Item 2.01 Completion of Acquisition or Disposal of Assets.
April 1, 2022, Evolution Petroleum Corporation(the "Company") completed the acquisition of non-operated oil and gas assets in the Jonah Field in Sublette County, Wyoming(the "Transaction") from Exaro Energy III, LLC("Exaro"), for $26.2 million, net of preliminary purchase price adjustments and a $1.5 milliondeposit made upon signing of the Purchase and Sale Agreement. The final purchase price before adjustments of the Transaction was $27.5 million, which included preferential rights exercised by Jonah Energy, the operator of the assets, of $1.9 million. The Transaction had an effective date of February 1, 2022. The acquired assets includes an average net working interest of 19.6% and an average net revenue interest of 14.9% in 595 producing wells and 956 net acres. Current estimated net daily production from the asset is approximately 10.8 million cubic feet of natural gas, 120 barrels of natural gas liquids, and 112 barrels of oil. The commodity mix of the assets is 88% natural gas, 6% natural gas liquids, and 6% oil. The assets had an average net production of 2,141 barrels of oil equivalent per day, for the six months ended December 31, 2021.
The transaction was financed with cash on hand and
This Current Report on Form 8-K contains certain statements that are, or may be deemed to be, "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements, other than statements of historical facts, included in this Current Report on Form 8-K that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. The Company has based these forward-looking statements largely on its current expectations and projections about future events and financial trends affecting the financial condition of its business. These forward-looking statements are subject to a number of risks and uncertainties, most of which are difficult to predict and many of which are beyond its control, including the completion of the proposed transaction on the terms or timeline currently contemplated or at all. Please read the Company's filings with the
Securities and Exchange Commission, including "Risk Factors" in its Annual Report on Form 10-K for the year ended June 30, 2021, for a discussion of risks and uncertainties that could cause actual results to differ from those in such forward-looking statements. The words "believe," "may," "estimate," "continue," "anticipate," "intend," "plan," "expect," "indicate" and similar expressions are intended to identify forward-looking statements. All statements other than statements of current or historical fact contained in this Current Report on Form 8-K are forward-looking statements. Although the Company believes that the forward-looking statements contained in this Current Report on Form 8-K are based upon reasonable assumptions, the forward-looking events and circumstances discussed in this press release may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements.
Section 7.01 Disclosure of FD Rules.
April 4, 2022, the Company issued a press release disclosing the closing of the Transaction. A copy of the press release is furnished herewith as Exhibit 99.1. On April 6, 2022, the Company is hosting an investor update call and will be reviewing an updated investor presentation posted to the Company's website. A copy of this presentation is furnished herewith as Exhibit 99.2.
Item 9.01 Financial statements and supporting documents.
(d) Exhibits. Exhibit No. Description Exhibit 99.1 Evolution Petroleum Corporation Press Release dated April 4 , 2022 Exhibit 99.2 Evolution Petroleum Corporation Investor Presen tation dated April 2022 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) 2
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