CONCORD, ONTARIO -- (Marketwired) -- 06/06/13 -- Epsilon Energy Ltd. ("Epsilon") (TSX: EPS) is pleased to announce it has acquired its operating partner's 50% joint venture interest in Saskatchewan for CAD $2.4 million. The transaction will increase Epsilon's leasehold interests in Saskatchewan from approximately 28,234 net acres to 49,007 net acres. In addition, Epsilon will acquire all oil production, third party agreements, well interests and equipment.
The joint venture was formed in 2008 to focus on oil exploration and development in Saskatchewan targeting the Bakken and Midale formations. Epsilon began operating in Alberta in 2012 and, through this transaction, will become the operator in Saskatchewan. Earlier this year, Epsilon drilled two wells within the Saskatchewan joint venture leaseholds. The first well in Torquay targeting the Midale formation is currently being completed. The second well in Ceylon targeting the Bakken formation is scheduled for completion in late June.
Zoran Arandjelovic, Chairman and Chief Executive Officer, commented, "The Midale is the third largest oil accumulation in Canada. It has undergone several stages of evolution, including secondary recovery. Recent technological advances in multi-stage fracking have reinvigorated this resource play. As operator, we expect to significantly increase our value by directing our focus to what we consider to be previously overlooked assets."
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.
Epsilon Energy Ltd.
Vice President of Business Development
Most Popular Stories
- 'Lucy's' Super Powers Tops 'Hercules' at Box Office
- The 2014 Fastest-Growing 100
- Vancrest Assisted Living Project to Add 20 Jobs
- Fighting Blocks Investigators, Police From MH17 Crash Site
- The Rise and Fall of Richard Alarcon
- VW Site Could Mean Another 2,000 Jobs for Chattanooga
- Ford Bumps Price of New F-150
- Insecticides Permeate U.S. Food, Water Supply
- Nissan Profits Rise on Growth in U.S., China
- U.N. Renews Demand for Gaza Cease-Fire