Evolution Petroleum Corp. (NYSE MKT:EPM) Q4 2020 Earnings Conference Call - Final Transcript

Sep 10, 2020 • 10:00 am ET

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Evolution Petroleum Corp. (NYSE MKT:EPM) Q4 2020 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Thank you. The floor is now open for question. [Operator Instructions] And our first question comes from John White from ROTH Capital. Go ahead, John.

Analyst
John White

Good morning, gentlemen.

Executive
Jason E. Brown

Hi, John.

Executive
David Joe

Good morning, John.

Analyst
John White

Hey, on the 2021 capex, is that all going to be directed at the Phase 5?

Executive
David Joe

We anticipate about $1.9 million net to us within our fiscal 2021. Again, I think they are going to start that project in about April or May. So we are anticipating $1.9 million of that to be net to us. I think on top of that $1.9 million between Merit up in Hamilton Dome and Delhi, there is probably going to be about another $1 million net to us of conformance work and that sort of thing. So all-in kind of in the [Indecipherable], somewhere sub $3 million for total capex for 2021?

Analyst
John White

Thanks. And will there be some new PUD locations drilled in Phase 5 during your fiscal 2021?

Executive
David Joe

Yeah, we anticipate the drilling to begin like I said, in May and June, they generally take -- they do that kind of in phases. So, we anticipate the drilling kind of happening through the full calendar of 2021 into our fiscal 2022. Again, fiscal 2022, we think probably around $3.6 million to $3.7 million, net to us, so, but yeah, we anticipate them starting drilling in 2021 in May or June.

Analyst
John White

Okay. And on the CO2 pipeline, are you going to be responsible for any of the repair costs on that or is that all going to be borne by the operator of the line?

Executive
Jason E. Brown

No, I appreciate you asking that. I am not sure that we have made that clear. So thank you for that. That CO2 line is operated and owned by Denbury. So we don't actually purchase anything until it gets to our field. So that's all operated and owned by them. So there is no costs associated With the repairs that are going to be paid by us.

Now we did go -- they are anticipating that is coming online around October 1st, somewhere in the first couple weeks of October. We actually went out there to see how they were doing in progress, because some of these projects slide, and we think it's going to be July and then it goes to August and then it goes to September, but we are very pleased that they are out there on Saturday and had multiple crews working and it looks like they are making a lot of progress. So we are pretty confident that's going to be back up and running shortly, but again, no cost to us.

Analyst
John White

And it is on management, I like it. Alright, I will turn it back and may come back for a follow up.

Executive
Jason E. Brown

Yeah. Thanks, John.

Operator
Operator

And our next question comes from Jeff Grampp from Northland Capital. Go ahead, Jeff.

Analyst
Jeff Grampp

Good morning, guys.

Executive
Jason E. Brown

Hey, Jeff.

Executive
David Joe

Hey, Jeff

Analyst
Jeff Grampp

Jason for Phase 5 can you remind us kind of production expectations that