HOUSTON, Jan. 27, 2014 /PRNewswire/ -- Evolution Petroleum Corporation (NYSE MKT: EPM) today announced that it has entered into an agreement with a large independent oil and gas operator to install its patented GARP® artificial lift technology on 10 of the operator's wells. All of the wells are located in the Giddings Field in central Texas, with an option to extend to additional wells. The GARP® technology is marketed by NGS Technologies, a wholly owned subsidiary of Evolution Petroleum.
Under the terms of the master agreement, NGS Technologies' subsidiaries will provide use of the technology, pay a portion of the installation costs and oversee the installation in return for a continuing contract fee equal to 25% of the net profits from each well for as long as the technology is utilized. The customer will have the right to cancel the second five installations based on uneconomic performance of the first five.
Daryl Mazzanti, Executive Vice President of NGS Technologies, said: "These installations should further validate the benefits of our GARP® artificial lift technology and demonstrate its growing market acceptance. Our GARP® solution for down-hole loading problems is applicable to many hundreds of wells in the Giddings Field and many thousands of wells in other fields.
"Conventional artificial lift methods can leave substantial volumes of oil and natural gas unrecovered. Our existing GARP® installations increased production from an average of 1 BOEPD to more than 15 BOEPD, restoring marginal or uneconomic wells to material commercial viability and increasing estimated ultimate recoveries by an estimated 20-30%. Recapturing these 'tail' reserves through GARP® may extend the life of leases by years, if not decades, providing a larger window of opportunity for further exploration and development as industry identifies new reservoirs through technology.
"We also believe that GARP® will be effective in other fields with horizontal wells and certain types of vertical wells. We are currently in various levels of discussions with operators to further demonstrate this potential."
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 and an interest in a joint venture in the Mississippian Lime play in Kay County, OK. 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). More information on the Company's GARP® artificial lift technology is available on the website www.garplift.com.
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, income, cash flows and other comments 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 statements.
Robert Herlin, CEO
SOURCE Evolution Petroleum Corporation