View Filing Data

Depreciation, depletion and amortization

$ 5,106,735

$ 7,064,689

$ 19,109,068

$ 18,777,583

Operating costs

Production costs

2,192,217

3,201,491

7,030,537

6,498,638

1,268,800

1,138,502

3,958,644

2,425,609

Accretion of discount on asset retirement obligations

11,695

10,924

34,555

23,697

General and administrative expenses

^[1]

2,304,237

1,467,782

6,046,603

4,578,876

Income (loss) from operations

^[2]

1,257,433

(5,431)

Total operating costs

5,787,882

5,818,699

18,398,704

13,528,433

(681,147)

1,245,990

710,364

5,249,150

Other

Gain on settled derivative instruments, net

1,795,431

3,960,059

Gain (loss) on unsettled derivative instruments, net

(1,314,044)

119,679

Delhi field insurance recovery related to pre-reversion event

1,074,957

Interest and other income

11,851

7,401

23,516

27,826

Interest (expense)

(14,036)

(24,625)

(51,162)

(55,244)

Income (loss) before income taxes

(201,945)

1,228,766

5,837,413

5,221,732

Income tax provision (benefit)

(72,337)

494,180

2,051,521

2,118,218

Net income (loss) attributable to the Company

(129,608)

734,586

3,785,892

3,103,514

Dividends on preferred stock

168,575

505,726

Net income (loss) available to common stockholders

$ (298,183)

$ 566,011

$ 3,280,166

$ 2,597,788

Earnings (loss) per common share

Basic (in dollars per share)

$ (0.01)

$ 0.02

$ 0.10

$ 0.08

Diluted (in dollars per share)

$ (0.01)

$ 0.02

$ 0.10

$ 0.08

Weighted average number of common shares

Basic (in shares)

32,879,381

32,861,001

32,779,234

32,789,157

Diluted (in shares)

32,879,381

32,958,218

32,834,765

32,909,981

Crude oil

Revenues

$ 5,005,955

$ 7,052,563

$ 18,897,572

$ 18,700,296

Natural gas liquids

Revenues

597

1,352

2,332

35,354

Natural gas

Revenues

Artificial lift technology services

183

529

1,204

25,787

Revenues

Restructuring and Related Activities [Abstract]

100,000

10,245

207,960

16,146

Operating costs

Production costs

$ 10,933

$ 0

$ 70,932

$ 7,044

[1]	General and administrative expenses for the three months ended March 31, 2016 and 2015 included non-cash stock-based compensation expense of $277,907 and $227,507, respectively. For the corresponding nine month periods, non-cash stock-based compensation expense was $708,746 and $715,864, respectively.
[2]	Restructuring charges include $569,228 of non-cash impairment charges and $59,339 of non-cash stock-based compensation for the nine months ended March 31, 2016.

Consolidated Condensed Statements of Operations (Unaudited) (Parenthetical) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Stock-based compensation expense			$ 708,746	$ 715,864
General and administrative expenses
Stock-based compensation expense	$ 277,907	$ 227,507	708,746	$ 715,864
Restructuring charges
Stock-based compensation expense	$ 569,228		$ 59,339

Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities
Net income attributable to the Company	$ 3,785,892	$ 3,103,514
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	3,991,055	2,462,087
Impairments included in restructuring charge	569,228	0
Stock-based compensation	708,746	715,864
Stock-based compensation included in restructuring charge	59,339	0
Accretion of discount on asset retirement obligations	34,555	23,697
Settlements of asset retirement obligations	0	(223,565)
Deferred income taxes	(399,256)	937,572
Deferred rent	0	(12,859)
(Gain) on derivative instruments, net	(4,099,759)	0
Write-off of deferred loan costs	50,414	0
Changes in operating assets and liabilities:
Receivables from oil and natural gas sales	1,191,207	(1,007,058)
Receivables other	(13,154)	(222,416)
Prepaid expenses and other current assets	20,696	96,627
Accounts payable and accrued expenses	(98,254)	629,760
Income taxes payable	(35,405)	116,343
Net cash provided by operating activities	5,765,304	6,619,566
Cash flows from investing activities
Derivative settlements received	3,513,285	0
Proceeds from asset sales	0	389,166
Capital expenditures for oil and natural gas properties	(12,191,121)	(2,432,424)
Capital expenditures for other property and equipment	(1,876)	(320,936)
Other assets	(161,345)	(183,877)
Net cash used in investing activities	(8,841,057)	(2,548,071)
Cash flows from financing activities
Proceeds from exercise of stock options	51,000	141,600
Cash dividends to preferred stockholders	(505,726)	(505,726)
Cash dividends to common stockholders	(4,932,247)	(8,192,989)
Acquisition of treasury stock	(1,355,880)	(63,556)
Tax benefits related to stock-based compensation	3,727,913	1,063,827
Deferred loan costs	(22,002)	(63,737)
Other	33	67
Net cash used in financing activities	(3,036,909)	(7,620,514)
Net decrease in cash and cash equivalents	(6,112,662)	(3,549,019)
Cash and cash equivalents, beginning of period	20,118,757	23,940,514
Cash and cash equivalents, end of period	14,006,095	20,391,495
Supplemental disclosures of cash flow information:
Income taxes paid	480,000	100,000
Louisiana carryback income tax refund and related interest received	1,556,999	0
Non-cash transactions:
Change in accounts payable used to acquire property and equipment	(130,202)	1,877,830
Deferred loan costs charged to oil and gas property costs	107,196	0
Oil and natural gas property costs incurred through recognition of asset retirement obligations	0	573,689
Settlement of accrued treasury stock purchases	(170,283)	0
Royalty rights acquired through non-monetary exchange of patent and trademark assets	$ 108,512	$ 0

Consolidated Condensed Statement of Changes in Stockholder's Equity (Unaudited) - 9 months ended Mar. 31, 2016 - USD ($)	Total	Preferred	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock
Beginning Balance at Jun. 30, 2015	$ 48,576,577	$ 317	$ 32,845	$ 36,847,289	$ 11,696,126	$ 0
Balance (in shares), beginning at Jun. 30, 2015	32,845,205	317,319	32,845,205
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of restricted common stock (shares)			272,098
Issuance of restricted common stock	$ 33		$ 272	(239)
Exercise of stock options (in shares)			20,000
Exercise of stock options	51,000		$ 20	50,980
Forfeitures of restricted stock (shares)			(40,758)
Forfeitures of restricted stock			$ (41)	41
Acquisition of treasury stock (in shares)			(204,620)
Acquisition of treasury stock	(1,185,597)					(1,185,597)
Retirements of treasury stock			$ (205)	(1,185,392)		1,185,597
Stock-based compensation	768,085			768,085
Tax benefits related to stock-based compensation	3,727,913			3,727,913
Net income attributable to the Company	3,785,892				3,785,892
Common stock cash dividends	(4,932,247)				(4,932,247)
Preferred stock cash dividends	$ (505,726)				(505,726)
Balance (in shares), ending at Mar. 31, 2016	32,891,925	317,319	32,891,925
Ending Balance at Mar. 31, 2016	$ 50,285,930	$ 317	$ 32,891	$ 40,208,677	$ 10,044,045	$ 0

Organization and Basis of Preparation	9 Months Ended
Organization and Basis of Preparation	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Basis of Preparation	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 development of oil and gas reserves within known oil and gas resources utilizing conventional and proprietary technology. 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 2015 Annual Report on Form 10-K for the fiscal year ended June 30, 2015, 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. All significant intercompany transactions have been eliminated in consolidation. The consolidated financial statements for the previous year include certain reclassifications that were made to conform to the current presentation. Such reclassifications have no impact on previously reported net income or stockholders' equity. As a result of the separation of our GARP^® artificial lift technology operations discussed in Note 2, previously reported revenues for the Delhi field and our artificial lift technology operations have been reclassified as appropriate to crude oil, natural gas liquids, natural gas and artificial lift technology service revenues. Before the reclassification, artificial lift technology revenues included crude oil, natural gas liquids and gas revenues produced by certain of the Company’s operated wells, together with service revenues derived from the use of the Company’s technology on third party wells. Previously reported production costs for our artificial lift technology operations have been reclassified as appropriate to oil and gas production costs and cost of artificial lift technology services. 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. New Accounting Pronouncements. In August 2015, the FASB issued Accounting Standards Update 2015-14, which defers the effective date of ASU 2014-09 Revenue from Contracts with Customers (Topic 606) (" ASU 2014-09") one year, and would allow entities the option to early adopt the new revenue standard as of the original effective date. Issued in May 2014, ASU 2014-09 provided guidance on revenue recognition on contracts with customers to transfer goods or services or on contracts for the transfer of nonfinancial assets. ASU 2014-09 requires that revenue recognition on contracts with customers depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For public companies, ASU 2014-09 would have been effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The standard provided for either the retrospective or cumulative effect transition method. The Company is currently assessing the impact of the adoption of ASU 2014-09 will have on its consolidated financial statements, if any. In November 2015, the FASB issued ASU No. 2015-17, “Balance Sheet Classification of Deferred Taxes” as part of their simplification initiatives. The update requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The update is effective for public company annual reporting periods beginning after December 15, 2016, and may be adopted prospectively or retrospectively with early adoption is permitted. At present, the Company does not believe that adoption of this update will have a material impact on our results of operations, financial position or cash flows. On February 25, 2016, the FASB issued ASU 2016-02 , Leases (“ASU 2016-02”), which relates to the accounting for leasing transactions. This standard requires a lessee to record on the balance sheet the assets and liabilities for the rights and obligations created by leases with lease terms of more than 12 months. In addition, this standard requires both lessees and lessors to disclose certain key information about lease transactions. This standard will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are evaluating the impact the adoption of ASU 2016-02 will have on our condensed consolidated financial statements. On March 30, 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which relates to the accounting for employee share-based payments. This standard addresses several aspects of the accounting for share-based payment award transactions, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. This standard will be effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. We are evaluating the impact the adoption of ASU 2016-09 will have on our condensed consolidated financial statements.

Restructuring Charge

9 Months Ended

Mar. 31, 2016

Restructuring Charge

Separation of GARP^® Artificial Lift Technology Operations

During the quarter ended December 31, 2015, we conducted a strategic review of our GARP^® artificial lift technology operations and consummated a plan to separate and transfer these operations to a new entity controlled by the inventor of the technology, our former Senior Vice President of Operations, and certain former employees of the Company. We invested $108,750 in common and preferred stock of the new entity, Well Lift Inc. ("WLI"). We own 17.5% of WLI and our former employees own the balance of the common stock. Our preferred stock is convertible at our option into common stock which would result in our ownership of 42.5% of WLI, based on the current capital structure of WLI. The company has no contractual exposure to losses of WLI, nor does it have any obligation or agreement to provide additional funding or support to WLI if it is needed. In connection with this transaction, three employees of the Company were terminated. We accrued a restructuring charge based on agreements with the employees covering salary and benefit continuation and an acceleration of vesting of equity awards in exchange for release from liabilities and other provisions including agreements not to compete. At December 31, 2015, we recorded a personnel restructuring charge of $688,205 consisting of $59,339 in stock-based compensation and $628,866 of accrued separation and benefits expense. Our current estimate of remaining restructuring obligations as of March 31, 2016 is as follows:



Type of Cost	December 31, 2015		Payments			March 31, 2016
Salary expense	$	530,387	$	(88,398	)	$	441,989
Payroll taxes and benefits expense	98,479		(17,652		)	80,827
Accrued liability for restructuring costs	$	628,866	$	(106,050	)	$	522,816

Other Restructuring Impairments

Also in connection with the December 2015 separation of GARP^®, the Company and WLI entered into an agreement under which we transferred our technology assets, including our patents and trademarks, to WLI in exchange for a perpetual royalty of 5% on all future gross revenues associated with the GARP^® technology. We reduced the carrying value of these exchanged technology assets to our estimate of their expected discounted net present value, which was $108,512. This estimate was based on the recent financial results from our artificial lift technology operations and the current depressed state of the oil and gas industry and the potential upside cases were assigned relatively low probabilities for accounting purposes. This resulted in an impairment charge of $469,395. In addition, we transferred certain inventory and minor fixed assets to WLI which had no further use in our operations and were deemed to have negligible market or salvage value. This resulted in impairments of $92,901 to equipment inventory and $6,932 to fixed assets, respectively. These impairments total $569,228 and are included in restructuring charges.

Receivables

9 Months Ended

Mar. 31, 2016

Receivables [Abstract]

Receivables

As of March 31, 2016 and June 30, 2015, our receivables consisted of the following:



	March 31, 2016		June 30, 2015
Receivables from oil and gas sales	$	1,930,948	$	3,122,155
Receivable from settled derivatives	466,795		—
Other	13,472		318
Total receivables	$	2,411,215	$	3,122,473

Prepaid Expenses and Other Current Assets

9 Months Ended

Mar. 31, 2016

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Prepaid Expenses and Other Current Assets

As of March 31, 2016 and June 30, 2015, our prepaid expenses and other current assets consisted of the following:



	March 31, 2016		June 30, 2015
Prepaid insurance	$	77,223	$	178,994
Equipment inventory (a)	—		81,538
Retainers and deposits	26,978		26,978
Prepaid federal and state income taxes	95,000		22,542
Other prepaid expenses	56,606		59,352
Prepaid expenses and other current assets	$	255,807	$	369,404

(a) As discussed in Note 2, our equipment inventory was determined to have no future value in use for our operations and was charged to restructuring costs as part of the separation of our GARP^® artificial lift technology operations.

Property and Equipment

9 Months Ended

Mar. 31, 2016

Property, Plant and Equipment [Abstract]

Property and Equipment

As of March 31, 2016 and June 30, 2015, our oil and natural gas properties and other property and equipment consisted of the following:



	March 31, 2016			June 30, 2015
Oil and natural gas properties
Property costs subject to amortization	$	69,886,767		$	57,718,653
Less: Accumulated depreciation, depletion, and amortization	(16,237,153		)	(12,531,767		)
Unproved properties not subject to amortization	—			—
Oil and natural gas properties, net	$	53,649,614		$	45,186,886
Other property and equipment
Other equipment, at cost	$	328,201		$	607,674
Less: Accumulated depreciation	(302,211		)	(330,918		)
Other equipment, net	$	25,990		$	276,756

During the nine months ended March 31, 2016, the Company incurred capital expenditures of $12,165,169 for the Delhi field, including approximately $10,034,697 for the NGL plant project which is currently in progress. We have incurred approximately $15,075,736 on a cumulative basis for the NGL plant out of a total authorized commitment of $24.6 million.

In November 2015, we recorded a charge of $210,392 to expense the remaining capitalized costs of certain artificial lift equipment installed in the wells of a third-party customer. We continue to own this equipment and contract rights, but do not expect to realize any significant future value from this investment at current oil and gas prices.

Other Assets

9 Months Ended

Mar. 31, 2016

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Assets

As of March 31, 2016 and June 30, 2015, other assets consisted of the following:



	March 31, 2016			June 30, 2015
Royalty rights	$	108,512		$	—
Less: Accumulated amortization of royalty rights	(3,391		)	—
Investment in Well Lift Inc., at cost	108,750			—
Trademarks	—			44,803
Patent costs	—			538,276
Less: Accumulated amortization of patent costs	—			(47,063		)
Deferred loan costs	201,470			337,078
Less: Accumulated amortization of deferred loan costs	(179,468		)	(147,057		)
Other assets, net	$	235,873		$	726,037

During the quarter ended September 30, 2015, our plan to obtain a new expanded secured credit facility was postponed due to market conditions. As a result, the Company determined that $50,414 of deferred legal fees related to the proposed facility were unlikely to be utilized and were charged to expense. In addition, $107,196 of deferred costs incurred for title work in the Delhi field was charged to capitalized costs of oil and gas properties. As of March 31, 2016, $179,468 of deferred loan costs related to our existing unsecured credit facility had been completely amortized. During the quarter ended March 31, 2016, the Company incurred $22,002 of deferred loan costs in connection with a new credit facility as discussed at Note 17.

See Note 2 for discussion of transactions associated with the separation of our GARP^® artificial lift technology operations.

The company accounts for its investment in WLI using the cost method under which any return of capital reduces cost and any dividends paid are recorded as income. This investment is considered a level 3 fair value measurement and its value will be evaluated for impairment periodically and when management identifies any events or changes in circumstances that might have a significant adverse effect on the fair value of the investment. There is no published market value for this private investment, so it is not practicable to value it at fair market value on a periodic basis.

Accrued Liabilities and Other

9 Months Ended

Mar. 31, 2016

Other Liabilities, Current [Abstract]

Accrued Liabilities and Other

As of March 31, 2016 and June 30, 2015, our other current liabilities consisted of the following:



	March 31, 2016		June 30, 2015
Accrued incentive and other compensation	$	406,092	$	578,910
Asset retirement obligations due within one year	105,868		57,223
Accrued royalties, including suspended accounts	47,978		75,164
Accrued franchise taxes	95,793		94,885
Accrued restructuring costs	522,816		—
Other accrued liabilities	47,225		49,191
Accrued liabilities and other	$	1,225,772	$	855,373

Asset Retirement Obligations

9 Months Ended

Mar. 31, 2016

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligations

Our asset retirement obligations represent the estimated present value of the amount we will incur to plug, abandon and

remediate our producing properties at the end of their productive lives in accordance with applicable laws. The following is a

reconciliation of the beginning and ending asset retirement obligations for the nine months ended March 31, 2016 and for the year ended June 30, 2015:



	March 31, 2016			June 30, 2015
Asset retirement obligations — beginning of period	$	772,990		$	352,215
Liabilities incurred (a)	—			564,019
Liabilities settled	—			(137,604		)
Liabilities sold	—			(52,526		)
Accretion of discount	34,555			34,866
Revision of previous estimates	—			12,020
Asset retirement obligations — end of period	$	807,545		$	772,990
Less current portion in accrued liabilities	(105,868		)	(57,223		)
Long-term portion of asset retirement obligations	$	701,677		$	715,767

(a) Liabilities incurred during fiscal 2015 relate to our share of the estimated abandonment costs of the wells and facilities in the Delhi field subsequent to the reversion of our working interest.

Stockholders' Equity	9 Months Ended
Stockholders' Equity	Mar. 31, 2016
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity Common Stock Dividends and Buyback Program Commencing in December 2013, the Board of Directors initiated a quarterly cash dividend on our common stock at a quarterly rate of $0.10 per share and subsequently adjusted this rate to $0.05 per share during the quarter ended March 31, 2015. During the nine months ended March 31, 2016, the Company declared three quarterly dividends on its common stock and paid $4,932,247 to its common stockholders. On May 12, 2015, the Board of Directors approved a share repurchase program covering up to $5 million of the Company's common stock. Since commencing in June 2015, 265,762 shares have been repurchased at an average price of $6.05 per share (totaling $1,609,008) including 202,390 shares purchased during the nine months ended March 31, 2016, at an average price of $5.80 (totaling $1,173,899). Under the program's terms, shares are repurchased only on the open market and in accordance with the requirements of the Securities and Exchange Commission. Such shares are initially recorded as treasury stock, then subsequently canceled. The timing and amount of repurchases depends upon several factors, including financial resources and market and business conditions. There is no fixed termination date for this repurchase program, and it may be suspended or discontinued at any time. There has been no shares repurchased in the open market since mid-December 2015. Series A Cumulative Perpetual Preferred Stock At March 31, 2016, there were 317,319 shares of the Company’s 8.5% Series A Cumulative (perpetual) Preferred Stock outstanding. The Series A Cumulative Preferred Stock cannot be converted into our common stock and there are no sinking fund or redemption rights available to the holders thereof. Effective July 1, 2014, we can redeem this preferred stock at any time for the stated liquidation value of $25.00 per share plus accrued dividends. With respect to dividend rights and rights upon our liquidation, winding-up or dissolution, the Series A Preferred Stock ranks senior to our common stockholders, 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 through its Dividend Committee. We paid dividends of $505,726 to holders of our Series A Preferred Stock during each of the nine months ended March 31, 2016 and 2015. Expected Tax Treatment of Dividends For the fiscal year ended June 30, 2015, 100% of cash dividends on preferred stock were treated as qualified dividend income. For the same period, approximately 86% of cash dividends on common shares were treated as a return of capital to stockholders and the remainder of 14% were treated as qualified dividend income. Based on our current projections for the fiscal year ending June 30, 2016, we expect all preferred and common dividends for such period will be treated as qualified dividend income.

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 4.E)
-URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74512-122707

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.29-31)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB TOPIC 4.C)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187143-122770

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 30
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-Section E

Reference 15: http://www.xbrl.org/2003/role/presentationRef
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-Section C

+ Details

Stock-Based Incentive Plan

9 Months Ended

Mar. 31, 2016

Stock-Based Incentive Plan

Under the terms of the Evolution Petroleum Corporation Amended and Restated 2004 Stock Plan (the "Plan"), we have granted option awards to purchase common stock (the "Stock Options"), restricted common stock awards ("Restricted Stock"), contingent restricted common stock awards ("Contingent Restricted Stock") and/or unrestricted fully vested common stock, to employees, directors, and consultants of the Company. The Plan authorizes the issuance of 6,500,000 shares of common stock prior to its expiration on October 24, 2017 and 232,243 shares remain available for grant as of March 31, 2016.

Stock Options

No Stock Options have been granted since August 2008 and all compensation costs attributable to Stock Options have been recognized in prior periods. The following summary presents information regarding outstanding Stock Options as of March 31, 2016, and the changes during the period:



	Number of Stock Options		Weighted Average Exercise Price		Aggregate Intrinsic Value (1)		Weighted Average Remaining Contractual Term (in years)
Stock Options outstanding at July 1, 2015	91,061		$	2.50
Exercised	(20,000	)	2.55
Expired	(5,830	)	4.02
Stock Options outstanding at March 31, 2016	65,231		2.36		$	163,367	0.8
Vested and exercisable at March 31, 2016	65,231		$	2.36	$	163,367	0.8

(1) Based upon the difference between the market price of our common stock on the last trading date of the period ($4.86 as of March 31, 2016) and the Stock Option exercise price of in-the-money Stock Options.

Restricted Stock and Contingent Restricted Stock

Prior to August 28, 2014, all Restricted Stock grants contained a four-year vesting period based solely on service. Restricted Stock which vests based solely on service is valued at the fair market value on the date of grant and amortized over the service period.

In August 2014 and in December 2015, the Company awarded grants of both Restricted Stock and Contingent Restricted Stock as part of its long-term incentive plan. Such grants, which expire after four years if unvested, contain service-based, performance-based and market-based vesting provisions. The common shares underlying the Restricted Stock grants were issued on the date of grant, whereas the Contingent Restricted Stock are reserved from the Plan, but will be issued only upon the attainment of specified performance-based or market-based vesting provisions.

Performance-based grants vest upon the attainment of earnings, revenue and other operational goals and require that the recipient remain an employee of the Company through the vesting date. The Company recognizes compensation expense for performance-based awards ratably over the expected vesting period based on the grant date fair value when it is deemed probable, for accounting purposes, that the performance criteria will be achieved. The expected vesting period may be deemed to be shorter than the four-year term. As of March 31, 2016, certain performance-based awards were not considered probable of vesting for accounting purposes and no compensation expense has been recognized with regard to these awards. If these awards are later determined to be probable of vesting, cumulative compensation expense would be recorded at that time and amortization would continue over the remaining expected vesting period.

Market-based awards entitle employees to vest in a fixed number of shares when the three-year trailing total return on the Company’s common stock exceeds the corresponding total returns of various quartiles of companies comprising the SIG Exploration and Production Index (NASDAQ EPX) during defined measurement periods. The fair value and expected vesting period of these awards were determined using a Monte Carlo simulation based on the historical volatility of the Company's total return compared to the historical volatilities of the other companies in the index. During the nine months ended March 31, 2016, we granted market-based awards with fair values ranging from $2.93 to $5.07, all with an expected vesting period of 3.83 years, based on the various quartiles of comparative market performance. During the fiscal year ended June 30, 2015, we granted market-based awards with fair values ranging from $4.26 to $8.40 and with expected vesting periods of 3.30 years to 2.55 years, based on the various quartiles of comparative market performance. Compensation expense for market-based awards is recognized over the expected vesting period using the straight-line method, so long as the award holder remains an employee of the Company. Total compensation expense is based on the fair value of the awards at the date of grant and is independent of vesting or expiration of the awards, except for termination of service.

After the separation of our GARP^® artificial lift technology operations in December 2015, the Company determined that certain performance award goals were no longer applicable. At the Company’s request in February 2016, certain employees elected to voluntarily relinquish 31,307 restricted performance-based shares and 15,654 contingent performance-based shares in exchange for 22,016 shares of service-based restricted stock subject to vesting in three annual tranches ending on August 28, 2018.

Unvested Restricted Stock awards at March 31, 2016 consisted of the following:



Award Type	Number of Restricted Shares	Weighted Average Grant-Date Fair Value
Service-based awards	230,400	7.14
Performance-based awards	89,079	7.17
Market-based awards	93,254	5.50
Unvested at March 31, 2016	412,733	$	6.78

The following table sets forth the Restricted Stock transactions for the nine months ended March 31, 2016:



	Number of Restricted Shares		Weighted Average Grant-Date Fair Value		Unamortized Compensation Expense at March 31, 2016 (1)		Weighted Average Remaining Amortization Period (Years)
Unvested at July 1, 2015	262,227		$	9.37
Service-based shares granted	164,610		5.84
Performance-based shares granted	64,752		6.09
Market-based shares granted	64,752		4.58
Vested	(80,834	)	8.68
Forfeited	(62,774	)	9.72
Unvested at March 31, 2016	412,733		$	6.78	$	2,125,092	2.8

(1) Excludes $244,486 of potential future compensation expense for performance-based awards for which vesting is not considered probable at this time for accounting purposes.

Unvested Contingent Restricted Stock awards at March 31, 2016 consisted of the following:



Award Type	Number of Contingent Restricted Shares	Weighted Average Grant-Date Fair Value
Performance-based awards	44,542	$	7.17
Market-based awards	46,630	3.34
Unvested at March 31, 2016	91,172	$	5.21

The following table sets forth Contingent Restricted Stock transactions for the nine months ended March 31, 2016:



	Number of Contingent Restricted Shares		Weighted Average Grant-Date Fair Value		Unamortized Compensation Expense at March 31, 2016 (1)		Weighted Average Remaining Amortization Period (Years)
Unvested at July 1, 2015	56,286		$	8.20
Performance-based awards granted	32,376		6.09
Market-based awards granted	32,376		2.93
Forfeited	(29,866	)	9.33
Unvested at March 31, 2016	91,172		$	5.21	$	118,058	3.0

(1) Excludes $319,438 of potential future compensation expense for performance-based awards for which vesting is not considered probable at this time for accounting purposes.

Stock-based compensation expense related to Restricted Stock and Contingent Restricted Stock grants for the three months ended March 31, 2016 and 2015 was $277,907 and $227,507, respectively. For the nine months ended March 31, 2016 and 2015, this expense was $768,085 and $715,864, respectively.

Derivatives

9 Months Ended

Mar. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

In early June 2015, the Company began using derivative instruments to reduce its exposure to crude oil price volatility for a substantial portion of its near-term forecasted production. The Company's objectives for this program were to achieve a more predictable level of cash flows to support the Company’s capital expenditure program and to provide better financial visibility for the payment of dividends on common stock. The Company uses both fixed price swap agreements and costless collars to manage its exposure to crude oil price risk. While these derivative instruments are intended to limit the downside risk of adverse price movements, they may also limit future revenues from favorable price movements.

The Company does not enter into derivative instruments for speculative or trading purposes.

The Company accounts for derivatives under the provisions of ASC 815 Derivatives and Hedging ("ASC 815") under which the Company records the fair value of the instruments on the balance sheet at each reporting date, with changes in fair value recognized in income. Given cost and complexity considerations, the Company did not elect to use cash flow hedge accounting provided under ASC 815. Under cash flow hedge accounting, the effective portion of the change in fair value of the derivative instruments would be deferred in other comprehensive income and not recognized in earnings until the underlying hedged item impacts earnings.

These derivative instruments can result in both fair value asset and liability positions held with each counterparty. These positions are offset to a single net fair value asset or liability at the end of each reporting period. The Company nets its fair value amounts of derivative instruments executed with the same counterparty pursuant to ISDA master agreements, which provide for net settlement over the term of the contract and in the event of default or termination of the contract. The fair value derivative instruments where the Company is in a net asset position with its counterparty as of March 31, 2016 totaled $9,705. Refer to Note 12—Fair Value Measurement for derivative asset and derivative liability balances before offsetting.

The Company monitors the credit rating of its counterparties and believes it does not have significant credit risk. Accordingly, we do not currently require our counterparties to post collateral to support the net asset positions of our derivative instruments. As such, the Company is exposed to credit risk to the extent of nonperformance by the counterparties to its derivative instruments.

For the nine months ended March 31, 2016, the Company recorded in the consolidated statement of operations a gain on derivative instruments of $4,079,738 consisting of a realized gain of $3,960,059 on settled derivatives and an unrealized net gain of $119,679 on unsettled derivatives.

The following sets forth a summary of the Company’s crude oil derivative positions at average NYMEX WTI prices as of March 31, 2016.

Subsequent to March 31, 2016, the Company realized a loss of $40,496 on derivative contracts which expired at the end of April 2016. We had previously recorded an unrealized gain of $42,833 on these contracts as of March 31, 2016.

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

+ References

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+ Details

Fair Value Measurement

9 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

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 Derivative Instruments. The following table summarize the location and amounts of the Company’s assets and liabilities measured at fair value on a recurring basis as presented in the consolidated balance sheets as of March 31, 2016. All items included in the tables below are Level 2 inputs within the fair value hierarchy:



	March 31, 2016
Asset (Liability)	Gross Amounts Recognized			Gross Amounts Offset in the Consolidated Balance Sheet			Net Amounts Presented in the Consolidated Balance Sheets
Current derivative assets	$	42,833		$	(33,128	)	$	9,705
Current derivative liabilities	(33,128		)	33,128			—
Total	$	9,705		$	—		$	9,705

The fair values of the Company’s derivative assets and liabilities are based on a third-party industry-standard pricing model that uses market data obtained from third-party sources, including quoted forward prices for oil and gas, discount rates and volatility factors. The fair values are also compared to the values provided by the counterparty for reasonableness and are adjusted for the counterparty's credit quality for derivative assets and the Company’s credit quality for derivative liabilities. To date, adjustments for credit quality have not had a material impact on the fair values.

Net Income (Loss) Per Share

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	9 Months Ended
Income Taxes	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes We file a consolidated federal income tax return in the United States and various combined and separate filings in several state and local jurisdictions. There were no unrecognized tax benefits nor any accrued interest or penalties associated with unrecognized tax benefits during the nine months ended March 31, 2016. 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, 2013 through June 30, 2015 for federal tax purposes and for the years ended June 30, 2011 through June 30, 2015 for state tax purposes. To the extent we utilize net operating losses generated in earlier years, such earlier years may also be subject to audit. In late September 2015, we received a $1.5 million refund payment of cash taxes paid to the State of Louisiana over a three-year period ended June 30, 2014. We also received $57,467 from the State of Louisiana for interest on the refund and recorded it as a reduction of current income tax expense. This carryback of tax losses resulted from the exercise of stock options and incentive warrants in fiscal 2014 and, accordingly, we recognized this benefit as an increase in additional paid-in capital for financial reporting purposes. This carryback utilized approximately $19.1 million of an estimated $24.2 million net loss for state tax purposes. The remaining balance of this net loss carryforward in Louisiana was utilized in the tax return for the year ended June 30, 2015. We recognized income tax expense of $2,051,521 and $2,118,218 for the nine months ended March 31, 2016 and 2015, respectively, with corresponding effective rates of 35% and 41%. Our effective tax rate will typically differ from the statutory federal rate as a result of state income taxes, primarily in the State of Louisiana, with smaller differences related to stock-based compensation and other permanent differences. Statutory percentage depletion can give rise to a permanent difference in our tax rates when utilized for state or federal income tax purposes. The lower effective tax rate in fiscal 2016 resulted from a proportionally lesser amount of taxable income in the State of Louisiana.

Net Income (Loss) Per Share

9 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

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



	Three Months Ended March 31,					Nine Months Ended March 31,
	2016			2015		2016		2015
Numerator
Net income (loss) available to common shareholders	$	(298,183	)	$	566,011	$	3,280,166	$	2,597,788
Denominator
Weighted average number of common shares — Basic	32,879,381			32,861,001		32,779,234		32,789,157
Effect of dilutive securities:
Contingent restricted stock grants	—			5,954		8,418		3,568
Stock options	—			91,263		47,113		117,256
Weighted average number of common shares and dilutive potential common shares used in diluted EPS	32,879,381			32,958,218		32,834,765		32,909,981

Net income (loss) per common share — Basic	$	(0.01	)	$	0.02	$	0.10	$	0.08
Net income (loss) per common share — Diluted	$	(0.01	)	$	0.02	$	0.10	$	0.08

Outstanding potentially dilutive securities as of March 31, 2016 were as follows:



Outstanding Potentially Dilutive Securities	Weighted Average Exercise Price		At March 31, 2016
Contingent Restricted Stock grants (a)	$	—	46,630
Stock Options	2.36		65,231
	$	1.38	111,861

Outstanding potentially dilutive securities as of March 31, 2015 were as follows:



Outstanding Potentially Dilutive Securities	Weighted Average Exercise Price		At March 31, 2015
Contingent Restricted Stock grants (a)	$	—	17,961
Stock Options	2.50		91,061
	$	2.09	109,022

(a) Contingent Restricted Stock grants for which vesting is not considered probable for accounting purposes are excluded from potentially dilutive securities outstanding.

Unsecured Revolving Credit Agreement	9 Months Ended
Unsecured Revolving Credit Agreement	Mar. 31, 2016
Debt Disclosure [Abstract]
Unsecured Revolving Credit Agreement	Unsecured Revolving Credit Agreement On February 29, 2012, the Company entered into a Credit Agreement (the "Credit Agreement") with a commercial bank (the "Lender"). The Credit Agreement provides up to $50,000,000 in borrowings with current availability limited to $5,000,000. The Credit Agreement is unsecured and had an original term of four years, expiring on February 29, 2016, which was extended to April 29, 2016. The proceeds of any loans under the Credit Agreement may be used by the Company for the acquisition and development of oil and gas properties, as defined in the facility, the issuance of letters of credit, and for working capital and general corporate purposes. A commitment fee of 0.50% per annum accrues on unutilized availability. The Company is responsible for certain administrative expenses of the Lender over the life of the Credit Agreement as well as $50,000 in loan costs incurred upon closing. The Credit Agreement contains financial covenants including a requirement that the Company maintain (a) a current ratio of not less than 1.5 to 1; (b) a ratio of total funded Indebtedness to EBITDA of not more than 2.5 to 1, and (c) a ratio of EBITDA to interest expense of not less than 3 to 1. Payments of dividends for the Series A Preferred are only restricted by the EBITDA to interest coverage ratio. During early 2014 the Credit Agreement was amended to permit the payment of cash dividends on common stock if no borrowings are outstanding at the time of such payment. As of March 31, 2016 and 2015, the Company had no borrowings and no outstanding letters of credit issued under the facility, resulting in an available borrowing base capacity of $5,000,000, and we are in compliance with all covenants of the Credit Agreement. In connection with this agreement, the Company incurred $179,468 of debt issuance costs. Such costs were capitalized in Other Assets and have been completely amortized to expense as of March 31, 2016. See Note 17 for discussion of the Company's new credit facility entered into subsequent to quarter end.

Commitments and Contingencies

9 Months Ended

Mar. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

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 jurisdictions 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.

On December 13, 2013, we and our wholly-owned subsidiaries, Tertiaire Resources Company and NGS Sub. Corp., filed a lawsuit in the 133^rd Judicial District Court of Harris County, Texas, against Denbury Onshore, LLC (“Denbury”) alleging breaches of certain 2006 agreements between the parties regarding the Delhi field in Richland Parish, Louisiana. The specific allegations include improperly charging the payout account for capital expenditures and costs of capital, failure to adhere to preferential rights to participate in acquisitions within the defined area of mutual interest, breach of the promises to assume environmental liabilities and fully indemnify us from such costs, and other breaches. We also alleged that Denbury’s gross negligence caused certain environmental damage to the unit. Specifically, we allege that Denbury failed to properly conduct CO₂ injection activities. We are seeking declaration of the validity of the 2006 agreements and recovery of damages and attorneys’ fees. Denbury subsequently filed counterclaims, including the assertion that we owe Denbury additional revenue interests pursuant to the 2006 agreements and that our transfers of the reversionary interests from our wholly owned subsidiary to our parent corporation and subsequently to another wholly-owned subsidiary were not timely noticed to Denbury. The Company disagrees with, and is vigorously defending against, Denbury's counterclaims. In March 2015, we amended and expanded our claims in this matter. This matter is currently scheduled for trial in late July 2016.

On December 3, 2013, our wholly owned subsidiary, NGS Sub Corp., was served with a lawsuit filed in the 8th Judicial District Court of Winn Parish, Louisiana by Cecil M. Brooks and Brandon Hawkins, residents of Louisiana, alleging that in 2006 a former subsidiary of NGS Sub Corp. improperly disposed of water from an off-lease well into a well located on the plaintiffs’ lands in Winn Parish. The plaintiffs requested monetary damages and other relief. NGS Sub Corp. divested its ownership of the property in question along with its ownership of the subsidiary in 2008 to a third party. The district court granted our exception of no right of action and dismissed certain claims against NGS Sub Corp. The plaintiffs subsequently filed an amended petition naming NGS Sub Corp. and the Company as defendants. NGS Sub Corp. and the Company have denied the plaintiffs’ claims. Various pretrial motions filed on behalf of multiple parties were recently decided by the court and discovery is in process. We will continue to vigorously defend all claims by plaintiffs and consider the likelihood of a material loss to the Company in this matter to be remote.

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



Twelve months ended March 31,
2016	$	53,004

Rent expense for the three months ended March 31, 2016 and 2015 was $46,286 and $43,776, respectively. For the nine months ended March 31, 2016 and 2015, rent expense was $137,185 and $131,327. Subsequent to the end of the quarter, we signed a letter of intent for smaller, less expensive office space to replace our current lease.

Capital Expenditures. See Note 5 for discussion of capital projects in progress and expected remaining capital commitments.

Subsequent Event	9 Months Ended
Subsequent Event	Mar. 31, 2016
Subsequent Events [Abstract]
Subsequent Event	Subsequent Event On April 11, 2016, the Company entered into a new three-year, senior secured reserve-based credit facility ("Facility") in an amount up to $50 million. The Facility replaces the Company's unsecured credit facility which was set to expire on April 29, 2016. The initial borrowing base under the Facility was set at $10 million and the Company has no outstanding borrowings. Proceeds from the Facility may be used for the acquisition and development of oil and gas properties and for letters of credit and other general corporate purposes. Availability of borrowings under the Facility is subject to semi-annual borrowing base redeterminations. The Facility included a placement fee of 0.50% on the initial borrowing base, amounting to $50,000, and carries a commitment fee of 0.25% per annum on the undrawn portion of the borrowing base. Any borrowings under the Facility will bear interest, at the Company’s option, at either Libor plus 2.75% or the Prime Rate, as defined, plus 1.00%. The Facility contains customary financial covenants including a requirement that the Company maintain, as of the last day of each fiscal quarter, (a) a maximum total leverage ratio of not more than 3.00 to 1.00, (b) a debt service coverage ratio of not less than 1.10 to 1.00, and (c) a consolidated tangible net worth of not less than $40,000,000.

Organization and Basis of Preparation (Policies)	9 Months Ended
Organization and Basis of Preparation (Policies)	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Principles of Consolidation and Reporting	Principles of Consolidation and Reporting. Our consolidated financial statements include the accounts of EPM and its wholly-owned subsidiaries. All significant intercompany transactions have been eliminated in consolidation. The consolidated financial statements for the previous year include certain reclassifications that were made to conform to the current presentation. Such reclassifications have no impact on previously reported net income or stockholders' equity. As a result of the separation of our GARP^® artificial lift technology operations discussed in Note 2, previously reported revenues for the Delhi field and our artificial lift technology operations have been reclassified as appropriate to crude oil, natural gas liquids, natural gas and artificial lift technology service revenues. Before the reclassification, artificial lift technology revenues included crude oil, natural gas liquids and gas revenues produced by certain of the Company’s operated wells, together with service revenues derived from the use of the Company’s technology on third party wells. Previously reported production costs for our artificial lift technology operations have been reclassified as appropriate to oil and gas production costs and cost of artificial lift technology services.
Use of Estimates	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.
New Accounting Pronouncements	New Accounting Pronouncements. In August 2015, the FASB issued Accounting Standards Update 2015-14, which defers the effective date of ASU 2014-09 Revenue from Contracts with Customers (Topic 606) (" ASU 2014-09") one year, and would allow entities the option to early adopt the new revenue standard as of the original effective date. Issued in May 2014, ASU 2014-09 provided guidance on revenue recognition on contracts with customers to transfer goods or services or on contracts for the transfer of nonfinancial assets. ASU 2014-09 requires that revenue recognition on contracts with customers depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For public companies, ASU 2014-09 would have been effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The standard provided for either the retrospective or cumulative effect transition method. The Company is currently assessing the impact of the adoption of ASU 2014-09 will have on its consolidated financial statements, if any. In November 2015, the FASB issued ASU No. 2015-17, “Balance Sheet Classification of Deferred Taxes” as part of their simplification initiatives. The update requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The update is effective for public company annual reporting periods beginning after December 15, 2016, and may be adopted prospectively or retrospectively with early adoption is permitted. At present, the Company does not believe that adoption of this update will have a material impact on our results of operations, financial position or cash flows. On February 25, 2016, the FASB issued ASU 2016-02 , Leases (“ASU 2016-02”), which relates to the accounting for leasing transactions. This standard requires a lessee to record on the balance sheet the assets and liabilities for the rights and obligations created by leases with lease terms of more than 12 months. In addition, this standard requires both lessees and lessors to disclose certain key information about lease transactions. This standard will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are evaluating the impact the adoption of ASU 2016-02 will have on our condensed consolidated financial statements. On March 30, 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which relates to the accounting for employee share-based payments. This standard addresses several aspects of the accounting for share-based payment award transactions, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. This standard will be effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. We are evaluating the impact the adoption of ASU 2016-09 will have on our condensed consolidated financial statements.

Restructuring Charge (Tables)

9 Months Ended

Mar. 31, 2016

Restructuring and Related Activities [Abstract]

Schedule of restructuring changes by type of cost

Our current estimate of remaining restructuring obligations as of March 31, 2016 is as follows:



Type of Cost	December 31, 2015		Payments			March 31, 2016
Salary expense	$	530,387	$	(88,398	)	$	441,989
Payroll taxes and benefits expense	98,479		(17,652		)	80,827
Accrued liability for restructuring costs	$	628,866	$	(106,050	)	$	522,816

Receivables (Tables)

9 Months Ended

Mar. 31, 2016

Receivables [Abstract]

Schedule of Receivables

As of March 31, 2016 and June 30, 2015, our receivables consisted of the following:



	March 31, 2016		June 30, 2015
Receivables from oil and gas sales	$	1,930,948	$	3,122,155
Receivable from settled derivatives	466,795		—
Other	13,472		318
Total receivables	$	2,411,215	$	3,122,473

Prepaid Expenses and Other Current Assets (Tables)

9 Months Ended

Mar. 31, 2016

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of prepaid expenses and other current assets

As of March 31, 2016 and June 30, 2015, our prepaid expenses and other current assets consisted of the following:



	March 31, 2016		June 30, 2015
Prepaid insurance	$	77,223	$	178,994
Equipment inventory (a)	—		81,538
Retainers and deposits	26,978		26,978
Prepaid federal and state income taxes	95,000		22,542
Other prepaid expenses	56,606		59,352
Prepaid expenses and other current assets	$	255,807	$	369,404

Property and Equipment (Tables)

9 Months Ended

Mar. 31, 2016

Property, Plant and Equipment [Abstract]

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

As of March 31, 2016 and June 30, 2015, our oil and natural gas properties and other property and equipment consisted of the following:



	March 31, 2016			June 30, 2015
Oil and natural gas properties
Property costs subject to amortization	$	69,886,767		$	57,718,653
Less: Accumulated depreciation, depletion, and amortization	(16,237,153		)	(12,531,767		)
Unproved properties not subject to amortization	—			—
Oil and natural gas properties, net	$	53,649,614		$	45,186,886
Other property and equipment
Other equipment, at cost	$	328,201		$	607,674
Less: Accumulated depreciation	(302,211		)	(330,918		)
Other equipment, net	$	25,990		$	276,756

Other Assets (Tables)

9 Months Ended

Mar. 31, 2016

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of other assets

As of March 31, 2016 and June 30, 2015, other assets consisted of the following:



	March 31, 2016			June 30, 2015
Royalty rights	$	108,512		$	—
Less: Accumulated amortization of royalty rights	(3,391		)	—
Investment in Well Lift Inc., at cost	108,750			—
Trademarks	—			44,803
Patent costs	—			538,276
Less: Accumulated amortization of patent costs	—			(47,063		)
Deferred loan costs	201,470			337,078
Less: Accumulated amortization of deferred loan costs	(179,468		)	(147,057		)
Other assets, net	$	235,873		$	726,037

Accrued Liabilities and Other (Tables)

9 Months Ended

Mar. 31, 2016

Other Liabilities, Current [Abstract]

Schedule of accrued liabilities

As of March 31, 2016 and June 30, 2015, our other current liabilities consisted of the following:



	March 31, 2016		June 30, 2015
Accrued incentive and other compensation	$	406,092	$	578,910
Asset retirement obligations due within one year	105,868		57,223
Accrued royalties, including suspended accounts	47,978		75,164
Accrued franchise taxes	95,793		94,885
Accrued restructuring costs	522,816		—
Other accrued liabilities	47,225		49,191
Accrued liabilities and other	$	1,225,772	$	855,373

Asset Retirement Obligations (Tables)

9 Months Ended

Mar. 31, 2016

Asset Retirement Obligation Disclosure [Abstract]

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

The following is a

reconciliation of the beginning and ending asset retirement obligations for the nine months ended March 31, 2016 and for the year ended June 30, 2015:



	March 31, 2016			June 30, 2015
Asset retirement obligations — beginning of period	$	772,990		$	352,215
Liabilities incurred (a)	—			564,019
Liabilities settled	—			(137,604		)
Liabilities sold	—			(52,526		)
Accretion of discount	34,555			34,866
Revision of previous estimates	—			12,020
Asset retirement obligations — end of period	$	807,545		$	772,990
Less current portion in accrued liabilities	(105,868		)	(57,223		)
Long-term portion of asset retirement obligations	$	701,677		$	715,767

(a) Liabilities incurred during fiscal 2015 relate to our share of the estimated abandonment costs of the wells and facilities in the Delhi field subsequent to the reversion of our working interest.

Stock-Based Incentive Plan (Tables)

9 Months Ended

Mar. 31, 2016

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

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

The following summary presents information regarding outstanding Stock Options as of March 31, 2016, and the changes during the period:



	Number of Stock Options		Weighted Average Exercise Price		Aggregate Intrinsic Value (1)		Weighted Average Remaining Contractual Term (in years)
Stock Options outstanding at July 1, 2015	91,061		$	2.50
Exercised	(20,000	)	2.55
Expired	(5,830	)	4.02
Stock Options outstanding at March 31, 2016	65,231		2.36		$	163,367	0.8
Vested and exercisable at March 31, 2016	65,231		$	2.36	$	163,367	0.8

Schedule of Restricted Stock transactions

Unvested Contingent Restricted Stock awards at March 31, 2016 consisted of the following:



Award Type	Number of Contingent Restricted Shares	Weighted Average Grant-Date Fair Value
Performance-based awards	44,542	$	7.17
Market-based awards	46,630	3.34
Unvested at March 31, 2016	91,172	$	5.21

Unvested Restricted Stock awards at March 31, 2016 consisted of the following:



Award Type	Number of Restricted Shares	Weighted Average Grant-Date Fair Value
Service-based awards	230,400	7.14
Performance-based awards	89,079	7.17
Market-based awards	93,254	5.50
Unvested at March 31, 2016	412,733	$	6.78

Restricted Stock

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of Restricted Stock transactions

The following table sets forth the Restricted Stock transactions for the nine months ended March 31, 2016:



	Number of Restricted Shares		Weighted Average Grant-Date Fair Value		Unamortized Compensation Expense at March 31, 2016 (1)		Weighted Average Remaining Amortization Period (Years)
Unvested at July 1, 2015	262,227		$	9.37
Service-based shares granted	164,610		5.84
Performance-based shares granted	64,752		6.09
Market-based shares granted	64,752		4.58
Vested	(80,834	)	8.68
Forfeited	(62,774	)	9.72
Unvested at March 31, 2016	412,733		$	6.78	$	2,125,092	2.8

(1) Excludes $244,486 of potential future compensation expense for performance-based awards for which vesting is not considered probable at this time for accounting purposes.

Contingent Restricted Stock

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of Restricted Stock transactions

The following table sets forth Contingent Restricted Stock transactions for the nine months ended March 31, 2016:



	Number of Contingent Restricted Shares		Weighted Average Grant-Date Fair Value		Unamortized Compensation Expense at March 31, 2016 (1)		Weighted Average Remaining Amortization Period (Years)
Unvested at July 1, 2015	56,286		$	8.20
Performance-based awards granted	32,376		6.09
Market-based awards granted	32,376		2.93
Forfeited	(29,866	)	9.33
Unvested at March 31, 2016	91,172		$	5.21	$	118,058	3.0

(1) Excludes $319,438 of potential future compensation expense for performance-based awards for which vesting is not considered probable at this time for accounting purposes.

Derivatives (Tables)

9 Months Ended

Mar. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of crude oil derivatives positions

The following sets forth a summary of the Company’s crude oil derivative positions at average NYMEX WTI prices as of March 31, 2016.

Schedule of assets and liabilities measured on a recurring basis

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=56946850&loc=d3e41641-113959

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624163-113959

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=56946850&loc=d3e41678-113959

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=56946850&loc=d3e41638-113959

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5580258-113959

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5579245-113959

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5624171-113959

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 25
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=56946850&loc=SL5579240-113959

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=56946850&loc=d3e41620-113959

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(n)(2))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

+ Details

Fair Value Measurement (Tables)

9 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]



	March 31, 2016
Asset (Liability)	Gross Amounts Recognized			Gross Amounts Offset in the Consolidated Balance Sheet			Net Amounts Presented in the Consolidated Balance Sheets
Current derivative assets	$	42,833		$	(33,128	)	$	9,705
Current derivative liabilities	(33,128		)	33,128			—
Total	$	9,705		$	—		$	9,705

Net Income (Loss) Per Share (Tables)

9 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

Schedule of computation of basic and diluted income per share

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



	Three Months Ended March 31,					Nine Months Ended March 31,
	2016			2015		2016		2015
Numerator
Net income (loss) available to common shareholders	$	(298,183	)	$	566,011	$	3,280,166	$	2,597,788
Denominator
Weighted average number of common shares — Basic	32,879,381			32,861,001		32,779,234		32,789,157
Effect of dilutive securities:
Contingent restricted stock grants	—			5,954		8,418		3,568
Stock options	—			91,263		47,113		117,256
Weighted average number of common shares and dilutive potential common shares used in diluted EPS	32,879,381			32,958,218		32,834,765		32,909,981

Net income (loss) per common share — Basic	$	(0.01	)	$	0.02	$	0.10	$	0.08
Net income (loss) per common share — Diluted	$	(0.01	)	$	0.02	$	0.10	$	0.08

Schedule of outstanding potentially dilutive securities

Outstanding potentially dilutive securities as of March 31, 2016 were as follows:



Outstanding Potentially Dilutive Securities	Weighted Average Exercise Price		At March 31, 2016
Contingent Restricted Stock grants (a)	$	—	46,630
Stock Options	2.36		65,231
	$	1.38	111,861

Outstanding potentially dilutive securities as of March 31, 2015 were as follows:



Outstanding Potentially Dilutive Securities	Weighted Average Exercise Price		At March 31, 2015
Contingent Restricted Stock grants (a)	$	—	17,961
Stock Options	2.50		91,061
	$	2.09	109,022

(a) Contingent Restricted Stock grants for which vesting is not considered probable for accounting purposes are excluded from potentially dilutive securities outstanding.

Commitments and Contingencies (Tables)

9 Months Ended

Mar. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Schedule of future minimum lease commitments under the operating lease

Future minimum lease commitments as of March 31, 2016 under this operating lease are as follows:



Twelve months ended March 31,
2016	$	53,004

Restructuring Charge - Restructuring Charges (Details) - USD ($)

3 Months Ended

6 Months Ended

9 Months Ended

Mar. 31, 2016

Mar. 31, 2015

Dec. 31, 2015

Mar. 31, 2016

Mar. 31, 2015

^[1]

$ 0

$ 1,257,433

$ (5,431)

Stock-based compensation

708,746

$ 715,864

$ 0

522,816

GARP

688,205

628,866

Payments

(106,050)

522,816

628,866

522,816

GARP | Salary expense

530,387

Payments

(88,398)

GARP | Payroll taxes and benefits expense

441,989

530,387

441,989

98,479

Payments

(17,652)

80,827

98,479

80,827

Restructuring charges | GARP

Stock-based compensation

$ 569,228

$ 59,339

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Stock-based compensation

$ 59,339

[1]	Restructuring charges include $569,228 of non-cash impairment charges and $59,339 of non-cash stock-based compensation for the nine months ended March 31, 2016.

Restructuring Charge - Investments in Well Lift Inc (Details)	1 Months Ended	6 Months Ended
	Dec. 31, 2015 USD ($)	Dec. 31, 2015 USD ($) employee	Mar. 31, 2016 USD ($)	Jun. 30, 2015 USD ($)
Schedule of Cost-method Investments [Line Items]
Investment in Well Lift Inc., at cost			$ 108,750	$ 0
GARP
Schedule of Cost-method Investments [Line Items]
Number of employees terminated \| employee		3
Well Lift Inc.
Schedule of Cost-method Investments [Line Items]
Investment in Well Lift Inc., at cost	$ 108,750	$ 108,750
Owner percentage	17.50%	17.50%
Ownership percentage after conversion of preferred stock into common stock	42.50%	42.50%
Perpetual royalty percentage	5.00%
Discounted net present value of assets	$ 108,512	$ 108,512
Well Lift Inc. \| GARP \| Exchange of Assets
Schedule of Cost-method Investments [Line Items]
Amortization expense	469,395
Inventory write down to production costs	92,901
Depreciation expense	6,932
Total impairments	$ 569,228

Receivables (Details) - USD ($)	Mar. 31, 2016	Jun. 30, 2015
Receivables [Abstract]
Receivables from oil and gas sales	$ 1,930,948	$ 3,122,155
Receivable from settled derivatives	466,795	0
Other	13,472	318
Total receivables	$ 2,411,215	$ 3,122,473

Prepaid Expenses and Other Current Assets (Details) - USD ($)

Mar. 31, 2016

Jun. 30, 2015

Prepaid insurance

$ 77,223

$ 178,994

Equipment inventory

^[1]

81,538

Retainers and deposits

26,978

Prepaid federal and state income taxes

95,000

22,542

Other prepaid expenses

56,606

59,352

Prepaid expenses and other current assets

$ 255,807

$ 369,404

[1]	As discussed in Note 2, our equipment inventory was determined to have no future value in use for our operations and was charged to restructuring costs as part of the separation of our GARP® artificial lift technology operations.

Property and Equipment (Details) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
Property and Equipment (Details) - USD ($)	Nov. 30, 2015	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Jun. 30, 2015
Property, Plant and Equipment [Line Items]
Capital costs charged to expense		$ 1,268,800	$ 1,138,502	$ 3,958,644	$ 2,425,609
Oil and natural gas properties
Property costs subject to amortization		69,886,767		69,886,767		$ 57,718,653
Less: Accumulated depreciation, depletion, and amortization		(16,237,153)		(16,237,153)		(12,531,767)
Unproved properties not subject to amortization		0		0		0
Oil and natural gas properties, net		53,649,614		53,649,614		45,186,886
Other property and equipment
Other equipment, at cost		328,201		328,201		607,674
Less: Accumulated depreciation		(302,211)		(302,211)		(330,918)
Other equipment, net		$ 25,990		25,990		$ 276,756
Artificial lift equipment
Property, Plant and Equipment [Line Items]
Capital costs charged to expense	$ 210,392
Delhi field
Property, Plant and Equipment [Line Items]
Capital expenditures				12,165,169
NGL Plant Project
Property, Plant and Equipment [Line Items]
Capital expenditures				10,034,697
Incurred costs on a cumulative basis				15,075,736
Total authorized commitment				$ 24,600,000

Other Assets (Details) - USD ($)	Mar. 31, 2016	Jun. 30, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Royalty rights	$ 108,512	$ 0
Less: Accumulated amortization of royalty rights	(3,391)	0
Investment in Well Lift Inc., at cost	108,750	0
Trademarks	0	44,803
Patent costs	0	538,276
Less: Accumulated amortization of patent costs	0	(47,063)
Deferred loan costs	201,470	337,078
Less: Accumulated amortization of deferred loan costs	(179,468)	(147,057)
Other assets, net	$ 235,873	$ 726,037

Other Assets - Additional Information (Details)	9 Months Ended
Other Assets - Additional Information (Details)	Mar. 31, 2016 USD ($)
Revolving credit facility \| Texas Capital Bank, N.A.
Line of Credit Facility [Line Items]
Unamortized debt issuance costs	$ 179,468
Revolving credit facility \| Delhi field \| Texas Capital Bank, N.A.
Line of Credit Facility [Line Items]
Deferred legals fee	50,414
Costs incurred for title work related to the Dehli Field	107,196
Line of Credit \| Senior Secured Reserve-Based Credit Facility
Line of Credit Facility [Line Items]
Unamortized debt issuance costs	$ 22,002

Accrued Liabilities and Other (Details) - USD ($)	Mar. 31, 2016	Jun. 30, 2015
Other Liabilities, Current [Abstract]
Accrued incentive and other compensation	$ 406,092	$ 578,910
Asset retirement obligations due within one year	105,868	57,223
Accrued royalties, including suspended accounts	47,978	75,164
Accrued franchise taxes	95,793	94,885
Accrued restructuring costs	522,816	0
Other accrued liabilities	47,225	49,191
Accrued liabilities and other	$ 1,225,772	$ 855,373

Asset Retirement Obligations (Details) - USD ($)

3 Months Ended

9 Months Ended

12 Months Ended

Mar. 31, 2016

Mar. 31, 2015

Mar. 31, 2016

Mar. 31, 2015

Jun. 30, 2015

Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]

Asset retirement obligations — beginning of period

$ 772,990

$ 352,215

Liabilities incurred

^[1]

564,019

Liabilities settled

(137,604)

Liabilities sold

(52,526)

Accretion of discount

$ 11,695

$ 10,924

34,555

$ 23,697

34,866

Revision of previous estimates

12,020

Asset retirement obligations — end of period

807,545

772,990

Less current portion in accrued liabilities

(105,868)

(57,223)

Long-term portion of asset retirement obligations

$ 701,677

$ 715,767

[1]	Liabilities incurred during fiscal 2015 relate to our share of the estimated abandonment costs of the wells and facilities in the Delhi field subsequent to the reversion of our working interest.

Stockholders' Equity - Common Stock Dividends and Buyback Program (Details)	1 Months Ended		3 Months Ended	9 Months Ended
	Jun. 30, 2015 USD ($) $ / shares shares	Dec. 31, 2013 $ / shares	Mar. 31, 2015 $ / shares	Mar. 31, 2016 USD ($) quarterly_dividend $ / shares shares	May 12, 2015 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash dividend (in dollars per share) \| $ / shares		$ 0.10	$ 0.05
Cash dividends to common stockholders				$ 4,932,247
Value of shares repurchased				$ 1,185,597
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of quarterly dividends declared \| quarterly_dividend				3
Number of shares repurchased \| shares				204,620
Common Stock \| 2015 Share Repurchase Program
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized amount to be repurchased					$ 5,000,000
Number of shares repurchased \| shares	265,762			202,390
Average price of shares repurchased (in dollars per share) \| $ / shares	$ 6.05			$ 5.80
Value of shares repurchased	$ 1,609,008			$ 1,173,899

Stockholders' Equity - Series A Cumulative Perpetual Preferred Stock (Details) - USD ($)	9 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Jun. 30, 2015
Series A Cumulative Perpetual Preferred Stock
Cash dividends to preferred stockholders	$ 505,726	$ 505,726
Preferred
Series A Cumulative Perpetual Preferred Stock
Percentage of cash dividends treated as qualified dividend income			100.00%
Common Stock
Series A Cumulative Perpetual Preferred Stock
Percentage of cash dividends treated as qualified dividend income			14.00%
Percentage of cash dividends treated as return of capital			86.00%
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%
Amount of sinking fund available to stockholders	$ 0
Preferred stock, liquidation preference (in dollars per share)	$ 25.00		$ 25.00
Dividend payable monthly on preferred stock (in dollars per share)	$ 0.177083
Cash dividends to preferred stockholders	$ 505,726	$ 505,726

Stock-Based Incentive Plan - Narrative (Details) - USD ($)		1 Months Ended	3 Months Ended		9 Months Ended
	Aug. 27, 2014	Feb. 29, 2016	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Restricted Stock, Service-Based
Stock-Based Incentive Plan
Shares granted					164,610
Restricted Stock, Service-Based \| Various Employees
Stock-Based Incentive Plan
Shares granted		22,016
Restricted Stock, Performance-Based
Stock-Based Incentive Plan
Shares granted					64,752
Restricted Stock, Performance-Based \| Various Employees
Stock-Based Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award, Shares Voluntarily Relinquished		31,307
Restricted Stock and Contingent Restricted Stock
Stock-Based Incentive Plan
Stock-based compensation expense			$ 277,907	$ 227,507	$ 768,085	$ 715,864
Contingent Performance-based Awards \| Various Employees
Stock-Based Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award, Shares Voluntarily Relinquished		15,654
2004 Stock Plan
Stock-Based Incentive Plan
Number of shares of common stock authorized for issuance under plan			6,500,000		6,500,000
Number of shares remaining available for grant under plan			232,243		232,243
2004 Stock Plan \| Restricted Stock
Stock-Based Incentive Plan
Vesting period (in years)	4 years
2004 Stock Plan \| Restricted Stock and Contingent Restricted Stock
Stock-Based Incentive Plan
Expiration period (in years)					4 years
2004 Stock Plan \| Performance-based Awards
Stock-Based Incentive Plan
Vesting period (in years)					4 years

Stock-Based Incentive Plan - Stock Options and Incentive Warrants (Details)

9 Months Ended

Mar. 31, 2016

USD ($)

$ / shares

Common Stock

Additional disclosures of Stock Options and Incentive Warrants

Market price of common stock on the last trading date of the period (in dollars per share)

$ 4.86

Stock Options

Number of Stock Options

Stock Options outstanding at the beginning of the period (in shares) | shares

91,061

Stock Options, Exercised (in shares) | shares

(20,000)

Stock Options, Expired (in shares) | shares

(5,830)

Stock Options outstanding at the end of the period (in shares) | shares

65,231

Vest and Exercisable at the end of the period (in shares) | shares

65,231

Weighted Average Exercise Price

Stock Options outstanding at the beginning of the period (in dollars per share)

$ 2.50

Stock Options, Exercised (in dollars per share)

2.55

Stock Options, Expired (in dollars per share)

4.02

Stock Options outstanding at the end of the period (in dollars per share)

2.36

Vested and Exercisable at the end of the period (in dollars per share)

$ 2.36

Stock Options outstanding at the end of the period | $

$ 163,367

^[1]

Vested and Exercisable at the end of the period | $

$ 163,367

^[1]

Stock Options outstanding at the end of the period (in years)

9 months 18 days

Vested and Exercisable at the end of the period (in years)

9 months 18 days

[1]	Based upon the difference between the market price of our common stock on the last trading date of the period ($4.86 as of March 31, 2016) and the Stock Option exercise price of in-the-money Stock Options.

Stock-Based Incentive Plan - Fair Value Inputs and Assumptions (Details) - Restricted Stock, Market-Based - $ / shares	9 Months Ended	12 Months Ended
	Mar. 31, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value at grant date, per share (in dollars per share)	$ 4.58
Vesting period	3 years 303 days
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value at grant date, per share (in dollars per share)	$ 2.93	$ 4.26
Vesting period		3 years 109 days
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value at grant date, per share (in dollars per share)	$ 5.07	$ 8.40
Vesting period		2 years 200 days

Stock-Based Incentive Plan - Unvested Restricted Stock (Details)

9 Months Ended

Mar. 31, 2016

USD ($)

$ / shares

Restricted Stock, Service-Based

Unvested at the end of the period (in shares) | shares

164,610

230,400

Unvested at the end of the period (in dollars per share) | $ / shares

$ 5.84

$ 7.14

Restricted Stock, Performance-Based

Stock-Based Incentive Plan

Potential future compensation expense | $

$ 244,486

Unvested at the end of the period (in shares) | shares

64,752

89,079

Unvested at the end of the period (in dollars per share) | $ / shares

$ 6.09

$ 7.17

Restricted Stock, Market-Based

Unvested at the end of the period (in shares) | shares

64,752

93,254

Unvested at the end of the period (in dollars per share) | $ / shares

$ 4.58

$ 5.50

Restricted Stock

Unvested at the beginning of the period (in shares) | shares

262,227

Vested (in shares) | shares

(80,834)

Forfeited (in shares) | shares

(62,774)

Unvested at the end of the period (in shares) | shares

412,733

Unvested at the beginning of the period (in dollars per share) | $ / shares

$ 9.37

Vested (in dollars per share) | $ / shares

8.68

Forfeited (in dollars per share) | $ / shares

9.72

Unvested at the end of the period (in dollars per share) | $ / shares

$ 6.78

Additional disclosures of restricted stock

Unrecognized stock compensation expense related to Restricted Stock | $

$ 2,125,092

^[1]

Weighted average remaining service period over which unrecognized compensation cost is expected to be recognized

2 years 9 months 18 days

Contingent Restricted Stock, Performance-Based

Stock-Based Incentive Plan

Potential future compensation expense | $

$ 319,438

Unvested at the end of the period (in shares) | shares

32,376

44,542

Unvested at the end of the period (in dollars per share) | $ / shares

$ 6.09

$ 7.17

Contingent Restricted Stock, Market-Based

Unvested at the end of the period (in shares) | shares

32,376

46,630

Unvested at the end of the period (in dollars per share) | $ / shares

$ 2.93

$ 3.34

Contingent Restricted Stock

Unvested at the beginning of the period (in shares) | shares

56,286

Forfeited (in shares) | shares

(29,866)

Unvested at the end of the period (in shares) | shares

91,172