EPM

[dan_s]

Good quarter by EPM. I will update my forecast model and post it under the Watch List tab today. EPM is in our new Small-Cap Growth Portfolio and their pfd stock is in our High Yield Income Portfolio. - Dan

HOUSTON, Feb. 5, 2013 /PRNewswire/ -- Evolution Petroleum Corporation (NYSE MKT: EPM) today reported operating highlights for the quarter ended December 31, 2012, its second quarter of fiscal 2013 ("Q2-13").

Highlights include:
•Earned $1.8 million, or $0.06 per diluted share, an 81% sequential increase [hit my forecast on the nose]
•Increased sales volumes 20% sequentially to 696 net barrels of oil equivalent ("BOE") per day [ above my forecast ]
•Delhi volumes increased 36% over prior quarter to 6,872 gross barrels of oil ("BO") per day (509 net) [this is VERY GOOD NEWS]
•Continued de-watering and de-pressuring our first two Mississippian Lime wells, a necessary prerequisite to achieve expected oil and gas production rates
•Advanced the application of our GARP® technology

Robert Herlin, CEO, said: "We are pleased to report that Delhi production has not only sharply rebounded from the constraints of summer heat, it is also responding to prior year capital expenditures while continuing to outperform our original expectations. Both of our initial Mississippian Lime producers are taking longer to de-water and de-pressure than we originally expected, but both wells have begun to produce small, but increasing amounts of oil and liquids-rich gas. Since other operators in the area have reported similar dewatering results, we remain cautiously optimistic as to our projected reserves and expectations of increased drilling activity in the play later this fiscal year."

Mr. Herlin added: "Our strategy to increase underlying net asset value in a focused manner, without diluting shareholders, is clearly being reflected in our record earnings growth, excluding asset sales. Further growth will be propelled by a major step change, when our 24% working interest at Delhi reverts back to us later this year and begins contributing substantial incremental net cash flow and earnings."

[wilmawatts]

Sweet conference call. I like these guys.

Replay is good if you have not listened