In today’s economic times, finding a company that has kept at it and done well is the real challenge. For a savvy investor, finding a company that has got right down into the muck and mud and gotten it done is one of the best ways to succeed and profit. Finding these gems can be difficult, but very rewarding in the end.

Evolution Petroleum Corp., a petroleum and associated petroleum products exploration and development company, works to find and exploit petroleum deposits primarily in Louisiana, Oklahoma and Texas. Currently, the company estimates that it has over 4 million barrels of proven petroleum reserves in varying developmental forms.

Although the company classifies itself as a petroleum exploration and development company, its primary focus areas can be better described as CO2 injection, well re-development and shallow shale gas exploitation. Where the CO2 project is concerned, revenue from its 7.2% overriding royalty can be expected in 2010 after recent settlement of remediation issues. Currently, it would appear that the company is focusing its efforts on this CO2 project in Louisiana and expects revenue generation in 6 months. This, however, is just one area of progress as its moderately heavy oil development work in Texas does appear to be showing significant progress. In this regard, one should be aware that there are very few refineries in the world equipped to refine moderate to heavy crude. One of the largest does happen to be in the near vicinity of the company’s current moderately heavy crude location and finds its supplies coming from Venezuela, which would keep it in general operation (an issue not lost on drillers as a shutdown of a refinery is never a good thing.)

Having just reported third quarter in its 10-Q, the company indicates that it is in a financially strong position. Its working capital position has not changed in any real way with $7.5 million, as compared to $7.6 million in the year earlier period. Considering the changes in oil and gas prices during this same period, the company does seem to be able to justify its statements. Add to these price issues the company’s addition of a pipeline to its major CO2 project and a relatively increased price of crude oil in recent months and the future looks solid for the company. No long-term debt also adds to the equation as does a reduction in overall extraction costs. The current price of crude being what it is, Evolution Petroleum Corp. is in a solid position with a low cost structure. Crude pricing may be in a bit of flux at the moment but an investor that can pick and choose the right, well run petroleum company may be well on their way to profit.

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