- Audit uncovered $1.8 million in overcharges at Barnett Shale, boosting Evolution's financial results.
- Chaveroo wells significantly exceed production expectations after 50 days.
- Evolution Petroleum plans further audits for additional financial recoveries.
Evolution Petroleum (EPM, Financial) has reported positive outcomes from its joint interest audit of the Barnett Shale properties alongside an update on the performance of its Chaveroo wells. The audit, performed in collaboration with BRI Consulting Group, identified approximately $1.8 million in overcharges by Diversified Energy Company, covering the period from September 2021 to December 2023. This financial recovery will be applied as a reduction in lease operating expenses and accounts payable in the company's fiscal Q4 and full-year 2025 results. Evolution indicated plans to continue audits in future periods to potentially recover more funds.
In addition to the audit findings, Evolution’s four new Chaveroo wells are delivering exceptional performance. Having been completed under budget, these wells continue to significantly outperform type curves with 50 days of production data, far exceeding initial expectations noted after the first 10 days. This success contributes to lower capital intensity and increases returns, enhancing the economic value of the asset.
CEO Kelly Loyd expressed optimism regarding the audit's continuation, expecting further financial benefits from corrections in billing practices starting January 2024. Furthermore, COO Mark Bunch emphasized the success of the new Chaveroo wells, reaffirming their performance trajectory.
Evolution Petroleum, based in Houston, focuses on maximizing shareholder returns through strategic investments and developments in onshore oil and natural gas properties in the U.S. For more details, visit evolutionpetroleum.com.
