Evolution Petroleum Reports Remarkable Audit Results and Drilling Success
Positive Changes in Evolution Petroleum's Audit and Drilling Progress
Evolution Petroleum Corporation (NYSE American: EPM) is making waves with the recent announcement of promising results from its joint interest audit concerning its Barnett Shale properties. This exciting news comes alongside updates regarding the company's Chaveroo drilling activities.
Results of the Joint Interest Audit
Recently, Evolution exercised its right to conduct a joint interest audit on the expenses associated with Diversified Energy Company, the operator of its Barnett Shale assets. This audit pertains to the expenses charged during the calendar years 2022–2023 and is being executed with insights from BRI Consulting Group, Inc., a prestigious firm in the Houston area specializing in energy sector audits.
The 2022 calendar year marked the beginning of Diversified's operation for Evolution. Preliminary findings indicate that Evolution may have been overcharged, with initial estimates suggesting approximately $1.8 million in potential repayments owed back to the company. These funds will be reflected in the fiscal fourth quarter and annual results for 2025, providing a much-needed relief to operational costs.
Kelly Loyd, President and CEO of Evolution, expressed satisfaction with the audit results, noting, “Our audit revealed several discrepancies that led to this figure. The reduction in expenses will consequently enhance our fiscal year 2025 Adjusted EBITDA and positively influence our profitability.” Furthermore, he emphasized that the audit's findings could yield additional benefits in subsequent periods, particularly as the company plans to audit future billing practices moving forward.
Chaveroo Wells Update
Mark Bunch, Chief Operating Officer, shared positive feedback regarding the company's drilling operations in Chaveroo. According to recent reports, four new wells were completed not only on schedule but also under budget. Remarkably, after 50 days of production, these wells have exceeded expectations significantly, further demonstrating the operational effectiveness of Evolution's strategies.
About Evolution Petroleum
With a strong stance in the U.S. energy sector, Evolution Petroleum Corporation focuses on optimizing returns for shareholders through its investment in onshore oil and natural gas properties. They prioritize creating a well-balanced portfolio of long-lasting resources, emphasizing acquisitions, selective developments, and enhancing existing production endeavors. The company consistently seeks innovative ways to improve its financial performance and operational efficiency.
Contact Information
If you would like to learn more about Evolution Petroleum or have inquiries regarding its operations, please reach out to their Investor Relations department at (713) 935-0122 or email ir@evolutionpetroleum.com.
Frequently Asked Questions
What is the current status of the joint interest audit?
The recent audit revealed approximately $1.8 million potentially owed back to Evolution Petroleum, enhancing their financial outlook for 2025.
How many wells have been drilled in Chaveroo?
Four new wells have been drilled in Chaveroo, and they are currently performing above expectations after over 50 days of production.
Who conducted the joint interest audit for Evolution?
The audit was performed with assistance from BRI Consulting Group, Inc., a notable Houston firm that specializes in energy audits.
What strategies does Evolution Petroleum employ for growth?
Evolution focuses on acquiring diverse oil and gas properties, enhancing production capabilities, and capitalizing on selective development opportunities.
Where can I get more information about Evolution Petroleum?
For detailed information, visit Evolution Petroleum's official website at www.evolutionpetroleum.com.
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