2009-07-08-2009-06-05-2009-06-05

Bought Amber Bank, Blue Jacket properties in WV.

Epsilon Energy Ltd., Concord, Ontario, (Toronto: EPS) has closed its divestiture of its Amber Bank and Blue Jacket properties in West Virginia to an undisclosed buyer for US$14 million. The company initially acquired a nonoperating interest in these properties, known as the Legacy assets, during 2006, prior to its initial public offering in 2007. Epsilon intends to redeploy proceeds into its Marcellus shale projects in Pennsylvania and New York, where it is the operator. Zoran Arandjelovic, Epsilon chairman and interim president and CEO, says, "This transaction enables us to aggressively continue our Marcellus shale development program, where we recently initiated natural gas production from one horizontal well, have 8.5 million cubic feet a day from three wells ready to come on line in the next 30 to 60 days, and four additional wells scheduled to be fraced. We now expect to significantly increase our daily natural gas production by having all of the eight wells drilled to date on our Highway 706 Marcellus shale project online during the third quarter of this year from existing capital resources without incurring any long-term debt." Epsilon has operations in North America, the Middle East and Africa.