**EXHIBIT 99.5**

 

**DeGolyer and MacNaughton**

5001 Spring Valley Road

Suite 800 East

Dallas, Texas 75244

 

**APPRAISAL REPORT**

**as of**

**JUNE 30, 2010**

**on**

**CERTAIN DELHI FIELD PROPERTIES**

**owned by**

**EVOLUTION PETROLEUM CORPORATION**

 

**FOREWORD**

 

Scopeof Investigation                                                                                                                                                                       This report is an appraisal, as of June 30,2010, of the extent and value of the proved and probable crude oil and naturalgas reserves of certain properties owned by Evolution Petroleum Corporation(Evolution). The reserves estimated in this report are in the Delhi fieldlocated in Richland Parish, Louisiana. The properties appraised consist of anoverriding royalty interest in the Delhi Holt Bryant Unit that is convertibleto a working interest after payout of certain operating expenses. Theoverriding royalty interest is 7.405185 percent, and the additional interest tobe gained after payout is a 23.9425-percent working interest with a19.069515-percent net revenue interest, which is additive to the overridingroyalty interest. This unit is operated by Denbury Onshore LLC (Denbury).

 

Estimatesof reserves presented in this report have been prepared in compliance with theregulations promulgated by the United States Securities and Exchange Commission(SEC). These reserves definitions are discussed in detail in the Definition ofReserves section of this report.

 

Reservesestimated in this report are expressed as gross and net reserves. Grossreserves are defined as the total estimated petroleum remaining to be producedafter June 30, 2010. Net reserves are defined as that portion of the grossreserves attributable to the interests owned by Evolution after deductingroyalties and interests owned by others.

 

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Thisreport also presents values for proved and probable reserves using initialprices and costs provided by Evolution. Future prices were estimated usingguidelines established by the SEC and the Financial Accounting Standards Board(FASB). In general, a NYMEX price of $76.21 per barrel was held constant forthe life of the properties. A detailed explanation of the future price and costassumptions is included in the Valuation of Reserves section of this report.

 

Valuesof proved and probable are expressed in terms of future gross revenue, futurenet revenue, and present worth. Future gross revenue is that revenue which willaccrue to the appraised interests from the production and sale of the estimatednet reserves. Future net revenue is calculated by deducting estimatedproduction taxes, ad valorem taxes, operating expenses, and capital costs fromthe future gross revenue. Operating expenses include field operating expenses,transportation expenses, compression charges, and an allocation of overheadthat directly relates to production activities. Future income tax expenses werenot taken into account in the preparation of these estimates. Present worth isdefined as future net revenue discounted at a specified arbitrary discount ratecompounded monthly over the expected period of realization. In this report,present worth values using a discount rate of 10 percent are reported in detailand values using discount rates of 8, 12, 15, 18, 20, 25, and 30 percent arereported as totals.

 

Estimatesof oil and gas reserves and future net revenue should be regarded only asestimates that may change as further production history and additionalinformation become available. Not only are such reserves and revenue estimatesbased on that information which is currently available, but such estimates arealso subject to the uncertainties inherent in the application of judgmental factorsin interpreting such information.

 

Authority                                                                                                                                                                                                                                           This report was prepared at the request of Mr.   Daryl Mazzanti, Vice President — Operations,Evolution.

 

Sourceof Information                                                                                                                                                                            Data used in the preparation of this report wereobtained from Evolution, from reports filed with the appropriate regulatoryagencies, and from other public 

 

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sources. In addition, weused information provided by Denbury regarding plans and expected operations ofthe carbon dioxide flood that it is in the process of implementing. In thepreparation of this report we have relied, without independent verification,upon information furnished by Evolution with respect to property interestsbeing appraised, production from such properties, current costs of operationand development, current prices for production, agreements relating to currentand future operations and sale of production, and various other information anddata that were accepted as represented. It was not considered necessary to makea field examination of the physical condition and operation of the properties.

 

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**DEFINITION of RESERVES**

 

Petroleumreserves included in this report are classified by degree of proof as proved orprobable. Only proved and probable reserves have been evaluated for thisreport. Reserves classifications used in this report are in accordance with thereserves definitions of Rules 4—10(a) (1)—(32) of Regulation S—X ofthe SEC. Reserves are judged to be economically producible in future years fromknown reservoirs under existing economic and operating conditions and assumingcontinuation of current regulatory practices using conventional productionmethods and equipment. In the analyses of production-decline curves, reserveswere estimated only to the limit of economic rates of production under existingeconomic and operating conditions using prices and costs consistent with theeffective date of this report, including consideration of changes in existingprices provided only by contractual arrangements but not including escalationsbased upon future conditions. The petroleum reserves are classified as follows:

 

*Provedoil and gas reserves* — Proved oil and gas reserves are those quantitiesof oil and gas, which, by analysis of geoscience and engineering data, can beestimated with reasonable certainty to be economically producible—from a givendate forward, from known reservoirs, and under existing economic conditions,operating methods, and government regulations—prior to the time at whichcontracts providing the right to operate expire, unless evidence indicates thatrenewal is reasonably certain, regardless of whether deterministic orprobabilistic methods are used for the estimation. The project to extract thehydrocarbons must have commenced or the operator must be reasonably certainthat it will commence the project within a reasonable time.

 

(i) Thearea of the reservoir considered as proved includes:

(A) Thearea identified by drilling and limited by fluid contacts, if any, and (B) Adjacentundrilled portions of the reservoir that can, with reasonable certainty, bejudged to be continuous with it and to contain economically producible oil orgas on the basis of available geoscience and engineering data.

 

(ii) Inthe absence of data on fluid contacts, proved quantities in a reservoir arelimited by the lowest known hydrocarbons 

 

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(LKH)as seen in a well penetration unless geoscience, engineering, or performancedata and reliable technology establishes a lower contact with reasonablecertainty.

 

(iii) Wheredirect observation from well penetrations has defined a highest known oil (HKO)elevation and the potential exists for an associated gas cap, proved oilreserves may be assigned in the structurally higher portions of the reservoironly if geoscience, engineering, or performance data and reliable technologyestablish the higher contact with reasonable certainty.

 

(iv) Reserveswhich can be produced economically through application of improved recoverytechniques (including, but not limited to, fluid injection) are included in theproved classification when:

(A) Successfultesting by a pilot project in an area of the reservoir with properties no morefavorable than in the reservoir as a whole, the operation of an installedprogram in the reservoir or an analogous reservoir, or other evidence usingreliable technology establishes the reasonable certainty of the engineeringanalysis on which the project or program was based; and (B) The projecthas been approved for development by all necessary parties and entities,including governmental entities.

 

(v) Existingeconomic conditions include prices and costs at which economic producibilityfrom a reservoir is to be determined. The price shall be the average priceduring the 12-month period prior to the ending date of the period covered bythe report, determined as an unweighted arithmetic average of thefirst-day-of-the-month price for each month within such period, unless pricesare defined by contractual arrangements, excluding escalations based uponfuture conditions.

 

*Probablereserves* — Probable reserves are those additional reservesthat are less certain to be recovered than proved reserves but which, togetherwith proved reserves, are as likely as not to be recovered.

 

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(i) Whendeterministic methods are used, it is as likely as not that actual remainingquantities recovered will exceed the sum of estimated proved plus probablereserves. When probabilistic methods are used, there should be at least a 50%probability that the actual quantities recovered will equal or exceed theproved plus probable reserves estimates.

 

(ii) Probablereserves may be assigned to areas of a reservoir adjacent to proved reserveswhere data control or interpretations of available data are less certain, evenif the interpreted reservoir continuity of structure or productivity does notmeet the reasonable certainty criterion. Probable reserves may be assigned toareas that are structurally higher than the proved area if these areas are incommunication with the proved reservoir.

 

(iii) Probablereserves estimates also include potential incremental quantities associatedwith a greater percentage recovery of the hydrocarbons in place than assumedfor proved reserves.

 

(iv) Seealso guidelines in paragraphs (iv) and (vi) of the definition ofpossible reserves.

 

*Possiblereserves* — Possible reserves are those additional reservesthat are less certain to be recovered than probable reserves.

 

(i) Whendeterministic methods are used, the total quantities ultimately recovered froma project have a low probability of exceeding proved plus probable pluspossible reserves. When probabilistic methods are used, there should be atleast a 10% probability that the total quantities ultimately recovered willequal or exceed the proved plus probable plus possible reserves estimates.

 

(ii) Possiblereserves may be assigned to areas of a reservoir adjacent to probable reserveswhere data control and interpretations of available data are progressively lesscertain. Frequently, this will be in areas where geoscience and 

 

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engineeringdata are unable to define clearly the area and vertical limits of commercialproduction from the reservoir by a defined project.

 

(iii) Possiblereserves also include incremental quantities associated with a greaterpercentage recovery of the hydrocarbons in place than the recovery quantitiesassumed for probable reserves.

 

(iv) Theproved plus probable and proved plus probable plus possible reserves estimatesmust be based on reasonable alternative technical and commercialinterpretations within the reservoir or subject project that are clearlydocumented, including comparisons to results in successful similar projects.

 

(v) Possiblereserves may be assigned where geoscience and engineering data identifydirectly adjacent portions of a reservoir within the same accumulation that maybe separated from proved areas by faults with displacement less than formationthickness or other geological discontinuities and that have not been penetratedby a wellbore, and the registrant believes that such adjacent portions are incommunication with the known (proved) reservoir. Possible reserves may beassigned to areas that are structurally higher or lower than the proved area ifthese areas are in communication with the proved reservoir.

 

(vi) Pursuantto paragraph (iii) of the proved oil and gas definition, where directobservation has defined a highest known oil (HKO) elevation and the potentialexists for an associated gas cap, proved oil reserves should be assigned in thestructurally higher portions of the reservoir above the HKO only if the highercontact can be established with reasonable certainty through reliabletechnology. Portions of the reservoir that do not meet this reasonablecertainty criterion may be assigned as probable and possible oil or gas basedon reservoir fluid properties and pressure gradient interpretations.

 

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*Developedoil and gas reserves* — Developed oil and gas reserves are reserves ofany category that can be expected to be recovered:

 

(i) Throughexisting wells with existing equipment and operating methods or in which thecost of the required equipment is relatively minor compared to the cost of anew well; and

 

(ii) Throughinstalled extraction equipment and infrastructure operational at the time ofthe reserves estimate if the extraction is by means not involving a well.

 

*Undevelopedoil and gas reserves —*Undeveloped oil and gas reserves are reservesof any category that are expected to be recovered from new wells on undrilledacreage, or from existing wells where a relatively major expenditure isrequired for recompletion.

 

(i) Reserveson undrilled acreage shall be limited to those directly offsetting developmentspacing areas that are reasonably certain of production when drilled, unlessevidence using reliable technology exists that establishes reasonable certaintyof economic producibility at greater distances.

 

(ii) Undrilledlocations can be classified as having undeveloped reserves only if adevelopment plan has been adopted indicating that they are scheduled to bedrilled within five years, unless the specific circumstances justify a longertime.

 

(iii) Underno circumstances shall estimates for undeveloped reserves be attributable toany acreage for which an application of fluid injection or other improved recoverytechnique is contemplated, unless such techniques have been proved effective byactual projects in the same reservoir or an analogous reservoir, as defined in[section 210.4—10 (a) Definitions], or by other evidence using reliabletechnology establishing reasonable certainty.

 

Theextent to which probable and possible reserves ultimately may be reclassifiedas proved reserves is dependent upon future 

 

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drilling, testing, and wellperformance. The degree of risk to be applied in evaluating probable andpossible reserves is influenced by economic and technological factors as wellas the time element. Probable reserves in this report have not been adjusted inconsideration of these additional risks and therefore are not comparable withproved reserves. No possible reserves have been evaluated for this report.

 

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**ESTIMATION of RESERVES**

 

Theproved and probable reserves estimated for the appraised interests are locatedin the Holt Bryant reservoir. This reservoir was originally discovered in 1944,produced under primary means until unitized for water injection in 1953, andpurchased by Denbury in 2006 in order to initiate a carbon dioxide injectionprogram. Average depth is 3,235 feet subsea, and the unit area is about 6,189acres. Denbury began carbon dioxide injection in three patterns of the Paluxyand Tuscaloosa reservoirs in November 2009.

 

Thevolumetric method was used to estimate the original oil in place (OOIP).Structure maps were utilized to delineate each reservoir, and isopach maps wereutilized to estimate reservoir volume. Electrical logs, radioactivity logs,core analyses, and other available data were used to prepare these maps as wellas to estimate representative values for porosity and water saturation.Estimates of OOIP were prepared during unitization and later refined duringwaterflood operations. Cumulative recovery is about 192 million barrels.Estimates of ultimate recovery to result from carbon dioxide injection in theHolt-Bryant reservoir were obtained after applying a recovery factor to anestimated OOIP of 357 million barrels. This recovery factor is based onconsideration of the type of energy inherent in the reservoirs, analyses of thepetroleum, the structural positions of the properties, and the productionhistories. Oil production response to the carbon dioxide was experienced in March 2010,and oil production in May and June 2010 has been about 800 barrels ofoil per day. Based on the production response from a number of producers, andnoting the amount of carbon dioxide injection to date, it is estimated that therecovery of proved reserves will be about 13 percent of OOIP, and probablereserves about 4 percent of OOIP.

 

Inaddition, Evolution has noted that four additional reservoirs exist that couldalso be suitable for carbon dioxide injection. These are identified as theBaughman, Beard, May Equivalent, and May Libby reservoirs. EstimatedOOIP for these reservoirs is about 51.8 million barrels. After estimating thepattern area that could be developed, it is estimated that recovery from thesereservoirs is 7.767 million barrels. These reserves are classified as probableundeveloped, and are subject to Denbury expanding its flood program to thesereservoirs after Evolution backs into a working interest.

 

Dataavailable from wells drilled through June 30, 2010, were used in thisreport.

 

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The estimated proved and probable reserves, as of June 30, 2010,of the properties appraised are summarized as follows, expressed in thousandsof barrels (Mbbl) or millions of cubic feet (MMcf):

 
| ** **              | ** ** | **Gross Proved Reserves** | ** ** | **Net Proved Reserves** | ** ** |
|-------------------------|------------|-------------------------------------|------------|-----------------------------------|------------|
| ** **              | ** ** | **Oil****(Mbbl)**                   | ** ** | **Wet****Gas (MMcf)**             | ** ** | **Oil****(Mbbl)** | ** ** | **Sales****Gas (MMcf)** | ** ** |
|                    |       |                                |       |                              |       |   |   |   |   |
| Developed  Producing    |       | 4,567                               |       | 0                                 |       | 584 |   | 0 |   |
| Developed  Nonproducing |       | 390                                 |       | 0                                 |       | 29 |   | 0 |   |
| Undeveloped             |       | 41,351                              |       | 0                                 |       | 8,799 |   | 0 |   |
|                    |       |                                |       |                              |       |   |   |   |   |
| **Total**               | ** ** | **46,308**                          | ** ** | **0**                             | ** ** | **9,412** | ** ** | **0** | ** ** |
| ** **              | ** ** | ** **                          | ** ** | ** **                        | ** ** | ** ** | ** ** | ** ** | ** ** |
| Probable                |       | 22,044                              |       | 0                                 |       | 5,681 |   | 0 |   |

 

Note: Probable reserves have not been risk adjusted tomake them comparable to proved reserves.

 

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**VALUATION of RESERVES**

 

This report has been prepared using initial prices and costs specifiedby Evolution. Future prices were estimated using guidelines established by theSEC and the Financial Accounting Standards Board (FASB).

 

In this report, values for proved and probable reserves are based onprojections of estimated future production and revenue with no risk adjustmentapplied to the probable reserves. Probable reserves involve substantiallyhigher risks than proved reserves. Revenue values for probable reserves havenot been adjusted to account for such risks; this adjustment would be necessaryto make probable reserves values comparable with values for proved reserves.

 

The assumptions that were used for estimating future prices and costsare as follows:

 

*Oil Prices*

 

An oil price differential for each property was provided by Evolution.The price for each property was calculated by applying this differential to aNYMEX crude oil price of $76.21 per barrel and was held constant over the lifeof each property. The NYMEX price of $76.21 is the 12-month average pricecalculated as the unweighted arithmetic average of the first-day-of-the-monthprice for each month within the 12-month period prior to June 30, 2010.The weighted average effective price attributable to the estimated provedreserves over the lives of the properties was $73.88 per barrel.

 

*Operating Expenses and Capital Costs*

 

Estimates of operating expenses and capital costs based on currentcosts were used for the lives of the properties with no increases in the futurebased on inflation. Future expenditures are estimated to be much higher thancurrent levels due to the installation of a carbon dioxide injection program,which began in November 2009 and to be expanded through 2014. Evolution 

 

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is expected to pay $0.94 per thousand cubic feet (Mcf) of carbondioxide, based on a rate of 1 percent of oil price plus transportation chargesof 20 cents per Mcf. Recycled carbon dioxide is expected to cost 15 cents perMcf. Total carbon dioxide injection is expected to be 5,182 billion cubic feet (Bcf),and purchased carbon dioxide is expected to be 958 Bcf over the project life.Operating expenses are based on typical expenditures incurred by Denbury in itsother injection projects. Future capital costs were estimated using expected2010 values and were not adjusted for inflation. No significant investmentsother than abandonment are expected after 2023.

 

*Severance and Ad Valorem Taxes*

 

Severance taxes were based on current Louisiana State tax rates. TheDelhi CO2 flood has been qualified as a tertiaryrecovery project. As such, no oil severance taxes will be charged until apayout is achieved of investment and certain interest expenses by all revenuefrom the project. Taxes then revert to the normal 12.5-percent rate, which washeld constant until average oil production per well dropped below 25 barrelsper day. Changes are expected to occur in August 2017 and June 2029.Evolution has stated that no ad valorem taxes are charged to the royaltyowners, so no such taxes were included until conversion to a working interest.

 

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The estimated future revenue to be derived from the production and saleof the net proved and probable reserves, as of June 30, 2010, of theproperties appraised is summarized as follows, expressed in thousands ofdollars (M$):

 
| ** **                       | ** ** | **Proved  Developed  Producing** | ** ** | **Proved  Developed  Nonproducing** | ** ** | **Proved  Undeveloped** | ** ** | **Total  Proved** | ** ** | **Probable** | ** ** |
|----------------------------------|------------|----------------------------------|------------|-------------------------------------|------------|-------------------------|------------|-------------------|------------|--------------|------------|
| ** **                       | ** ** | ** **                       | ** ** | ** **                          | ** ** | ** **              | ** ** | ** **        | ** ** | ** **   | ** ** |
| Future  Gross Revenue, M$        |       | 43,131                           |       | 2,153                               |       | 650,044                 |       | 695,328           |       | 419,717      |       |
| Production  Taxes, M$            |       | 2,143                            |       | 0                                   |       | 57,359                  |       | 59,502            |       | 45,187       |       |
| Ad  Valorem Taxes, M$            |       | 144                              |       | 0                                   |       | 3,354                   |       | 3,498             |       | 2,367        |       |
| Operating  Expenses, M$          |       | 6,052                            |       | 12                                  |       | 120,322                 |       | 126,386           |       | 135,240      |       |
| Investment,  M$                  |       | 0                                |       | 0                                   |       | 0                       |       | 0                 |       | 12,915       |       |
| Abandonment  Costs, M$           |       | 594                              |       | 3                                   |       | 43                      |       | 640               |       | 12           |       |
| Future  Net Revenue, M$          |       | 34,198                           |       | 2,138                               |       | 468,966                 |       | 505,302           |       | 223,996      |       |
| Present  Worth at 10 Percent, M$ |       | 21,192                           |       | 1,703                               |       | 201,568                 |       | 224,463           |       | 51,185       |       |

 

Notes:

1. Future income tax expenses were not taken intoaccount in the preparation of these estimates.

2. Values for probable reserves have not been riskadjusted to make them comparable to values for proved reserves.

 

The development of production and the resulting timing of capitalexpenditures were based on a development plan provided by Denbury on behalf ofEvolution. The estimated payout to be recovered from Denbury’s interest is212,395 thousand dollars, as provided by Evolution.

 

To the extent the above-enumerated rules, regulations, and statementsrequire determinations of an accounting or legal nature, we are necessarilyunable to express an opinion as to whether the above-described information isin accordance therewith or sufficient therefor.

 

In our opinion, the information relating to estimated proved andprobable reserves, estimated future net revenue from proved and probable reserves,and present worth of estimated future net revenue from proved and probablereserves of oil, condensate, natural gas liquids, and gas contained in thisreport has been prepared in accordance with Paragraphs 932-235-50-4,932-235-50-6, 932-235-50-7, 932-235-50-9, 932-235-50-30, and 932-235-50-31(a),(b), and (e) of the Accounting Standards Update 932-235-50, *Extractive Industries — Oil and Gas (Topic 932): Oiland Gas Reserve Estimation and Disclosures* (January 2010) ofthe Financial Accounting Standards Board and Rules 4—10(a) (1)—(32)of Regulation S—X and Rules 302(b), 1201, 1202(a) (1), (2), (3), (4),(5), (8)(i), (ii), and (v)—(x), and 1203(a) of Regulation S—K of theSecurities and Exchange Commission; provided, however, future income tax expenseshave not 

 

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beentaken into account in estimating the future net revenue and present worthvalues set forth herein.

 

The appendix bound with this report includes summary projections ofproved and probable reserves and revenue by reserves classification,tabulations of proved and probable reserves by reserves classification andlease, and projections of proved and probable reserves and revenue by reservesclassification and lease.

 

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**SUMMARY and CONCLUSIONS**

 

Evolution owns interests in certain properties located in the Delhifield located in Richland Parish, Louisiana. The estimated net proved andprobable reserves of the properties appraised, as of June 30, 2010, aresummarized and expressed in thousands of barrels (Mbbl) or millions of cubicfeet (MMcf) as follows:

 
| ** **              | ** ** | **Net Proved Reserves** | ** ** |
|-------------------------|------------|-----------------------------------|------------|
| ** **              | ** ** | **Oil****(Mbbl)**                 | ** ** | **Sales****Gas (MMcf)** | ** ** |
|                    |       |                              |       |   |   |
| Developed  Producing    |       | 584                               |       | 0 |   |
| Developed  Nonproducing |       | 29                                |       | 0 |   |
|                    |       |                              |       |   |   |
| **Total Developed**     | ** ** | **613**                           | ** ** | **0** | ** ** |
|                    |       |                              |       |   |   |
| Undeveloped             |       | 8,799                             |       | 0 |   |
|                    |       |                              |       |   |   |
| **Total**               | ** ** | **9,412**                         | ** ** | **0** | ** ** |
| ** **              | ** ** | ** **                        | ** ** | ** ** | ** ** |
| Probable                |       | 5,681                             |       | 0 |   |

 

Note: Probable reserves have not been risk adjusted tomake them comparable to proved reserves.

 

Estimated revenue and costs attributable to the Evolution interests inthe proved and probable reserves, as of June 30, 2010, of the propertiesappraised under the aforementioned assumptions concerning future prices andcosts are summarized as follows, expressed in thousands of dollars (M$):

 
| ** **                             | ** ** | **Proved  Developed  Producing** | ** ** | **Proved  Developed  Nonproducing** | ** ** | **Proved  Undeveloped** | ** ** | **Total  Proved** | ** ** | **Probable** | ** ** |
|----------------------------------------|------------|----------------------------------|------------|-------------------------------------|------------|-------------------------|------------|-------------------|------------|--------------|------------|
| ** **                             | ** ** | ** **                       | ** ** | ** **                          | ** ** | ** **              | ** ** | ** **        | ** ** | ** **   | ** ** |
| Future  Gross Revenue, M$         |       | 43,131                           |       | 2,153                               |       | 650,044                 |       | 695,328           |       | 419,717      |       |
| Production  Taxes, M$             |       | 2,143                            |       | 0                                   |       | 57,359                  |       | 59,502            |       | 45,187       |       |
| Ad  Valorem Taxes, M$             |       | 144                              |       | 0                                   |       | 3,354                   |       | 3,498             |       | 2,367        |       |
| Operating  Expenses, M$           |       | 6,052                            |       | 12                                  |       | 120,322                 |       | 126,386           |       | 135,240      |       |
| Investment,  M$                   |       | 0                                |       | 0                                   |       | 0                       |       | 0                 |       | 12,915       |       |
| Abandonment  Costs, M$            |       | 594                              |       | 3                                   |       | 43                      |       | 640               |       | 12           |       |
| Future  Net Revenue, M$           |       | 34,198                           |       | 2,138                               |       | 468,966                 |       | 505,302           |       | 223,996      |       |
| Present  Worth at 10 Percent, M$  |       | 21,192                           |       | 1,703                               |       | 201,568                 |       | 224,463           |       | 51,185       |       |

 

Notes:

1. Future income tax expenses were not taken intoaccount in the preparation of these estimates.

2. Values for probable reserves have not been riskadjusted to make them comparable to values for proved reserves.

 

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All gas quantities shown herein are expressed at a temperature base of60 °F and at the legal pressure base of 15.025 pounds per square inch.

 

 
|                         | Submitted,                               |
|------------------------------|------------------------------------------|
|                         |                                     |
|                         |                                     |
|                         | DeGOLYER  and MacNAUGHTON                |
|                         | Texas  Registered Engineering Firm F-716 |
|                         |                                     |
| SIGNED: August 10, 2010 |                                     |

 

 
|   |                     |
|--------|--------------------------|
|   | Paul J. Szatkowski, P.E. |
|   | Senior Vice President    |
|   | DeGolyer and MacNaughton |

 

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**TABLE of CONTENTS**

 
| ** **                             | **Page** |
|----------------------------------------|----------|
| **FOREWORD**                           | 1        |
| Scope of Investigation                 | 1        |
| Authority                              | 2        |
| Source of Information                  | 2        |
| **DEFINITION of  RESERVES**            | 4        |
| **ESTIMATION of RESERVES**             | 10       |
| **VALUATION of RESERVES**              | 12       |
| **SUMMARY and CONCLUSIONS**            | 16       |
| **APPENDIX**  — Bound with Report |     |

 

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DeGolyer and MacNaughton

 

**CERTIFICATE of QUALIFICATION**

 

I, Paul J. Szatkowski,Petroleum Engineer with DeGolyer and MacNaughton, 5001 Spring Valley Road,Suite 800 East, Dallas, Texas, 75244 U.S.A., hereby certify:

 

1.               That I am a Senior VicePresident with DeGolyer and MacNaughton, which company prepared our “AppraisalReport as of June 30, 2010 on Certain Delhi Field Properties owned byEvolution Petroleum Corporation”, and that I, as Senior Vice President, wasresponsible for the preparation of this report.

 

2.               That I attended Texas A&M University, and that I graduated with aBachelor of Science degree in Petroleum Engineering in the year 1974; that I ama Registered Professional Engineer in the State of Texas; that I am amember of the International Society of Petroleum Engineers and the AmericanAssociation of Petroleum Geologists; and that Ihave in excess of 36 years of experience in the oil and gas reservoirstudies and reserves evaluations.

 

3.               That DeGolyer and MacNaughton or its officers have no direct or indirectinterest, nor do they expect to receive and direct interest in any propertiesor securities of Evolution or affiliate thereof.

 

Signed: August 31, 2010

 

 

 
|   |                      |
|--------|---------------------------|
|   | Paul  J. Szatkowski, P.E. |
|   | Senior  Vice President    |
|   | DeGolyer  and MacNaughton |

 

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