September 2008

(AMEX: EPM)

© Evolution Petroleum Corporation 1

Evolution Petroleum CorporationThis presentation contains “forward-looking statements” within the meaning of the Private SecuritiesLitigation Reform Act of 1995, Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward-looking statements give our current expectations or forecasts of future events. They include statementsregarding our future operating and financial performance. Although we believe the expectations andg g p g p g pforecasts reflected in these and other forward-looking statements are reasonable, we can give noassurance they will prove to have been correct. They can be affected by inaccurate assumptions or by knownor unknown risks and uncertainties. You should understand that the following important factors, could affect ourfuture results and could cause those results or other outcomes to differ materially from those expressed orimplied in the forward-looking statements relating to: (1) amount, nature and timing of capital expenditures; (2)p g g ( ) , g p p ; ( )drilling of wells and other planned exploitation activities; (3) timing and amount of future production of oil andnatural gas; (4) increases in production growth and proved reserves; (5) operating costs such as lease operatingexpenses, administrative costs and other expenses; (6) our future operating or financial results; (7) cash flow andanticipated liquidity; (8) our business strategy, and the availability of acquisition opportunities; (9) hedgingstrategy; (10) exploration and exploitation activities and property acquisitions; (11) marketing of oil and naturalstrategy; (10) exploration and exploitation activities and property acquisitions; (11) marketing of oil and naturalgas; (12) governmental and environmental regulation of the oil and gas industry; (13) environmental liabilitiesrelating to potential pollution arising from our operations; (14) our level of indebtedness; (15) timing and amountof future dividends; (16) industry competition, conditions, performance and consolidation; (17) natural eventssuch as severe weather, hurricanes, floods, fire and earthquakes; and (18) availability of drilling rigs and other oilfield equipment and servicesfield equipment and services.

We caution you not to place undue reliance on these forward-looking statements, which speak only as of thedate of this presentation or as of the date of the report or document in which they are contained, and weundertake no obligation to update such information. The filings with the SEC are hereby incorporated herein byreference and qualifies the presentation in its entiretyreference and qualifies the presentation in its entirety.

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Evolution Petroleum Corporation

Cautionary Note to U.S. Investors Regarding Oil and Gas Reserve Estimates:

The U S Securities and Exchange Commission permits oil and gas companies inThe U.S. Securities and Exchange Commission permits oil and gas companies, intheir filings with the SEC, to disclose only “Proved” reserves that a company hasdemonstrated by actual production or conclusive formation tests to be economicallyand legally producible under existing economic and operating conditions. TheCompany is prohibited from disclosing other categories of reserves in its SECCompany is prohibited from disclosing other categories of reserves in its SECfilings. We use certain terms in this press release such as "Probable” or “Possible” oiland gas reserves that the SEC’s guidelines strictly prohibit us from including in filingswith the SEC. U.S. investors are urged to consider closely the disclosure in our SECfilings available from us at 2500 City West Blvd Suite 1300 Houston Tx 77042;filings, available from us at 2500 City West Blvd, Suite 1300, Houston, Tx 77042;Telephone: 713-935-0122. You can also obtain these filings from the SEC by calling 1-800-SEC-0330. The reserve quantities reflected above were certified by W. D. VonGonten & Company using the 1997 definitions and standards of the Society ofPetroleum Engineers and World Petroleum Congresses These definitions andPetroleum Engineers and World Petroleum Congresses. These definitions andstandards may result in estimates of proved reserves which are materially differentfrom those disclosed in the Company’s filings with the SEC.

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EPM Strategygy

We acquire known oil and gas resources in theonshore U.S. and develop or redevelop bypassedreserves and production using current technologyreserves and production using current technology.

We focus on mature oil and gas fields originallyWe focus on mature oil and gas fields originally developed through old technology and during a lower commodity price environment.

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Company Overview

Listed : AMEX in July 2006 Ticker Symbol : EPMTicker Symbol : EPMMarket Cap : ~$97 million on 26.8 million shares outstanding as of 9/4/08Ownership Profile (fully diluted including unvested awards):

Employees 20%Employees 20% Institutions >19% Non-management Directors 38% (including affiliates)

Oil & Gas Reserves at July 1, 2008:SEC Proved = 4.0 MMBOE (increased 133% since 7/1/07)Probable = 3.1 MMBOE associated with Giddings Field +

13.4 MMBOE associated with Delhi CO2-EOR +OK Woodford Shale gas resource in ~17,600 net acres

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EPM Investment Highlights

Consistent record of reserves & revenue growth

Significant reserve potential in Delhi Field from CO2 project

Ongoing development drilling in Giddings Field utilizing inventory ofOngoing development drilling in Giddings Field utilizing inventory of 27 proved undeveloped locations with additional locations pending

Two gas shale projects in Woodford Trend in OK with initial drillingTwo gas shale projects in Woodford Trend in OK with initial drilling scheduled in fiscal 2009

Company intrinsic assets of ~$13 per fully diluted share

Strong balance sheet and no debt support continued growth

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EPM Reserves Growth by Fiscal Year

14

10

12

4

6

8 ProvedGiddings PbDelhi Pb

0

2

4

• Does not include shale gas resource in 2 Oklahoma Woodford projects• FYE 06 proved reserves impacted by farmout to Denbury that included

02004 2005 2006 2007 2008

proved reserves

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EPM Revenues Growth by Fiscal Year

$4,500

$3,000$3,500$4,000

$1,500$2,000$2,500

$0$500

$1,000,

$02004 2006 2008 (unaudited

• Revenues in thousands• 2007 revenues impacted by farmout to Denbury at FYE 2006 that includedDelhi production & revenues

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Initiatives to Redevelop Resourcesp

I. Enhanced oil recovery (EOR) via gas floodsI. Enhanced oil recovery (EOR) via gas floodsDelhi Field CO2 project

II Conventional redevelopment through application ofII. Conventional redevelopment through application of horizontal drilling and other modern technology

Giddings Fieldg

New project in leasing mode

III Unconventional gas developmentIII. Unconventional gas developmentTwo Woodford gas shale projects

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Initiative I: EOR - Delhi Field CO2 Project

JacksonDelhi JacksonDome

Delhi

Production to date 190 MMBO

O OOriginal oil in place est. ~400 MMBO(“OOIP”)

Average depth ~3,300’Average depth 3,300

Size 13,636 acres

F ti T l &Formations Tuscaloosa &Paluxy

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Initiative I: EOR - Delhi Field History

$100

$120

$40

$60

$80

$100

WIT

Oil

Pric

e

$-

$20

$40

1940 1950 1960 1970 1980 1990 2000 2010 2020

W

DiscoveryUnitization &

CO2 pilots EPM acquiresUnitization &

pressure maintenancevia water injection Unit sold

acquires

Most drillingcompleted

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Delhi Field Development by EPM & DNR

~2013 – Deemed payout achieved subject to oil price - EPM’s 25% WI effective through reversion

2009 – CO2 injection projected H1 09 &material production increaseexpected ~ late 2009

WI effective through reversion

2007 – DNR investment exceeds $70 million including right of way CO pipe acquisition and

2008 – DNR announces plan to spend $80MM in 2008 on Delhi project.

2006 – Sold farm-out to Denbury for $50MM + 25% BI-APO + commitment to fund and install CO2 flood. Acquired

including right-of-way, CO2 pipe acquisition and construction and field work

2003 Purchased the working interest in the Delhi Field for $2 8 million

2004 – Increased production to level of ~145 boepd through expenditures of ~ $2.5 million

7.4% of royalty interests for $1.5 million

2003 – Purchased the working interest in the Delhi Field for $2.8 million

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(calendar year)

Effect of Different Recoveries on Delhi Volumes

Recovery of Swept OOIP: 11 2% 15 0% 17 0%

EPM Estimated Net Probable Reserves in Delhi CO2-EOR Project

Recovery of Swept OOIP: 11.2% 15.0% 17.0%(at $96 oil)

Gross bbls produced 40,000,000 53,400,000 60,350,000

EPM royalty (7.4% RI) 2,960,000 3,951,600 4,465,900 Mi l & th lti 5 040 000 6 728 400 7 604 100Mineral & other royalties 5,040,000 6,728,400 7,604,100 Total Royalties (20% of RI) 8,000,000 10,680,000 12,070,000

100% WI reserves (80% of RI) 32,000,000 42,720,000 48,280,000 WI bbls to reach PO @$96 NYMEX 5,000,000 5,000,000 5,000,000 WI bbls - remaining after PO 27,000,000 37,720,000 43,280,000

EPM 25% WI after PO 6,750,000 9,430,000 10,820,000 EPM 7.4% Royalty (from above) 2,960,000 3,951,600 4,465,900 Total Net EPM bbls at Delhi 9,710,000 13,381,600 15,285,900

RI = revenue interest = share of gross productionWI = working interest = cost-bearing interest, earns gross production less royaltiesPO = deemed payout = ~$200 million per agreement between DNR and EPMRoyalty = revenue interest bearing no capital or operating costsSwept OOIP = original oil in place in portion of reservoir swept by CO2

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Delhi EOR Project Sensitivity - Recovery & Oil Pricej y y

EPM’s Delhi CO2 - EOR PV-10 (probable reserves)*

Project Gross Recovery, % OOIPat $96 oil case (no inflation)

NYMEX Oil Price Per Bbl CaseAt 15% Recovery (no inflation)

Swept OOIP $/bbl

15%

20%

80

120

5%

10%

40Value using $96 oil with 3% inflation

0%$- $2 $4 $6 $8 $10 $12

NPV10 per diluted share

-$- $4 $8 $12

PV-10 per diluted share

* Internal estimate - does not include any other assets or projects of EPM

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Initiative II: Conventional Redevelopment

Acquire and develop known resources where we can apply our expertise and technology in horizontal drilling and other modern completion/production technologies:

First target has been the Giddings Field in Central Texas, which extends 30-40 miles in width and 100+ miles in length and is primarily known for its naturally fractured Austin Chalk and Georgetown formations and produced over 1 billion BOE.

The EPM team has extensive expertise in drilling and operating hundreds of horizontal wells in the Giddings Field over the last 18 years, and drilled 6 wells in fiscal 2008 Houston

Austinwells in fiscal 2008.

EPM is developing a second major project in Texas utilizing technology developed in the Tullos Field. Giddings Field

Houston

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Initiative II: Giddings FieldLocated in central Texas

100% WI in 7 producing wells – 5 drilled re-entries, 1 drilled grassroots and 1 well restored to production through work-overp g100% WI in 27 proved drilling locationsAdditional locations pending~18,000 net acres leased to date

Projects involve horizontal drilling from new wells and re-entries in existing wells into the naturally fractured Austin Chalk, Georgetown & Buda formations – these formations yield high initial rates that steeply decline during first 12-24 months

O ll lt f i iti l f 5 h i t l t i 1 tOverall results from initial program of 5 horizontal re-entries, 1 grass roots horizontal and 1 work-over of an existing well as expected (EPM owns 100% WI, 80+% NRI)

Drilling & completion costs for future re-entries average $1.5 million each,Drilling & completion costs for future re entries average $1.5 million each, depending upon new well or re-entry, vertical depth, # of laterals and total # of horizontal feet drilled.

2009 Capital Expenditure Budget includes $15 million for drilling 10 re-entries in Giddings Field incremental leasing and full field test of proprietary artificial liftGiddings Field, incremental leasing and full field test of proprietary artificial lift technology.

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Giddings Field – Infill Development

Lease boundary -mandatory distance

lease boundarymandatory distancebetween vertical wellboreand lease boundary

plug

Austin Ch lk

Naturally occuring fracturesbearing oil and gas

Existing horizontal wellborepenetrating multiple fracturesthat contain oil and gas

New horizontal wellborepenetrating undrained fractures

Chalk

that contain oil and gas

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Initiative III: Unconventional Gas Resources

Focus on developing gas shale reserves that:Utili l t d illi th d t d th h ll th 6 000’Utilize lower cost drilling methods at depths shallower than 6,000’Result in total drilling & completion costs less than ~$2/mmbtu

~17 600 net acres leased to date in OK17,600 net acres leased to date in OKTargeting separate mid-depth and shallow Woodford Shale trendsLease terms generally 3 years with 2-3 year renewal optionAt 80 -160 acre spacing, net acreage could generate 100 - 200 net h i t l d illi l tihorizontal drilling locations

Substantial additional acreage is typically obtainable through force poolingp g

Development expected to begin in calendar 2009

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EPM Woodford Shale Projects in Oklahoma

WoodfordCompletions

• Over 50 vertical and horizontal Woodford completions offsetting EPM

EPM Acreage

Tulsa

EPM acreage

• EPM acreage is within prolific traditional oil and gas production areas, so EPM also hasareas, so EPM also has conventional development potential

Oklahoma

Main W df dWoodford

Trend

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EPM Net Production Potential

Business PlanCurrent cash resources fund Giddings Field projects for near term revenues, andgenerated net cash flows including Delhi then fund gas shale and other projects

NET PRODUCTION

NEW PROJECTS

EPM OK GAS SHALE

DELHI CO2-EOR

working capital

YEARS

TX GIDDINGS

Volumes are representative and not to scale

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2009 Capital Budget

Fiscal 2009 plan calls for drilling 10 horizontal wells through re-entries in the Giddings Fieldin the Giddings Field

Incremental leasing in Giddings to maintain inventory of PUDs –numerous locations partially leased

Incremental leasing in Oklahoma to complete projects and initiate development operations

N j t i l i h d bj t t d t l i ltNew project in leasing phase and, subject to adequate leasing results, EPM to conduct initial pilot drilling late in FY 2009 – project upside is to incorporate completion technology developed and applied by EPM in divested Tullos Field

Funding to be primarily from current working capital and funds from operations

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Intrinsic Assets Per Fully Diluted Share

Stock intrinsic assets per fully diluted share4 far greater than current market price

Working Capital + proceeds from exercise of options/warrants 0.80$

Intrinsic Value Component

Proved Reserves NPV10, Adjusted (1) 2.96 Probable Reserves in Giddings NPV10, Adjusted (1) 1.02 Probable Reserves in Delhi CO2-EOR Project (2) 8.26

1 A f 7/1/08 b d t b WD V G t & C dj t d f l l t d NYMEX i f $110 il

Gas Shale acreage at cost (3) 0.17 13.21$

1. As of 7/1/08 based on report by WD Von Gonten & Co, adjusted for lower unescalated NYMEX prices of $110 oil, $8 gas & $67 NGL

2. Based on DNR reported probable reserves and unescalated $96 field oil price in effect as of 12/31/07. Note that 3% escalation in oil price and operating costs increases PV-10 by ~$2.79 per fully diluted share.

3. Company historical cost for 17,600 net acres. Resource potential of 100-200 net drilling locations (80-160 acre spacing) based on reported production/tests in area targeting net 60-120 bcfspacing) based on reported production/tests in area, targeting net 60-120 bcf.

4. Based on 26.8 MM shares outstanding, and 6.5 MM options/warrants at ~$2.01 average exercise price

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EPM Summaryy

Proven record in creating and implementing developmentprojectsprojectsExperienced management team with specific applicableexpertise and a successful team record

Inventory of 27 proved undeveloped locations, and otherlocations partially leased and pending

Ongoing development drilling program 10 re entries planned FY 09Ongoing development drilling program – 10 re-entries planned FY 09Steady progress on Delhi CO2-EOR project

Strong balance sheet, excellent liquidity and no debtg q y

Intrinsic assets per share far greater than current market price

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(AMEX: EPM)

Company Contact: St li M D ld VP & CFO

IR Contact:Li Elli tt / l lli tt@dSterling McDonald, VP & CFO

(713) 935-0122smcdonald@evolutionpetroleum.com

Lisa Elliott / lelliott@drg-e.com Jack Lascar / jlascar@drg-e.comDRG&E / 713-529-6600

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Exhibits

Management team

Board of Directors

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Our Management Team

Robert Herlin, CEO & Director$Co-founded EPM in 2003 and built company using $8.3 million of equity capital

25 years of leadership experience in M&A, development, operations and finance in public and private sectors$800 million in transactions completedOriginated and led horizontal drilling team in early years of horizontal drilling adoptionB.S. and M.E. in chemical engineering (Rice University) and MBA (Harvard)

S C OSterling McDonald, CFOCFO since 2003Former CFO for PetroAmerican Services, PetroStar Energy and Treasurer for Reading & Bates Corporation Responsible for raising ~$4 billion in capitalB.S. and MBA (University of Tulsa)

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Our Management Team

Daryl Mazzanti, VP-OperationsJoined team in mid-2005Former Manager of US Business Development for AnadarkoFormer Production Manager, Austin Chalk for Anadarko/UPRC responsible for 1200 wells, staff of 65 and 25,000 BOEPD of productionResponsible for numerous innovations in horizontal drilling, completions and

tifi i l liftartificial lift B.S. in Petroleum Engineering (University of Oklahoma)

Edward Schell, General Manager for Drilling and UnconventionalEdward Schell, General Manager for Drilling and Unconventional Development

24 years of experience in oil and gas industryVarious management positions in drilling, operations and business development at Anadarko Petroleumat Anadarko PetroleumParticular expertise in horizontal drilling and tight gas reservoirsDrilled ~800 wells, 200 being horizontal and 2/3rds being in unconventional reservoirsB S in Petroleum Engineering (University of Texas)B.S. in Petroleum Engineering (University of Texas)

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Our Board of Directors

Robert Herlin, CEO, Director & Co-founder

Laird Cagan, Chairman & Co-foundera d Caga , C a a & Co ou deManaging Director – Cagan McAfee Capital PartnersFormerly with Goldman Sachs and Drexel Burnham Lambert

E.J. DiPaolo, Director ,Energy Partner with Growth Capital Partners, L.P.Former Halliburton Group Senior Vice President of Global Business Development

Gene Stoever, Director,Retired Partner with KPMG Peat MarwickFormer SEC Reviewing Partner for KPMGCPA in the State of Texas and member of the AICPA

Bill Dozier, DirectorFormer SVP-Business Development for Vintage Petroleum Former SVP-Operations for Vintage PetroleumFormerly in operations for Santa Fe Minerals and AmocoFormerly in operations for Santa Fe Minerals and Amoco

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