Evolution Petroleum Corporation provided an update on operations and litigation.
As previously projected, the operator of the Delhi Field has decreased CO2 purchases to a February rate of approximately 101 million cubic feet per day (MMCFD) from the temporary surge to approximately 125 MMCFD in the latter months of calendar 2014. The surge in CO2 purchases was intended to partially restore reservoir pressure to optimize oil recovery. Since the purchase of CO2 is the largest operating cost for the field, the reduction in the recurring level of purchases should significantly reduce operating expense going forward until the natural gas liquids plant is brought on line and the enhanced oil recovery project is expanded further into the eastern half of the field.
In the litigation styled James H. Jones ('Jones') et al versus Evolution Petroleum et al, the plaintiffs have agreed to voluntarily dismiss all claims with prejudice and relinquish all claims to the royalty interest that Jones sold to us in early 2006. No compensation or other consideration was paid or provided to the plaintiffs by any of the defendants other than an agreement to not sue for malicious prosecution or defamation, or seek sanctions.