I expect the recycle plant to continue. This is what Bob H said on 11/19/14.
"Evolution previously announced expected capital expenditures of $25-27 million net to the Company in the Delhi Field over fiscal years 2015 and 2016. Of these costs, approximately $15-17 million comprise its share of estimated costs for a recycle gas processing plant to recover high-value natural gas liquids ("NGL's") and methane from the recycle gas stream. We understand from DNR's announcement that the plan and timing for the recycle gas plant have not changed, with design and fabrication of the key components expected to occur during calendar 2015 and installation of the gas plant during the first half of calendar 2016. Certain other expenditures during the balance of calendar 2014 regarding CO2 flood efficiency and operations also remain on track. Calendar 2015 expenditures for expansion of the CO2 flood into the eastern part of the Field appear to be temporarily deferred at this time.
Based on this information, Evolution's near term capital requirements in the Delhi Field are now expected to be lower than previously anticipated. We believe that oil production will remain relatively flat during calendar 2015 with the possibility of some decline prior to start-up of the recycle gas plant during the second half of calendar 2016. Production of NGL's and methane from that plant is projected to increase the Delhi oil equivalent production rate by up to 25%. The lower capital spending will have the benefit of increasing the Company's free cash flow during this period."
I am not buying any E&P companies at this time, I just don't see any clarity on where developments will shake out. There are a lot of E&P companies operating in the shale oil and gas areas which are leveraged at a debt/equity of 300%,400%,500% or more. The only energy company that I hold at this time is EPM which is a large position for me. The lack of debt is the key for me holding this position and collect the dividend.
The trial was supposed to start on 1/5/15. I checked out the Harris County District Clerk website and I see a continuance was granted with the agreement of both parties. I assume this means they are working on a out of court settlement otherwise I don't see any reason for EPM agreeing to a continuance. BTW, the case number is 201374863.