Property and Equipment

6 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]



	December 31, 2019			June 30, 2019
Oil and natural gas properties
Property costs subject to amortization	$	106,951,180		$	95,622,153
Less: Accumulated depreciation, depletion, and amortization	(38,136,611		)	(35,275,687		)
Unproved properties not subject to amortization	—			—
Oil and natural gas properties, net	$	68,814,569		$	60,346,466
Other property and equipment
Furniture, fixtures, office equipment and other, at cost	$	154,731		$	154,731
Less: Accumulated depreciation	(132,817		)	(128,313		)
Other property and equipment, net	$	21,914		$	26,418

During the six months ended December 31, 2019 and 2018, the Company incurred capital expenditures of $1.1 million and $4.0 million, respectively, in the Delhi field.

Hamilton Dome Acquisition

On November 1, 2019, and effective as of October 1, 2019, our wholly-owned subsidiary, Evolution Petroleum West, Inc., a Delaware corporation, purchased a 23.51% non-operating working interest and a 19.70% revenue interest in the Hamilton Dome unitized field located in Hot Springs County, Wyoming, from entities owned or controlled by Merit Energy Company ("Merit") of Dallas, Texas. At closing on November 1, 2019, we paid a cash purchase price of $9.5 million which was subject to customary purchase price adjustments, which were settled in December 2019 upon our receipt of a $0.2 million cash payment made by Merit. Given the effective date of the transaction, the purchase price adjustment consisted of our interest's share of sales proceeds from October sales net of our share of operating expenses. Commencing November 1, 2019, we began recording our share of Hamilton Dome revenues, related expenses and capital costs. In connection with this acquisition, the Company recorded a $0.9 million non-cash addition of asset retirement obligations of wells and related assets.

The unit included 265 producing and water injection wells and associated facilities producing crude oil from proved developed reserves. There were no proved undeveloped reserves, probable nor possible reserves. We accounted for this acquisition transaction as an asset purchase.