Epsilon Energy Ltd. ("Epsilon") (TSX:EPS) is pleased to announce early results from its first company operated horizontal well targeting the Basal Belly River in Alberta. The well was drilled and brought online early December 2012. Based on the well's performance and low cost, Epsilon has drilled a second and third well. Upon completion and testing of the three wells, detailed results will be provided.
As previously reported, Epsilon signed a definitive agreement with a private Canadian company whereby Epsilon will have the opportunity to earn a 50% interest in leasehold properties in Alberta, Canada targeting the Basal Belly River zone. The project acreage has the potential to support up to six drilling locations.
Commenting on the updated initial well results, Zoran Arandjelovic, Epsilon's Chairman, CEO and President, said, "Early results from our first Epsilon operated well are encouraging and exceed our internal return thresholds. Successful management of our well costs make the economics of this development play compelling. This project demonstrates our commitment to lower risk, oil focused projects in areas we possess expertise."
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.
Forward-Looking Statements
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.
