Thank you for standing by. This is the conference operator. Welcome to the Evolution Petroleum Corporation Third Quarter Fiscal 2017 Earnings Release Conference Call. As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. [Operator Instructions] I would now like to turn the conference over to Randy Keys, Chief Executive Officer and President. Please go ahead, sir.

Welcome to Evolution Petroleum's earnings presentation for our fiscal third quarter ended March 31, 2017. We will discuss operating and financial results for the quarter. I am Randy Keys, CEO of Evolution Petroleum. Please note that any statements and information provided today are time-sensitive and may not be accurate at a later date. This presentation contains forward-looking statements of management's beliefs and assumptions based on currently available information. These forward-looking statements are subject to risks and uncertainties that are described in our filings with the SEC. Actual results may differ materially from those expected. Evolution reported continuing positive results for the quarter ended March 31, 2017. Our net income was $2.4 million on total revenues of $9.5 million, which gave us earnings of $0.07 per common share. If we compare back to the same quarter a year-ago, the industry was at the bottom of this downturn with oil prices below $30 per barrel. Our revenues in that quarter were $5.1 million fairly over half the current quarter and we reported our only quarterly loss in the past six years at $0.01 per common share. What a difference a year makes. While current oil prices in the high $40 and low $50 per barrel are not ideal, they certainly beat the year ago. Last quarter we announced an increase in our quarterly dividend to $0.07 per common share and we announced the same dividend for this quarter. We have now paid 14 consecutive quarterly dividends and have authorized the 15 payable on June 30. At our closing stock price on Friday, our dividend yield was 3.9%. Production in the Delhi field has continued to increase adding over 200 barrels of oil per day on a gross basis. Our net share of oil production during the quarter exceeded 2,000 barrels of oil…

We'll now begin the question-and-answer session. [Operator Instructions] The first question comes from Jim Collins with The Portfolio Guru. Please go ahead.

Good morning, Randy.

Hi, Jim, how are you?

I am doing fine. Thank you. Thanks for taking my question. In terms of the - if you look at Slide 5 and Slide 8 it's interesting that purchase CO2 is coming down, the production is going up. I'm Just how do we sort of look at that going forward you know how might one model that will the purchase CO2 volume continue to decline as the field increases production or sort of mathematically, how do we look at that?

But I think we've achieved a lot of the efficiencies that we set out with this conformance project. We should - I would look for CO2 to remain fairly consistent at these levels. There is a possibility that the NGL plant will require some additional purchased CO2 for makeup volumes as we were moving the methane. We don't have a way to quantify that yet, but we may see a slight increase in purchased CO2 and as far as the increase in production, we do have some future - additional conformance projects and we have a fairly significant infill drilling program planned for later in the year that may have another significant increase in production. That one will probably require a little additional CO2. So let me step back in general more CO2. Great - in order to increase oil production, you need more CO2. That's the general theory. We've been able over the last two years to improve the efficiency of the CO2 that we're using and be able to achieve these results with less purchased CO2 that's a little counterintuitive for most CO2 flood, but it's just unique for our ability with these conformance projects to achieve that results.

Okay, and on the infill drilling program that you mentioned, how much will that cost sort of net to - net evolution towards capital and it seems like in the press release that was a calendar 2018 event. Is that correct?

Well, no there's two there's two additional projects.

Okay.

There's the program and that one is about a $4 million to $5 million net to us. Now there are some other capital projects as well in conformance and preparation for Test Site 5 that may bring that total closer to $6 million for the for the calendar year. So we've got a situation where the operators on a calendar year, we're on a fiscal year, so the two don't lineup very well. But then the part that we talk about is being in fiscal 2018 is our Test Side 5 expansion and that is - that's somewhere out at least in 2018. It's dependent to some degree on all prices that one has a net cost fairly substantial. It's in excess of $10 million to us. And like I said the timing is has not been put into a firm timeline at this point. But we do see it as a very attractive project both for us and the operator and assuming we get at least reasonable prices, we should see that in the near-term.

So would you done Denbury actually, do you think that they would green light that at current oil prices or does that project need somewhat better prices?

Well, current from two weeks ago, yes, probably. I think somewhere in the in the mid-50s that project would in my view would get a green light, certainly Denbury would have their own decision on that. In the mid-40s if this were sustained that project would probably be deferred. So but anyway does - the point being, it doesn't need $60 or $70 oil to be sanctioned.

Okay. That's great, thanks. Thanks for taking my questions Randy.

[Operator Instructions] Next question comes from Chris McCampbell with Hilltop Securities. Please go ahead.

Good morning guys. Can you talk about the environment out there in terms of M&A and I believe you've still got a stock repurchase agreement as well and maybe some color on that?

Good to hear from you. We have seen a significant increase in the number of properties that are coming on the market that there are of interest to us. We've gone through a long period of adjustment over the past two years where sellers were reluctant to sell for prices that we considered to be market value and that market value has trended down over the past two years. So we think that supply and demand and market view of pricing has come into equilibrium really just since late last year and into this first part of 2017. The other thing too is that we've got several of the large MLPs that are exiting the Chapter 11 process and they are starting to put some of their properties on the market. We've got another couple - there were five large MLPs that went through Chapter 11 and two of them have started to divest through some of their non-core properties and we've got two more that are going to likely exit in the next few months. So it is creating an interesting supply of these mature conventional properties that produce nice cash flow, but are not trading at significant premiums because they really don't have a lot of perceived upside from both undeveloped locations or other potential shale development or other upside. And so we think we can - we may be able to buy these properties that what we consider to be rational pricing. As to your other question, we do still have $3.6 million authorized in our share buyback. The position that we're taking now is that we're going to give this current period some time to see if we can be successful in property acquisitions. We think that we can add properties, we believe we can add properties that will be accretive in a material way to our shareholders and therefore are a better use of that cash than share repurchases. And we're going to take some time this year to evaluate that. We've already been evaluating it over the past several months. And I don't look for us to do share repurchases in the near-term, although we are sitting on a fairly large working capital and cash balance, but it is a tool that we have for the future based on where we see the market.

Thanks, Randy. Good luck.

Appreciated.

There are no more questions at this time. This concludes the question-and-answer session. I would now like to turn the conference back over to David Joe for any closing remarks.

Thank you, everyone for participating on the call today. Just as a reminder, the Company prerecorded a message on our website with accompanying slides that are generally available after the press release. We did that last quarter. We did that this quarter and that trend should continue in the future. And we look forward to our fourth quarter and full-year results in early September. Thanks, everybody. Have a great day.

This concludes today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.