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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Dec. 31, 2013	Jan. 31, 2014
Document and Entity Information
Entity Registrant Name	EVOLUTION PETROLEUM CORP
Entity Central Index Key	0001006655
Document Type	10-Q
Document Period End Date	Dec. 31, 2013
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		32,394,999
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q2

Consolidated Condensed Balance Sheets - USD ($)	Dec. 31, 2013	Jun. 30, 2013
Current assets
Cash and cash equivalents	$ 25,542,782	$ 24,928,585
Certificate of deposit		250,000
Receivables
Oil and natural gas sales	1,497,561	1,632,853
Income taxes	281,970	281,970
Joint interest partner	2,368	49,063
Other	12,088	918
Deferred tax asset	26,133	26,133
Prepaid expenses and other current assets	633,980	266,554
Total current assets	27,996,882	27,436,076
Property and equipment, net of depreciation, depletion, and amortization
Oil and natural gas properties - full-cost method of accounting, of which $4,258,459 and $4,112,704 at December 31, 2013 and June 30, 2013,respectively, were excluded from amortization	38,244,071	38,789,032
Other property and equipment	48,182	52,217
Total property and equipment	38,292,253	38,841,249
Advances to joint interest operating partner	43,646	26,059
Other assets	235,972	252,912
Total assets	66,568,753	66,556,296
Current liabilities
Accounts payable	325,294	642,018
Due to joint interest partner	86,289	127,081
Accrued compensation	743,804	1,385,494
Accrued restructuring charges	955,821
Royalties payable	139,553	91,427
Income taxes payable		233,548
Other current liabilities	537,114	153,182
Total current liabilities	2,787,875	2,632,750
Long term liabilities
Deferred income taxes	8,748,636	8,418,969
Asset retirement obligations	156,756	615,551
Deferred rent	44,293	52,865
Total liabilities	11,737,560	11,720,135
Commitments and contingencies (Note 11)
Stockholders' equity
Common stock; par value $0.001; 100,000,000 shares authorized: issued 32,062,186 shares at December 31, 2013, and 29,410,858 at June 30, 2013; outstanding 32,062,186 shares and 28,608,969 shares as of December 31, 2013 and June 30, 2013, respectively	32,062	29,410
Additional paid-in capital	33,264,497	31,813,239
Retained earnings	21,534,317	24,013,035
Stockholders equity before treasury stock	54,831,193	55,856,001
Treasury stock, at cost, no shares and 801,889 shares as of December 31, 2013 and June 30, 2013, respectively		(1,019,840)
Total stockholders' equity	54,831,193	54,836,161
Total liabilities and stockholders' equity	66,568,753	66,556,296
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 December 31, 2013, and June 30, 2013 with a liquidation preference of $7,932,975 ($25.00 per share)	$ 317	$ 317

Consolidated Condensed Balance Sheets (Parenthetical) - USD ($)	6 Months Ended	12 Months Ended
	Dec. 31, 2013	Jun. 30, 2013
Oil and natural gas properties, excluded from amortization (in dollars)	$ 4,258,459	$ 4,112,704
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	32,062,186	29,410,858
Common stock, outstanding shares	32,062,186	28,608,969
Treasury stock, shares	0	801,889
Series A Cumulative Preferred Stock
Preferred stock, shares authorized	1,000,000	1,000,000
Cumulative Preferred Stock (as a percent)	8.50%	8.50%
Preferred stock, shares issued	317,319	317,319
Preferred stock, shares outstanding	317,319	317,319
Preferred stock, total liquidation preference (in dollars)	$ 7,932,975	$ 7,932,975
Preferred stock, liquidation preference (in dollars per share)	$ 25.00	$ 25.00

Consolidated Condensed Statements of Operations - USD ($)

3 Months Ended

6 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2013

Dec. 31, 2012

Revenues

Crude oil

$ 4,344,765

$ 5,379,399

$ 8,936,142

$ 9,384,821

Natural gas liquids

25,956

86,556

50,102

206,167

Natural gas

21,568

182,103

39,744

348,616

Total revenues

4,392,289

5,648,058

9,025,988

9,939,604

Operating Costs

Lease operating expenses

223,498

419,328

633,345

735,497

Production taxes

13,032

20,863

21,435

42,236

Depreciation, depletion and amortization

327,168

350,119

636,841

647,036

Accretion of discount on asset retirement obligations

12,418

17,751

25,346

38,858

General and administrative expenses

^[1]

2,642,082

1,815,276

4,571,033

3,520,700

Restructuring charges

^[2]

1,332,186

Total operating costs

4,550,384

2,623,337

7,220,186

4,984,327

Income (loss) from operations

(158,095)

3,024,721

1,805,802

4,955,277

Other

Interest income

7,701

5,614

15,404

11,230

Interest (expense)

(16,582)

(16,564)

(33,095)

(32,992)

Other income (expense)

(8,881)

(10,950)

(17,691)

(21,762)

Income (loss) before income taxes

(166,976)

3,013,771

1,788,111

4,933,515

Income tax provision

241,907

1,054,499

724,543

1,814,717

Net Income (Loss)

(408,883)

1,959,272

1,063,568

3,118,798

Dividends on Preferred Stock

168,576

337,151

Net income (loss) available to common shareholders

$ (577,459)

$ 1,790,696

$ 726,417

$ 2,781,647

Basic (in dollars per share)

$ (0.02)

$ 0.06

$ 0.03

$ 0.10

Diluted (in dollars per share)

$ (0.02)

$ 0.06

$ 0.02

$ 0.09

Weighted average number of common shares

Basic (in shares)

30,063,676

28,071,317

29,335,498

28,032,223

Diluted (in shares)

30,063,676

31,856,417

32,377,918

31,836,983

[1]	General and administrative expenses for the three months ended December 31, 2013 and 2012 included non-cash stock-based compensation expense of $316,422 and $393,579, respectively. For the corresponding six month period?s non-cash stock-based compensation expense was $689,860 and $747,369, respectively.
[2]	Restructuring charges for the three months ended December 31, 2013 included non-cash stock-based compensation expense of $376,365.

Consolidated Condensed Statements of Operations (Parenthetical) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Stock-based compensation expense			$ 689,860	$ 747,369
General and administrative expenses
Stock-based compensation expense	$ 316,422	$ 393,579	689,860	$ 747,369
Restructuring charges
Stock-based compensation expense	$ 376,365		$ 376,365

Consolidated Condensed Statements of Cash Flows - USD ($)	6 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Cash flows from operating activities
Net Income	$ 1,063,568	$ 3,118,798
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	657,265	667,461
Stock-based compensation	689,860	747,369
Stock-based compensation related to restructuring	376,365
Accretion of discount on asset retirement obligations	25,346	38,858
Settlements of asset retirement obligations	(57,247)	(47,026)
Deferred income taxes	329,667	1,498,760
Deferred rent	(8,574)	(8,574)
Changes in operating assets and liabilities:
Receivables from oil and natural gas sales	135,292	(797,933)
Receivables from income taxes and other	(11,170)	(116)
Due to/from joint interest partner	4,687	40,050
Prepaid expenses and other current assets	(367,426)	48,591
Accounts payable and accrued expenses	174,842	(390,979)
Royalties payable	48,126	(74,876)
Income taxes payable	(233,548)	115,801
Net cash provided by operating activities	2,827,053	4,956,184
Cash flows from investing activities
Proceeds from asset sales	544,442	3,054,976
Capital expenditures for oil and natural gas properties	(856,943)	(4,013,430)
Capital expenditures for other property and equipment	(9,637)
Other assets	(5,957)	(26,110)
Net cash used in investing activities	(328,095)	(984,564)
Cash flows from financing activities
Proceeds on exercise of incentive stock options	2,141,500
Cash dividends to preferred stockholders	(337,151)	(337,151)
Cash dividends to common stockholders	(3,205,135)
Purchases of treasury stock	(1,127,801)	(16,968)
Windfall tax benefit	386,976
Maturity of certificate of deposit	250,000
Recovery of short swing profits	6,850
Deferred loan costs		(16,211)
Net cash used in financing activities	(1,884,761)	(370,330)
Net increase in cash and cash equivalents	614,197	3,601,290
Cash and cash equivalents, beginning of period	24,928,585	14,428,548
Cash and cash equivalents, end of period	25,542,782	18,029,838
Our supplemental disclosures of cash flow information for the six months ended December 31, 2012 and 2011 are as follows:
Income taxes paid	755,564	200,156
Non-cash transactions:
Change in accounts payable used to acquire oil and natural gas leasehold interests and develop oil and natural gas properties	(225,062)	31,885
Change in due to joint interest partner used to acquire oil and natural gas leasehold interests and develop oil and natural gas properties	1,216	(435,833)
Oil and natural gas properties incurred through recognition of asset retirement obligations	48,988	$ 8,558
Previously acquired Company shares swapped by holders to pay stock option exercise price	$ 618,606

Consolidated Condensed Statement of Changes in Stockholders' Equity - 6 months ended Dec. 31, 2013 - USD ($)

Total

Preferred

Common Stock

Additional Paid-in Capital

Retained Earnings

Treasury Stock

Balance at Jun. 30, 2013

$ 54,836,161

$ 317

$ 29,410

$ 31,813,239

$ 24,013,035

$ (1,019,840)

Balance (in shares) at Jun. 30, 2013

317,319

28,608,969

Increase (Decrease) in Stockholders' Equity

Stock-based compensation

^[1]

1,066,225

Exercise of stock options

2,760,107

$ 2,727

2,757,380

Exercise of stock options (in shares)

2,726,911

Exercise of stock warrants

$ 905

(905)

Exercise of stock warrants (in shares)

905,391

Issuance of restricted stock

$ 16

(16)

Issuance of restricted stock (in shares)

16,476

Forfeitures of restricted stock

$ (51)

Forfeiture of restricted stock (in shares)

(51,099)

Purchases of treasury stock

$ (1,746,407)

(1,746,407)

Purchases of treasury stock (in shares)

(144,462)

Retirements of treasury stock

$ (945)

(2,765,302)

$ 2,766,247

Net income

$ 1,063,568

1,063,568

Common Stock cash dividends

(3,205,135)

Preferred Stock cash dividends

(337,151)

Windfall tax benefit

386,975

Recovery of short swing profits

6,850

Balance at Dec. 31, 2013

$ 54,831,193

$ 317

$ 32,062

$ 33,264,497

$ 21,534,317

Balance (in shares) at Dec. 31, 2013

317,319

32,062,186

[1]	Includes $376,365 of stock compensation reflected in restructuring charges.

Consolidated Condensed Statement of Changes in Stockholders' Equity (Parenthetical)

6 Months Ended

Dec. 31, 2013

USD ($)

Stock-based compensation expense

$ 1,066,225

^[1]

Restructuring charges

Stock-based compensation expense

$ 376,365

[1]	Includes $376,365 of stock compensation reflected in restructuring charges.

Organization and Basis of Preparation	6 Months Ended
Organization and Basis of Preparation	Dec. 31, 2013
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 exploitation, development and re-development of known oil and gas resources for the production of crude oil and natural gas, utilizing conventional, specialized and proprietary 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 2013 Annual Report on Form 10-K for the fiscal year ended June 30, 2013, 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, Evolution Operating Co., Inc. Evolution Petroleum OK, Inc. and NGS Technologies, Inc. and its three wholly owned subsidiaries. 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

6 Months Ended

Dec. 31, 2013

Property and Equipment

Property and Equipment

Note 2 —Property and Equipment

As of December 31, 2013 and June 30, 2013 our oil and natural gas properties and other property and equipment consisted of the following:

	December 31, 2013			June 30, 2013
Oil and natural gas properties
Property costs subject to amortization	$	42,746,486		$	42,772,184
Less: Accumulated depreciation, depletion, and amortization	(8,760,874		)	(8,095,856		)
Unproved properties not subject to amortization	4,258,459			4,112,704
Oil and natural gas properties, net	$	38,244,071		$	38,789,032

Other property and equipment
Furniture, fixtures and office equipment, at cost	332,151			322,514
Less: Accumulated depreciation	(283,969		)	(270,297		)
Other property and equipment, net	$	48,182		$	52,217

Unproved property not subject to amortization consists of unevaluated acreage of $4.2 million and $4.1 million as of December 31, 2013 and June 30, 2013, 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. During the six months ended December 31, 2013 and the corresponding 2012 period, no impairments have been recorded.

Joint Interest Agreement

6 Months Ended

Dec. 31, 2013

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. Our participation in this joint venture is reflected on our December 31, 2013 and June 30, 2013 balance sheets by the items below.

	December 31, 2013		June 30, 2013

Advances to joint interest operating partner	$	43,646	$	26,059
Due to joint interest partner	86,289		127,081

Asset Retirement Obligations

6 Months Ended

Dec. 31, 2013

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 are reconciliations of the beginning and ending asset retirement obligation balances:

	December 31, 2013			June 30, 2013

Asset retirement obligations — beginning of period	$	615,551		$	968,677
Liabilities sold	(48,273		)	(439,927		)
Liabilities incurred	—			60,143
Liabilities settled	(53,295		)	(51,086		)
Accretion of discount	25,346			72,312
Revision of previous estimates	48,988			5,432
Asset retirement obligations due within one year included in “Other current liabilities”	(431,561		)	—
Asset retirement obligations — end of period	$	156,756		$	615,551

Stockholders' Equity	6 Months Ended
Stockholders' Equity	Dec. 31, 2013
Stockholders' Equity
Stockholders' Equity	Note 5 — Stockholders’ Equity *Common Stock* During the six months ended December 31, 2013 we issued (i) 1,008,657 shares of our common stock upon the exercise of incentive stock options (ISOs), receiving cash proceeds totaling $2.1 million, and (ii) 2,622,723 of our common shares upon cashless exercises of nonqualified stock options (NQSOs) and incentive warrants, all being exercised on a net basis, except for 50,956 of previously acquired shares owned by option holders that were swapped in payment of the exercise price. The weighted average cost of these swapped shares was $12.14. Additional paid-in capital increased $4.2 million, due to $1.1 million of stock compensation amortization ($0.4 million of which in the restructuring charge), $2.8 million from the exercise of stock options and warrants listed in (i) and (ii) above, and $0.4 million from tax benefits associated with stock compensation (i.e. windfall tax benefit). Additional paid-in capital decreased by $2.8 million, due to the retirement of 801,889 shares of treasury stock acquired in previous fiscal years at a cost of approximately $1 million, and our purchase of 144,462 shares of Treasury Stock from employees and directors at a cost of $12.09 per share or $1.7 million. 93,506 of such shares were in satisfaction of payroll tax liabilities from exercises and restricted stock vestings (requiring cash outlays by us) and 50,956 shares were received from option holders in “swap” cashless stock option exercises, using stock previously owned by the option holder. These acquisitions reduced the number of our common shares outstanding by 946,351 shares. In December 2013 retained earnings were reduced by the $3.2 million of cash dividends we made to our common shareholders as the result of a common stock dividend policy approved by the Board of Directors in November 2013. Since we expect the windfall tax benefit created by the recent exercise of warrants and NQSOs will drive our tax earnings and profits account into a deficit at June 30, 2014, all cash dividends on common shares paid in December 2013 will be treated for tax purposes as a return of capital and not as dividend income to the shareholder. *Recovery of Stockholder Short Swing Profit* In September 2013, an executive officer of the Company paid $6,850 to the Company, representing the disgorgement of short swing profits under Section 16(b) under the Exchange Act. The amount was recorded as additional paid-in capital. *Series A Cumulative Perpetual Preferred Stock* At December 31, 2013, there were 317,319 shares of the Company’s 8.5% Series A Cumulative (perpetual) Preferred Stock outstanding. The Series A Cumulative Preferred Stock has a liquidation preference of $25.00 per share and cannot be converted into our common stock. 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 earlier by an acquirer under a change of control at a redemption price of $25.25 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 six months ended December 31, 2013 we paid $337,151 of cash dividends to holders of our Series A Preferred Stock. Since we expect the windfall tax benefit created by the recent exercise of warrants and NQSOs will drive our tax earnings and profits account into a deficit at June 30, 2014, cash dividends for the six months ended December 31, 2013 will be treated for tax purposes as a return of capital and not as dividend income to the shareholder.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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-Name Accounting Standards Codification
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-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
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-Number 210
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+ Details

Stock-Based Incentive Plan

6 Months Ended

Dec. 31, 2013

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 further shares are available for grant under the 2003 Stock Plan and 784,438 shares remain available for grant under the 2004 Stock Plan as of December 31, 2013.

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 our success and to remain in our service (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

For the six months ended December 31, 2013 and 2012, stock-based compensation expense was $- and $26,274, respectively. As of August 31, 2012 all compensation costs attributable to Stock Options and Incentive Warrants had been recognized.

No Stock Options or Incentive Warrants have been granted since August 2008.

The following summary presents information regarding outstanding Stock Options and Incentive Warrants as of December 31, 2013, 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, 2013	4,822,820		$	1.99

Exercised	(4,069,815	)	$	1.99

Stock Options and Incentive Warrants outstanding at December 31, 2013	753,005		$	2.01	$	7,778,744	2.0

Vested or expected to vest at December 31, 2013	753,005		$	2.01	$	7,778,744	2.0

Exercisable at December 31, 2013	753,005		$	2.01	$	7,778,744	2.0

(1) Based upon the difference between the market price of our common stock on the last trading date of the period ($12.34 as of December 31, 2013) and the Stock Option or Incentive Warrant exercise price of in-the-money Stock Options and Incentive Warrants.

There were 4,069,815 Stock Options and Warrants exercised during the six months ended December 31, 2013 with an aggregate intrinsic value of $41,247,805.

During the six months ended December 31, 2012 there were 18,922 Stock Options and Incentive Warrants that vested with a total grant date fair value of $46,359 and no unvested Stock Options and Incentive Warrants remained.

Restricted Stock

Stock-based compensation expense related to Restricted Stock grants for the three months ended December 31, 2013 and 2012 was $316,422 and $393,579, respectively. For the six months ended December 31, 2013 and 2012, such compensation expense was $689,860 and $747,369, respectively. See Note 12 — Restructuring, for stock compensation included in Restructuring Charge for the six months ended December 31, 2013.

The following table sets forth the Restricted Stock transactions for the six months ended December 31, 2013:

	Number of Restricted Shares		Weighted Average Grant-Date Fair Value

Unvested at July 1, 2013	386,599		$	6.65

Granted	16,476		12.14

Vested	(142,404	)	$	6.21

Forfeited	(9,066	)	$	5.98

Unvested at December 31, 2013	251,605		$	7.28

At December 31, 2013, unrecognized stock compensation expense related to Restricted Stock grants totaled $1,359,862. Such unrecognized expense will be recognized over a weighted average period of 1.8 years.

Fair Value Measurement	6 Months Ended
Fair Value Measurement	Dec. 31, 2013
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 we review 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 + Details

Income Taxes	6 Months Ended
Income Taxes	Dec. 31, 2013
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 FIN 48 unrecognized tax benefits nor any accrued interest or penalties associated with unrecognized tax benefits during the six months ended December 31, 2013. We believe we have appropriate support for the income tax positions taken and to be taken on our 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, 2009 through June 30, 2012. Our effective tax rate for any period may differ from the statutory federal rate due to (i) our state income tax liability in Louisiana; (ii) stock-based compensation expense related to qualified incentive stock option awards (“ISO awards”), which creates a permanent tax difference for financial reporting, as these types of awards, if certain conditions are met, are not deductible for federal tax purposes; and (iii) statutory percentage depletion, which may create a permanent tax difference for financial reporting. Our estimated annual income tax rate used to determine income tax expense for the six months ended December 31, 2013 does not include the utilization of statutory depletion deductions in excess of basis carried over from previous years that had driven our book tax rate well below statutory rates during the three months ended September 30, 2013. Instead our tax benefits were changed significantly during November and December 2013 when our employees, officers and directors exercised more than 4 million of 4.8 million stock options and incentive warrants, resulting in approximately $31.2 million of tax deductions (“Option Deductions”) available to us resulting in a tax impacted benefit of approximately $10.6 million assuming a 34% statutory rate. On a financial reporting basis this is expected to result in a tax benefit associated with stock compensation (i.e. windfall tax benefit) to the extent of expected cash income taxes payable generated in fiscal year 2014. The remainder of the Option Deductions result in an unbenefitted net operating loss associated with stock compensation to benefit future fiscal years. To the extent the Option Deductions cause a net operating loss, no deferred tax asset is recorded under the rules of ASC 718. The Option Deductions will be recorded as a reduction in current income taxes payable each year and an increase in equity to the extent cash taxes payable are reduced to zero. Because the Option Deductions are expected to reduce taxable income to zero for the year ended June 30, 2014, percentage depletion is no longer available for the current year, thus negating the beneficial rate reduction for the percentage depletion in excess of basis. Percentage depletion that is no longer expected to be deductible in 2014, will be carried forward to future years. The Option Deductions will only impact reported earnings by increasing the projected effective tax rate closer to the statutory rate in those years affected by the Option Deductions due to percentage depletion in excess of basis deduction being delayed and carried forward. Our effective annual tax rate estimated as December 31, 2013 was impacted by this postponement of depletion in excess of basis. Our estimated annual income tax rate used to determine income tax expense for the three months ended September 30, 2013 included the utilization of statutory depletion deductions carried over from previous years resulting in a higher than normal rate benefit from depletion in excess of basis which has been reversed in the current fiscal quarter. We recognized income tax expense of $724,543 and $1,814,717 for the six months ended December 31, 2013 and 2012, respectively, with corresponding effective rates of 41% and 37%.

Net Income Per Share

6 Months Ended

Dec. 31, 2013

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 December 31,					Six Months Ended December 31,
	2013			2012		2013		2012
Numerator
Net income available to common shareholders	$	(577,459	)	$	1,790,696	$	726,417	$	2,781,647

Denominator

Weighted average number of common shares — Basic	30,063,676			28,071,317		29,335,498		28,032,223

Effect of dilutive securities:
Common stock warrants issued in connection with equity and financing transactions	—			839		—		845
Stock Options and Incentive Warrants	—			3,784,261		3,042,420		3,803,915
Total weighted average dilutive securities	—			3,785,100		3,042,420		3,804,760

Weighted average number of common shares and dilutive potential common shares used in diluted EPS	30,063,676			31,856,417		32,377,918		31,836,983

Net income per common share — Basic	$	(0.02	)	$	0.06	$	0.03	$	0.10
Net income per common share — Diluted	$	(0.02	)	$	0.06	$	0.02	$	0.09

Outstanding potentially dilutive securities as of December 31, 2013 were as follows:

Outstanding Potential Dilutive Securities	Weighted Average Exercise Price		Outstanding at December 31, 2013

Common stock warrants issued in connection with equity and financing transactions	$	—	—
Stock Options and Incentive Warrants	$	2.01	753,005
Total	$	2.01	753,005

Outstanding potentially dilutive securities as of December 31, 2012 were as follows:

Outstanding Potential Dilutive Securities	Weighted Average Exercise Price		Outstanding at December 31, 2012

Common stock warrants issued in connection with equity and financing transactions	$	2.25	1,165
Stock Options and Incentive Warrants	$	1.82	5,342,820
Total	$	1.82	5,343,985

Unsecured Revolving Credit Agreement	6 Months Ended
Unsecured Revolving Credit Agreement	Dec. 31, 2013
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 us 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. Our subsidiaries guaranteed the Company’s obligations under the facility. We may use the proceeds of any loans under the facility 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 us 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 (as defined) of our Oil and Gas Properties. At our 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. We are 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 we 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 December 31, 2013, we had no borrowings and no outstanding letters of credit issued under the facility, resulting in an available borrowing base capacity of $5,000,000, and we were in compliance with all the covenants of the Credit Agreement. In connection with this agreement we 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.

Commitments and Contingencies

6 Months Ended

Dec. 31, 2013

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. At a minimum 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 accrue a loss if we believe it is probable that a future event or events will confirm a loss and we can reasonably estimate such loss and we do not accrue future legal costs related to that 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. For legal proceedings, see “Part II, Item 1. Legal Proceedings.”

Lease Commitments. We have a non-cancelable operating lease for office space that expires on August 1, 2016. Future minimum lease commitments as of December 31, 2013 under this operating lease are as follows:

For the twelve months ended December 31,
2014	$	159,011
2015	159,011
2016	92,756
Total	$	410,778

Rent expense for the three months ended December 31, 2013 and 2012 was $44,759 and $36,808, respectively. For the corresponding six month periods of 2013 and 2012 rent expense was $86,667 and $73,617, respectively.

Employment Contracts. We have employment agreements with our three named executive officers. The employment contracts provide for a severance package for termination by us 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 December 31, 2013 is approximately $692,000.

In connection with Sterling McDonald’s retirement announced in January 2014, we expect to pay Mr. McDonald a severance of $478,000 representing his base salary and anticipated bonus under our Cash Incentive Plan and $70,000 in other benefits. In addition, we will accelerate the vesting of Mr. McDonald’s previously unvested restricted stock awards which will result in $220,500 of stock compensation expense to us.

Delhi Payout. We are presently in a dispute with the Delhi Field Operator concerning charges arising from the environmental event that began in June 2013. We believe the Operator has indemnified us for such events, with the effect that payout should not be delayed. To date, the Operator has not agreed to the application of the indemnity and their 2006 assumption of environmental liabilities. Accordingly, we have filed a lawsuit against the Operator seeking declaration of the validity of the 2006 agreements, including the indemnity, and recovery of damages and attorney’s fees.

Restructuring

6 Months Ended

Dec. 31, 2013

Restructuring

Restructuring

Note 12 — Restructuring

On November 1, 2013, we undertook an initiative refocusing our business on GARP® development that resulted in adjustment of our workforce towards less emphasis on engineering and greater emphasis on sales and marketing. Accordingly, we accrued a restructuring charge in the second quarter ended December 31, 2013, based on agreements with terminated employees covering salary and benefit continuation and an acceleration of vesting of equity awards in exchange for non-compete clauses, incurring pre-tax cash and non-cash charges of approximately $1,332,000, of which $376,000 are non-cash charges related to accelerated stock compensation expenses. Our current estimates of accounting charges related to the initiative as of December 31, 2013 are as follows:

Type of Cost	December 31, 2013

Salary Expense	$	616,000
Cash Incentive Plan	186,000
Stock Compensation Expense	376,000
Other Benefits	154,000
Total Restructuring Charges	$	1,332,000

Property and Equipment (Tables)

6 Months Ended

Dec. 31, 2013

Property and Equipment

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

	December 31, 2013			June 30, 2013
Oil and natural gas properties
Property costs subject to amortization	$	42,746,486		$	42,772,184
Less: Accumulated depreciation, depletion, and amortization	(8,760,874		)	(8,095,856		)
Unproved properties not subject to amortization	4,258,459			4,112,704
Oil and natural gas properties, net	$	38,244,071		$	38,789,032

Other property and equipment
Furniture, fixtures and office equipment, at cost	332,151			322,514
Less: Accumulated depreciation	(283,969		)	(270,297		)
Other property and equipment, net	$	48,182		$	52,217

Joint Interest Agreement (Tables)

6 Months Ended

Dec. 31, 2013

Joint Interest Agreement

Schedule of amounts pertaining to participation in joint venture

	December 31, 2013		June 30, 2013

Advances to joint interest operating partner	$	43,646	$	26,059
Due to joint interest partner	86,289		127,081

Asset Retirement Obligations (Tables)

6 Months Ended

Dec. 31, 2013

Asset Retirement Obligations

Schedule of reconciliations of the beginning and ending asset retirement obligation balances

	December 31, 2013			June 30, 2013

Asset retirement obligations — beginning of period	$	615,551		$	968,677
Liabilities sold	(48,273		)	(439,927		)
Liabilities incurred	—			60,143
Liabilities settled	(53,295		)	(51,086		)
Accretion of discount	25,346			72,312
Revision of previous estimates	48,988			5,432
Asset retirement obligations due within one year included in “Other current liabilities”	(431,561		)	—
Asset retirement obligations — end of period	$	156,756		$	615,551

Stock-Based Incentive Plan (Tables)

6 Months Ended

Dec. 31, 2013

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, 2013	4,822,820		$	1.99

Exercised	(4,069,815	)	$	1.99

Stock Options and Incentive Warrants outstanding at December 31, 2013	753,005		$	2.01	$	7,778,744	2.0

Vested or expected to vest at December 31, 2013	753,005		$	2.01	$	7,778,744	2.0

Exercisable at December 31, 2013	753,005		$	2.01	$	7,778,744	2.0

Schedule of Restricted Stock transactions

	Number of Restricted Shares		Weighted Average Grant-Date Fair Value

Unvested at July 1, 2013	386,599		$	6.65

Granted	16,476		12.14

Vested	(142,404	)	$	6.21

Forfeited	(9,066	)	$	5.98

Unvested at December 31, 2013	251,605		$	7.28

Net Income Per Share (Tables)

6 Months Ended

Dec. 31, 2013

Net Income Per Share

Schedule of computation of basic and diluted income per share

	Three Months Ended December 31,					Six Months Ended December 31,
	2013			2012		2013		2012
Numerator
Net income available to common shareholders	$	(577,459	)	$	1,790,696	$	726,417	$	2,781,647

Denominator

Weighted average number of common shares — Basic	30,063,676			28,071,317		29,335,498		28,032,223

Effect of dilutive securities:
Common stock warrants issued in connection with equity and financing transactions	—			839		—		845
Stock Options and Incentive Warrants	—			3,784,261		3,042,420		3,803,915
Total weighted average dilutive securities	—			3,785,100		3,042,420		3,804,760

Weighted average number of common shares and dilutive potential common shares used in diluted EPS	30,063,676			31,856,417		32,377,918		31,836,983

Net income per common share — Basic	$	(0.02	)	$	0.06	$	0.03	$	0.10
Net income per common share — Diluted	$	(0.02	)	$	0.06	$	0.02	$	0.09

Schedule of outstanding potentially dilutive securities

Outstanding Potential Dilutive Securities	Weighted Average Exercise Price		Outstanding at December 31, 2013

Common stock warrants issued in connection with equity and financing transactions	$	—	—
Stock Options and Incentive Warrants	$	2.01	753,005
Total	$	2.01	753,005

Outstanding Potential Dilutive Securities	Weighted Average Exercise Price		Outstanding at December 31, 2012

Common stock warrants issued in connection with equity and financing transactions	$	2.25	1,165
Stock Options and Incentive Warrants	$	1.82	5,342,820
Total	$	1.82	5,343,985

Commitments and Contingencies (Tables)

6 Months Ended

Dec. 31, 2013

Commitments and Contingencies

Schedule of future minimum lease commitments under the operating lease

For the twelve months ended December 31,
2014	$	159,011
2015	159,011
2016	92,756
Total	$	410,778

Restructuring (Tables)

6 Months Ended

Dec. 31, 2013

Restructuring

Schedule of current estimates of accounting charges related to the restructuring initiative

Type of Cost	December 31, 2013

Salary Expense	$	616,000
Cash Incentive Plan	186,000
Stock Compensation Expense	376,000
Other Benefits	154,000
Total Restructuring Charges	$	1,332,000

Organization and Basis of Preparation (Details)	Dec. 31, 2013 item
Organization and Basis of Preparation
Number of wholly owned subsidiaries	3

Property and Equipment (Details) - USD ($)	Dec. 31, 2013	Jun. 30, 2013	Dec. 31, 2012
Property and Equipment
Total property and equipment	$ 38,292,253	$ 38,841,249
Oil and natural gas properties
Property costs subject to amortization	42,746,486	42,772,184
Less: Accumulated depreciation, depletion, and amortization	(8,760,874)	(8,095,856)
Unproved properties not subject to amortization	4,258,459	4,112,704
Other property and equipment
Furniture, fixtures and office equipment, at cost	332,151	322,514
Less: Accumulated depreciation	(283,969)	(270,297)
Mississippi Lime - unevaluated acreage
Oil and natural gas properties
Unproved properties not subject to amortization	4,200,000	4,100,000
Oil and natural gas properties
Property and Equipment
Total property and equipment	38,244,071	38,789,032
Other property and equipment
Impaired unproved properties	0		$ 0
Other Property and Equipment
Property and Equipment
Total property and equipment	$ 48,182	$ 52,217

Joint Interest Agreement (Details) - USD ($)	Dec. 31, 2013	Jun. 30, 2013
Participation in joint venture
Advances to joint interest operating partner	$ 43,646	$ 26,059
Due to joint interest partner	86,289	127,081
Joint interest arrangement \| Orion Exploration Partners, LLC \| Kay County in North Central Oklahoma
Participation in joint venture
Advances to joint interest operating partner	43,646	26,059
Due to joint interest partner	$ 86,289	$ 127,081

Asset Retirement Obligations (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
Asset Retirement Obligations (Details) - USD ($)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Jun. 30, 2013
Reconciliation of the beginning and ending asset retirement obligation
Asset retirement obligations - beginning of period			$ 615,551	$ 968,677	$ 968,677
Liabilities sold			(48,273)		(439,927)
Liabilities incurred					60,143
Liabilities settled			(53,295)		(51,086)
Accretion of discount	$ 12,418	$ 17,751	25,346	$ 38,858	72,312
Revisions to previous estimates			48,988		5,432
Asset retirement obligations due within one year included in "Other current liabilities"	(431,561)		(431,561)
Asset retirement obligations - end of period	$ 156,756		$ 156,756		$ 615,551

Stockholders' Equity (Details) - USD ($)

1 Months Ended

6 Months Ended

Sep. 30, 2013

Dec. 31, 2013

Stockholders' Equity

Common stock issued upon exercise of incentive stock options (IPO) (in shares)

1,008,657

Cash proceeds on exercise of incentive stock options

$ 2,141,500

Common stock issued upon cashless exercises of nonqualified stock options (NQSOs) and incentive warrants (in shares)

2,622,723

Number of shares owned by option holders that were swapped

50,956

Weighted average cost of swapped shares (in dollars per share)

$ 12.14

Increase of additional paid-in capital

$ 4,200,000

Increase of additional paid-in capital due to stock compensation amortization

^[1]

1,066,225

Increase of additional paid-in capital due to exercise of stock options and warrants

2,800,000

Windfall tax benefit

386,975

Decrease of additional paid-in capital

$ 2,800,000

Retirement of treasury stock (in shares)

801,889

Cost of treasury stock retired

$ 1,000,000

Purchase of treasury stock (in shares)

144,462

Purchase cost of treasury stock (in dollars per share)

$ 12.09

Purchase cost of treasury stock

$ 1,746,407

Number of shares retired in satisfaction of payroll tax liabilities from exercises and restricted stock vestings

93,506

Number of shares received from option holders in swap through cashless stock option exercises

50,956

Number of common shares outstanding reduced

946,351

Cash dividends to common stockholders

$ 3,205,135

Recovery of Stockholder Short Swing Profit

Recovery of short swing profits

$ 6,850

[1]	Includes $376,365 of stock compensation reflected in restructuring charges.

Stockholders' Equity (Details 2) - USD ($)	6 Months Ended		12 Months Ended
Stockholders' Equity (Details 2) - USD ($)	Dec. 31, 2013	Dec. 31, 2012	Jun. 30, 2013
Series A Cumulative Perpetual Preferred Stock
Cash Dividends to Preferred Stockholders	$ 337,151	$ 337,151
Series A cumulative perpetual preferred stock
Series A Cumulative Perpetual Preferred Stock
Number of shares sold of series A cumulative perpetual preferred stock	317,319
Preferred stock dividend rate (as a percent)	8.50%		8.50%
Preferred stock, liquidation preference (in dollars per share)	$ 25.00		$ 25.00
Amount of sinking fund available to stockholders	$ 0
Redemption price per share (in dollars per share)	$ 25.25
Dividend payable monthly on preferred stock (in dollars per share)	$ 0.177083
Cash Dividends to Preferred Stockholders	$ 337,151

Stock-Based Incentive Plan (Details) - USD ($)	6 Months Ended		65 Months Ended	124 Months Ended
Stock-Based Incentive Plan (Details) - USD ($)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2013
Stock Options and Incentive Warrants
Stock-Based Incentive Plan
Stock-based compensation expense	$ 0	$ 26,274
Granted (in shares)			0
2003 Stock Plan
Stock-Based Incentive Plan
Number of shares granted under the Plan				600,000
Number of shares remaining available for grant under plan	0		0	0
2004 Stock Plan
Stock-Based Incentive Plan
Number of shares of common stock authorized for issuance under plan	6,500,000		6,500,000	6,500,000
Number of shares remaining available for grant under plan	784,438		784,438	784,438
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	1,037,500

Stock-Based Incentive Plan (Details 2)	6 Months Ended
Stock-Based Incentive Plan (Details 2)	Dec. 31, 2013 USD ($) $ / shares shares
Number of Stock Options and Incentive Warrants
Stock Options and Incentive Warrants outstanding at the end of the period (in shares) \| shares	4,800,000
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	$ 12.34
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	4,822,820
Exercised (in shares) \| shares	(4,069,815)
Stock Options and Incentive Warrants outstanding at the end of the period (in shares) \| shares	753,005
Vested or expected to vest at the end of the period (in shares) \| shares	753,005
Exercisable at the end of the period (in shares) \| shares	753,005
Weighted Average Exercise Price
Stock Options and Incentive Warrants outstanding at the beginning of the period (in dollars per share) \| $ / shares	$ 1.99
Exercised (in dollars per share) \| $ / shares	1.99
Stock Options and Incentive Warrants outstanding at the end of the period (in dollars per share) \| $ / shares	2.01
Exercisable at the end of the period (in dollars per share) \| $ / shares	2.01
Vested or expected to vest at the end of the period (in dollars per share) \| $ / shares	$ 2.01
Aggregate Intrinsic Value
Stock Options and Incentive Warrants outstanding at the end of the period \| $	$ 7,778,744
Vested or expected to vest at the end of the period \| $	7,778,744
Exercisable at the end of the period (in dollars) \| $	$ 7,778,744
Weighted Average Remaining Contractual Term (in years)
Stock Options and Incentive Warrants outstanding at the end of the period	2 years
Vested or expected to vest at the end of the period	2 years
Exercisable at the end of the period	2 years
Additional disclosures of Stock Options and Incentive Warrants
Aggregate intrinsic value of Stock Options and warrants exercised \| $	$ 41,247,805

Stock-Based Incentive Plan (Details 3) - Stock Options and Incentive Warrants	6 Months Ended
	Dec. 31, 2012 USD ($) shares
Additional disclosures of Stock Options and Incentive Warrants
Vested (in shares)	18,922
Total fair value of awards vested \| $	$ 46,359
Unvested at the end of the period (in shares)	0

Stock-Based Incentive Plan (Details 4) - Restricted Stock - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Stock-Based Incentive Plan
Stock-based compensation expense	$ 316,422	$ 393,579	$ 689,860	$ 747,369
Number of Restricted Shares
Unvested at the beginning of the period (in shares)			386,599
Granted (in shares)			16,476
Vested (in shares)			(142,404)
Forfeited (in shares)			(9,066)
Unvested at the end of the period (in shares)	251,605		251,605
Weighted Average Grant-Date Fair Value
Unvested at the beginning of the period (in dollars per share)			$ 6.65
Granted (in dollars per share)			12.14
Vested (in dollars per share)			6.21
Forfeited (in dollars per share)			5.98
Unvested at the end of the period (in dollars per share)	$ 7.28		$ 7.28
Additional disclosures of restricted stock
Unrecognized stock compensation expense related to Restricted Stock grants	$ 1,359,862		$ 1,359,862
Weighted average remaining service period over which unrecognized compensation cost is expected to be recognized			1 year 9 months 18 days

Income Taxes (Details) - USD ($) shares in Millions	3 Months Ended		6 Months Ended		12 Months Ended
Income Taxes (Details) - USD ($) shares in Millions	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Jun. 30, 2014
Income Taxes
Unrecognized tax benefits	$ 0		$ 0
Income taxes
Number of stock options and incentive warrants (in shares)	4.8		4.8
Option Deductions			$ 31,200,000
Tax benefit resulting from Option Deductions			$ 10,600,000
Statutory rate (as a percent)			34.00%
Cash taxes payable as a result of option deduction			$ 0
Income tax expense	$ 241,907	$ 1,054,499	$ 724,543	$ 1,814,717
Income tax expense, effective rates (as a percent)			41.00%	37.00%
Expected
Income taxes
Taxable income after adjustment of Option Deductions					$ 0
Minimum
Income taxes
Number of stock options and incentive warrants exercised by employees, officers and directors (in shares)			4.0

Net Income Per Share (Details) - USD ($)	3 Months Ended		6 Months Ended
Net Income Per Share (Details) - USD ($)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Numerator
Net income available to common shareholders	$ (577,459)	$ 1,790,696	$ 726,417	$ 2,781,647
Denominator
Weighted average number of common shares - Basic	30,063,676	28,071,317	29,335,498	28,032,223
Effect of dilutive securities:
Common stock warrants issued in connection with equity and financing transactions (in shares)		839		845
Stock Options and Incentive Warrants (in shares)		3,784,261	3,042,420	3,803,915
Total weighted average dilutive securities (in shares)		3,785,100	3,042,420	3,804,760
Weighted average number of common shares and dilutive potential common shares used in diluted EPS	30,063,676	31,856,417	32,377,918	31,836,983
Net income per common share - Basic (in dollars per share)	$ (0.02)	$ 0.06	$ 0.03	$ 0.10
Net income per common share - Diluted (in dollars per share)	$ (0.02)	$ 0.06	$ 0.02	$ 0.09

Net Income Per Share (Details 2) - $ / shares	6 Months Ended
Net Income Per Share (Details 2) - $ / shares	Dec. 31, 2013	Dec. 31, 2012
Outstanding Potential Dilutive Securities
Weighted Average Exercise Price (in dollars per share)	$ 2.01	$ 1.82
Balance at the end of the period (in shares)	753,005	5,343,985
Common stock warrants issued in connection with equity and financing transactions
Outstanding Potential Dilutive Securities
Weighted Average Exercise Price (in dollars per share)		$ 2.25
Balance at the end of the period (in shares)		1,165
Stock Options and Incentive Warrants
Outstanding Potential Dilutive Securities
Weighted Average Exercise Price (in dollars per share)	$ 2.01	$ 1.82
Balance at the end of the period (in shares)	753,005	5,342,820

Unsecured Revolving Credit Agreement (Details)	1 Months Ended	6 Months Ended
Unsecured Revolving Credit Agreement (Details)	Feb. 29, 2012 USD ($)	Dec. 31, 2013 USD ($) 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%
Outstanding borrowings		$ 0
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%
Outstanding borrowings		$ 0
Letter of credit \| Maximum
Unsecured Revolving Credit Agreement
Term of revolving credit facility		1 year

Commitments and Contingencies (Details)	1 Months Ended	3 Months Ended		6 Months Ended
Commitments and Contingencies (Details)	Jan. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)	Dec. 31, 2013 USD ($) item	Dec. 31, 2012 USD ($)
Commitments and Contingencies
Cash Incentive Plan				$ 186,000
Other Benefits				154,000
Stock Compensation Expense				376,365
Lease Commitments
2014		$ 159,011		159,011
2015		159,011		159,011
2016		92,756		92,756
Total		410,778		410,778
Rent expense		44,759	$ 36,808	$ 86,667	$ 73,617
Sterling McDonald \| Subsequent event \| Expected
Commitments and Contingencies
Cash Incentive Plan	$ 478,000
Other Benefits	70,000
Stock Compensation Expense	$ 220,500
Employment Contracts
Commitments and Contingencies
Number of senior executives in employment agreements \| item				3
Total contingent obligation		$ 692,000		$ 692,000
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

Restructuring (Details) - USD ($)

3 Months Ended

6 Months Ended

Dec. 31, 2013

Type of Cost

Salary Expense

$ 616,000

Cash Incentive Plan

186,000

Stock Compensation Expense

376,365

Other Benefits

154,000

Total Restructuring Charges

^[1]

$ 1,332,186

[1]	Restructuring charges for the three months ended December 31, 2013 included non-cash stock-based compensation expense of $376,365.