Corporate Presentationp

September 10, 2009(NYSE A EPM)(NYSE Amex: EPM)

© Evolution Petroleum Corporation 1

Evolution Petroleum CorporationThis presentation contains “forward-looking statements” within the meaning of the Private SecuritiesLitigation Reform Act of 1995, Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward-looking statements give our current expectations or forecasts of future events. They include statementsregarding our future operating and financial performance. Although we believe the expectations andg g p g p g pforecasts reflected in these and other forward-looking statements are reasonable, we can give noassurance they will prove to have been correct. They can be affected by inaccurate assumptions or by knownor unknown risks and uncertainties. You should understand that the following important factors, could affect ourfuture results and could cause those results or other outcomes to differ materially from those expressed orimplied in the forward-looking statements relating to: (1) amount, nature and timing of capital expenditures; (2)p g g ( ) , g p p ; ( )drilling of wells and other planned exploitation activities; (3) timing and amount of future production of oil andnatural gas; (4) increases in production growth and proved reserves; (5) operating costs such as lease operatingexpenses, administrative costs and other expenses; (6) our future operating or financial results; (7) cash flow andanticipated liquidity; (8) our business strategy, and the availability of acquisition opportunities; (9) hedgingstrategy; (10) exploration and exploitation activities and property acquisitions; (11) marketing of oil and naturalstrategy; (10) exploration and exploitation activities and property acquisitions; (11) marketing of oil and naturalgas; (12) governmental and environmental regulation of the oil and gas industry; (13) environmental liabilitiesrelating to potential pollution arising from our operations; (14) our level of indebtedness; (15) timing and amountof future dividends; (16) industry competition, conditions, performance and consolidation; (17) natural eventssuch as severe weather, hurricanes, floods, fire and earthquakes; and (18) availability of drilling rigs and other oilfield equipment and servicesfield equipment and services.

We caution you not to place undue reliance on these forward-looking statements, which speak only as of thedate of this presentation or as of the date of the report or document in which they are contained, and weundertake no obligation to update such information. The filings with the SEC are hereby incorporated herein byreference and qualifies the presentation in its entiretyreference and qualifies the presentation in its entirety.

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Evolution Petroleum Corporation

Cautionary Note to U.S. Investors Regarding Oil and Gas Reserve Estimates:

The U S Securities and Exchange Commission permits oil and gas companies in theirThe U.S. Securities and Exchange Commission permits oil and gas companies, in theircurrent filings with the SEC, to disclose only “Proved” reserves that a company hasdemonstrated by actual production or conclusive formation tests to be economically andlegally producible under existing economic and operating conditions. The Company iscurrently prohibited from disclosing other categories of reserves in its SEC filings. We usey p g g gcertain terms in this press release such as "Probable” or “Possible” oil and gas reservesthat the SEC’s guidelines strictly prohibit us from including in filings with the SEC. U.S.investors are urged to consider closely the disclosure in our SEC filings, available from usat 2500 City West Blvd, Suite 1300, Houston, Tx 77042; Telephone: 713-935-0122. You canalso obtain these filings from the SEC by calling 1-800-SEC-0330. The reserve quantitiesreflected above were certified by W. D. Von Gonten & Company using the 1997 definitionsand standards of the Society of Petroleum Engineers and World PetroleumCongresses. These definitions and standards may result in estimates of proved reserveswhich are materially different from those disclosed in the Company’s filings with the SECwhich are materially different from those disclosed in the Company s filings with the SEC.

NOTE: ALL REFERENCES HEREIN TO PV-10 REFLECT SEC PRICING UNLESS NOTED AS ESCALATED.1P = Proved 2P = Probable 3P = Possible

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Our Business

We generate & implement projects that develop oil and natural gas reserves:gas reserves:

That are located in the onshore US,

Are generally well known, but bypassed historically due to

low commodity prices or lack of applied technology,

Based on a low risk engineered approach andBased on a low risk, engineered approach, and

Utilize our expertise and technology

Since the staff of EPM owns 20% of the company on a fully diluted basis, we are very focused on protecting and improving share value.

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O&G Core Assets(Net Reserves at 7/1/09)( )

East OK Shale17,600 net acresLow cost, shallow gas

Delhi Field13 6 MMBO 2PLow cost, shallow gas 13.6 MMBO 2PCO2-EOR100% oil

Giddings Field3.0 MMBOE 1P0.9 MMBOE 2P30% oil, 35% NGL, 35% gas

Neptune Project0.5 MMBO 1P+2P+3P+ 79 additional locationsAll infill oil locations

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30% oil, 35% NGL, 35% gas14% PDP

All infill oil locations

EPM Investment Highlights – Why Own EPM?

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EPM Investment Highlights

Consistent growth in revenues

Strong balance sheet with no debt

1P & 2P reserves 84% oil & 7% NGL; long term upside in low cost gas resource

Sufficient cash resources in hand to fund 2010 capital expenditure program

Low cost & low risk development upsideLow cost & low risk development upside

Opportunity to realize embedded asset valuation in all projects

Value in Delhi driven by time – capex carried by DNR & production begins 2010

EPM’s PV-10 per Fully Diluted ShareGiddings - $1.44(1P + 2P)

Proprietary Technology - ?

Delhi - $6.05 (2P)

Neptune - $.25+(1P+2P+3P)

OK Shales - ?

Working Capital - $.21

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Delhi $6.05 (2P)Working Capital $.21

EPM Track Record in Project Development

Engineering driven origination & high value creation

Invested:

$6.8 MM

Project

Delhi EOR

Results

$50 MM cash pretax +2P Reserves PV-10 = $196 MM

$0.6 MMNeptune Oil

2P Reserves PV-10 = $196 MM2P PV-10 peak (2015) ~ $290 MM

1P – 3P Reserves PV-10 = $8.1 MM

$5.5 MMOK Shale

& 79 additional locations pending

up to 200+ BCF potential

$26.5 MM

$0 2 MM

Giddings

A tifi i l Lift T h

$7 MM cash from field, + 4 MMBOE of 1P-2P reserves PV-10 = $46 MM

Fi t fi ld t t f l t d t

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$0.2 MMArtificial Lift Tech First field test successful to date

EPM Reserves by Fiscal Year

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8

10

12

Proved

4

6

8 Giddings 2PDelhi 2PNeptune 1P-3P

0

2

2004 2005 2006 2007 2008 2009• Reserves as at fiscal year end of June 30• Does not include low cost shale gas resource in Oklahoma & additional Neptune locations• 2009 downward revisions due to commodity price changes (from ~$140/BO to ~$70/BO &

$13.09/MMBTU to ~$3.88/MMBTU)

2004 2005 2006 2007 2008 2009

$13.09/MMBTU to $3.88/MMBTU) • FYE 06 proved reserves decreased by farm-out of Delhi working interest

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EPM Revenues Growth by Fiscal Year

• Revenues in thousands2007 revenues decreased by farm out to DNR• 2007 revenues decreased by farm-out to DNR

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FY 2010 Capital Plan

Objectives:

Substantially expand proved reservesNeptune (South Texas) oil project

OOklahoma gas shales

Begin to commercialize artificial lift technology

Giddings cash income to cover overheadGiddings cash income to cover overhead

Avoid use of high cost, risky capital sources

Maintain liquidity through FY2011 when Delhi cash flows areMaintain liquidity through FY2011 when Delhi cash flows are projected to substantially increase – use $3MM of our liquidity in FY2010 to leverage activity

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FY2010 Plan for Growth

OK: Continued gas shale testingof up to 200 BCF potential

Delhi: DNR funds expansion of our CO2-EOR project

Giddings: Maintain productionNeptune: Giddings: Maintain productionJoint ventures to drill PUDs Joint ventures to apply our

proprietary artificial lift tech.

Neptune: Drill first 2 oil wells Target quadrupling

of current 500 MBO

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of 1P-3P reserves

EPM Assets:

Delhi CO2 – EOR Project

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EOR - Delhi Field CO2 ProjectJacksonDome

Delhi

7/1/09 Pb Net Reserves 13.6 MMBO

Tinsley

$196 MM PV-10

Gross Production to date 190 MMBO

Original oil in place est. 357 MMBOO g a o p ace es 35 O(“OOIP”) in swept portion

Average depth 3,235’

Size 13 636 acresSize 13,636 acres

Formations Tuscaloosa &Paluxy

Reserves Basis Analogous Tinsley Field, ample subsurface control, pilot projects in same field, committed proved CO2reserves, pipeline completed & tested, & available funding for balance of project

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funding for balance of project

Delhi Field Development by EPM & DNR

2003: Purchased working interest in Delhi Field for $2.8 million

2004: Increased production from 20 bopd to ~145 boep/d throughIC

(Calendar year)

2004: Increased production from 20 bopd to ~145 boep/d through ~$2.5 million of capex

2006: Sold farm-out to DNR for $50 MM - retained 25% reversionary working interest after payout Acquired additional 7 4% royaltyig

h R

O

working interest after payout. Acquired additional 7.4% royalty interests for $1.5 MM

2007- 2010: DNR invests ~$342MM – EPM earning minimal revenues f lt i t t

Hi

ue

from royalty interest

2010: EOR production projected; royalty interest cash flow beginsto grow

na

l Va

lu

2011- 2013: DNR invests additional ~$122MM to complete project

2014: Independent reservoir engineer projects $200 millionpayout to occur, based on flat $66 oil price; 25% WI (20%A

dd

itio

n

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payout to occur, based on flat $66 oil price; 25% WI (20%NRI) reverts to EPM

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A

EOR Expands EPM’s Reserve Base & Value

Denbury’s EOR project could recover up to 19% of original oil in place (OOIP) at Delhi Field (based on DNR’s historic results), compared to the 15% assigned in 2P reserves. Additional 4% recovery could add 3 8 MMBO to EPM’s net reserves4% recovery could add 3.8 MMBO to EPM s net reserves.

EPM’s 25% reversionary working interest commences after DNR generates ~$200 million in revenues less operating expenses, and is not affected by actual amount of capital expenditures by DNRexpenditures by DNR.

% of Swept OOIP

Delhi PV-10 vs. Gross Recovery, % OOIP(at $60 oil + 3% escalation)

$/bbl - 2010

Delhi PV-10 vs. NYMEX Oil Price in 2010(15% Recovery & 3% escalation)

15%

20%

% of Swept OOIP

$50

$100

$/bbl 2010

10%

15%

$4 $6 $8 $10 $12$-

$50

$ $4 $8 $12

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$4 $6 $8 $10 $12

NPV-10 per fully diluted share$- $4 $8 $12

NPV-10 per fully diluted share

Impact of Delhi Production*

Annual Net Cash Flows from Delhi per fully diluted share

< Payout Occurs >

Gross Field Production = 1,000 BOPD

2,460 BOPD

5,600 BOPD

7,880 BOPD

10,000 BOPD

Pre & Post PayoutPre & Post Payout7.4% Royalty Interest = $0.05 $0.12 $0.27 $0.38 $0.48After Payout25% Reversionary WI = $0.63 $1.0025% Reversionary WI $0.63 $1.00Annual Net Cash Flows per Fully Diluted Share

$0.05 $0.12 $0.27 $1.01 $1.48

* From 7/1/09 DeGolyer & MacNaughton report & based on NYMEX price of $66.62 per barrel of oil with no escalation. Royalty interest bears excise taxes, but no operating costs. Reversionary interest bears excise taxes and direct operating costs. Total future operating cash flows = ~$21/share.

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EPM Assets:

Conventional Re-developmentConventional Re-development

Neptune Oil Project in South Texas

Artificial Lift Technology

Giddings Field in Central Texas

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Neptune – Oil Development Within Mature Field

7/1/09 Net Reserves # Locations MBO PV-10Net Proved Reserves 4 re-entries 48 $0 5 MMNet Proved Reserves 4 re entries 48 $0.5 MMNet Probable Reserves 21 247 $0.4 MMNet Possible Reserves (in 2P locations) 247 $7.2 MM

542 $8.1 MM

100% working interest and 79.7% net revenue interest; 1,502 net acres to date

Up to 79 additional drilling locations projected from historical infill results – field has produced ~32 MMBO to date from 380 wells (no current production)

First 2 producers and 1 injector expected to be drilled early in FY2010

Project originated from EPM experience with a similar field in Louisiana that required infill drilling down to far less spacing to fully develop field with same rock and oil properties. 2P reserves bear all capex; 3P reserves are associated

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with the 2P wells.

Neptune – Oil Development Within Mature Field

Project based on historic downspacing in this field and similar EPM experience in comparable field in Louisianain comparable field in Louisiana

Application of our innovative completion technology may = additional upside

~380 previous wells now P&A’d

~100 new infill locations –4 PUD, 21 Pb & 79 pending

11 infill wells drilled in 1970’s : similar to our

darea program, made >50 MBO each on average

drained by well

2020

Proprietary Artificial Lift Technology

Conventional artificial lift• Fluid level eventually drops to a level where rod pump or gas lift are no longer effective• This can leave substantial volumes of oil and gas

Original fluid levelgas.

Our technology• Mobilizes remaining fluid to the pump

Fl id l l t • Cost $4 -10 of investment per net BOE.Fluid level at conventional abandonment

ReservoirRemaining gpotential

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Giddings Field, Central Texas

7/1/09 Net Proved Reserves = 3.0 MMBOE $35.3 MM PV-10Net Probable Reserves = 0 9 MMBOE $10 9 MM PV-10Net Probable Reserves = 0.9 MMBOE $10.9 MM PV-10

Drilling locations Ave Gross Recovery Ave D&C cost/well D&C / BOE14 proved re-entries 111 MBOE/well $1.3 MM $14.64

7 proved grassroot & 270 MBOE/well $2 3 MM $10 657 proved grassroot & 270 MBOE/well $2.3 MM $10.652 probable grassroot

100% WI, ~80% NRI in 10 producers & ~18,000 net acres

Naturally fractured Austin Chalk, Georgetown & Buda – no hydraulic fracs required

Wells typically produce at high initial rates (~150 BOEPD for re-entry well, ~340 BOEPD for grassroots well) followed by steep initial declines, then stabilize with about half of estimated reserves produced in first two yearsabout half of estimated reserves produced in first two years

Reserves estimated to be 30% oil, 35% gas liquids and 35% natural gas; and 14% developed

Last 2 re-entries drilled in Giddings Field yielded average 8 day rate of 450 BOEPDLast 2 re-entries drilled in Giddings Field yielded average 8 day rate of 450 BOEPD

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Price Sensitivity of Giddings/Neptune Reserves*

EPM Giddings & Nepturne (1P + 2P) PV-10 per fully diluted share vs Blended Flat Commodity Price

)$/Share (30% oil, 35% ngl & 35% natural gas)

$1.60

$1.80

$2.00$/Share

ProvedProbable

$1.00

$1.20

$1.40

Gas price increase begins to add back locations

$0.40

$0.60

$0.80locations

$-

$0.20

$20 $25 $30 $35 $40 $45 $50 $55 $60

$/BOE NYMEX

Report as of 7/1/2009

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$* Flat prices & costs

EPM Assets:

OK Low Cost Gas Shales Project

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Gas Shales in Eastern Oklahoma

WoodfordCompletionsUp to 100 vertical and horizontal

Woodford completions to date

EPM Acreage

Tulsa

Woodford completions to date offsetting EPM acreage by three other operators

Potential for conventional oil development

Main W df d

OklahomaWoodford

Trend

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Shallow = Low Cost

Developing up to 200 BCF of shale gas potential at $0.75 - $1.25 per MCFShallow depth = small rig and low fracturing horsepower = low day ratesMultiple shale zones identified and tested to date Expect D&C costs to be ~$180K for vertical Wagoner well (multi-zone frac) at 1500’ depth, $1.2 – 2 MM for horizontal well in Haskell at 4,000-5,000’ depth3 drilled wells and 3 re-entries tested with 1 core by EPM in WagonerTargeting 250- 400 MMCF per vertical well (1,200’ – 1,800’) in WagonerTargeting 1.1 – 2.2 BCF per horizontal well (4,000’ – 5,000’ depth) in Haskell

100% WI in ~17,600 net acres, average ~80% NRILease terms generally extend ~3-5 years from lease dateWagoner vertical well spacing at 40 acres – could be further downspacedg p g pHaskell horizontal well spacing at 80 acres

Substantial additional acreage is typically obtainable through forced pooling

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EPM Summary

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EPM Financial Strength

Strong balance sheet and excellent liquidityg q y

Substantial working capitalNo external funding required for conservative capital expenditure program in FY2010We control our assets and required capital expenditures

Financial Strategy: a conservative approach to optimize our asset values over the next few years without requiring external

capital raising on unfavorable terms.

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EPM Operational Strength for Growth

EPM Intangibles

Experienced StaffSuccessful Team Record

Tight sand/horizontal expertise6 Year Track Record

FY2010

6 Year Track RecordTechnology

EPM T ibl A

Value CatalystsDelhi producing

EPM Tangible Assets$7MM WC & no debt

13.6 MMBO Delhi EOR4 MMBOE Giddings

p gOK confirmation

Neptune producingOptimize Giddings

Commercialize technology4 MMBOE Giddings0.5+ MMBO Neptune

Above is 93% oil price related+

17 600 t h l

Commercialize technology

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17,600 net acres shale gas

(NYSE Alt: EPM)

Company Contact: St li M D ld VP & CFO

IR Contact:Li Elli tt / l lli tt@dSterling McDonald, VP & CFO

(713) 935-0122smcdonald@evolutionpetroleum.com

Lisa Elliott / lelliott@drg-e.com Jack Lascar / jlascar@drg-e.comDRG&E / 713-529-6600

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Exhibits

Quick Facts

Liquidity

2009 E t d 2010 C t l t2009 Events and 2010 Catalysts

Effect of Different Recoveries on EPM’s Delhi Interests

Illustration of Giddings Development

Management team

Board of DirectorsBoard of Directors

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Quick Facts about EPM

Ticker Symbol EPMFiscal Year-End June 30Fiscal Year-End June 30Market Cap ~$74 million as of 8/26/2009Enterprise Value ~$67 MM

• 26.5 MM shares outstanding• 32.4 MM shares fully diluted• ~39% owned by institutionsy

Financial Strength $7 MM in WC, no debtAssets low risk development projects created by EPMTeam Record 6 year successful record in creating and

implementing 4 major projects

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EPM Liquidity

3/31/09 (unaudited)

Selected AssetsWorking Capital $7,503,457

Properties & Equipment, net 28,655,188Other Assets (primarily long term CD) 356,399Total Assets $37,980,788

Long Term Liabilities & EquityLong Term Debt $0Other Liabilities (primarily deferred income tax) 4,471,156Total Long Term Liabilities 4,471,156

Equity $32,043,888

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2009 Events 2010 Catalysts

Accomplishments in FY 20092 Giddings PUD’s averaged initial gross 450 BOEPD per wellCompletion of Denbury’s Delta CO2 pipeline to DelhiPositive test results in OK low cost gas shale resourceSuccessful first field test of artificial lift technology in GiddingsMaintained liquidity and strong balance sheet with no debt

Growth Catalysts for FY 2010Continued testing of low cost shale resource in OKCommencement of drilling in Neptune So. Texas oil projectg p p jInitiation of CO2 injection at DelhiProduction response from CO2 injection at Delhi

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Effect of Different Recoveries on Delhi Volumes

CO2 R f S t OOIP 13% 15% 19%

Estimated EPM Net Probable Reserves in Delhi CO2-EOR Project

CO2 Recovery of Swept OOIP: 13% 15% 19%(at $66.62 oil, SEC pricing)

Gross bbls produced (MMBO) 46.4 54.0 67.8

EPM royalty interest (7.4%) 3.4 4.0 5.0 Other royalty interests (12.6%) 5.8 6.8 8.5 Total royalties (20%) 9.3 10.8 13.6

100% WI reserves (80% of RI) 37.1 43.2 54.3 WI bbls produced before Payout 4.9 4.9 4.9 WI bbls - remaining after Payout 32.2 38.3 49.4

EPM 25% WI after Payout 8.1 9.6 12.3 EPM 7.4% Royalty (from above) 3.4 4.0 5.0 Total Net EPM bbls at Delhi 11.5 13.6 17.4

RI = revenue interest = share of gross productionWI = working interest = cost-bearing interest, earns gross production less royaltiesPayout = deemed payout = $200 MM of 100% WI revenues less field operating expenseRoyalty = revenue interest bearing no capital or operating costsS t OOIP i i l il i l i ti f i t b CO

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Swept OOIP = original oil in place in portion of reservoir swept by CO2

Giddings Field – Infill Development

Lease boundary -mandatory distance

lease boundarymandatory distancebetween vertical wellboreand lease boundary

plug

Austin Ch lk

Naturally occuring fracturesbearing oil and gas

Existing horizontal wellborepenetrating multiple fracturesthat contain oil and gas

New horizontal wellborepenetrating undrained fractures

Chalk

that contain oil and gas

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Our Management Team

Robert Herlin, CEO & Chairman$Co-founded EPM in 2003 and built company using $8.3 million of equity capital

27 years of leadership experience in M&A, development, operations and finance in public and private sectors$800 million in transactions completedOriginated and led horizontal drilling team in early years of horizontal drilling adoption by industryB.S. and M.E. in chemical engineering (Rice University) and MBA (Harvard)

S C OSterling McDonald, CFOCFO since 2003Former CFO for PetroAmerican Services, PetroStar Energy and Treasurer for Reading & Bates Corporation Responsible for raising ~$4 billion in capitalB.S. and MBA (University of Tulsa)

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Our Management Team

Daryl Mazzanti, VP-OperationsJoined team in mid-2005; 21 years of experience in oil & gas industryFormer Manager of US Business Development for AnadarkoFormer Production Manager, Austin Chalk for Anadarko/UPRC responsible for 1200 wells, staff of 65 and 25,000 BOEPD of productionResponsible for numerous innovations in horizontal drilling, completions and

tifi i l liftartificial lift B.S. in Petroleum Engineering (University of Oklahoma)

Edward Schell, General Manager for Drilling and UnconventionalEdward Schell, General Manager for Drilling and Unconventional Development

Joined team in late 2006; 25 years of experience in oil and gas industryVarious management positions in drilling, operations and business development at Anadarko Petroleumat Anadarko PetroleumParticular expertise in horizontal drilling and tight gas reservoirsDrilled ~800 wells, 200 being horizontal and 2/3rds being in unconventional reservoirsB S in Petroleum Engineering (University of Texas)B.S. in Petroleum Engineering (University of Texas)

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Our Board of DirectorsRobert Herlin, CEO, Chairman & Co-founderLaird Cagan, Director & Co-founderM i Di t C M Af C it l P tManaging Director – Cagan McAfee Capital PartnersFormerly with Goldman Sachs and Drexel Burnham Lambert

E.J. DiPaolo, DirectorEnergy Partner with Growth Capital Partners, L.P.

G S f GFormer Halliburton Group Senior Vice President of Global Business Development

Gene Stoever, DirectorRetired Partner with KPMG Peat MarwickFormer SEC Reviewing Partner for KPMGCPA in the State of Texas and member of the AICPA

Bill Dozier, DirectorFormer SVP-Business Development for Vintage Petroleum Former SVP-Operations for Vintage PetroleumFormerly in operations for Santa Fe Minerals and Amoco

Kelly W. Loyd, DirectorDirector with JVL Advisors, LLC, a private energy investment companyFormerly Associate with RBC Capital marketsy pFormerly Founder of L.A.B. sports and Entertainment and Managing Partner of Tigre Leasing, LLP

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