The board of directors at Evolution Petroleum Corp. (EPM) approved a buyback program for $5 million in common shares, the company said May 19. The buyback is public, and the timing and amount depend on financial resources, market conditions and other factors.

There is no fixed expiration date for the buyback, Evolution added. Payments made under it will support working capital, and all repurchased shares will be retired.

Robert Herlin, CEO, said the company’s cash flow for fiscal year 2016 is enough to support the NGL plant in Delhi Field in Louisiana and other objectives. He added that the stock is undervalued at the current market price, and that the buyback would give shareholders excess cash.

"The Delhi Field is approximately 70% developed with substantially all the major infrastructure, including the CO2 pipeline, compression facilities and the majority of the CO2 injection and production wells, already in place. Based on the same reserves report, the incremental cost to complete the NGL plant and expand the CO2 flood to the eastern part of the field is estimated to be approximately $8.50 per barrel for remaining development of the proved reserves,” said Randy Keys, president and CFO.

Evolution Petroleum Corp. is based in Houston.