EVOLUTION PETROLEUM CORP

For the period ended Jun 30, 2024. Filed Sep 11, 2024.

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A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.

FY2024 · Filed Sep 11, 2024

EPM$3.54+1.7%Stored close · as of Nov 9, 2026

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Contents

Glossary of Selected Petroleum Industry Terms


Term		Definition
Bbl		One stock tank barrel, of 42 U.S. gallons of liquid volume, used herein in reference to oil or NGL.
BCF		Billion cubic feet.
BFPD		Barrels of fluid per day.
BOE		Barrels of oil equivalent. BOE is calculated by converting six MCF of natural gas and 42 gallons of NGL to one Bbl of oil which reflects energy equivalence and not price equivalence. Natural gas prices per MCF and NGL prices per barrel often differ significantly from the equivalent amount of oil.
BOEPD		Barrels of oil equivalent per day.
BOPD		Barrels of oil per day.
BTU		British Thermal Unit: the standard unit of measure of energy equal to the amount of heat required to raise the temperature of one pound of water one degree Fahrenheit.
CO2		Carbon Dioxide.
Developed Reserves		Reserves of any category that can be expected to be recovered (i) through existing wells with existing equipment and operating methods or in which the cost of the required equipment is relatively minor compared to the cost of a new well; and (ii) through installed extraction equipment and infrastructure operational at the time of the reserves estimate if the extraction is by a means not involving a well.
EOR		Enhanced Oil Recovery; projects that involve injection of heat, miscible or immiscible gas, or chemicals into oil reservoirs, typically following full primary and secondary waterflood recovery efforts, in order to gain incremental recovery of oil from the reservoir.
Field		An area consisting of a single reservoir or multiple reservoirs all grouped within or related to the same geologic structural features and/or stratigraphic features.*
Farmout		Sale or transfer of all or part of the operating rights from the working interest owner (the assignor or farmout party), to an assignee (the farm-in party) who assumes all or some of the burden of development, in return for an interest in the property. The assignor may retain an overriding royalty or any other type of interest. For Federal tax purposes, a farmout may be structured as a sale or lease, depending on the specific rights and carved out interests retained by the assignor.
Gross Acres or Gross Wells		The total acres or number of wells participated in, regardless of the amount of working interest owned.
Horizontal Drilling		Involves drilling horizontally out from a vertical well-bore, thereby potentially increasing the area and reach of the well-bore that is in contact with the reservoir.
Hydraulic Fracturing		Involves pumping a fluid with or without particulates into a formation at high pressure, thereby creating fractures in the rock and leaving the particulates in the fractures to ensure that the fractures remain open which potentially increases the ability of the reservoir to produce oil or natural gas.
LOE		Lease Operating Expense(s); a current period expense incurred to operate a well.
MBBL		One thousand barrels.
MMBBL		One million barrels.
MBOE		One thousand barrels of oil equivalent.
MBOEPD		One thousand barrels of oil equivalent per day.
MMBOE		One million barrels of oil equivalent.
MCF		One thousand cubic feet of natural gas at standard conditions, being approximately sea level pressure and 60 degrees Fahrenheit temperature.
MMCF		One million cubic feet of natural gas at standard conditions.
MMBTU		One million British Thermal Units.
Mineral Royalty Interest		A royalty interest that is retained by the owner of the minerals underlying a lease. See “Royalty Interest.”
Net Acres or Net Wells		The sum of the fractional working interests owned in gross acres or gross wells.

NGL		Natural Gas Liquids; the combination of ethane, propane, butane and natural gasoline that can be removed from natural gas through processing, typically through refrigeration plants that utilize low temperatures, or through plants that utilize compression, temperature reduction and expansion to a lower pressure.
Non-operated Interest		An interest in an oil and/or natural gas property but does not participate in or have any responsibility for actual operation of the property.
Non-operated Working Interest		An interest in an oil and/or natural gas property but does not participate in or have any responsibility for actual operation of the property, but is burdened with the cost of development and operation of the property.
NYMEX		New York Mercantile Exchange.
OOIP		Original Oil in Place; an estimate of the barrels originally contained in a reservoir before any production therefrom.
Operator		An oil and natural gas joint venture participant that manages the joint venture, pays venture costs and bills the venture’s non-operators for their share of venture costs. The operator is also responsible to market all oil and natural gas production, except for those non-operators who take their production in-kind.
Overriding Royalty Interest or ORRI		A royalty interest that is created out of the operating or working interest. Unlike a royalty interest, an overriding royalty interest terminates with the operating interest from which it was created or carved out of. See “Royalty Interest.”
Permeability		The measure of ease with which a fluid can move through a reservoir. The unit of measure is a darcy (d), or any metric derivation thereof, such as a millidarcy (md), where one darcy equals 1,000 millidarcy. Extremely low permeability of 10 millidarcy, or less, are often associated with source rocks, such as shale. Extraction of hydrocarbons from a source rock is more difficult than a sandstone reservoir where permeability typically ranges one to two darcy or more.
Porosity		The relative volume of the pore space (or open area) compared to the total bulk volume of the reservoir, stated in percent. Higher porosity rocks provide more storage space for hydrocarbon accumulations than lower porosity rocks in a given cubic volume of reservoir.
Primary Recovery Method		The extraction of oil and natural gas from reservoirs using natural or initial reservoir pressure combined with artificial lift techniques such as pumps.
Producing Reserves		Any category of reserves that have been developed and production has been initiated.*
Producing Well		Any well that has been developed and production has been initiated.*
Proved Developed Reserves		Proved Reserves that can be expected to be recovered (i) through existing wells with existing equipment and operating methods or in which the cost of the required equipment is relatively minor compared to the cost of a new well; and (ii) through installed extraction equipment and infrastructure operational at the time of the reserves estimate if the extraction is by a means not involving a well.
Proved Developed Nonproducing Reserves		Proved Reserves that have been developed and no material amount of capital expenditures are required to bring on production, but production has not yet been initiated due to timing, markets, or lack of third party completed connection to a natural gas sales pipeline.*
Proved Developed Producing Reserves (“PDP”)		Proved Reserves that have been developed and production has been initiated.*
Proved Reserves		Estimated quantities of oil, natural gas, and NGLs which geologic and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic, operating methods, and government regulations prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation. The project to extract the hydrocarbons must have commenced or the operator must be reasonably certain that it will commence the project within a reasonable time.*

Proved Undeveloped Reserves (“PUD”)		Proved Reserves that are expected to be recovered from new wells on undrilled acreage, or from existing wells where a relatively major expenditure is required for recompletion.* (i) Reserves on undrilled acreage shall be limited to those directly offsetting development spacing areas that are reasonably certain of production when drilled, unless evidence using reliable technology exists that establishes reasonable certainty of economic producibility at greater distances. (ii) Undrilled locations can be classified as having undeveloped reserves only if a development plan has been adopted indicating that they are scheduled to be drilled within five years, unless the specific circumstances justify a longer time. (iii) Under no circumstances shall estimates for undeveloped reserves be attributable to any acreage for which an application of fluid injection or other improved recovery technique is contemplated, unless such techniques have been proved effective by actual projects in the same reservoir or an analogous reservoir or by other evidence using reliable technology establishing reasonable certainty.
Present Value		When used with respect to oil and natural gas reserves, present value means the estimated future net revenues computed by applying current prices of oil and natural gas reserves (with consideration of price changes only to the extent provided by contractual arrangements) to estimated future production of proved oil and natural gas reserves as of the date of the latest balance sheet presented, less estimated future expenditures (based on current costs to be incurred in developing and producing the proved reserves) computed using a discount factor and assuming continuation of existing economic conditions.
Productive Well		A well that is producing oil or natural gas or that is capable of production.
PV-10		Means the present value, discounted at 10% per annum, of future net revenues (estimated future gross revenues less estimated future costs of production, development, and asset retirement costs) associated with reserves and is not necessarily the same as market value. PV-10 does not include estimated future income taxes. Unless otherwise noted, PV-10 is calculated using the pricing scheme as required by the Securities and Exchange Commission (“SEC”). PV-10 of proved reserves is calculated the same as the standardized measure of discounted future net cash flows, except that the standardized measure of discounted future net cash flows includes future estimated income taxes discounted at 10% per annum. See the definition of standardized measure of discounted future net cash flows.
Reservoir		A porous and permeable underground formation containing a natural accumulation of producible oil and/or natural gas that is confined by impermeable rock or water barriers and is individual and separate from other reservoirs.
Royalty or Royalty Interest		The mineral owner’s share of oil or natural gas production (typically between 1/8 and ¼), free of costs, but subject to severance taxes unless the lessor is a government. In certain circumstances, the royalty owner bears a proportionate share of the costs of making the natural gas saleable, such as processing, compression, and gathering.
Secondary Recovery Method		The extraction of oil and natural gas from reservoirs utilizing water injection (waterflooding) in order to maintain or increase reservoir pressure and direct the displacement of oil into producing wells.
Shut-in Well		A well that is not on production, but has not been plugged and abandoned. Wells may be shut-in in anticipation of future utility as a producing well, plugging and abandonment or other use.
Standardized Measure		The standardized measure of discounted future net cash flows. The Standardized Measure is an estimate of future net cash flows associated with proved reserves, discounted at 10% per annum. Future net cash flows are calculated by reducing future net revenues by estimated future income tax expenses and discounting at 10% per annum. The Standardized Measure and the PV-10 of proved reserves are calculated in the same exact fashion, except that the Standardized Measure includes future estimated income taxes discounted at 10% per annum. The Standardized Measure is in accordance with accounting standards generally accepted in the United States of America (“GAAP”).
Tertiary Recovery Method		The extraction of oil and natural gas from reservoirs which employs injection of gas, heat, or chemicals into the reservoir in order to change the physical properties of the oil and aid in its extraction, also known as Enhanced Oil Recovery (EOR).
Undeveloped Reserves		Reserves of any category that are expected to be recovered from new wells on undrilled acreage, or from existing wells where a relatively major expenditure is required for recompletion.*

Water Injection Well		A well which is used to inject water under high pressure into a producing formation to maintain sufficient pressure to produce the recoverable reserves.
Working Interest		The interest in the oil and natural gas in place which is burdened with the cost of development and operation of the property. Also called the operating interest.
Workover		A remedial operation on a completed well to restore, maintain, or improve the well’s production.

*	This definition may be an abbreviated version of the complete definition as defined by the SEC in Rule 4-10(a) of Regulation S-X.

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The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.