104,731		141,372		1,106,028		430,441
June 30, 2010	706,053		157,302		1,536,858		1,119,498
June 30, 2011	4,986,337		100,900		1,543,401		5,344,471
June 30, 2012	7,670,934		111,978		1,499,382		8,032,809

Schedule of standardized measure of discounted future net cash flows related to proved oil and natural gas reserves

	For the Years Ended June 30
	2012			2011			2010
Future cash inflows	$	1,355,686,188		$	1,161,278,060		$	827,902,260

Future production costs and severance taxes	(458,716,938		)	(379,493,392		)	(222,826,052		)

Future development costs	(38,458,724		)	(40,571,895		)	(34,024,112		)

Future income tax expenses	(296,703,838		)	(278,455,798		)	(213,063,769		)
Future net cash flows	561,806,688			462,756,975			357,988,327
10% annual discount for estimated timing of cash flows	(278,209,195		)	(234,309,020		)	(196,361,678		)

Standardized measure of discounted future net cash flows	$	283,597,493		$	228,447,954		$	161,626,649

Schedule of commodity prices used in determining future cash flows

	Year Ended June 30,
	2012				2011				2010
	Oil (Bbl)		Gas (MMBtu)		Oil (Bbl)		Gas (MMBtu)		Oil (Bbl)		Gas (MMBtu)
Commodity prices used in determining future cash flows	$	95.67	$	3.15	$	90.09	$	4.21	$	75.76	$	4.10

Schedule of changes in the standardized measure of discounted future net cash flows applicable to proved crude oil, natural gas liquids, and natural gas reserves

	For the Years Ended June 30
	2012			2011			2010
Balance, beginning of year	$	228,447,954		$	161,626,649		$	23,549,791
Net changes in sales prices and production costs related to future production	76,942,613			57,178,860			3,935,863
Changes in estimated future development costs	6,340,123			(16,028,728		)	(3,502,403		)

Sales of oil and gas produced during the period, net of production costs	(16,187,039		)	(6,151,549		)	(3,356,822		)

Net change due to purchases of minerals in place	—			—			—

Net change due to extensions, discoveries, and improved recovery	1,606,122			623,446			236,828,138

Net change due to revisions in quantity estimates	(11,975,496		)	56,766,220			(934,602		)

Net change due to sales of minerals in place	—			(8,233,734		)	—

Development costs incurred during the period	(2,639,398		)	2,416,565			—

Accretion of discount	22,568,868			26,597,834			3,582,622

Net change in discounted income taxes	(15,026,628		)	(42,490,270		)	(91,991,767		)

Other	(6,479,626		)	(3,857,339		)	(6,484,171		)

Balance, end of year	$	283,597,493		$	228,447,954		$	161,626,649

- Definition

Tabular disclosure of the aggregate of costs (whether the costs are capitalized or charged to expense at the time they are incurred ) incurred for the year in oil and gas property acquisition, exploration and development activities.

+ References + Details

- Definition

Tabular disclosure of the net quantities of an enterprise's interests in proved developed and undeveloped reserves of (a) crude oil (including condensate and natural gas liquids), (b) natural gas (including coal bed methane), (c) synthetic oil, (d) synthetic gas, and (e) other nonrenewable natural resources that are intended to be upgraded during the period as of the beginning of the period, changes in quantities during the period, and as of the end of the period.

+ References + Details

- Definition

Tabular disclosure of the future net cash flows relating to proved oil and gas reserves and oil and gas subject to purchase under long-term agreements in which the enterprise participates in the operation of the properties on which the oil and gas is located or otherwise serves as the producer. This information is presented in aggregate and for each geographic area for which reserve quantities are disclosed.

+ References + Details

Summary of Significant Accounting Policies (Details)	12 Months Ended
Summary of Significant Accounting Policies (Details)	Jun. 30, 2012
Low end of the range
Other Property and Equipment
Expected lives of the individual assets or group of assets	3 years
High end of the range
Other Property and Equipment
Expected lives of the individual assets or group of assets	7 years
Oil and natural gas properties
Limitation on Capitalized Costs
Discount rate for present value	10.00%
Period considered for computing unweighted arithmetic average of oil and natural gas prices	12 months

Property and Equipment (Details) - USD ($)	Jun. 30, 2012	Jun. 30, 2011
Property and Equipment
Property and Equipment, Net	$ 40,568,443	$ 33,516,826
Oil and natural gas properties
Property costs subject to amortization	40,874,244	35,860,517
Less: Accumulated depreciation, depletion, and amortization	(6,440,166)	(5,353,152)
Unproved properties not subject to amortization	6,042,094	2,940,199
Other property and equipment
Furniture, fixtures and office equipment, at cost	322,514	261,340
Less: Accumulated depreciation	(230,243)	(192,078)
Woodford Shale trend
Other property and equipment
Unevaluated acreage included in unproved properties not subject to amortization		2,200,000
Mississippi Lime
Other property and equipment
Unevaluated acreage included in unproved properties not subject to amortization	6,000,000
Delhi Holt Bryant Unit
Other property and equipment
Participating interest included in unproved properties through royalty and overriding royalty interests		$ 700,000
Participating interest of unproved properties through royalty and overriding royalty interests (as a percent)		7.40%
Working interest in properties after payout reversionary working interest (as a percent)		23.90%
Working interest in certain other depths of properties (as a percent)		23.90%
Oil and natural gas properties
Property and Equipment
Property and Equipment, Net	40,476,172	$ 33,447,564
Other Property and Equipment
Property and Equipment
Property and Equipment, Net	$ 92,271	$ 69,262

Property and Equipment (Details 2) - USD ($)	12 Months Ended
Property and Equipment (Details 2) - USD ($)	Jun. 30, 2012	Jun. 30, 2011
Costs excluded from amortization during the period
Leasehold acquisition costs and other	$ 6,042,094
Costs excluded from amortization at the end of period
Leasehold acquisition costs and other	6,042,094
Proceeds from farmout of some of Woodbine rights at Giddings	$ 799,610	$ 231,326

Joint Interest Agreement (Details)	1 Months Ended	2 Months Ended	12 Months Ended
Joint Interest Agreement (Details)	Apr. 30, 2012 USD ($) item acre	Jul. 30, 2012 item	Jun. 30, 2012 USD ($)	Apr. 17, 2012	Jun. 30, 2011 USD ($)
Joint Interest Agreement
Payments to Acquire Interest in Joint Venture			$ 224,206
Participation in joint venture
Advances to joint interest operating partner			1,366,921
Advances to joint interest operating partner, accrued drilling cash call			1,142,715
Due to joint interest partner			3,217,975		$ 105,567
Joint interest arrangement \| Kay County in North Central Oklahoma
Joint Interest Agreement
Ownership interest percentage in oil and gas leases				45.00%
Aggregate area acquired (in acres) \| acre	11,700
Net area acquired (in acres) \| acre	5,265
Area acquired (in sections) \| item	38
Payments to Acquire Interest in Joint Venture	$ 4,083,780
Number of first commitment wells \| item	3
Field operations, number of producer wells \| item		2
Joint interest arrangement \| Kay County in North Central Oklahoma \| Minimum
Joint Interest Agreement
Number of gross wells committed to parties to drill \| item	6
Joint interest arrangement \| Kay County in North Central Oklahoma \| Maximum
Joint Interest Agreement
Number of gross wells committed to parties to drill \| item	14
Joint interest arrangement \| Orion Exploration Partners, LLC \| Kay County in North Central Oklahoma
Participation in joint venture
Advances to joint interest operating partner			1,366,921
Advances to joint interest operating partner, accrued drilling cash call			1,142,716
Due to joint interest partner			$ 3,217,975
Joint interest arrangement \| Orion Exploration Partners, LLC \| Kay County in North Central Oklahoma \| Maximum
Joint Interest Agreement
Partner drilling and completion costs carried by Company	$ 2,200,000

Asset Retirement Obligations (Details) - USD ($)	12 Months Ended
Asset Retirement Obligations (Details) - USD ($)	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010
Reconciliation of the beginning and ending asset retirement obligation
Asset retirement obligations - beginning of period	$ 859,586	$ 811,635
Liabilities incurred	175,943	15,000	$ 85,871
Liabilities settled	(61,936)	(1,847)
Accretion	77,505	59,913	61,054
Revisions to previous estimates	(82,421)	(25,115)
Asset retirement obligations - end of period	$ 968,677	$ 859,586	$ 811,635

Stockholders' Equity (Details)	1 Months Ended																			12 Months Ended
Stockholders' Equity (Details)	May 31, 2012 shares	Dec. 31, 2011 USD ($) director shares	Sep. 30, 2011 $ / shares shares	Aug. 31, 2011 USD ($) shares	Mar. 31, 2011 shares	Feb. 28, 2011 $ / shares shares	Dec. 31, 2010 USD ($) director $ / shares shares	Oct. 31, 2010 USD ($) shares	Sep. 30, 2010 USD ($) shares	Aug. 31, 2010 USD ($) shares	Jul. 31, 2010 $ / shares shares	Jun. 30, 2010 $ / shares shares	Apr. 30, 2010 shares	Mar. 31, 2010 USD ($) shares	Feb. 28, 2010 shares	Dec. 31, 2009 USD ($) director shares	Nov. 30, 2009 shares	Oct. 31, 2009 shares	Sep. 30, 2009 USD ($) shares	Jun. 30, 2012 USD ($) $ / shares shares	Jun. 30, 2011 USD ($) shares	Jun. 30, 2010 USD ($) shares	Jun. 30, 2009	Sep. 10, 2010 USD ($) $ / shares	Jul. 02, 2010 shares	Jun. 19, 2010 shares	Feb. 06, 2010 shares	Sep. 08, 2009 USD ($) $ / shares	Jun. 22, 2006 $ / shares shares	May 06, 2005 $ / shares shares	Nov. 30, 2004 $ / shares shares	Jun. 30, 2004 $ / shares shares	May 26, 2004 $ / shares shares
Value of shares of common stock issued for payment of bonuses \| $																					$ 587,033	$ 370,440
Value of shares issued \| $																				$ 34	$ 28	$ 42
Restricted stock
Total unrecognized stock-based compensation expense \| $																				$ 2,118,741
Period for recognition of stock-based compensation expense (vesting period)																				2 years 3 months 18 days
Vesting period								4 years		4 years				4 years
Stock options
Stock options exercised (in shares)																				20,000	86,875	3,000
Exercise price of options (in dollars per share) \| $ / shares							$ 0.001				$ 2.33	$ 1.10
Common stock
Number of shares issued								4,845		30,233				20,000
Value of shares issued \| $								$ 29,118		$ 156,000				$ 90,000
Share price on date of issuance (in dollars per share) \| $ / shares																				$ 8.34				$ 5.49				$ 2.68
Stock options exercised (in shares)							30,000				6,875	3,000
Outside directors \| Restricted stock
Vesting period							1 year									1 year
Number of directors to whom shares of restricted common stock were issued as a part of the board compensation \| director							4									4
Outside directors \| Common stock
Number of shares issued							28,047									42,317
Value of shares issued \| $							$ 168,000									$ 168,000
Consultant \| Stock options
Exercise price of options (in dollars per share) \| $ / shares						$ 1.80
Consultant \| Common stock
Stock options exercised (in shares)						50,000
Placement agent
Right to purchase number of shares of common stock against warrants																													12,000		10,000
Exercise price of warrants (in dollars per share) \| $ / shares																													2.25		1.50
Placement agent \| Common stock
Number of shares of common stock issued through a net cashless exercise of a placement warrant													7,377				5,833
Laird Q. Cagan
Right to purchase number of shares of common stock against warrants																														91,200		66,943
Exercise price of warrants (in dollars per share) \| $ / shares																														2.50		1.00
Laird Q. Cagan \| Common stock
Number of shares of common stock issued through a net cashless exercise of a placement warrant	65,261				58,350
Laird Q. Cagan \| CMCP
Right to purchase number of shares of common stock against warrants																																	165,000
Exercise price of warrants (in dollars per share) \| $ / shares																																	1.00
Laird Q. Cagan \| CMCP \| Common stock
Number of shares of common stock issued through a net cashless exercise of a placement warrant																		119,795
2004 Stock Plan \| Restricted stock
Total unrecognized stock-based compensation expense \| $				$ 1,029,436																				$ 1,320,224				$ 869,917
Period for recognition of stock-based compensation expense (vesting period)				4 years					4 years										4 years
Unrecognized stock-based compensation expense, forfeited shares																									11,621	436,522	187,965
2004 Stock Plan \| Stock options
Vesting period																							4 years
2004 Stock Plan \| Common stock
Number of shares of common stock issued for payment of bonuses									106,927										138,224
Value of shares of common stock issued for payment of bonuses \| $									$ 587,033										$ 370,440
Number of shares issued				161,861					240,478										324,597
Restricted common stock forfeited by an employee (in shares)											4,215	91,902			38,182
2004 Stock Plan \| Outside directors \| Restricted stock
Vesting period		1 year
Number of directors to whom shares of restricted common stock were issued as a part of the board compensation \| director		5
2004 Stock Plan \| Outside directors \| Common stock
Number of shares issued		34,245
Value of shares issued \| $		$ 249,955
2004 Stock Plan \| Contractor \| Stock options
Stock options exercised (in shares)			20,000
Exercise price of options (in dollars per share) \| $ / shares			$ 4.10
2004 Stock Plan \| Contractor \| Common stock
Net share issuance			7,941

Stockholders' Equity (Details 2)	12 Months Ended
Stockholders' Equity (Details 2)	Jun. 30, 2012 USD ($) $ / shares shares
Series A Cumulative Perpetual Preferred Stock
Net proceeds from issuances of preferred stock \| $	$ 6,930,535
Preferred stock dividends paid \| $	$ 630,391
Series A cumulative perpetual preferred stock
Series A Cumulative Perpetual Preferred Stock
Number of shares sold of series A cumulative perpetual preferred stock \| shares	317,319
Preferred stock dividend rate (as a percent)	8.50%
Preferred stock, liquidation preference (in dollars per share)	$ 25.00
Net proceeds from issuances of preferred stock \| $	$ 6,930,535
Dividend payable monthly on preferred stock (in dollars per share)	$ 0.177083
Preferred stock dividends paid \| $	$ 630,391
Series A cumulative perpetual preferred stock \| Underwritten public offering
Series A Cumulative Perpetual Preferred Stock
Number of shares sold of series A cumulative perpetual preferred stock \| shares	220,000
Series A cumulative perpetual preferred stock \| At-the-market sales agreement
Series A Cumulative Perpetual Preferred Stock
Number of shares sold of series A cumulative perpetual preferred stock \| shares	97,319
Series A cumulative perpetual preferred stock \| Minimum
Series A Cumulative Perpetual Preferred Stock
Redemption price per share	$ 25.25
Series A cumulative perpetual preferred stock \| Maximum
Series A Cumulative Perpetual Preferred Stock
Redemption price per share	25.75
Series A cumulative perpetual preferred stock \| Weighted average
Series A Cumulative Perpetual Preferred Stock
Weighted average sales price (in dollars per share)	$ 23.80

Stock-Based Incentive Plan (Details) - USD ($)	1 Months Ended		12 Months Ended				106 Months Ended
Stock-Based Incentive Plan (Details) - USD ($)	Sep. 30, 2010	Sep. 30, 2009	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2009	Jun. 30, 2012	Sep. 10, 2010	Sep. 08, 2009
Stock-Based Incentive Plan
Value of shares of common stock issued for payment of bonuses				$ 587,033	$ 370,440
Common Stock
Stock-Based Incentive Plan
Issue price of shares of common stock (in dollars per share)			$ 8.34				$ 8.34	$ 5.49	$ 2.68
Stock Options and Incentive Warrants
Stock-Based Incentive Plan
Non-cash stock-based compensation expense			$ 327,776	$ 715,027	$ 985,060
2003 Stock Plan \| Stock Options
Stock-Based Incentive Plan
Number of shares granted under the Plan							600,000
2004 Stock Plan
Stock-Based Incentive Plan
Number of shares of common stock authorized for issuance under plan			6,500,000				6,500,000
Number of shares remaining available for grant under plan			1,012,111				1,012,111
2004 Stock Plan \| Common Stock
Stock-Based Incentive Plan
Number of shares of common stock issued for payment of bonuses	106,927	138,224
Value of shares of common stock issued for payment of bonuses	$ 587,033	$ 370,440
2004 Stock Plan \| Stock Options
Stock-Based Incentive Plan
Number of shares granted under the Plan						591,090
Weighted average exercise price of shares granted (in dollars per share)						$ 4.27
Vesting period						4 years
Contractual life						7 years
Weighted average assumptions of Stock Options and the weighted average fair value of each option granted
Expected volatility (as a percent)						87.10%
Expected term (in years)						4 years 7 months 6 days
Risk-free rate (as a percent)						3.10%
Fair value (in dollars per share)						$ 2.62
Board of Directors Authorized, Outside of EMP Stock Plans \| Incentive Warrants
Stock-Based Incentive Plan
Number of Incentive Warrants issued (in shares)			1,037,500				1,037,500

Stock-Based Incentive Plan (Details 2) - USD ($)	1 Months Ended			12 Months Ended
Stock-Based Incentive Plan (Details 2) - USD ($)	Dec. 31, 2010	Jul. 31, 2010	Jun. 30, 2010	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010	Sep. 10, 2010	Sep. 08, 2009
Common stock
Additional disclosures of Stock Options and Incentive Warrants
Market price of common stock on the last trading date of the period (in dollars per share)				$ 8.34			$ 5.49	$ 2.68
Number of Stock Options exercised (in shares)	30,000	6,875	3,000
Stock Options and Incentive Warrants
Number of Stock Options and Incentive Warrants
Stock Options and Incentive Warrants outstanding at the beginning of the period (in shares)				5,392,820
Exercised (in shares)				(20,000)
Stock Options and Incentive Warrants outstanding at the end of the period (in shares)				5,372,820	5,392,820
Vested or expected to vest at the end of the period (in shares)				5,372,820
Exercisable at the end of the period (in shares)				5,353,898
Weighted Average Exercise Price
Stock Options and Incentive Warrants outstanding at the beginning of the period (in dollars per share)				$ 1.85
Exercised (in dollars per share)				4.10
Stock Options and Incentive Warrants outstanding at the end of the period (in dollars per share)				1.83	$ 1.85
Vested or expected to vest at the end of the period (in dollars per share)				1.83
Exercisable at the end of the period (in dollars per share)				$ 1.83
Aggregate Intrinsic Value
Stock Options and Incentive Warrants outstanding at the end of the period				$ 34,957,022
Vested or expected to vest at the end of the period				34,957,022
Exercisable at the end of the period (in dollars)				$ 34,875,456
Weighted Average Remaining Contractual Term (in years)
Stock Options and Incentive Warrants outstanding at the end of the period				3 years 4 months 24 days
Vested or expected to vest at the end of the period				3 years 4 months 24 days
Exercisable at the end of the period				3 years 4 months 24 days
Stock Options
Additional disclosures of Stock Options and Incentive Warrants
Number of Stock Options exercised (in shares)				20,000	86,875	3,000
Aggregate intrinsic value of Stock Options exercised				$ 54,000	$ 493,923	$ 13,620

Stock-Based Incentive Plan (Details 3) - Stock Options and Incentive Warrants - USD ($)	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010
Number of Stock Options and Incentive Warrants
Unvested at the beginning of the period (in shares)	173,877
Vested (in shares)	(154,955)	(375,580)	(539,330)
Unvested at the end of the period (in shares)	18,922	173,877
Weighted Average Grant-Date Fair Value
Unvested at the beginning of the period (in dollars per share)	$ 2.20
Vested (in dollars per share)	2.17
Unvested at the end of the period (in dollars per share)	$ 2.45	$ 2.20
Additional disclosures of Stock Options and Incentive Warrants
Total fair value of awards vested	$ 336,252	$ 739,893	$ 1,024,727
Total unrecognized compensation cost	$ 26,273
Weighted average remaining service period over which unrecognized compensation cost is expected to be recognized	3 months

Stock-Based Incentive Plan (Details 4) - Restricted Stock - USD ($)	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010
Stock-Based Incentive Plan
Stock-based compensation expense	$ 1,148,219	$ 820,980	$ 576,307
Number of Restricted Shares
Unvested at the beginning of the period (in shares)	495,689
Granted (in shares)	196,106
Vested (in shares)	(239,195)	(206,858)	(243,954)
Unvested at the end of the period (in shares)	452,600	495,689
Weighted Average Grant-Date Fair Value
Unvested at the beginning of the period (in dollars per share)	$ 4.30
Granted (in dollars per share)	6.52
Vested (in dollars per share)	4.51
Unvested at the end of the period (in dollars per share)	$ 5.60	$ 4.30
Additional disclosures of restricted stock
Total fair value of Restricted Stock vested	$ 1,078,769	$ 794,335	$ 551,336
Unrecognized stock compensation expense related to Restricted Stock grants	$ 2,118,741
Weighted average remaining service period over which unrecognized compensation cost is expected to be recognized	2 years 3 months 18 days

Supplemental Disclosure of Cash Flow Information (Details) - USD ($)	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010
Supplemental Disclosure of Cash Flow Information
Income taxes paid	$ 895,000	$ 229,802	$ 329,800
Income tax refunds and net operating loss carry-back received		979,177	2,095,126
Non-cash transactions:
Change in accounts payable used to acquire oil and natural gas leasehold interests and develop oil and natural gas properties	(196,396)	(91,483)	(62,532)
Change in due to joint venture partner used to acquire oil and natural gas leasehold interests and develop oil and natural gas properties	1,958,029
Accrued advance in due to joint venture partner	1,142,715
Oil and natural gas property costs attributable to the recognition of asset retirement obligations	$ 93,522	$ 15,000	85,871
Windfall tax benefit recognized in income taxes recoverable			$ 173,157

Income Taxes (Details) - USD ($)	12 Months Ended
Income Taxes (Details) - USD ($)	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010
Current:
Federal	$ 309,632	$ (64,068)	$ (608,339)
State	841,698	132,596	207,952
Total current income tax provision (benefit)	1,151,330	68,528	(400,387)
Deferred:
Federal	2,542,662	360,174	(553,326)
State	6,930	20,212	(218,111)
Total deferred income tax provision (benefit)	2,549,592	380,386	(771,437)
Income tax provision (benefit)	3,700,922	448,914	(1,171,824)
Reconciliation of statutory income tax expense to income tax provision (benefit)
Income tax provision (benefit) computed at the statutory federal rate	3,003,238	70,503	(1,210,241)
Reconciling items:
State income taxes, net of federal tax benefit	560,095	100,853	(10,413)
Stock-based compensation (primarily incentive stock options)	83,115	140,620	105,402
Expiring NOLs related to 2004 reverse merger	4,348,495
Deferred tax asset valuation adjustment	(4,348,495)
Reversal of Section 199 deductions as a result of carry-backs		141,920
Rate adjustment		(7,172)	(42,651)
Other	54,474	2,190	(13,921)
Income tax provision (benefit)	$ 3,700,922	$ 448,914	$ (1,171,824)

Income Taxes (Details 2) - USD ($)	12 Months Ended
Income Taxes (Details 2) - USD ($)	Jun. 30, 2010	Jun. 30, 2012	Jun. 30, 2011
Deferred tax assets:
Non-qualified stock-based compensation	$ 866,035	$ 774,720	$ 959,547
Net operating loss carry-forwards	5,389,065	1,336,769	5,910,275
AMT credit carry-forward	645,938	714,571	682,456
Other	21,306	29,929	23,626
Gross deferred tax assets	6,922,344	2,855,989	7,575,904
Valuation allowance	(5,187,983)	(893,410)	(5,187,983)
Total deferred tax assets	1,734,361	1,962,579	2,387,921
Deferred tax liability:
Oil and natural gas properties	(4,684,241)	(7,842,437)	(5,718,187)
Total deferred tax liability	(4,684,241)	(7,842,437)	(5,718,187)
Net deferred tax liability	(2,949,880)	(5,879,858)	$ (3,330,266)
Total AMT credit carry-forward		844,440
AMT credit carry-forward associated with the windfall tax benefit excluded from net deferred tax liability		(129,869)
Estimated tax benefit excluded from net tax liability		394,487
Recovery in federal income taxes due to carry-back of tax losses	$ 1,000,000
Federal tax loss carry-forward		3,900,000
Non-benefitted NOL related to unutilized windfall tax benefits		1,100,000
Acquired deferral tax loss carry-forward		3,100,000
Acquired deferral tax loss carry-forward available to use in equal amounts through 2023		$ 400,000

Related Party Transactions (Details) - Laird Q. Cagan	1 Months Ended			12 Months Ended
Related Party Transactions (Details) - Laird Q. Cagan	May 31, 2012 shares	Mar. 31, 2011 shares	Oct. 31, 2009 shares	Jun. 30, 2012	May 06, 2005 $ / shares shares	Jun. 30, 2004 $ / shares shares	May 26, 2004 $ / shares shares
Related Party Transactions
Number of shares of common stock that can be purchased against warrants, under the right to purchase					91,200	66,943
Exercise price of warrants (in dollars per share) \| $ / shares					2.50	1.00
Common stock
Related Party Transactions
Number of shares of common stock issued through a net cashless exercise of a placement warrant	65,261	58,350
CMCP
Related Party Transactions
Fixed warrant fee as a percentage of gross equity proceeds in private equity financings				4.00%
Number of shares of common stock that can be purchased against warrants, under the right to purchase							165,000
Exercise price of warrants (in dollars per share) \| $ / shares							1.00
CMCP \| Common stock
Related Party Transactions
Number of shares of common stock issued through a net cashless exercise of a placement warrant			119,795
CMCP \| High end of range
Related Party Transactions
Cash fees as a percentage of gross equity proceeds in private equity financings				8.00%
CMCP \| Low end of range
Related Party Transactions
Cash fees as a percentage of gross equity proceeds in private equity financings				4.00%

Net Income (Loss) Per Share (Details) - USD ($)	12 Months Ended
Net Income (Loss) Per Share (Details) - USD ($)	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010
Numerator
Net income (loss) attributable to common shareholders	$ 4,501,739	$ (241,553)	$ (2,387,707)
Denominator
Weighted average number of common shares - Basic	27,784,298	27,437,496	27,004,066
Effect of dilutive securities:
Common stock warrants issued in connection with equity and financing transactions (in shares)	63,319
Stock Options and Incentive Warrants (in shares)	3,762,312
Total weighted average dilutive securities (in shares)	3,825,631
Weighted average number of common shares and dilutive potential common shares used in diluted EPS	31,609,929	27,437,496	27,004,066
Net income (loss) per common share - Basic (in dollars per share)	$ 0.16	$ (0.01)	$ (0.09)
Net income (loss) per common share - Diluted (in dollars per share)	$ 0.14	$ (0.01)	$ (0.09)

Net Income (Loss) Per Share (Details 2) - $ / shares	12 Months Ended
Net Income (Loss) Per Share (Details 2) - $ / shares	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010
Outstanding Potential Dilutive Securities
Weighted Average Exercise Price (in dollars per share)	$ 1.83	$ 1.86	$ 1.83
Balance at the end of the period (in shares)	5,486,985	5,485,185	5,642,128
Common stock warrants issued in connection with equity and financing transactions
Outstanding Potential Dilutive Securities
Weighted Average Exercise Price (in dollars per share)	$ 2.50	$ 2.50	$ 1.87
Balance at the end of the period (in shares)	1,165	92,365	159,308
Stock Options and Incentive Warrants
Outstanding Potential Dilutive Securities
Weighted Average Exercise Price (in dollars per share)	$ 1.83	$ 1.85	$ 1.83
Balance at the end of the period (in shares)	5,485,820	5,392,820	5,482,820

- Definition

Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Antidilution
-URI http://asc.fasb.org/extlink&oid=6505113

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Diluted Earnings Per Share
-URI http://asc.fasb.org/extlink&oid=6510752

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Contingent Stock Agreement
-URI http://asc.fasb.org/extlink&oid=6508534

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 40
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 13, 14
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 171
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Unsecured Revolving Credit Agreement (Details)	1 Months Ended	12 Months Ended
Unsecured Revolving Credit Agreement (Details)	Feb. 29, 2012 USD ($)	Jun. 30, 2012 USD ($) loan item
Revolving credit facility
Unsecured Revolving Credit Agreement
Maximum amount available under revolving credit facility	$ 50,000,000
Initial borrowing base	5,000,000	$ 5,000,000
Term of revolving credit facility		4 years
Value of oil and gas properties subject (as a percent)		25.00%
Margin added to variable interest rate basis (as a percent)		0.50%
Loan costs to be compensated to lender over the life of the Credit Agreement	50,000
Debt issuance costs	163,257
Revolving credit facility \| Maximum
Unsecured Revolving Credit Agreement
Current ratio		1.5
Total funded indebtedness to EBITDA ratio		2.5
EBITDA to interest expense ratio		3
Revolving credit facility \| LIBOR
Unsecured Revolving Credit Agreement
Variable interest rate basis		Adjusted LIBOR
Amount to be reduced by Lender's Regulation D reserve requirement \| item		1
Interest period one		1 month
Interest period two		2 months
Interest period three		3 months
Interest period four		6 months
Term for payment of interest		3 months
Revolving credit facility \| LIBOR \| Maximum
Unsecured Revolving Credit Agreement
Number of loans that can be outstanding at any time \| loan		3
Revolving credit facility \| Prime rate
Unsecured Revolving Credit Agreement
Variable interest rate basis		Lender's prime rate
Revolving credit facility \| Federal funds rate
Unsecured Revolving Credit Agreement
Variable interest rate basis		Federal Fund Rate
Commitment fee accruing on unutilized availability (as a percent)		0.50%
Letter of credit
Unsecured Revolving Credit Agreement
Maximum amount available under revolving credit facility	$ 1,000,000
Letter of credit fees rate applied to principal amounts (as a percent)		3.50%
Letter of credit \| Maximum
Unsecured Revolving Credit Agreement
Term of revolving credit facility		1 year

Commitments and Contingencies (Details)	1 Months Ended	12 Months Ended
Commitments and Contingencies (Details)	Jan. 31, 2006	Jun. 30, 2012 USD ($) item	Jun. 30, 2011 USD ($)	Jun. 30, 2010 USD ($)	Jul. 26, 2012 USD ($)
Lease Commitments
2013		$ 159,011
2014		159,011
2015		159,011
2016		159,011
Thereafter		13,251
Total		649,295
Rent expense		$ 147,233	$ 146,263	$ 138,823
Frederick M. Garcia and Lydia Garcia
Commitments and Contingencies
Settlement amount of a lawsuit					$ 67,000
Pending litigation \| Jones lawsuit
Commitments and Contingencies
Percentage of overriding royalty interest	4.8119%
Employment Contracts
Commitments and Contingencies
Number of senior executives in employment agreements \| item		3
Total contingent obligation		$ 588,000
Employment Contracts \| Low end of the range
Commitments and Contingencies
Period of benefits to employees after termination		6 months
Employment Contracts \| High end of the range
Commitments and Contingencies
Period of benefits to employees after termination		1 year

Concentrations of Credit Risk (Details)	12 Months Ended
Concentrations of Credit Risk (Details)	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010
Concentrations of Credit Risk
Sales of gas, oil and condensate production contract term, less than	12 years
Net revenue \| Major Customers \| Plains Marketing L.P.
Concentrations of Credit Risk
Percent of Total Revenue	84.00%	60.00%	12.00%
Net revenue \| Major Customers \| Enterprise Crude Oil LLC
Concentrations of Credit Risk
Percent of Total Revenue	7.00%	15.00%	31.00%
Net revenue \| Major Customers \| ETC Texas Pipeline, LTD.
Concentrations of Credit Risk
Percent of Total Revenue	3.00%	12.00%	19.00%
Net revenue \| Major Customers \| DCP Midstream, LP
Concentrations of Credit Risk
Percent of Total Revenue	2.00%	6.00%	15.00%
Net revenue \| Major Customers \| Copano Field Services/Upper Gulf Coast, L.P.
Concentrations of Credit Risk
Percent of Total Revenue	3.00%	7.00%	23.00%
Net revenue \| Major Customers \| Flint Hills Resources, LP
Concentrations of Credit Risk
Percent of Total Revenue	1.00%

Retirement Plan (Details) - USD ($)	12 Months Ended
Retirement Plan (Details) - USD ($)	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010
Retirement Plan
Employer match of employee contributions of first 6% of eligible compensation (as a percent)	100.00%
Percentage of eligible compensation, matched 100% by employer	6.00%
Matching contribution to the plan	$ 84,738	$ 77,168	$ 87,846

Supplemental Disclosures about Oil and Natural Gas Producing Properties (unaudited) (Details) - USD ($)	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010
Supplemental Disclosures about Oil and Natural Gas Producing Properties (unaudited)
Oil and natural gas property costs attributable to the recognition of asset retirement obligations	$ 93,522	$ 15,000	$ 85,871
Property acquisition costs:
Proved property	115,637	465,176	391,785
Unproved property	5,544,217	523,591	185,154
Exploration costs	3,016,924	215,660	2,354,239
Development costs	238,463	2,200,905	890,116
Total costs incurred for oil and natural gas activities	$ 8,915,241	$ 3,405,332	$ 3,821,294

- Definition

Costs incurred, including capitalized costs and costs charged to expense, associated with the acquisition of oil and gas properties that have proved reserves.

+ References + Details

- Definition

Costs incurred, including capitalized costs and costs charged to expense, associated with the acquisition of oil and gas properties that have unproved reserves.

+ References + Details

Supplemental Disclosures about Oil and Natural Gas Producing Properties (unaudited) (Details 2) $ in Millions	12 Months Ended
	Jun. 30, 2012 Boe item Bbls Mcf Mboe	Jun. 30, 2011 Boe Bbls Mcf	Jun. 30, 2010 USD ($) Boe Bbls Mcf	Jun. 30, 2009 Boe Bbls Mcf
Estimated Net Quantities of Proved Oil and Natural Gas Reserves
Period on the basis of which reserve volumes and values are determined	12 months
Estimated quantities of proved oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves
Balance at the beginning of the period (in Bbls/Mcf/BOE) \| Boe	13,847,462	12,418,256	3,060,040
Revisions of previous estimates (in Bbls/Mcf/BOE) \| Boe	(344,440)	1,937,405	(60,943)
Improved recovery, extensions and discoveries (in Bbls/Mcf/BOE) \| Boe	146,249	129,926	9,544,674
Sales of minerals in place (in Bbls/Mcf/BOE) \| Boe	0	(521,688)
Production (sales volumes) (in Bbls/Mcf/BOE) \| Boe	(208,155)	(116,437)	(125,515)
Balance at the end of the period (in Bbls/Mcf/BOE) \| Boe	13,441,116	13,847,462	12,418,256
Proved developed reserves (in BOE) \| Boe	8,032,809	5,344,471	1,119,498	430,441
Increase (decrease) in proved reserves (in BOE) \| Boe	(400,000)	1,400,000	9,400,000
Giddings Field
Estimated quantities of proved oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves
Revisions of previous estimates (in Bbls/Mcf/BOE) \| Mboe	(369)
Sales of minerals in place (in Bbls/Mcf/BOE) \| Boe		(521,688)
Delhi Field
Estimated quantities of proved oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves
Revisions of previous estimates (in Bbls/Mcf/BOE) \| Mboe	210
Development capital spent by the operator since project inception \| $			$ 300
Giddings Field and Oklahoma
Estimated quantities of proved oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves
Extensions (in BOE) \| Boe			127,905
Lopez Field
Estimated quantities of proved oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves
Number of well locations transferred \| item	4
Woodford properties in Oklahoma
Estimated quantities of proved oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves
Revisions of previous estimates (in Bbls/Mcf/BOE) \| Mboe	(127)
Giddings Field in South Texas
Estimated quantities of proved oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves
Improved recovery, extensions and discoveries (in Bbls/Mcf/BOE) \| Mboe	146
Crude Oil
Estimated quantities of proved oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves
Balance at the beginning of the period (in Bbls/Mcf/BOE)	11,567,846	10,254,470	945,948
Revisions of previous estimates (in Bbls/Mcf/BOE)	84,219	1,475,918	(113,487)
Improved recovery, extensions and discoveries (in Bbls/Mcf/BOE)	137,634		9,451,758
Sales of minerals in place (in Bbls/Mcf/BOE)	0	(104,577)
Production (sales volumes) (in Bbls/Mcf/BOE)	(151,081)	(57,965)	(29,749)
Balance at the end of the period (in Bbls/Mcf/BOE)	11,638,618	11,567,846	10,254,470
Proved developed reserves (in Bbls/Mcf)	7,670,934	4,986,337	706,053	104,731
Period of acceleration in projected reversion date of working interest resulting in upward revision of proved oil reserves	2 years
Working interest in proved oil reserves (as a percent)	24.00%
Crude Oil \| Delhi Field
Estimated quantities of proved oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves
Improved recovery of proved oil reserves (in Bbls)			9,411,841
Natural Gas Liquids
Estimated quantities of proved oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves
Balance at the beginning of the period (in Bbls/Mcf/BOE)	712,300	1,036,627	1,054,294
Revisions of previous estimates (in Bbls/Mcf/BOE)	(212,677)	(84,154)	(19,147)
Improved recovery, extensions and discoveries (in Bbls/Mcf/BOE)	5,461		29,300
Sales of minerals in place (in Bbls/Mcf/BOE)	0	(221,469)
Production (sales volumes) (in Bbls/Mcf/BOE)	(12,611)	(18,704)	(27,820)
Balance at the end of the period (in Bbls/Mcf/BOE)	492,473	712,300	1,036,627
Proved developed reserves (in Bbls/Mcf)	111,978	100,900	157,302	141,372
Natural Gas
Estimated quantities of proved oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves
Balance at the beginning of the period (in Bbls/Mcf/BOE) \| Mcf	9,403,899	6,762,954	6,358,788
Revisions of previous estimates (in Bbls/Mcf/BOE) \| Mcf	(1,295,893)	3,273,846	430,145
Improved recovery, extensions and discoveries (in Bbls/Mcf/BOE) \| Mcf	18,925	779,556	381,695
Sales of minerals in place (in Bbls/Mcf/BOE) \| Mcf	0	(1,173,850)
Production (sales volumes) (in Bbls/Mcf/BOE) \| Mcf	(266,775)	(238,607)	(407,674)
Balance at the end of the period (in Bbls/Mcf/BOE) \| Mcf	7,860,156	9,403,899	6,762,954
Proved developed reserves (in Bbls/Mcf) \| Mcf	1,499,382	1,543,401	1,536,858	1,106,028

Supplemental Disclosures about Oil and Natural Gas Producing Properties (unaudited) (Details 3)	12 Months Ended
	Jun. 30, 2012 USD ($) USDPerBbl MMBtu	Jun. 30, 2011 USD ($) USDPerBbl MMBtu	Jun. 30, 2010 USD ($) USDPerBbl MMBtu
Standardized measure of discounted future net cash flows
Future cash inflows	$ 1,355,686,188	$ 1,161,278,060	$ 827,902,260
Future production costs and severance taxes	(458,716,938)	(379,493,392)	(222,826,052)
Future development costs	(38,458,724)	(40,571,895)	(34,024,112)
Future income tax expenses	(296,703,838)	(278,455,798)	(213,063,769)
Future net cash flows	561,806,688	462,756,975	357,988,327
10% annual discount for estimated timing of cash flows	(278,209,195)	(234,309,020)	(196,361,678)
Standardized measure of discounted future net cash flows	$ 283,597,493	$ 228,447,954	$ 161,626,649
Period considered for determining unweighted arithmetic average of first-day-of-the-month commodity prices	12 months
Oil
Unweighted arithmetic average first-day-of-the-month commodity prices
Commodity prices used in determining future cash flows (in dollars per Bbl or MMBtu) \| USDPerBbl	95.67	90.09	75.76
Gas
Unweighted arithmetic average first-day-of-the-month commodity prices
Commodity prices used in determining future cash flows (in dollars per Bbl or MMBtu) \| MMBtu	3.15	4.21	4.10

Supplemental Disclosures about Oil and Natural Gas Producing Properties (unaudited) (Details 4) - USD ($)	12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2010
Changes in the standardized measure of discounted future net cash flows applicable to proved crude oil, natural gas liquids, and natural gas reserves
Balance, beginning of year	$ 228,447,954	$ 161,626,649	$ 23,549,791
Net changes in sales prices and production costs related to future production	76,942,613	57,178,860	3,935,863
Changes in estimated future development costs	6,340,123	(16,028,728)	(3,502,403)
Sales of oil and gas produced during the period, net of production costs	(16,187,039)	(6,151,549)	(3,356,822)
Net change due to purchases of minerals in place	0
Net change due to extensions, discoveries, and improved recovery	1,606,122	623,446	236,828,138
Net change due to revisions in quantity estimates	(11,975,496)	56,766,220	(934,602)
Net change due to sales of minerals in place		(8,233,734)
Development costs incurred during the period	(2,639,398)	2,416,565
Accretion of discount	22,568,868	26,597,834	3,582,622
Net change in discounted income taxes	(15,026,628)	(42,490,270)	(91,991,767)
Other	(6,479,626)	(3,857,339)	(6,484,171)
Balance, end of year	$ 283,597,493	$ 228,447,954	$ 161,626,649