Corporate Presentation 

March 2011 (NYSE Amex: EPM)

© Evolution Petroleum Corporation 1

Forward Looking Statements and Cautionary Note

The data contained in this presentation that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act and Section 21E of the Exchange Act. Such statements may relate to capital expenditures, drilling and exploitation activities, production efforts and sales volumes, proved, probable, and possible reserves, operating and administrative costs, future operating or financial results, cash flow and anticipated liquidity, business strategy, property acquisitions, and the availability of drilling rigs and other oil field equipment and services. These forward-looking statements are generally accompanied by words such as “estimated”, “projected”, “potential”, “anticipated”, “forecasted” or other words that convey the uncertainty of future events or outcomes. Although we believe the expectations and forecasts reflected in these and other forward-looking statements are reasonable, we can give no assurance they will prove to have been correct. These statements are based on our current plans and assumptions and are subject to a number of risks and uncertainties as further outlined in our most recent 10-K and 10-Q. Therefore, the actual results may differ materially from the expectations, estimates or assumptions expressed in or implied by any forward-looking statement made by or on behalf of the Company. Cautionary Note to U.S. Investors –The SEC has recently modified its rules regarding oil and gas reserve information that may be included in filings with the SEC. The newly applicable rules allow oil and gas companies to disclose not only proved reserves, but also probable and possible reserves that meet the SEC’s definitions of such terms. We disclose proved, probable and possible reserves in our filings with the SEC. Our reserves as of June 30, 2010 were estimated by DeGolyer & MacNaughton, W.D Von Gonten & Co. (“Von Gonten”), and Lee Keeling and Associates, Inc. (“Keeling”), independent petroleum engineering firms. In this presentation, we make reference to probable reserves. These estimates are by their nature more speculative than estimates of proved reserves and are subject to greater uncertainties, and accordingly the likelihood of recovering those reserves is subject to substantially greater risk.  

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Quick Facts about EPM

Ticker Symbol EPM (NYSE AMEX) Fiscal Year-End June 30 Market Cap* ~$208 million as of 2/25/2011 ($7.58/shr) Enterprise Value ~$205 MM “ (based on 12/31/10 FS) Shares 27.5 MM shares outstanding

33.1 MM shares fully diluted ($1.83 avg.

exercise)

~42 % owned by institutions Financial Strength ~$3.2 MM in WC & no debt as of 12/31/10 Team Record 7 year track record in creating and

implementing major projects

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* Excluding net value of options and warrants

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Our Business

EPM generates and implements domestic, onshore oil & gas development projects utilizing our expertise and modern

technology.

Our business model is focused on building share value by: Generating development ideas Capturing project value without overpaying Initiating development to reduce risk Utilizing third parties to finance widespread development without cross-

collateralization risk or dilution of share value

Our projects are: Lower risk development Engineering-based Within existing fields

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Oil & Gas Core Assets(Net Reserves at 6/30/2010)

East OK Woodford Shale – testing~15,000 net acres targeting shallow Woodford

Delhi Field-producingCO2 EOR - 100% oil9.4 MMBO Proved5.7 MMBO Probable

Giddings Field – producingHorizontal wells – naturally fracturedAustin Chalk, Georgetown, Buda plusEagleBine potential27% oil, 32% NGL, 41% gas3.0 MMBOE Proved, 1.0 MMBOE Probable

Substantial oil and gas reserves

12.4 MMBOE Proved

7.2 MMBOE Probable

Oily – Proved reserves are 83% black oil and 8% NGL Valuation Metrics at fiscal year-end (6/30/2010): (@SEC NYMEX pricing of $76.21/BO, $4.10/MMBTU)

Proved PV10 $8.03 / FD Share

Probable PV10 $1.93 / FD Share

2P PV10 $9.96 / FD Share

2P PV10 Futures $11.68 / FD Share

EPM Metrics

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Each fully diluted common share owns60% of 1 BOE of net reserves

Why own EPM?

Proved reserves PV10 at current oil price >> current market valuation

Growing value in Delhi CO2 EOR project:

Currently producing with expected steadily increasing cash flows

PV10 grows 40+% over next 5 years without significant EPM capex

+ EPM expects ~$140+ MM of pretax cash flows over same 5 years

($76 oil)

Long life oil reserves with premium pricing and upside potential

Proved reserves require no capital expenditures and incur limited

operating expenses (our “prepaid PUD annuity”)

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Why own EPM?

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Upside potential in other projects underway:

15 remaining development drilling locations (13 PUD) in Giddings, of which up to 2 may be included in current joint venture

Exposure to new Eagle Ford / Woodbine play

Proprietary artificial lift technology

Low cost unconventional gas in Eastern Oklahoma

No debt

Employees fully aligned with shareholders by beneficially owning 20% of fully diluted shares and focused on building value per share

Successful Team Track Record

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$6.8 MM

$26.7 MM

$0.2 MM

$6.2 MM

Delhi EOR

Giddings

Artificial LiftTechnology

OK Shale

$50 MM cash pretax +Proved PV10 = $224 million2P PV10 = $276 million

$9.7 MM cash from field +Proved PV10* = $41 million2P PV10* = $53 million

First field tests successful, JVs pending

~15K net acres of Woodford potential;first reserves assigned - testing

* Before Giddings drilling JV

Using $8.3 MM of paid-in equity, we invested

We generated, as of 6/30/10

EPM Reserves Growth (MMBOE)

• Reserves as at fiscal year end of June 30• Does not include other resource or technology potential• 2009 downward revisions primarily due to commodity prices

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EPM Assets: Delhi CO2 – EOR Project

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78 mile Delta Pipeline totransport CO2 to Delhi Field

Construction of first phase of produced gas facility for recycling CO2 at Delhi

Milestones Achieved – Phase I CO2 injection began Nov 2009

Early first oil production response in March 2010 from Phase I

Gross production > 1,000 bopd from Phase I

Phase II CO2 injection began Dec 2010

EOR - Delhi Field CO2 Project

JacksonDome

Delhi

Reserves*: Proved 9.4 MMBO $224 MM PV10 Probable 5.7 MMBO $ 51 MM PV10

2P 15.1 MMBO $276 MM PV10

(* At 6/30/10 SEC NYMEX price $76.21/BO)

Gross Historical Production 192 MMBO

Projected EOR Recovery 13% Proved(% of OOIP) 4% Probable

Average depth 3,235’

Unit Size 13,636 acres

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Reserves Basis Earlier & stronger Phase I oil production - began March 2010Dedicated CO2 reservesPhase II first injection Dec 2010, installing Phase III during 2011

Upside Potential More original-oil-in-placeHigher EOR recovery similar to other DNR projectsUtilization of lower cost WAG process under consideration

Tinsley

EPM’s Delhi Assets

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We purchased Delhi Field in 2003 for $2.8 MM, expended $2.5 MM in field, later purchased royalty interests for $1.5 MM, then farmed out our working interest for $50 MM cash + commitment to install EOR project at operator’s sole cost with their proved CO2 reserves + reversionary interest.

We own royalty interests equal to ~7.4% of gross production

EPM receives 7.4% of gross revenues from day one EPM pays no capital expenditures and no operating costs Project is exempt from state severance tax for next 6-8 years, subject to oil price & rates Our 5 MMBO of 2P royalty reserves are 1/3rd of our total reserve volumes and ~1/2 of PV

We also own a separate reversionary ~24% working interest (~19% revenue interest)

EPM bears no capital expenditures until deemed payout Payout occurs when project generates net field cumulative cash flow of $200 million Net field cash flow = revenue – field operating expense (including CO2) After Payout, EPM will bear its pro rata share of capital expenditures & expenses and will own pro rata share of all field assets and reserves including injected CO2

Reversionary interests are in addition to above royalty interests

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Delhi PV10 @ $76/Bbl Increases With Time

Cash Flows from DeGolyer & MacNaughton 7/1/10 SEC Reserves Report @ $76.21/Bbl.Residual PV10 is the PV10 of remaining cash flows from given year to project end.

Residual 2P PV10 and Cumulative Cash Flows per Fully Diluted Share

$-

$5

$10

$15

$20

$25

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Residual PV10 Cumulative Pretax Cash Generated

PV10* vs Initial Oil Price

$-

$2

$4

$6

$8

$10

$12

$14

$16

$- $20 $40 $60 $80 $100

Initial Oil Price

$ / FD Share

2P PV10 Esc @ 3%

2P PV10 Flat

Delhi Sensitivity Analysis

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* Varying 2P Reserves; prices & costs escalating @ 3% pa from $76.21/BO NYMEX price

EPM stock & Delhi oil price at 2/25/2011

Delhi PV/Share Impact by Oil Priceand Inflation

Delhi PV/Share Impact by Levels of Recovery

* Varying initial oil price with 2P Reserves, oil pricing either flat or escalated as shown

PV10 Esc* vs Gross Oil Recovery

$8

$9

$10

$11

$12

$13

$14

40 50 60 70 80Gross Recovery in MMBO

$/ FD Share

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Additional Delhi Analysis

EPM's Projected Annual Pretax Cashflows from Delhi(2P Reserves @ $76 oil + 3% inflation)

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

$80,000,000

$90,000,000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Royalty Interest Reversionary WI

@ 2/28/11 LLSOil price

Drilling locations Ave. Gross Recovery Ave. cost/well Cost per net BOE

10 proved re-entries 146 MBOE/well $1.5 MM $12.40 3 proved grassroot & 305 MBOE/well $2.7 MM $11.00 2 probable grassroot Naturally fractured Austin Chalk, Georgetown & Buda – no hydraulic fracs

required

Wells typically produce at high initial rates with steep initial decline, then stabilize. About half of estimated reserves are produced in first two years.

Reserves estimated to be 27% oil, 32% gas liquids and 41% natural gas

Industry joint venture may be expanded by two more locations. First three JV wells combined initial test rate as good or better than expected.

100% WI (~80% NRI) in 10 producers; 20% WI-BPO & 38% WI-APO (16-30% NRI) in 3 completed JV wells with expected aggregate results

Giddings Field, Central TexasAttractive Drilling Economics

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Gas Shales in Eastern Oklahoma

Tulsa

WoodfordCompletions

EPM owns ~15,000 net acres in Haskell and Wagoner Counties, OK

Haskell – Woodford between 4,000’ & 6,000’ in depth

Wagoner – Woodford between 1,200’ & 1,800’ in depth

Oklahoma

Main Woodford

Trend

EPM Acreage

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6,422’ TVD Woodford HzTest @ 7.1 MMCFE/D

6,000’ TVD Woodford HzWell – ultimate recovery~1+ BCF from 2000’ lateral

EPM vertical re-entry

Our OK Gas Shales: Shallow Low Cost

EPM is targeting a development cost of $1 per MCFe or less

Shallow depth = small rig and light acid fracs = low day rates Haskell Woodford at 4,000-6,000’ depth – vertical wells targeting 500-1000 mmcf at

$500K cost; vertical wells in Wagoner targeting 200+ mmcf at $180K at <1800’

depth Numerous comparable wells in Haskell with ~1 bcf historical average recovery Dewatering process to liberate natural gas

EPM testing program underway

EPM first vertical test (re-entry) in Haskell briefly tested strong gas rate and pressure before shut-in for pipeline connection – first sales ~3/1/11.

EPM test in Wagoner western block tested 93 mcfd, eastern block test still dewatering, southern block marginal

Substantial additional acreage is typically obtainable through forced pooling – EPM has substantial footprint in 30 sections in Haskell County

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Proprietary Artificial Lift Technology

Conventional artificial lift• Either fluid level eventually drops to a level where rod pump or gas lift are no longer effective, or

• Low level of fluid production in gas well builds and eventually shuts off gas production

• This can leave substantial volumes of oil and gas unrecovered.

Our technology • Mobilizes remaining fluid to the pump

• Cost $50K - $150K per application

• Successfully applied in 3 wells in Giddings Field

Original fluid level

Fluid level at conventional abandonment

ReservoirRemaining potential

Our Plan for 2011• Complete first joint venture to install (2 JVs negotiating)• Expand outside of Giddings Field

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A $4 million base case capital expenditure program to: Drill up to 5 horizontal wells in Giddings joint venture (3 completed to

date) Re-enter and frac Woodford Shale in two mid-depth vertical wells in

Haskell (1 to date) and continue Wagoner production testing

Commercialize artificial lift technology through one or more joint ventures through demonstrations on third party wells

Liquidity Plan: Use Giddings cash flow to cover overhead, and Delhi cash flow to drill Avoid high cost, high risk capital

Utilize joint ventures, project financing, noncore asset monetization and/or small, opportunistic equity placement to accelerate development as warranted

Maintain liquidity through FY2012 as Delhi cash flows increase

Operating Plan for FY 2011

Catalysts for growth in FY2011

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Continued production growth at Delhi at premium LLS oil

price

Drilling success in Giddings

Positive tests in Woodford Shale

New joint venture(s) to apply artificial lift technology

Additional development joint venture(s) – Giddings & OK

Maintain conservative financial approach while increasing

NAV/share – no debt & 84% oil (90% total liquids)

Exhibits

Definitions

EPM Annual Revenues

Management team

Board of Directors

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Definitions

EOR Enhanced oil recoveryWAG Water alternating gas – type of CO2 EORBOE Barrel of oil equivalentCF Cubic feet of natural gas at standard conditionsM ThousandsMM MillionsNGL Natural gas liquidsPUD Proved undeveloped2P Proved + Probable Unrisked ReservesPV10 Future unescalated pretax net cash flows discounted at 10% per

annum based on SEC pricing (trailing twelve months realized prices)SEC Reserves Reserves based on unescalated trailing twelve month realized pricesFutures Reserves Reserves based on five year forward futures commodity prices with

subsequent years held constant at the fifth year pricesPV10 Futures PV10 adjusted for Futures ReservesPV10 Flat PV10 adjusted to given commodity prices without escalationPV10 Esc PV10 adjusted to given commodity prices with price & cost escalationFD Share Fully Diluted Shares includes outstanding shares + unvested options &

warrants, without considering the weighted average exercise price of $1.83

Cautionary Note: PV-10 is a commonly used financial metric and does not necessarily equal market value. All Reserves are unrisked, and SEC Reserves unless otherwise noted.

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EPM Revenues

• Revenues in thousands• 2007 revenues decreased by farm-out to DNR• June 30 fiscal year-end

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EPM Liquidity

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12/31/2010

Assets

Current Assets $ 7,437,525

Properties & Equipment, net 32,707,583

Other Assets 45,308

Total Assets $40,190,416

Long Term Liabilities & Equity

Long Term Debt $ 0

Current Liabilities 4,241,714

Other Liabilities (primarily deferred income tax)

4,064,388

Total Liabilities 8,306,102

Equity $31,884,314

Our Management Team

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

capital• 28 years of leadership experience in M&A, development, operations

and finance in public and private sectors• $800 million in transactions completed• Originated and led horizontal drilling team in early years of horizontal

drilling adoption by industry• Member of Board of Directors – Boots & Coots• B.S. and M.E. in chemical engineering (Rice University) and MBA

(Harvard)

Sterling McDonald, CFO• CFO since 2003• Former CFO for PetroAmerican Services, PetroStar Energy and

Treasurer for Reading & Bates Corporation • Responsible for raising ~$4 billion in capital• B.S. and MBA (University of Tulsa)

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Our Management Team

Daryl Mazzanti, VP-Operations• Joined team in mid-2005; 22 years of experience in oil & gas industry• Former Manager of US Business Development for Anadarko• Former Production Manager, Austin Chalk for Anadarko/UPRC

responsible for 1200 wells, staff of 65 and 25,000 BOEPD of production• Responsible for numerous innovations in horizontal drilling,

completions and artificial lift • B.S. in Petroleum Engineering (University of Oklahoma)

Edward Schell, General Manager for Drilling and Unconventional Development

• Joined team in late 2006; 26 years of experience in oil and gas industry• Various management positions in drilling, operations and business

development at Anadarko Petroleum• Particular expertise in horizontal drilling and tight gas reservoirs• Drilled ~800 wells, 200 being horizontal and 2/3rds being in

unconventional reservoirs• B.S. in Petroleum Engineering (University of Texas)

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Robert Herlin, CEO, Chairman & Co-founder

Laird Cagan, Director & Co-founderManaging Director – Cagan McAfee Capital PartnersFormerly with Goldman Sachs and Drexel Burnham Lambert

E.J. DiPaolo, Director Energy Partner with Growth Capital Partners, L.P.Former 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 marketsFormerly Founder of L.A.B. sports and Entertainment and Managing Partner of Tigre Leasing, LLP

Our Board of Directors

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(NYSE AMEX: EPM)

Company Contact: Sterling McDonald, VP & CFO (713) 935-0122smcdonald@evolutionpetroleum.com

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

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