Evolution Petroleum Corporation (EPM)

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Dutton Associates Announces Investment Opinion: Evolution Petroleum Buy Rating In Update Coverage By Dutton Associates
Date : 01/17/2008 @ 10:15AM
Source : Business Wire
Stock : Evolution Petroleum Corp. (EPM)
Quote : 5.7899 0.7299 (14.42%) @ 7:02PM
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Dutton Associates Announces Investment Opinion: Evolution Petroleum Buy Rating In Update Coverage By Dutton Associates

Dutton Associates updates its coverage of Evolution Petroleum (AMEX: EPM) with a Buy rating and a 12-month $5.62 price target. The 17-page report by Dutton senior analyst Richard R. Wolfe, CFA, is available at www.jmdutton.com, and at First Call, Bloomberg, Reuters, Zacks, Knobias, and other leading financial portals.

Evolution Petroleum Corp. is an independent oil and gas exploration and production company that targets unconventional and bypassed resources, usually in mature oil and gas fields that may be responsive to additional recovery techniques. The Company’s leading asset, its Delhi Field in Louisiana, is attractively positioned for redevelopment as an EOR project using carbon-dioxide (CO2) flood technology. In June 2006, the Company closed on a major transaction committing the Delhi Field to a CO2 project. Other properties include approximately 10,000 acres in central Texas (Giddings Field) with Austin Chalk / Georgetown associated resources and approximately 10,000 acres associated with shale gas resources in the U.S. Mid-Continent region. Our estimates indicate that the Company should begin generating positive cash flow and earnings later during its current fiscal year ending June 30, 2008. Over the longer term, the Company should be able to achieve discretionary cash flow of over $20 per barrel of oil equivalent production and accumulate proved reserves of approximately 10 times present levels. We value the Company’s common shares, using the midpoint value between a discounted cash flow formulation and a net asset value formulation, at $5.62 per share, a premium of approximately 29% over present trading levels and accordingly assign a rating of Buy.

About Dutton Associates Dutton Associates is one of the largest independent investment research firms in the U.S. Its 30 senior analysts are primarily CFAs, and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.

The cost of enrollment in the Dutton Associates one-year continuing research program is US $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $35,000 from the Company for 4 Research Reports with coverage commencing on 6/13/2006. Dutton Associates does not accept payment of any of its fees in company stock. Its principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures, and analyst background at www.jmdutton.com before investing.