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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Sep. 30, 2012	Nov. 02, 2012
Document and Entity Information
Entity Registrant Name	EVOLUTION PETROLEUM CORP
Entity Central Index Key	0001006655
Document Type	10-Q
Document Period End Date	Sep. 30, 2012
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		28,051,963
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q1

Consolidated Balance Sheets - USD ($)	Sep. 30, 2012	Jun. 30, 2012
Current assets
Cash and cash equivalents	$ 13,134,457	$ 14,428,548
Certificates of deposit	250,000	250,000
Receivables
Oil and natural gas sales	1,616,515	1,343,347
Joint interest partner	30,390	96,151
Income taxes	92,885	92,885
Other	190	190
Deferred tax asset	325,235	325,235
Prepaid expenses and other current assets	176,803	233,433
Total current assets	15,626,475	16,769,789
Property and equipment, net of depreciation, depletion, and amortization
Oil and natural gas properties - full-cost method of accounting, of which $7,782,060 and $6,042,094 at September 30, 2012 and June 30, 2012, respectively, were excluded from amortization.	42,313,561	40,476,172
Other property and equipment	80,022	92,271
Total property and equipment	42,393,583	40,568,443
Advances to joint interest operating partner	325,995	1,366,921
Other assets	269,780	250,333
Total assets	58,615,833	58,955,486
Current liabilities
Accounts payable	438,238	407,570
Due joint interest partner	1,313,222	3,217,975
Accrued compensation	346,382	1,005,624
Royalties payable	242,203	294,013
Income taxes payable	183,289	91,967
Other current liabilities	256,759	71,768
Total current liabilities	2,780,093	5,088,917
Long term liabilities
Deferred income taxes	6,804,145	6,205,093
Asset retirement obligations	998,342	968,677
Deferred rent	65,724	70,011
Total liabilities	10,648,304	12,332,698
Commitments and contingencies (Note 11)
Stockholders' equity
Common stock; par value $0.001; 100,000,000 shares authorized: issued 28,840,163 shares at September 30, 2012, and 28,670,424 at June 30, 2012; outstanding 28,051,963 shares and 27,882,224 shares as of September 30, 2012 and June 30, 2012, respectively.	28,840	28,670
Additional paid-in capital	29,770,534	29,416,914
Retained earnings	19,049,860	18,058,909
Stockholders equity before treasury stock	48,849,551	47,504,810
Treasury stock, at cost, 788,200 shares as of September 30, 2012 and June 30, 2012	(882,022)	(882,022)
Total stockholders' equity	47,967,529	46,622,788
Total liabilities and stockholders' equity	58,615,833	58,955,486
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 authorized, 317,319 shares issued and outstanding at September 30, 2012 and June 30, 2012, with a liquidation preference of $25.00 per share.	$ 317	$ 317

Consolidated Balance Sheets (Parenthetical)	Sep. 30, 2012 USD ($) $ / shares shares	Jun. 30, 2012 USD ($) $ / shares shares
Oil and natural gas properties, excluded from amortization (in dollars) \| $	$ 7,782,060	$ 6,042,094
Preferred stock, par value (in dollars per share) \| $ / shares	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Common stock, par value (in dollars per share) \| $ / shares	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, issued shares	28,840,163	28,670,424
Common stock, outstanding shares	28,051,963	27,882,224
Treasury stock, shares	788,200	788,200
Series A Cumulative Preferred Stock
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	317,319	317,319
Preferred stock, shares outstanding	317,319	317,319

Consolidated Condensed Statements of Operations - USD ($)

3 Months Ended

Sep. 30, 2012

Sep. 30, 2011

Revenues

Crude oil

$ 4,005,422

$ 3,448,595

Natural gas liquids

119,611

188,455

Natural gas

166,513

247,806

Total revenues

4,291,546

3,884,856

Operating Costs

Lease operating expenses

316,169

202,917

Production taxes

21,373

14,035

Depreciation, depletion and amortization

296,917

236,891

Accretion of discount on asset retirement obligations

21,107

16,972

General and administrative expenses

^[1]

1,705,424

1,405,175

Total operating costs

2,360,990

1,875,990

Income from operations

1,930,556

2,008,866

Other

Interest income

5,616

7,246

Interest (expense)

(16,428)

Other income (expense)

(10,812)

7,246

Net income before income taxes

1,919,744

2,016,112

Income tax provision

760,218

872,594

Net Income

1,159,526

1,143,518

Dividends on Preferred Stock

168,575

127,835

Net income available to common shareholders

$ 990,951

$ 1,015,683

Basic (in dollars per share)

$ 0.04

Diluted (in dollars per share)

$ 0.03

Weighted average number of common shares

Basic (in shares)

27,938,297

27,669,355

Diluted (in shares)

31,763,488

31,279,350

[1]	General and administrative expenses for the three months ended September 30, 2012 and 2011 included non-cash stock-based compensation expense of $353,790 and $416,695, respectively.

Consolidated Condensed Statements of Operations (Parenthetical) - USD ($)	3 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Consolidated Condensed Statements of Operations
General and administrative expenses, non-cash stock-based compensation expense	$ 353,790	$ 416,695

Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Sep. 30, 2012	Sep. 30, 2011
Cash flows from operating activities
Net Income	$ 1,159,526	$ 1,143,518
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	307,129	236,891
Stock-based compensation	353,790	416,695
Accretion of discount on asset retirement obligations	21,107	16,972
Settlements of asset retirement obligations	(22,211)	(30,969)
Deferred income taxes	599,052	659,767
Accrued compensation		(180,000)
Deferred rent	(4,287)	(2,542)
Changes in operating assets and liabilities:
Receivables from oil and natural gas sales	(273,168)	106,424
Receivables from income taxes and other		28,678
Due to/from joint interest partner	(49,344)	(25,964)
Prepaid expenses and other current assets	56,630	(83,359)
Accounts payable and accrued expenses	(637,799)	(108,329)
Royalties payable	(51,810)	(387,747)
Income taxes payable	161,166	144,246
Net cash provided by operating activities	1,619,781	1,934,281
Cash flows from investing activities
Acquisitions of oil and natural gas properties	(743,720)	(167,964)
Development of oil and natural gas properties	(1,868,892)	(311,739)
Advances to joint venture operating partner	(101,790)
Other assets	(14,684)	(13,771)
Net cash used in investing activities	(2,729,086)	(493,474)
Cash flows from financing activities
Proceeds from issuances of preferred stock, net		6,054,456
Preferred stock dividends paid	(168,575)	(127,835)
Deferred loan costs	(16,211)
Net cash provided by (used in) financing activities	(184,786)	5,926,621
Net increase (decrease) in cash and cash equivalents	(1,294,091)	7,367,428
Cash and cash equivalents, beginning of period	14,428,548	4,247,438
Cash and cash equivalents, end of period	13,134,457	11,614,866
Supplemental disclosures of cash flow information:
Income taxes paid	0
Non-cash transactions:
Change in accounts payable used to acquire oil and natural gas leasehold interests and develop oil and natural gas properties	124,372	(136,610)
Change in due to joint interest partner used to acquire oil and natural gas leasehold interests and develop oil and natural gas properties	(646,932)
Change in accounts payable related to joint venture activities		225,438
Oil and natural gas properties incurred through recognition of asset retirement obligations	$ 8,558	$ (30,969)

Organization and Basis of Preparation

3 Months Ended

Sep. 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.

Interim Financial Statements. The accompanying unaudited consolidated condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the appropriate rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations. All adjustments (consisting of normal recurring accruals) which are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the interim periods presented have been included. The interim financial information and notes hereto should be read in conjunction with the Company’s 2012 Annual Report on Form 10-K for the fiscal year ended June 30, 2012, as filed with the SEC. The results of operations for interim periods are not necessarily indicative of results to be expected for a full fiscal year.

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 period may include certain reclassifications that were made to conform to the current presentation. Such reclassifications have no impact on previously reported loss or stockholders’ equity.

Use of Estimates. The preparation of financial statements in conformity with 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.

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+ Details

Property and Equipment

3 Months Ended

Sep. 30, 2012

Property and Equipment

Property and Equipment

Note 2 — Property and Equipment

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

	September 30, 2012			June 30, 2012
Oil and natural gas properties
Property costs subject to amortization	$	41,232,889		$	40,874,244
Less: Accumulated depreciation, depletion, and amortization	(6,701,388		)	(6,440,166		)
Unproved properties not subject to amortization	7,782,060			6,042,094
Oil and natural gas properties, net	$	42,313,561		$	40,476,172

Other property and equipment
Furniture, fixtures and office equipment, at cost	322,515			322,514
Less: Accumulated depreciation	(242,493		)	(230,243		)
Other property and equipment, net	$	80,022		$	92,271

Unproved properties not subject to amortization consists of unevaluated acreage of $7.8 million and $6.0 million as of September 30, 2012 and June 30, 2012, respectively, for our properties in the Mississippi Lime in Oklahoma. Our evaluation of impairment of unproved properties occurs, at a minimum, on a quarterly basis. Based on this evaluation there were no impaired properties for the three months ended September 30, 2012. During the corresponding prior year period, we transferred approximately $0.8 million of impaired assets, reflecting principally Woodford Shale properties, from our unevaluated pool to our full cost pool.

- 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

3 Months Ended

Sep. 30, 2012

Joint Interest Agreement

Joint Interest Agreement

Note 3 — 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 interests in oil and gas leases, associated surface rights and related assets located in the Mississippian Lime formation in Kay County in North Central Oklahoma. The Company agreed to contribute cash and a drilling carry to maintain its non-operated working interest in the joint venture. Orion contributed 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. To date one salt water disposal well and one producer well have been completed..

Our participation in this joint venture is reflected on our September 30, 2012 and June 30, 2012 balance sheets by the items below. Included in the $1.4 million June 30, 2012 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.

	September 30, 2012		June 30, 2012

Advances to joint interest operating partner	$	325,995	$	1,366,921
Due to joint interest partner	1,313,222		3,217,975

Asset Retirement Obligations

3 Months Ended

Sep. 30, 2012

Asset Retirement Obligations

Asset Retirement Obligations

Note 4 — 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 three months ended September 30, 2012:

	September 30, 2012

Asset retirement obligations — beginning of period	$	968,677
Liabilities incurred	3,126
Liabilities settled	—
Accretion of discount	21,107
Revision of previous estimates	5,432
Asset retirement obligations — end of period	$	998,342

Stockholders' Equity

3 Months Ended

Sep. 30, 2012

Stockholders' Equity

Stockholders' Equity

Note 5 — Stockholders’ Equity

Common Stock

On July 9, 2012, a contractor of the Company net exercised 30,000 stock options for a net issuance of 15,512 shares of common stock. The options were granted in March 2008 at an exercise price of $4.10 per share. See Note 6.

On September 6, 2012, the Board of Directors authorized and the Company issued 154,227 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 $1,223,020 related to the long-term incentive award will be recognized ratably over a four year period as the restricted common stock vests. See Note 6.

Series A Cumulative Perpetual Preferred Stock

There were no sales during the three months ended September 30, 2012. During the three months ended September 30, 2011, we sold 282,255 shares of our 8.5% Series A Cumulative (perpetual) Preferred Stock with a liquidation preference of $25.00 per share, 220,000 of which were sold in an underwritten public offering and 62,255 shares of which were sold under an at-the-market sales agreement (ATM), providing aggregate net proceeds of $6,054,456 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 three months ended September 30, 2012 and 2011, we paid dividends of $168,575 and $127,835, respectively, 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.

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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
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-Paragraph 10
-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 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 15
-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 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph d
-Article 4

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 29, 30, 31
-Article 5

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 20: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Article 4

Reference 21: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

Reference 22: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 129
-Paragraph 2, 3, 4, 5, 6, 7, 8
-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
-Section 04
-Article 3

+ Details

Stock-Based Incentive Plan

3 Months Ended

Sep. 30, 2012

Stock-Based Incentive Plan

Stock-Based Incentive Plan

Note 6 — Stock-Based Incentive Plan

We may grant option awards to purchase common stock (the “Stock Options”), restricted common stock awards (“Restricted Stock”), and 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 857,884 shares remain available for grant under the 2004 Stock Plan as of October 31, 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.

Stock Options and Incentive Warrants

Non-cash stock-based compensation expense related to Stock Options and Incentive Warrants for the three months ended September 30, 2012 and 2011 was $26,274 and $172,729, respectively.

There were no Stock Options granted during the three months ended September 30, 2012 and 2011.

The following summary presents information regarding outstanding Stock Options and Incentive Warrants as of September 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, 2012	5,372,820		$	1.83

Granted	—		—
Exercised	(30,000	)	$	4.10
Cancelled or forfeited	—		—
Expired	—		—

Stock Options and Incentive Warrants outstanding at September 30, 2012	5,342,820		$	1.82	$	33,440,689	3.2

Vested or expected to vest at September 30, 2012	5,342,820		$	1.82	$	33,440,689	3.2

Exercisable at September 30, 2012	5,342,820		$	1.82	$	33,440,689	3.2

(1) Based upon the difference between the market price of our common stock on the last trading date of the period ($8.08 as of September 30, 2012) and the Stock Option or Incentive Warrant exercise price of in-the-money Stock Options and Incentive Warrants.

There were 30,000 Stock Options exercised during the three months ended September 30, 2012 with an aggregate intrinsic value of $131,700.

A summary of the status of our unvested Stock Options and Incentive Warrants as of September 30, 2012 and the changes during the three months ended September 30, 2012, is presented below:

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

Unvested at July 1, 2012	18,922		$	2.45

Granted	—		—

Vested	(18,922	)	$	2.45

Forfeited	—		—

Unvested at September 30, 2012	—		$	—

During the three months ended September 30, 2012 and 2011, there were 18,922 and 86,083 Stock Options and Incentive Warrants that vested with a total grant date fair value of $46,359 and $162,697, respectively.

As of August 31, 2012 all compensation costs attributable to Stock Options and Incentive Warrants had been recognized.

Restricted Stock

Stock-based compensation expense related to Restricted Stock grants for the three months ended September 30, 2012 and 2011 was $327,516 and $249,966, respectively.

The following table sets forth the Restricted Stock transactions for the three months ended September 30, 2012:

	Number of Restricted Shares		Weighted Average Grant-Date Fair Value

Unvested at July 1, 2012	452,600		$	5.60

Granted	154,227		$	7.93

Vested	(55,321	)	$	4.41

Forfeited	—		—

Unvested at September 30, 2012	551,506		$	6.01

For the 154,227 shares awarded above, the grant date fair value reflects the stock’s closing price on the first trading day before the grant date. See Note 5. At September 30, 2012, unrecognized stock compensation expense related to Restricted Stock grants totaled $3,014,246. Such unrecognized expense will be recognized over a weighted average period of 2.9 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
-Topic 505
-SubTopic 50
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 40
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Paragraph 4
-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
-Publisher FASB
-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
-Paragraph 53
-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

Fair Value Measurement

3 Months Ended

Sep. 30, 2012

Fair Value Measurement

Fair Value Measurement

Note 7 — Fair Value Measurement

Accounting guidelines for measuring fair value establish a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy categorizes assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement.

The three levels are defined as follows:

Level 1 — Observable inputs such as quoted prices in active markets at the measurement date for identical, unrestricted assets or liabilities.

Level 2 — Other inputs that are observable directly or indirectly such as quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability.

Level 3 — Unobservable inputs for which there is little or no market data and which the Company makes its own assumptions about how market participants would price the assets and liabilities.

Fair Value of Financial Instruments. The Company’s other financial instruments consist of cash and cash equivalents, certificates of deposit, receivables and payables. The carrying amounts of cash and cash equivalents, receivables and payables approximate fair value due to the highly liquid or short-term nature of these instruments.

Other Fair Value Measurements. The initial measurement of asset retirement obligations at fair value is calculated using discounted future cash flows of internally estimated costs. Significant Level 3 inputs used in the calculation of asset retirement obligations include the costs of plugging and abandoning wells, surface restoration and reserve lives. Subsequent to initial recognition, revisions to estimated asset retirement obligations are made when changes occur for input values, which the Company reviews quarterly.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13537-108611

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13504-108611

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13433-108611

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15B
-Subparagraph a, b
-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 133
-Paragraph 44A, 44B
-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 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 17-22, 27, 28
-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 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15A
-Subparagraph a-d
-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 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15C, 15D
-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 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32, 33, 34
-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 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 3, 10, 14, 15
-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

Income Taxes

3 Months Ended

Sep. 30, 2012

Income Taxes

Income Taxes

Note 8 — 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 three months ended September 30, 2012. 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 federal and state income tax returns are open to audit under the statute of limitations for the years ending June 30, 2007 through June 30, 2011.

The Company recognized income tax expense of $760,218 and $872,594 for the three months ended September 30, 2012 and 2011, respectively, with corresponding effective rates of 39.6% and 43.3%.

Our effective tax rate for any period may differ from the statutory federal rate due to our state income tax liability in Louisiana and due to stock-based compensation expense related to qualified incentive stock option awards (“ISO awards”), both of which create a permanent tax difference for financial reporting, as these types of awards, if certain conditions are met, are not deductible for federal tax purposes.

- 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

Net Income Per Share

3 Months Ended

Sep. 30, 2012

Net Income Per Share

Net Income Per Share

Note 9 — Net Income Per Share

The following table sets forth the computation of basic and diluted income per share:

	Three Months Ended September 30
	2012		2011
Numerator
Net income available to common shareholders	$	990,951	$	1,015,683

Denominator

Weighted average number of common shares — Basic	27,938,297		27,669,355

Effect of dilutive securities:
Common stock warrants issued in connection with equity and financing transactions	852		59,057
Stock Options and Incentive Warrants	3,824,339		3,550,938
Total weighted average dilutive securities	3,825,191		3,609,995

Weighted average number of common shares and dilutive potential common shares used in diluted EPS	31,763,488		31,279,350

Net income per common share — Basic	$	0.04	$	0.04
Net income per common share — Diluted	$	0.03	$	0.03

Outstanding potentially dilutive securities as of September 30, 2012 were as follows:

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

Common stock warrants issued in connection with equity and financing transactions	$	2.50	1,165
Stock Options and Incentive Warrants	$	1.82	5,342,820
Total	$	1.82	5,343,985

Outstanding potentially dilutive securities as of September 30, 2011 were as follows:

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

Common stock warrants issued in connection with equity and financing transactions	$	2.50	92,365
Stock Options and Incentive Warrants	$	1.83	5,372,820
Total	$	1.84	5,465,185

Unsecured Revolving Credit Agreement

3 Months Ended

Sep. 30, 2012

Unsecured Revolving Credit Agreement

Unsecured Revolving Credit Agreement

Note 10 - 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 September 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 $179,468 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

3 Months Ended

Sep. 30, 2012

Commitments and Contingencies.

Commitments and Contingencies

Note 11 — 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.

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

For the twelve months ended September 30,
2013	$	159,011
2014	159,011
2015	159,011
Thereafter	132,509
Total	$	609,542

Rent expense for the three months ended September 30, 2012 and 2011 was $36,808 and $36,808, respectively.

Employment Contracts. We have employment agreements with the Company’s three named officers. 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 September 30, 2012 is approximately $685,000.

- 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
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-Subparagraph (SX 210.5-02.25)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

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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

Property and Equipment (Tables)

3 Months Ended

Sep. 30, 2012

Property and Equipment

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

	September 30, 2012			June 30, 2012
Oil and natural gas properties
Property costs subject to amortization	$	41,232,889		$	40,874,244
Less: Accumulated depreciation, depletion, and amortization	(6,701,388		)	(6,440,166		)
Unproved properties not subject to amortization	7,782,060			6,042,094
Oil and natural gas properties, net	$	42,313,561		$	40,476,172

Other property and equipment
Furniture, fixtures and office equipment, at cost	322,515			322,514
Less: Accumulated depreciation	(242,493		)	(230,243		)
Other property and equipment, net	$	80,022		$	92,271

Joint Interest Agreement (Tables)

3 Months Ended

Sep. 30, 2012

Joint Interest Agreement

Schedule of amounts pertaining to participation in joint venture

	September 30, 2012		June 30, 2012

Advances to joint interest operating partner	$	325,995	$	1,366,921
Due to joint interest partner	1,313,222		3,217,975

Asset Retirement Obligations (Tables)

3 Months Ended

Sep. 30, 2012

Asset Retirement Obligations

Schedule of reconciliation of the beginning and ending asset retirement obligation

	September 30, 2012

Asset retirement obligations — beginning of period	$	968,677
Liabilities incurred	3,126
Liabilities settled	—
Accretion of discount	21,107
Revision of previous estimates	5,432
Asset retirement obligations — end of period	$	998,342

Stock-Based Incentive Plan (Tables)

3 Months Ended

Sep. 30, 2012

Stock-Based Incentive Plan

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, 2012	5,372,820		$	1.83

Granted	—		—
Exercised	(30,000	)	$	4.10
Cancelled or forfeited	—		—
Expired	—		—

Stock Options and Incentive Warrants outstanding at September 30, 2012	5,342,820		$	1.82	$	33,440,689	3.2

Vested or expected to vest at September 30, 2012	5,342,820		$	1.82	$	33,440,689	3.2

Exercisable at September 30, 2012	5,342,820		$	1.82	$	33,440,689	3.2

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, 2012	18,922		$	2.45

Granted	—		—

Vested	(18,922	)	$	2.45

Forfeited	—		—

Unvested at September 30, 2012	—		$	—

Schedule of Restricted Stock transactions

	Number of Restricted Shares		Weighted Average Grant-Date Fair Value

Unvested at July 1, 2012	452,600		$	5.60

Granted	154,227		$	7.93

Vested	(55,321	)	$	4.41

Forfeited	—		—

Unvested at September 30, 2012	551,506		$	6.01

Net Income Per Share (Tables)

3 Months Ended

Sep. 30, 2012

Net Income Per Share

Schedule of computation of basic and diluted loss per share

	Three Months Ended September 30
	2012		2011
Numerator
Net income available to common shareholders	$	990,951	$	1,015,683

Denominator

Weighted average number of common shares — Basic	27,938,297		27,669,355

Effect of dilutive securities:
Common stock warrants issued in connection with equity and financing transactions	852		59,057
Stock Options and Incentive Warrants	3,824,339		3,550,938
Total weighted average dilutive securities	3,825,191		3,609,995

Weighted average number of common shares and dilutive potential common shares used in diluted EPS	31,763,488		31,279,350

Net income per common share — Basic	$	0.04	$	0.04
Net income per common share — Diluted	$	0.03	$	0.03

Schedule of outstanding potentially dilutive securities

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

Common stock warrants issued in connection with equity and financing transactions	$	2.50	1,165
Stock Options and Incentive Warrants	$	1.82	5,342,820
Total	$	1.82	5,343,985

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

Common stock warrants issued in connection with equity and financing transactions	$	2.50	92,365
Stock Options and Incentive Warrants	$	1.83	5,372,820
Total	$	1.84	5,465,185

Commitments and Contingencies (Tables)

3 Months Ended

Sep. 30, 2012

Commitments and Contingencies.

Schedule of future minimum lease commitments under the operating lease

For the twelve months ended September 30,
2013	$	159,011
2014	159,011
2015	159,011
Thereafter	132,509
Total	$	609,542

Property and Equipment (Details) - USD ($)	3 Months Ended
Property and Equipment (Details) - USD ($)	Sep. 30, 2012	Jun. 30, 2012
Property and Equipment
Property and Equipment, Net	$ 42,393,583	$ 40,568,443
Oil and natural gas properties
Property costs subject to amortization	41,232,889	40,874,244
Less: Accumulated depreciation, depletion, and amortization	(6,701,388)	(6,440,166)
Unproved properties not subject to amortization	7,782,060	6,042,094
Other property and equipment
Furniture, fixtures and office equipment, at cost	322,515	322,514
Less: Accumulated depreciation	(242,493)	(230,243)
Mississippi Lime
Other property and equipment
Unevaluated acreage included in unproved properties not subject to amortization	7,800,000	6,000,000
Woodford Shale properties
Other property and equipment
Impaired assets transferred in prior period	800,000
Oil and natural gas properties
Property and Equipment
Property and Equipment, Net	42,313,561	40,476,172
Other Property and Equipment
Property and Equipment
Property and Equipment, Net	$ 80,022	$ 92,271

Joint Interest Agreement (Details)	1 Months Ended	5 Months Ended
Joint Interest Agreement (Details)	Apr. 30, 2012 item	Sep. 30, 2012 USD ($) item	Jun. 30, 2012 USD ($)
Participation in joint venture
Advances to joint interest operating partner		$ 325,995	$ 1,366,921
Due to joint interest partner		$ 1,313,222	3,217,975
Joint interest arrangement \| Kay County in North Central Oklahoma
Joint Interest Agreement
Field operations, number of salt water disposal wells \| item		1
Field operations, number of producer wells \| item		1
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		$ 325,995	1,366,921
Advances to joint interest operating partner, accrued drilling cash call			1,142,716
Due to joint interest partner		$ 1,313,222	$ 3,217,975

Asset Retirement Obligations (Details) - USD ($)	3 Months Ended
Asset Retirement Obligations (Details) - USD ($)	Sep. 30, 2012	Sep. 30, 2011
Reconciliation of the beginning and ending asset retirement obligation
Asset retirement obligations - beginning of period	$ 968,677
Liabilities incurred	3,126
Accretion of discount	21,107	$ 16,972
Revisions to previous estimates	5,432
Asset retirement obligations - end of period	$ 998,342

Stockholders' Equity (Details) - USD ($)			3 Months Ended
Stockholders' Equity (Details) - USD ($)	Sep. 06, 2012	Jul. 09, 2012	Sep. 30, 2012
Restricted stock
Total unrecognized stock-based compensation expense			$ 3,014,246
Period for recognition of stock-based compensation expense (vesting period)			2 years 10 months 24 days
Stock options
Stock options exercised (in shares)			30,000
2004 Stock Plan \| Restricted stock
Total unrecognized stock-based compensation expense	$ 1,223,020
Period for recognition of stock-based compensation expense (vesting period)	4 years
2004 Stock Plan \| Common stock
Number of shares issued	154,227
2004 Stock Plan \| Contractor \| Stock options
Stock options exercised (in shares)		30,000
Exercise price of options (in dollars per share)		$ 4.10
2004 Stock Plan \| Contractor \| Common stock
Net share issuance		15,512

Stockholders' Equity (Details 2)	3 Months Ended
Stockholders' Equity (Details 2)	Sep. 30, 2012 USD ($)	Sep. 30, 2011 USD ($) $ / shares shares	Sep. 30, 2012 item	Jun. 30, 2012 item
Series A Cumulative Perpetual Preferred Stock
Preferred stock, liquidation preference (in dollars per share) \| item			item 25.00	item 25.00
Net proceeds from issuances of preferred stock \| $		$ 6,054,456
Preferred stock dividends paid \| $	$ 168,575	$ 127,835
Series A cumulative perpetual preferred stock
Series A Cumulative Perpetual Preferred Stock
Number of shares sold of series A cumulative perpetual preferred stock \| shares		282,255
Preferred stock dividend rate (as a percent)		8.50%
Preferred stock, liquidation preference (in dollars per share) \| $ / shares		$ 25.00
Net proceeds from issuances of preferred stock \| $		$ 6,054,456
Dividend payable monthly on preferred stock (in dollars per share) \| $ / shares		$ 0.177083
Preferred stock dividends paid \| $	$ 168,575	$ 127,835
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		62,255
Series A cumulative perpetual preferred stock \| Minimum
Series A Cumulative Perpetual Preferred Stock
Redemption price per share (in dollars per share) \| $ / shares		$ 25.25
Series A cumulative perpetual preferred stock \| Maximum
Series A Cumulative Perpetual Preferred Stock
Redemption price per share (in dollars per share) \| $ / shares		$ 25.75

Stock-Based Incentive Plan (Details) - USD ($)	3 Months Ended		110 Months Ended
Stock-Based Incentive Plan (Details) - USD ($)	Sep. 30, 2012	Sep. 30, 2011	Oct. 31, 2012
Stock Options and Incentive Warrants
Stock-Based Incentive Plan
Non-cash stock-based compensation expense	$ 26,274	$ 172,729
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
Number of shares remaining available for grant under plan			857,884
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

Stock-Based Incentive Plan (Details 2)	3 Months Ended
Stock-Based Incentive Plan (Details 2)	Sep. 30, 2012 USD ($) $ / shares shares
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) \| $ / shares	$ 8.08
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) \| shares	5,372,820
Exercised (in shares) \| shares	(30,000)
Stock Options and Incentive Warrants outstanding at the end of the period (in shares) \| shares	5,342,820
Vested or expected to vest at the end of the period (in shares) \| shares	5,342,820
Exercisable at the end of the period (in shares) \| shares	5,342,820
Weighted Average Exercise Price
Stock Options and Incentive Warrants outstanding at the beginning of the period (in dollars per share) \| $ / shares	$ 1.83
Exercised (in dollars per share) \| $ / shares	4.10
Stock Options and Incentive Warrants outstanding at the end of the period (in dollars per share) \| $ / shares	1.82
Vested or expected to vest at the end of the period (in dollars per share) \| $ / shares	1.82
Exercisable at the end of the period (in dollars per share) \| $ / shares	$ 1.82
Aggregate Intrinsic Value
Stock Options and Incentive Warrants outstanding at the end of the period \| $	$ 33,440,689
Vested or expected to vest at the end of the period \| $	33,440,689
Exercisable at the end of the period (in dollars) \| $	$ 33,440,689
Weighted Average Remaining Contractual Term (in years)
Stock Options and Incentive Warrants outstanding at the end of the period	3 years 2 months 12 days
Vested or expected to vest at the end of the period	3 years 2 months 12 days
Exercisable at the end of the period	3 years 2 months 12 days
Stock Options
Additional disclosures of Stock Options and Incentive Warrants
Number of Stock Options exercised (in shares) \| shares	30,000
Aggregate intrinsic value of Stock Options exercised \| $	$ 131,700

Stock-Based Incentive Plan (Details 3) - Stock Options and Incentive Warrants - USD ($)	3 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Number of Stock Options and Incentive Warrants
Unvested at the beginning of the period (in shares)	18,922
Vested (in shares)	(18,922)	(86,083)
Weighted Average Grant-Date Fair Value
Unvested at the beginning of the period (in dollars per share)	$ 2.45
Vested (in dollars per share)	$ 2.45
Additional disclosures of Stock Options and Incentive Warrants
Total fair value of awards vested	$ 46,359	$ 162,697

Stock-Based Incentive Plan (Details 4) - Restricted Stock - USD ($)	3 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Stock-Based Incentive Plan
Stock-based compensation expense	$ 327,516	$ 249,966
Number of Restricted Shares
Unvested at the beginning of the period (in shares)	452,600
Granted (in shares)	154,227
Vested (in shares)	(55,321)
Unvested at the end of the period (in shares)	551,506
Weighted Average Grant-Date Fair Value
Unvested at the beginning of the period (in dollars per share)	$ 5.60
Granted (in dollars per share)	7.93
Vested (in dollars per share)	4.41
Unvested at the end of the period (in dollars per share)	$ 6.01
Additional disclosures of restricted stock
Unrecognized stock compensation expense related to Restricted Stock grants	$ 3,014,246
Weighted average remaining service period over which unrecognized compensation cost is expected to be recognized	2 years 10 months 24 days

Income Taxes (Details) - USD ($)	3 Months Ended
Income Taxes (Details) - USD ($)	Sep. 30, 2012	Sep. 30, 2011
Income Taxes
Income tax provision (benefit)	$ 760,218	$ 872,594
Income tax expense, effective rates (as a percent)	39.60%	43.30%

Net Income Per Share (Details) - USD ($)	3 Months Ended
Net Income Per Share (Details) - USD ($)	Sep. 30, 2012	Sep. 30, 2011
Numerator
Net income available to common shareholders	$ 990,951	$ 1,015,683
Denominator
Weighted average number of common shares - Basic	27,938,297	27,669,355
Effect of dilutive securities:
Common stock warrants issued in connection with equity and financing transactions (in shares)	852	59,057
Stock Options and Incentive Warrants (in shares)	3,824,339	3,550,938
Total weighted average dilutive securities (in shares)	3,825,191	3,609,995
Weighted average number of common shares and dilutive potential common shares used in diluted EPS	31,763,488	31,279,350
Net income per common share - Basic (in dollars per share)	$ 0.04	$ 0.04
Net income per common share - Diluted (in dollars per share)	$ 0.03	$ 0.03

Net Income Per Share (Details 2) - $ / shares	3 Months Ended
Net Income Per Share (Details 2) - $ / shares	Sep. 30, 2012	Sep. 30, 2011
Outstanding Potential Dilutive Securities
Weighted Average Exercise Price (in dollars per share)	$ 1.82	$ 1.84
Balance at the end of the period (in shares)	5,343,985	5,465,185
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
Balance at the end of the period (in shares)	1,165	92,365
Stock Options and Incentive Warrants
Outstanding Potential Dilutive Securities
Weighted Average Exercise Price (in dollars per share)	$ 1.82	$ 1.83
Balance at the end of the period (in shares)	5,342,820	5,372,820

- 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	3 Months Ended
Unsecured Revolving Credit Agreement (Details)	Feb. 29, 2012 USD ($)	Sep. 30, 2012 USD ($) 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	179,468
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 \| item		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)	3 Months Ended
Commitments and Contingencies (Details)	Sep. 30, 2012 USD ($) item	Sep. 30, 2011 USD ($)
Lease Commitments
2013	$ 159,011
2014	159,011
2015	159,011
Thereafter	132,509
Total	609,542
Rent expense	$ 36,808	$ 36,808
Employment Contracts
Commitments and Contingencies
Number of senior executives in employment agreements \| item	3
Total contingent obligation	$ 685,000
Employment Contracts \| Low end of the range
Commitments and Contingencies
Period of benefits to employees after termination	6 months