Evolution Petroleum Corporation (EPM)

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HOUSTON, April 7, 2008 /PRNewswire-FirstCall/ -- Evolution Petroleum Corporation (AMEX:EPM) has drilled and completed the first three wells in its horizontal re-development drilling program in the Giddings Field in central Texas and placed all three into production. EPM is currently drilling the second leg in its fourth well, the Polansky-Kacer #2H.

The three wells were re-entries into existing well bores, in order to drill new horizontal penetrations into undepleted proved portions of the Austin Chalk formation. The initial combined gross production rate of the three wells is approximately 2.3 million cubic feet of gas equivalent per day (converted at 1 barrel of oil to six thousand cubic feet of gas). The combined oil and gas rate is expected to steadily increase as the wells continue to recover the water lost to the formation during drilling operations. Production is about 22% oil and 78% natural gas, excluding substantial quantities of natural gas liquids ("NGL"). Evolution owns 100% of the working interests in all of its proved locations and wells in the Giddings Field. Robert Herlin, Chief Executive Officer of Evolution, stated, "We are pleased with the Giddings Field's drilling results to date, particularly the strong total fluid rates."

Evolution has modified its Giddings Field drilling program by extending the length of the laterals being drilled in most of the wells and, in some cases, adding a second lateral to develop an additional section of the Austin Chalk formation, some of which may be other than proved. These modifications are primarily a result of additional leasing and the incorporation of more data from offset wells. Consequently, the Fiscal 2008 drilling program will incorporate fewer, but higher potential, wells than the original projected ten wells. Capital expenditures, however, will be maintained at the originally authorized $8.5 million level, to be funded from working capital.

With respect to Evolution's enhanced oil recovery ("EOR") initiative at the Delhi Field in northeast Louisiana, Denbury Resources (NYSE:DNR) recently announced an $80MM capital budget to complete the CO2 pipeline to Delhi during 2008. Combined with its expenditures in 2007 related to pipeline and field work in the Delhi project, Denbury continues to meet its financial commitment to Evolution to expend at least $100 million on the enhanced oil recovery project in the Delhi Field. Robert Herlin further stated, "Based on DNR's past and present capital spending at Delhi, our CO2-EOR project is clearly well underway."

Regarding EPM's Unconventional Gas Resource initiative, Evolution continues to add to its position in two gas shale projects with a total of over 14,900 net and gross acres of leases, generally with five year terms. The balance of its targeted 25,000 net acres is in various stages of leasing. Both of these gas shale projects are located in Oklahoma and are focused on developing the Woodford Shale at medium and shallow depths on-trend with existing producing wells. Within the last year, other operators have established nearby commercial Woodford production.

About Evolution Petroleum

Evolution Petroleum Corporation (http://www.evolutionpetroleum.com/) acquires mature, onshore oil and gas resources and applies conventional and specialized technology in enhanced oil recovery, horizontal drilling and unconventional gas to develop incremental reserves, production and value.

Principal assets of the Company include 7.4% in overriding royalty interests and a 25% after payout reversionary working interest in the 13,636 acre Delhi Field Holt Bryant Unit in northeast Louisiana, which is being redeveloped through CO2 enhanced oil recovery technology. The Company also owns working interests in leases with proved and other than proved, developed and undeveloped reserves covering approximately 27,000 net acres in the Giddings Field in central Texas and two gas shale projects in the Woodford Shale of Oklahoma. The Company has commenced its horizontal development drilling program in the Giddings Field, and is actively engaged in developing other projects in its areas of expertise.

Company Contact: Sterling McDonald, VP & CFO [phone]

Lisa Elliott / Jack Lascar / DRG&E / 713-529-6600

DATASOURCE: Evolution Petroleum Corporation


CONTACT: Sterling McDonald, VP & CFO of Evolution Petroleum Corporation,

[phone], ; or Lisa Elliott,

, or Jack Lascar, , both of DRG&E,

[phone], for Evolution Petroleum Corporation


Web site: http://www.evolutionpetroleum.com/