CONCORD, ONTARIO--(Marketwire - March 11, 2013) - Epsilon Energy Ltd. ("Epsilon") (TSX:EPS) is pleased to announce results from the Basal Belly River, Alberta company operated oil drilling program. The first well was drilled and brought online in December 2012. Based on the well's performance and low cost, Epsilon drilled a second and third well in February 2013. These three wells were drilled and completed for approximately $1.1 million each and are currently producing more than 150 barrels a day.
Upon completion of the three wells, Epsilon satisfied its joint venture farm-in obligations and earned a 50% interest in the joint venture leasehold properties in Alberta, Canada targeting the Basal Belly River zone and 50% of an additional well that was drilled prior to the farm-in.
Commenting on the Alberta well results, Zoran Arandjelovic, Epsilon's Chairman, CEO and President, said, "We are very pleased with our initial well results and expect to generate an internal rate of return in excess of 50% on our Alberta project. Continual refinement of our production methods has generated positive results as proven by our second well which doubled in production with optimized pumping techniques. The original well which Epsilon farmed into is currently shut in. Epsilon is in the process of developing a work over program to bring the well back online with anticipated production levels further enhancing the overall return on the project."
Epsilon expects to release fourth quarter and full year 2012 financial and operating results on Friday, March 22, 2013
Epsilon Energy Ltd. is a North American onshore exploration and production company with a current focus in the Marcellus Shale in Pennsylvania, Bakken Shale in Saskatchewan and Basal Belly River in Alberta.
Certain statements contained in this news release constitute forward looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", 'may", "will", "project", "should", 'believe", and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements are based on reasonable assumption but no assurance can be given that these expectations will prove to be correct and the forward-looking statements included in this news release should not be unduly relied upon.
Special note for news distribution in the United States
The securities described in the news release have not been registered under the United Stated Securities Act of 1933, as amended, (the "1933 Act") or state securities laws. Any holder of these securities, by purchasing such securities, agrees for the benefit of Epsilon Energy Ltd. (the "Corporation") that such securities may not be offered, sold, or otherwise transferred only (A) to the Corporation or its affiliates; (B) outside the United States in accordance with applicable state laws and either (1) Rule 144(as) under the 1933 Act or (2) Rule 144 under the 1933 Act, if applicable.