Epsilon Announces an Increased Borrowing Base and Permian Operations Update

Epsilon Energy (NASDAQ: EPSN) announced an increase in its borrowing base to $45 million, following a redetermination by Frost Bank effective June 21, 2024.

Rhea-AI Summary

Epsilon Energy (NASDAQ: EPSN) announced an increase in its borrowing base to $45 million, following a redetermination by Frost Bank effective June 21, 2024. This increase includes new properties acquired and developed in Ector County, Texas. Additionally, Epsilon provided updates on its Permian Basin operations, highlighting the Ava well's performance, which averaged 1,290 BOEPD over 25 days, surpassing pre-drill estimates. Completion operations for the Katy well are underway, with flow-back expected next month. Epsilon holds a 25% working interest in the Pradera Fuego project.

Positive

• Borrowing base increased to $45 million.
• Ava well in Ector County averaged 1,290 BOEPD, surpassing pre-drill estimates.
• Epsilon's interest in Pradera Fuego project includes new properties in Ector County.

Negative

• None.

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HOUSTON, June 25, 2024 (GLOBE NEWSWIRE) -- Epsilon Energy Ltd. (“Epsilon” or the “Company”) (NASDAQ: EPSN) today reported the results of a borrowing base redetermination on the Company’s senior secured reserve-based revolving credit facility (the “Credit Facility”) with Frost Bank (the “Lender”).

Effective on June 21, 2024, the Lender redetermined the Company’s borrowing base at $45 million, which will remain until the next redetermination in the fourth quarter of 2024. The borrowing base now includes the recently acquired and developed properties in Ector County, Texas. The Lender’s total commitment is equal to the borrowing base amount. All other terms of the Credit Facility remain the same.

In Ector County, Texas, the recently completed Ava well, the sixth well drilled in the Pradera Fuego project, started flow-back in mid-May. Over the last twenty-five days, the well has averaged 1,290 BOEPD (gross, 79% oil) from a ~11,000’ lateral. The well is the best performer in the project so far, outperforming pre-drill estimates. Completion operations are now underway on the Katy well (7ᵗʰ well in the project), with flow-back expected next month. This well extends into the large undeveloped Cowden leasehold, in which the Company acquired an interest in June 2023. Epsilon holds a 25% working interest (18.75% NRI) in the Pradera Fuego project.

About Epsilon

Epsilon Energy Ltd. is a North American onshore natural gas and oil production and gathering company with assets in Pennsylvania, Texas, New Mexico, and Oklahoma.

Contact Information:

281-670-0002

Jason Stabell
Chief Executive Officer
Jason.Stabell@EpsilonEnergyLTD.com

Andrew Williamson
Chief Financial Officer
Andrew.Williamson@EpsilonEnergyLTD.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What was the result of Epsilon Energy's recent borrowing base redetermination?

Epsilon Energy's borrowing base was increased to $45 million following a redetermination by Frost Bank on June 21, 2024.

How did the Ava well in Ector County perform?

The Ava well in Ector County averaged 1,290 BOEPD over the last 25 days, outperforming pre-drill estimates.

When is the flow-back expected for the Katy well?

Flow-back for the Katy well is expected next month.

What is Epsilon Energy's working interest in the Pradera Fuego project?

Epsilon Energy holds a 25% working interest in the Pradera Fuego project.