- CO2 injection at Delhi EOR project began in mid-November - Test wells completed in Eastern Oklahoma - South Texas oil wells drilled and completed - Results of annual shareholder meeting HOUSTON, Dec. 14 /PRNewswire-FirstCall/ -- Evolution Petroleum Corporation (NYSE Amex: EPM) today provided an update on its operations and results of its annual shareholder meeting. After beginning CO2 injection at EPM's Delhi EOR project on November 12th, the operator, Denbury Resources, reported last week that both the rate of injection and pressure were on schedule. Production response is expected by mid-2010 and the operator is now working on the next phase of project expansion. EPM's outside reservoir engineer has assigned 13.6 million barrels of probable reserves at Delhi net to EPM's interests, of which 29% are mineral and overriding royalty barrels that bear no operating costs. The remaining net reserves are reversionary working interest barrels. Operationally, the Company's oil and gas sales volumes averaged 380 net barrels of oil equivalent per day through the first fiscal quarter, and current rates are tracking close to that level. These volumes are essentially all from EPM's ten wells in the Giddings Field in central Texas, which appear to have transitioned into their low decline phase of production. Also in the field, a salt water disposal well has been drilled and completed that has eliminated most of the $35,000 monthly cost of disposing water produced by the Company's prolific Pearson well. This investment is also expected to extend the commercial life and reserves of the Pearson well, which already appears to be substantially outperforming its original production projections. EPM's drilling inventory includes three proved and two probable locations near this well. On the technology front, EPM has completed a second application of its proprietary artificial lift technology on another of the Company's wells in the field. The first application restored a Giddings Field well to commercial production last summer and the second application was part of an already scheduled work-over. The technology is designed to extend the life and ultimate recovery of reserves in horizontal wells that produce liquids. EPM recently completed hydraulic fracturing operations on two test wells in its shallow shale gas properties in Wagoner County, Oklahoma. One well was completed in the Woodford Shale at a depth of approximately 1600', and the second was completed in the Caney Shale at a depth of approximately 1300'. Initial results are positive and 3-6 month production tests are being conducted to determine peak production levels and decline rate characteristics. EPM has also moved forward on testing its first Neptune oil project by drilling and completing two wells in the Lopez Field in South Texas. Initial production results are pending the installation of power access by the local utility and the re-entry of an existing well for use as a water injection well to maintain reservoir pressure. The Company held its annual shareholder meeting in Houston, Texas on December 9, 2009. At the meeting, shareholders re-elected all six sitting board members and reappointed Hein & Associates as the Company's auditors. About Evolution Petroleum Evolution Petroleum Corporation (http://www.evolutionpetroleum.com/) acquires known, onshore oil and gas resources and applies conventional and specialized technology to accelerate production and develop incremental reserves and value. The Company is well positioned to continue its development projects in CO2 based EOR, bypassed resources and low cost shale gas. Principal assets as of July 1, 2009 include 3.9 MMBOE of proved and probable reserves in the Giddings Field of Central Texas, 0.5 MMBO of proved and unproved reserves with 90+ additional locations in South Texas, 13.6 MMBO of probable reserves in the Delhi CO2 EOR project in northeast Louisiana, 17,780 net acres of leases in shallow gas shale in Eastern Oklahoma and a proprietary artificial lift technology intended to extend the life of horizontal wells with oil or associated water production. Additional information, including the Company's annual report on Form 10-K and its quarterly reports on Form 10-Q, can be accessed on its website. 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 volumes, realize success in our drilling and development activity, 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 statements. Company Contact: Sterling McDonald, VP & CFO (713) 935-0122 Lisa Elliott / Jack Lascar / DRG&E / 713-529-6600 DATASOURCE: Evolution Petroleum Corporation CONTACT: Sterling McDonald, VP & CFO of Evolution Petroleum Corporation, +1-713-935-0122, ; or Lisa Elliott, , or Jack Lascar, , both of DRG&E, +1-713-529-6600, for Evolution Petroleum Corporation Web Site: http://www.evolutionpetroleum.com/

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