Dutton Associates Announces Investment Opinion: Evolution Petroleum Buy Rating In Update Coverage By Dutton Associates

Business Wire, May 7, 2008

ROSEVILLE, Calif. -- Dutton Associates updates its coverage of Evolution Petroleum (AMEX: EPM) with a Buy rating and an increased 12-month $6.70 price target. The 8-page report by Dutton senior analyst Richard R. Wolfe, CFA, is available at www.jmdutton.com, and at First Call, Bloomberg Professional, Reuters, Zacks, Knobias, and other leading financial portals.

Since our previous full report, January 2008, key events have included: (1) the Company's February 2008 second-quarter earnings filing for the period ended December 31, 2007, which documented consistent financial and operational progress; (2) the March 2008 sale of the Tullos property, a strategic divestiture that brought in over $4 million in cash; and (3) an April 2008 corporate operations update, featuring the first Austin Chalk completions and production from the central Texas Giddings Field. In addition, lease acquisition continues, primarily in Oklahoma, aimed at shale gas in shallow-to-medium depth Woodford zones, where holdings now total nearly 15,000 acres. Based on flow rates from the completed Austin Chalk wells, we have increased our estimates of future production. Based on the unprecedented rally in oil and natural gas markets, we have also increased our forward price deck. Our long-term estimates now show discretionary cash flow exceeding $30 per barrel of oil-equivalent production and proved reserves (including the Delhi reversionary interest after payout of the CO2 project) at nearly 15 times present levels. We value the Company's common shares, using a net asset value formulation, at $6.70 per share, a premium of 35% over present trading levels, and accordingly reaffirm our rating of Buy.

About Dutton Associates

Dutton Associates is one of the largest independent investment research firms in the U.S. Its 30 senior analysts are primarily CFAs, and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.

The cost of enrollment in the Dutton Associates one-year continuing research program is US $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $52,500 from the Company for 6 Research Reports with coverage commencing on 6/13/2006. Dutton Associates does not accept payment of any of its fees in company stock. Its principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures, and analyst background at www.jmdutton.com before investing.