8-K Earnings Q3 2015


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 

 
FORM 8-K
 

 
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
Date of Report (Date of earliest event reported): May 6, 2015
 

 
Evolution Petroleum Corporation
(Exact name of registrant as specified in its charter)
 

 
001-32942
(Commission File Number)
 
 
 
 
 
Nevada
 
41-1781991
(State or Other Jurisdiction of Incorporation)
 
(I.R.S. Employer Identification No.)
 
2500 City West Blvd., Suite 1300, Houston, Texas 77042
(Address of Principal Executive Offices)
 
(713) 935-0122
(Registrant’s Telephone Number, Including Area Code)
 

 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
o                    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o                    Soliciting material pursuant to Rule 14a-12 under the exchange Act (17 CFR 240.14a-12)
 
o                    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o                    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))






Item 2.02 Results of Operations and Financial Condition.
 
On May 6, 2015, Evolution Petroleum Corporation (the “Company”) issued a press release reporting on financial and operating results for the quarter ended March 31, 2015, the Company's 3rd quarter of fiscal 2015.  A copy of the press release, dated May 6, 2015, is furnished herewith as Exhibit 99.1.
 
This information is furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, unless specifically incorporated by reference in a document filed under the Securities Act of 1933, as amended, or the Exchange Act. By filing this report on Form 8-K and furnishing this information, the Company makes no admission as to the materiality of any information in this report that is required to be disclosed solely by Item 2.02.
 
Item 9.01.                                        Financial Statements and Exhibits.
 
(d)                                 Exhibits.
 
 
 
 
 
Exhibit No.
 
Description
 
 
 
Exhibit 99.1
 
Evolution Petroleum Corporation Press Release, dated May 6, 2015.


2


SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
 
 
Evolution Petroleum Corporation
                   (Registrant)
 
 
Dated: March 7, 2015
By:
/s/ Randall D. Keys
 
Name:
Randall D. Keys
 
Title:
President and Chief Financial Officer


3


INDEX TO EXHIBITS
 
 
 
 
 
Exhibit No.
 
Description
Exhibit 99.1
 
Evolution Petroleum Corporation Press Release, dated March 6, 2015.


4
News release Exhibit 99.1-FY15 Q3
Exhibit 99.1
Company Contact:
Randy Keys, President and CFO
(713) 935-0122
rkeys@evolutionpetroleum.com


FOR IMMEDIATE RELEASE

Evolution Petroleum Announces Financial and Operating Results for
Quarter Ended March 31, 2015

Houston, TX, May 6, 2015 - Evolution Petroleum Corporation (NYSE MKT: EPM) today reported financial and operating highlights for its third quarter of fiscal 2015 (the “current quarter”) ended March 31, 2015, with comparisons to second quarter ended December 31, 2014 (the “prior quarter”) and the quarter ended March 31, 2014 (the ”year-ago quarter”).
Results for the Quarter Ended March 31, 2015
Produced 1,640 net barrels of oil per day (“BOPD”) from the Delhi field, a 259% increase from the year-ago quarter and a 38% increase from the prior quarter.
Increased gross production in the Delhi field by 5.3% from the prior quarter to 6,203 BOPD from 5,892 BOPD
Increased total revenues to $7.1 million, 63% higher than the year-ago quarter and an 8% decrease from the prior quarter, as lower oil prices offset the effects of higher net production after the November 1, 2014 reversion of our working interest
Generated net income of $0.6 million, or $0.02 per diluted common share, a 25% decrease from the year-ago quarter and a 47% decrease from the prior quarter, primarily due to lower oil prices and partially offset by increased sales volumes
Approved the capital expenditure budget by our operating partner of $24.6 million net to the Company for the construction of a natural gas liquids (“NGL”) recovery plant in the Delhi field expected to be operational in the middle of calendar 2016 with projected gross production of 2,000 barrels of liquids per day or more
Reached agreement with the operator of the Delhi field to reverse suspended overriding royalty interests totaling 2.892% and collected previously suspended funds
Entered into three master service agreements with new large customers for installation of our GARP® technology

1


Successfully resolved the Jones lawsuit, which was dismissed with prejudice without any consideration being paid to plaintiffs
Remained debt free and distributed $1.6 million of cash dividends to our common shareholders in the current quarter
Randy Keys, President and CFO, said: “This was the first quarter that included the full impact of results from our post-reversionary working interest in the Delhi field, our foundation oil asset. Work on the Delhi NGL plant is on track and, once in service, it will both increase liquid production volumes from the field and enhance the efficiency and output of the CO2 flood. In addition, we expect the expansion of the CO2 flood in the eastern part of the field to resume after completion of the NGL plant. At this time, Evolution is well positioned with the reversion milestone behind us and installation of the NGL plant immediately ahead of us, followed by the remaining expansion of the Delhi CO2 flood. We have strong cash flows and both near-term and long term growth catalysts in our line of sight. We remain diligent and focused on maximizing the value of Delhi field with our joint venture partner.”
Robert Herlin, Chairman and CEO, added: “We are in great shape to comfortably weather the current down cycle, and our enviable financial strength provides us with the ability to take advantage of unique opportunities that may come our way in this environment, while continuing to pay and grow our dividend to common shareholders. Looking to the future, we are very positive about the prospects for the Company, including our ability to grow, create long-term value and continue returning cash to shareholders.”
Delhi Field Operations
Financial results for the current quarter were positively impacted by the reversion of the Company’s 23.9% working interest that occurred on November 1, 2014, which increased our net revenue interest in the Delhi field by approximately 19.0% in addition to our existing royalty interests totaling 7.4%. For the current quarter, Delhi field margin (revenues less operating expenses) was $4.1 million, as compared to $4.8 million in the prior quarter. Delhi margin was reduced by lower realized oil prices in the current quarter, which declined to $48 per barrel from $70 per barrel in the prior quarter, a decline of 32% that was partially offset by a 35% increase in production volumes.
Gross daily production increased to 6,203 BOPD, an increase of 5.3% over the prior quarter, while the rate of purchased CO2 was reduced, positively impacting operating expense. We also realized an increased premium for Light Louisiana Sweet (“LLS”) pricing, the benchmark for Delhi crude sales, versus West Texas Intermediate (“WTI”). During the quarter, LLS averaged more than $4.00 per barrel over WTI, and the spread has widened to more than $6.00 per barrel in April 2015.
Field operating expenses were $19.87 per barrel of oil equivalent (“BOE”), below previous estimates, primarily due to decreased CO2 purchase costs. In the quarter ending March 31, 2015, our net share of lease operating expenses was approximately $2.9 million, of which $1.6 million was related to CO2 purchases

2


and transportation expenses. Total average CO2 costs were down 36% from the prior quarter as a result of both lower oil prices and lower purchased CO2 volumes in the quarter. We expect purchased CO2 volumes to stabilize over the remainder of the year in the range of 90,000 to 95,000 thousand cubic feet (“Mcf”) per day. On a total BOE basis, our average CO2 costs were down 29% from $15.33 per BOE of sales in the prior quarter to $10.82 per BOE, primarily due to increased working interest volumes and lower realized oil prices in the current quarter. Our purchased CO2 costs are directly correlated with realized oil prices.
On January 26, 2015, Denbury withheld and suspended 2.892% of our overriding royalty revenue interest in the field for the months of November and December 2014, as we previously disclosed. This unilateral suspension of a portion of our overriding royalties by the operator was made without consultation with the Company and, we believe, without legal basis. On February 26, 2015, we entered into an agreement under which Denbury agreed to reverse the previously disclosed suspension of our overriding royalty interest revenues and release to Evolution all amounts previously suspended totaling approximately $712,000. Denbury further agreed not to suspend any future revenues attributable to any of our revenue interests, except under very limited circumstances.     
Gas Assisted Rod Pump (GARP®) Services
During the current quarter, the GARP® installation in the Appelt #1H well that had been shut-in for over a year due to solids production was worked over to install better solids handling capacity. This work restored the well to producing status at the previous rate of about 10 barrels of oil per day. The Selected Lands #2 well also was restored to production in the quarter following a work-over for downhole repairs. Lastly, the Philip #1 well was temporarily abandoned after a series of unsuccessful work-overs to prevent solids from causing repeated pump failures. These work-overs were included in our operating costs for the quarter.
We continue to work diligently to advance the development of the technology and expect to file three new GARP® patents and one provisional GARP® patent in the coming weeks to solve specific needs identified by customers in various fields.
Recent GARP® marketing and business development efforts have secured three master service agreements, including with one major, one super-independent and one large independent oil producer and a fourth agreement is pending. Vendor approval is a critical and often time-consuming step in the process to install GARP® technology for third party customers. The new agreements follow our new fixed fee pricing model and are for installations in the Eagle Ford, Barnett and Permian Basin fields. After experiencing many years of extensive drilling activity, wells in these areas are beginning to mature, increasingly making the GARP® value proposition more apparent to leading operators.

3


Liquidity and Capital Resources
At March 31, 2015, the Company had total liquidity of $23.4 million, which includes $18.4 million of working capital and $5.0 million of availability on our unsecured revolving credit facility. As of March 31, 2015, the Company remained debt-free. We believe that current liquidity combined with expected operating cash flows will be sufficient to fund the Company's expected capital requirements for fiscal years 2015 and 2016.
Conference Call
As previously announced, Evolution Petroleum will host a conference call on Thursday, May 7, 2015 at 11:00 a.m. Eastern (10:00 a.m. Central) to discuss results. To access the call, please dial 1-888-348-6428 (U.S.), 1-412-902-4237 (International) or 1-855-669-9657 (Canada).
To listen live or hear a rebroadcast, please go to http://www.evolutionpetroleum.com. A replay will be available one hour after the end of the conference call through May 14, 2015 by calling 1-877-870-5176 (U.S.) or 1-858-384-5517 (Canada and International) and providing the replay pin passcode of 10064309. The webcast will also be archived on the Company’s website.
Expected Tax Treatment of Dividends
Based on our current projections for the fiscal year ending June 30, 2015, we expect preferred stock dividends will be treated as qualified dividend income and that a portion of our cash dividends on common stock will be treated as a return of capital and the remainder as qualified dividend income. We will make a final determination regarding the tax treatment of dividends for the current fiscal year when we report this information to recipients.
About Evolution Petroleum
Evolution Petroleum Corporation develops incremental petroleum reserves and share-holder value by applying conventional and specialized technology to known oil and gas resources, onshore in the United States. Principal assets include interests in a CO2-EOR project in Louisiana's Delhi Field and a patented technology designed to extend the life and increase ultimate recoveries of depletion drive oil and gas wells. Additional information, including the Company's annual report on Form 10-K and its quarterly reports on Form 10-Q, is available on its website at www.evolutionpetroleum.com. Additional information regarding GARP® is available on the www.garplift.com website.

4


Cautionary Statement
All statements contained in this press release regarding potential results and future plans and objectives of the Company are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update or review any forward-looking statement, whether as a result of new information, future events, or otherwise. Factors that could cause actual results to differ materially from our expectations include, but are not limited to, those factors that are disclosed under the heading "Risk Factors" and elsewhere in our documents filed from time to time with the United States Securities and Exchange Commission and other regulatory authorities. Statements regarding our ability to complete transactions, successfully apply technology applications in the re-development of oil and gas fields, realize future production volumes, realize success in our drilling and development activity and forecasts of legal claims, prices, future revenues, income, cash flows, dividends and other statements that are not historical facts contain predictions, estimates and other forward-looking statements. Although the Company believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved and these statements will prove to be accurate. Many factors could cause actual results to differ materially from those included in the forward-looking statements.



Financial Tables to Follow







5


Evolution Petroleum Corporation and Subsidiaries
Consolidated Condensed Statements of Operations
(Unaudited)
 
 
Three Months Ended 
 March 31,
 
Nine Months Ended 
 March 31,
 
2015
 
2014
 
2015
 
2014
Revenues
 

 
 

 
 

 
 

Delhi field
$
7,039,868

 
$
4,185,156

 
$
18,553,301

 
$
12,745,203

Artificial lift technology
24,821

 
151,052

 
203,913

 
483,037

Other properties

 
798

 
20,369

 
134,754

Total revenues
7,064,689

 
4,337,006

 
18,777,583

 
13,362,994

Operating costs
 

 
 

 
 

 
 

Production costs - Delhi field
2,932,946

 

 
5,750,812

 

Production costs - artificial lift technology
267,906

 
209,742

 
656,819

 
526,712

Production costs - other properties
639

 
143,887

 
98,051

 
481,697

Depreciation, depletion and amortization
1,138,502

 
311,815

 
2,425,609

 
948,656

Accretion of discount on asset retirement obligations
10,924

 
9,631

 
23,697

 
34,977

General and administrative expenses *
1,467,782

 
2,304,397

 
4,578,876

 
6,875,430

Restructuring charges **

 

 
(5,431
)
 
1,332,186

Total operating costs
5,818,699

 
2,979,472

 
13,528,433

 
10,199,658

Income from operations
1,245,990

 
1,357,534

 
5,249,150

 
3,163,336

Other
 

 
 

 
 

 
 

Interest income
7,401

 
7,383

 
27,826

 
22,787

Interest (expense)
(24,625
)
 
(17,605
)
 
(55,244
)
 
(50,700
)
Income before income taxes
1,228,766

 
1,347,312

 
5,221,732

 
3,135,423

Income tax provision
494,180

 
423,612

 
2,118,218

 
1,148,155

Net income attributable to the Company
$
734,586

 
$
923,700

 
$
3,103,514

 
$
1,987,268

Dividends on preferred stock
168,575

 
168,575

 
505,726

 
505,726

Net income available to common stockholders
$
566,011

 
$
755,125

 
$
2,597,788

 
$
1,481,542

Earnings per common share
 
 
 
 
 
 
 
Basic
$
0.02

 
$
0.02

 
$
0.08

 
$
0.05

Diluted
$
0.02

 
$
0.02

 
$
0.08

 
$
0.05

Weighted average number of common shares
 

 
 

 
 

 
 

Basic
32,861,001

 
32,358,163

 
32,789,157

 
30,328,344

Diluted
32,958,218

 
32,732,049

 
32,909,981

 
32,503,460

 
* General and administrative expenses for the three months ended March 31, 2015 and 2014 included non-cash stock-based compensation expense of $227,507 and $444,981, respectively. For the corresponding nine month periods, non-cash stock-based compensation expense was $715,864 and $1,134,841, respectively. 

** Restructuring charges for the nine months ended March 31, 2014 included non-cash stock-based compensation expense of $376,365. For the three months ended March 31, 2014, restructuring charges contained no stock-based compensation expense.


6


Evolution Petroleum Corporation and Subsidiaries
Consolidated Condensed Balance Sheets
(Unaudited) 

 
March 31,
2015
 
June 30,
2014
Assets
 

 
 

Current assets
 

 
 

Cash and cash equivalents
$
20,391,495

 
$
23,940,514

Receivables
2,686,686

 
1,457,212

Deferred tax asset
159,624

 
159,624

Prepaid expenses and other current assets
650,826

 
747,453

Total current assets
23,888,631

 
26,304,803

Oil and natural gas property and equipment, net (full-cost method of accounting)
40,349,940

 
37,822,070

Other property and equipment, net
308,411

 
424,827

Total property and equipment
40,658,351

 
38,246,897

Other assets
662,247

 
464,052

Total assets
$
65,209,229

 
$
65,015,752

Liabilities and Stockholders’ Equity
 

 
 

Current liabilities
 

 
 

Accounts payable
$
4,556,114

 
$
441,722

State and federal income taxes payable
116,343

 

Accrued liabilities and other
789,692

 
2,558,004

Total current liabilities
5,462,149

 
2,999,726

Long term liabilities
 

 
 

Deferred income taxes
10,834,844

 
9,897,272

Asset retirement obligations
749,252

 
205,512

Deferred rent
22,861

 
35,720

Total liabilities
17,069,106

 
13,138,230

Commitments and contingencies (Note 15)
 
 
 
Stockholders’ equity
 

 
 

Preferred stock, par value $0.001; 5,000,000 shares authorized:8.5% Series A Cumulative Preferred Stock, 1,000,000 shares designated, 317,319 shares issued and outstanding at March 31, 2015 and June 30, 2014 with a liquidation preference of $7,932,975 ($25.00 per share)
317

 
317

Common stock; par value $0.001; 100,000,000 shares authorized: issued and outstanding 32,909,331 shares and 32,615,646 as of March 31, 2015 and June 30, 2014, respectively
32,909

 
32,615

Additional paid-in capital
36,489,885

 
34,632,377

Retained earnings
11,617,012

 
17,212,213

Total stockholders’ equity
48,140,123

 
51,877,522

Total liabilities and stockholders’ equity
$
65,209,229

 
$
65,015,752



7


Evolution Petroleum Corporation and Subsidiaries
Consolidated Condensed Statements of Cash Flows
(Unaudited)


 
Nine Months Ended 
 March 31,
 
2015
 
2014
Cash flows from operating activities
 

 
 

Net income attributable to the Company
$
3,103,514

 
$
1,987,268

Adjustments to reconcile net income to net cash provided by operating activities:
 

 
 

Depreciation, depletion and amortization
2,462,087

 
980,589

Stock-based compensation
715,864

 
1,134,841

Stock-based compensation related to restructuring

 
376,365

Accretion of discount on asset retirement obligations
23,697

 
34,977

Settlements of asset retirement obligations
(223,565
)
 
(73,646
)
Deferred income taxes
937,572

 
998,367

Deferred rent
(12,859
)
 
(12,859
)
Changes in operating assets and liabilities:
 

 
 

Receivables from oil and natural gas sales
(1,007,058
)
 
88,146

Receivables other
(222,416
)
 
(3,679
)
Due from joint interest partner

 
70,083

Prepaid expenses and other current assets
96,627

 
(376,501
)
Accounts payable and accrued expenses
629,760

 
690,360

Income taxes payable
116,343

 
(233,548
)
Net cash provided by operating activities
6,619,566

 
5,660,763

Cash flows from investing activities
 

 
 

Proceeds from asset sales
389,166

 
542,349

Maturity of certificate of deposit

 
250,000

Capital expenditures for oil and natural gas properties
(2,432,424
)
 
(989,616
)
Capital expenditures for other property and equipment
(320,936
)
 
(12,793
)
Other assets
(183,877
)
 
(181,751
)
Net cash used in investing activities
(2,548,071
)
 
(391,811
)
Cash flows from financing activities
 

 
 

Proceeds on exercise of stock options
141,600

 
3,162,801

Cash dividends to preferred stockholders
(505,726
)
 
(505,726
)
Cash dividends to common stockholders
(8,192,989
)
 
(6,462,269
)
Stock exchanged for payroll tax liabilities
(63,556
)
 
(1,591,765
)
Tax benefits related to stock-based compensation
1,063,827

 
108,473

Deferred loan costs
(63,737
)
 
(40,334
)
Other
67

 
6,850

Net cash used in financing activities
(7,620,514
)
 
(5,321,970
)
Net decrease in cash and cash equivalents
(3,549,019
)
 
(53,018
)
Cash and cash equivalents, beginning of period
23,940,514

 
24,928,585

Cash and cash equivalents, end of period
$
20,391,495

 
$
24,875,567


Supplemental disclosures of cash flow information:
Nine Months Ended 
 March 31,
 
2015
 
2014
Income taxes paid
$
100,000

 
$
755,941

Non-cash transactions:
 

 
 

Change in accounts payable used to acquire property and equipment
1,877,830

 
(241,094
)
Oil and natural gas property costs incurred through recognition of asset retirement obligations
573,689

 
45,172

Previously acquired Company common shares swapped by holders to pay stock option exercise price

 
618,606



8


  Supplemental Information on Oil and Natural Gas Operations (Unaudited)

 
Three Months Ended March 31,
 
 
 
 
 
2015
 
2014
 
Variance
 
Variance %
Delhi field:
 
 
 
 
 
 
 
Crude oil revenues
$
7,039,868

 
$
4,185,156

 
$
2,854,712

 
68.2
 %
Crude oil volumes (Bbl)
147,621

 
41,137

 
106,484

 
258.9
 %
Average price per Bbl
$
47.69

 
$
101.74

 
$
(54.05
)
 
(53.1
)%
 
 
 
 
 
 
 
 
  Delhi field production costs
$
2,932,946

 
$

 
$
2,932,946

 
 %
  Delhi field production costs per BOE
$
19.87

 
$

 
$
19.87

 
 %
 
 
 
 
 
 
 
 
Artificial lift technology:
 
 
 
 
 
 
 
  Crude oil revenues
$
12,695

 
$
95,031

 
$
(82,336
)
 
(86.6
)%
  NGL revenues
1,352

 
29,360

 
(28,008
)
 
(95.4
)%
  Natural gas revenues
529

 
26,661

 
(26,132
)
 
(98.0
)%
  Service revenues
10,245

 

 
10,245

 
 %
  Total revenues
$
24,821

 
$
151,052

 
$
(126,231
)
 
(83.6
)%
 
 
 
 
 
 
 
 
  Crude oil volumes (Bbl)
285

 
966

 
(681
)
 
(70.5
)%
  NGL volumes (Bbl)
73

 
756

 
(683
)
 
(90.3
)%
  Natural gas volumes (Mcf)
204

 
5,453

 
(5,249
)
 
(96.3
)%
  Equivalent volumes (BOE)
392

 
2,631

 
(2,239
)
 
(85.1
)%
 
 
 
 
 
 
 
 
  Crude oil price per Bbl
$
44.54

 
$
98.38

 
$
(53.84
)
 
(54.7
)%
  NGL price per Bbl
$
18.52

 
$
38.84

 
$
(20.32
)
 
(52.3
)%
  Natural gas price per Mcf
$
2.59

 
$
4.89

 
$
(2.30
)
 
(47.0
)%
    Equivalent price per BOE
$
37.18

 
$
57.41

 
$
(20.23
)
 
(35.2
)%
 
 
 
 
 
 
 
 
  Artificial lift production costs (a)
$
267,906

 
$
209,742

 
$
58,164

 
27.7
 %
  Artificial lift production costs per BOE
$
683.43

 
$
79.72

 
$
603.71

 
757.3
 %
 
 
 
 
 
 
 
 
Other properties:
 
 
 
 
 
 
 
  Revenues
$

 
$
798

 
$
(798
)
 
(100.0
)%
  Equivalent volumes (BOE)

 
26

 
(26
)
 
(100.0
)%
  Equivalent price per BOE
$

 
$
30.69

 
$
(30.69
)
 
(100.0
)%
 
 
 
 
 
 
 
 
  Production costs
$
639

 
$
143,887

 
$
(143,248
)
 
(99.6
)%
  Production costs per BOE
$

 
$
5,534.12

 
$
(5,534.12
)
 
(100.0
)%
 
 
 
 
 
 
 
 
Combined:
 
 
 
 
 
 
 
Oil and gas DD&A (b)
$
1,099,737

 
$
302,083

 
$
797,654

 
264.1
 %
Oil and gas DD&A per BOE
$
7.43

 
$
6.90

 
$
0.53

 
7.7
 %

(a) Includes workover costs of approximately $252,000 and $123,000 for the three months ended March 31, 2015 and 2014, respectively.
(b) Excludes depreciation of artificial lift technology equipment, office equipment, furniture and fixtures, and other assets of $38,765 and $9,732, for the three months ended March 31, 2015 and 2014, respectively.




9


Supplemental Information on Oil and Natural Gas Operations (Unaudited)

 
Nine Months Ended March 31,
 
 
 
 
 
2015
 
2014
 
Variance
 
Variance %
Delhi field:
 
 
 
 
 
 
 
Crude oil revenues
$
18,553,301

 
$
12,745,203

 
$
5,808,098

 
45.6
 %
Crude oil volumes (Bbl)
295,915

 
124,089

 
171,826

 
138.5
 %
Average price per Bbl
$
62.70

 
$
102.71

 
$
(40.01
)
 
(39.0
)%
 
 
 
 
 
 
 
 
  Delhi field production costs
$
5,750,812

 
$

 
$
5,750,812

 
 %
  Delhi field production costs per BOE
$
19.43

 
$

 
$
19.43

 
 %
 
 
 
 
 
 
 
 
Artificial lift technology:
 
 
 
 
 
 
 
  Crude oil revenues
$
129,714

 
$
340,230

 
$
(210,516
)
 
(61.9
)%
  NGL revenues
34,607

 
77,986

 
(43,379
)
 
(55.6
)%
  Natural gas revenues
23,446

 
64,821

 
(41,375
)
 
(63.8
)%
  Service revenues
16,146

 

 
16,146

 
 %
  Total revenues
$
203,913

 
$
483,037

 
$
(279,124
)
 
(57.8
)%
 
 
 
 
 
 
 
 
  Crude oil volumes (Bbl)
1,620

 
3,383

 
(1,763
)
 
(52.1
)%
  NGL volumes (Bbl)
1,228

 
2,358

 
(1,130
)
 
(47.9
)%
  Natural gas volumes (Mcf)
7,056

 
17,932

 
(10,876
)
 
(60.7
)%
  Equivalent volumes (BOE)
4,024

 
8,730

 
(4,706
)
 
(53.9
)%
 
 
 
 
 
 
 
 
  Crude oil price per Bbl
$
80.07

 
$
100.57

 
$
(20.50
)
 
(20.4
)%
  NGL price per Bbl
$
28.18

 
$
33.07

 
$
(4.89
)
 
(14.8
)%
  Natural gas price per Mcf
$
3.32

 
$
3.61

 
$
(0.29
)
 
(8.0
)%
    Equivalent price per BOE
$
46.66

 
$
55.33

 
$
(8.67
)
 
(15.7
)%
 
 
 
 
 
 
 
 
  Artificial lift production costs (a)
$
656,819

 
$
526,712

 
$
130,107

 
24.7
 %
  Artificial lift production costs per BOE
$
163.23

 
$
60.33

 
$
102.90

 
170.6
 %
 
 
 
 
 
 
 
 
Other properties:
 
 
 
 
 
 
 
  Revenues
$
20,369

 
$
134,754

 
$
(114,385
)
 
(84.9
)%
  Equivalent volumes (BOE)
285

 
1,516

 
(1,231
)
 
(81.2
)%
  Equivalent price per BOE
$
71.47

 
$
88.89

 
$
(17.42
)
 
(19.6
)%
 
 
 
 
 
 
 
 
  Production costs
$
98,051

 
$
481,697

 
$
(383,646
)
 
(79.6
)%
  Production costs per BOE
$
344.04

 
$
317.74

 
$
26.3

 
8.3
 %
 
 
 
 
 
 
 
 
Combined:
 
 
 
 
 
 
 
Oil and gas DD&A (b)
$
2,061,440

 
$
922,781

 
$
1,138,659

 
123.4
 %
Oil and gas DD&A per BOE
$
6.87

 
$
6.87

 
$

 
 %

(a) Includes workover costs of approximately $535,000 and $200,000, for the nine months ended March 31, 2015 and 2014, respectively.
(b) Excludes depreciation of artificial lift technology equipment, office equipment, furniture and fixtures, and other assets of $364,169 and $25,875, for the nine months ended March 31, 2015 and 2014, respectively.


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