Evolution Petroleum Update on Option and Warrant Exercise Activity

HOUSTON, Nov. 27, 2013 /PRNewswire/ -- Evolution Petroleum Corporation (NYSE MKT: EPM) today reported that insiders recently exercised stock options and warrants to purchase 4.0 million common shares out of 4.8 million shares issuable under options and warrants awarded from 2004 through 2008. The exercise activity follows the recent announcement that the Company will begin paying a dividend to common stockholders beginning in December 2013, and the Form 8-K filing that disclosed the possibility of such exercises. Since our option and warrant agreements confer no shareholder rights, option exercises were necessary for holders desiring common stock dividends in parity with shareholders.

Following the exercises, our outstanding common shares increased from 28.6 million to 32.2 million. Correspondingly, the number of outstanding options and warrants declined from approximately 4.8 million to 0.8 million.

A significant portion of the options and warrants exercised were scheduled to expire in the next two years.  Since the options and warrants were awarded at the market price between five and nine years ago as long term incentives and to compensate staff for risks associated with a startup enterprise, their exercise prices were low relative to current market prices, thereby generating substantial income tax liabilities upon exercise.  Consequently, approximately 2.2 million shares of common stock resulting from the option and warrant exercises were sold to multiple parties on November 22nd in order to pay option exercise costs and income taxes resulting from the total exercises of 4.5 million options and warrants during 2013, including the 4.0 million described above.

Insiders continue to own approximately 15% of the common stock of the company on a beneficial basis, primarily through direct ownership of common stock that is fully aligned with all shareholders.    

About Evolution Petroleum

Evolution Petroleum Corporation develops incremental petroleum reserves and shareholder value by applying conventional and specialized technology to known oil and gas resources, onshore in the United States.   Principal assets as of June 30, 2013 include 13.8 MMBOE of proved, 11.2 MMBOE of probable reserves, 3.7 MMBOE of possible reserves, and no debt.  Assets include a CO2-EOR project with growing production in Louisiana's Delhi Field and a patented artificial lift technology designed to extend the life and ultimate recoveries of wells with oil or associated water production.  Other assets include royalty interests in almost 3,000 net acres in the Giddings Field, producing wells and proved drilling locations in the Lopez Field in Texas and an interest in a joint venture in the Mississippian Lime play in Kay County, OK with substantial probable reserves. Additional information, including the Company's annual report on Form 10-K and its quarterly reports on Form 10-Q, is available on its website at (www.evolutionpetroleum.com).

Cautionary Statement

All statements contained in this press release regarding potential results and future plans and objectives of the Company are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update or review any forward-looking statement, whether as a result of new information, future events, or otherwise. Important factors that could cause actual results to differ materially from our expectations include, but are not limited to, those factors that are disclosed under the heading "Risk Factors" and elsewhere in our documents filed from time to time with the United States Securities and Exchange Commission and other regulatory authorities. Statements regarding our ability to complete transactions, successfully apply technology applications in the re-development of oil and gas fields, realize future production volumes, realize success in our drilling and development activity and forecasts of legal claims, prices, future revenues and income and cash flows and other statements that are not historical facts contain predictions, estimates and other forward-looking statements. Although the Company believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved and these statements will prove to be accurate. Important factors could cause actual results to differ materially from those included in the forward-looking state statements.

Company Contact:

Sterling McDonald, VP & CFO

(713) 935-0122

smcdonald@evolutionpetroleum.com

SOURCE Evolution Petroleum Corporation



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