History
Evolution Petroleum sold its main Louisiana field operation to Denbury in 2006, settled a long dispute in 2016, then spent from 2021 buying non-operated oil and gas interests.
2004-2006: A reverse merger and the Delhi deal
Evolution Petroleum began as Natural Gas Systems (NGS), which became a public company in June 2004 through a reverse merger into a shell called Reality Interactive. NGS shareholders took about 96% of the stock, and Robert Herlin became chief executive. A reverse merger means a private business takes over an existing listed shell to get a public listing.
The early years were funded with debt and small equity raises. In February 2005 NGS secured a loan facility of up to $4.8 million from Prospect Energy Corporation and drew $3.0 million. It used the money to buy the Chadco properties in the Tullos Urania and Colgrade fields for $812,733 and for working capital, and it planned to repay an earlier bridge loan from Chairman Laird Cagan. A further $1.0 million was drawn in March 2005, bringing borrowings to $4.0 million at interest of 14% or more. In May 2005 it sold 1.2 million shares at $2.50 to Rubicon Master Fund, raising $3.0 million. In March 2006 Cagan lent the company another $250,000 at 10%, ranking behind the Prospect facility.
The defining move came in 2006. NGS agreed in May to bring in Denbury Onshore to fund and run a carbon dioxide enhanced-oil-recovery flood at its Delhi Field in Louisiana. The deal closed in June. NGS received $50 million, handed over its working interest, and kept a 4.8% royalty and a right to a working interest again once the project paid out. The company was renamed Evolution Petroleum in September 2006, and the American Stock Exchange cleared its securities for listing in July 2006.
2007-2015: Listing, a new play and the first dividend
The record for the next few years is quiet apart from the sale of the original Louisiana assets to MWM Energy in 2008 for $4.6 million. The company began selling an 8.5% Series A preferred stock in 2011, and the New York Stock Exchange cleared its securities for listing that July. Shares on issue were about 27.8 million at the end of 2011.
In April 2012 Evolution agreed with Orion Exploration Partners to earn a 45% non-operated interest in Mississippian Lime acreage in Oklahoma by funding drilling, with 25 to 33 potential well locations targeted.
In November 2013 the company declared its first quarterly common dividend, $0.10 a share, as part of a shift toward a growth-and-income model. The same disclosure revealed a dispute with Denbury over a delayed return of Evolution's working interest after a 2013 spill.
2016-2020: Settlement and a failed bid
In June 2016 the two companies settled all disputes. Denbury agreed to pay $27.5 million in cash plus additional interests. In October 2016 Evolution announced it would redeem all of its 8.5% preferred stock for about $8 million, paid from cash on hand, ending the program begun in 2011. It also moved its credit facility to MidFirst Bank in April 2016.
In 2018 Evolution was the opening, or stalking-horse, bidder at $27.5 million for the oil and gas assets of Enduro Resource Partners, which was in bankruptcy. It raised its offer but was outbid at the court auction in July and collected a $1.1 million breakup fee. Beyond that, the record for these years is quiet, and shares on issue stayed near 33 million.
2021-2026: The buying spree
With the Denbury settlement behind it, Evolution made its first acquisition since 2016. In March 2021 it agreed to buy non-operated Barnett Shale gas interests in North Texas from Tokyo Gas's U.S. subsidiary, closing in May for $18.2 million net and adding about 50 billion cubic feet of gas reserves.
Two more deals followed. In January 2022 it bought Williston Basin oil assets in North Dakota from Foundation Energy for $25.9 million, a 39% interest in 73 wells with roughly 400 future drilling locations. In February 2022 it agreed to buy Wyoming Jonah Field gas interests from Exaro Energy, closing in April for a net $26.2 million, paid with cash and a $17 million draw on its credit line. It kept paying its $0.10 quarterly dividend.
After a quiet 2023, it agreed in January 2024 to buy Oklahoma SCOOP/STACK interests from Red Sky Resources and Coriolis Energy Partners for $43.5 million. The deal closed in February, funded with cash and a $42.5 million credit-line draw. Shares rose to about 34.1 million by the end of 2024.
In July 2025 Evolution amended and restated its MidFirst Bank credit facility to up to $200 million, with a $65 million borrowing base and $37.5 million drawn. It also said an audit of its Barnett Shale operator had found about $1.8 million of overcharges owed to it. In August 2025 it bought mineral and royalty interests across 5,500 net acres in the SCOOP/STACK area for about $17.0 million. Its common stock sales program was renewed in February 2026 for another $30 million. Shares on issue were about 40.2 million as of the latest count, though the record does not explain the rise.
Written from the 23 story beats below (2004 to 6 Aug 2025), which come from the company's own announcements and filings.