Epsilon Energy Ltd. Announces the Divestment of Dewey Energy Holdings LLC and the Company’s Asset in the Anadarko Basin

Rhea-AI Summary

Epsilon Energy (NASDAQ: EPSN) announced on December 11, 2025 the signing and closing of definitive transaction documents to sell its wholly owned subsidiary Dewey Energy Holdings LLC, which held the Company's Western Anadarko basin assets, to an undisclosed private buyer.

The assets sold included approximately 813 Mcfe/d of production (Q3 2025 figure; 60% natural gas), about 6,400 net deep acres and 2,200 net shallow acres of leasehold in Dewey County, Oklahoma. The purchase price was $2.5 million in cash. RedOaks Energy Advisors assisted the Company with the sell-side process.

Positive

• Sale generated $2.5 million in cash proceeds
• Transaction completed via signing and coincident closing on Dec 11, 2025

Negative

• Company relinquished 813 Mcfe/d production (Q3 2025)
• Disposition transferred 6,400 net deep acres and 2,200 net shallow acres
• Buyer remains undisclosed, leaving counterparty details unclear

Key Figures

Divested production 813 Mcfe/d Q3 2025 production from Western Anadarko basin assets

Gas weighting 60% natural gas Commodity mix of divested production

Deep acreage 6,400 net deep acres Leasehold in Dewey County, Oklahoma

Shallow acreage 2,200 net shallow acres Leasehold in Dewey County, Oklahoma

Sale price $2.5 million cash Consideration for Dewey Energy Holdings LLC divestment

Market Reality Check

$4.95 Last Close

Volume Volume 100,494 is 0.81x the 20-day average 123,371. normal

Technical Shares traded below the 200-day MA, which stood at $6.18 before this news.

Peers on Argus

Peers showed mixed moves, with gains in PROP (+2.89%) and KGEI, flat trading in GTE, and declines in AMPY and EP, indicating stock-specific rather than broad sector momentum for EPSN.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 26	Dividend declaration	Positive	+1.1%	Announced quarterly dividend of $0.0625 per common share.
Nov 20	Acquisition consideration	Positive	+0.6%	Issued contingent shares as consideration for Peak BLM Lease acquisition.
Nov 14	Acquisitions closed	Positive	-1.6%	Closed acquisitions of Peak entities and increased credit facility commitments.
Nov 05	Earnings & operations	Positive	-3.3%	Reported higher Q3 2025 revenue, EBITDA, cash, and operational updates.
Oct 23	Earnings schedule	Neutral	+2.3%	Scheduled Q3 2025 earnings release and conference call details.

Pattern Detected

Recent news has been largely constructive (dividends, acquisitions, stronger results), but price reactions have been modest and sometimes negative on positive updates.

Recent Company History

This announcement follows a series of growth- and shareholder-focused steps. In Q3 2025, Epsilon reported higher revenue and net income and highlighted an acquisition in the Powder River Basin. It then closed the Peak acquisitions and expanded its credit facility to $80 million. The company also issued contingent shares tied to the Peak deal and recently declared a quarterly dividend of $0.0625 per share. Against this backdrop of portfolio expansion and capital returns, today’s divestment further reshapes the asset mix.

Market Pulse Summary

This announcement details Epsilon’s sale of its Western Anadarko basin subsidiary, including about 813 Mcfe/d of production and roughly 8,600 net acres, for $2.5 million in cash. It follows a period of expansion via Peak acquisitions and stronger reported results, indicating active portfolio management. Investors may track how divested volumes compare to new assets, future capital allocation of sale proceeds, and any updates tying this divestment to its broader Marcellus, Powder River, Permian, and Western Canadian positions.

AI-generated analysis. Not financial advice.

HOUSTON, Dec. 11, 2025 (GLOBE NEWSWIRE) -- Epsilon Energy Ltd. (“Epsilon” or the “Company”) (NASDAQ: EPSN) today announced the signing of definitive transaction documents and the coincident closing of a sale of the Company’s wholly owned subsidiary, Dewey Energy Holdings, LLC, which holds the Company’s Western Anadarko basin assets, to an undisclosed private buyer.

The assets sold included approximately 813 Mcfe/d (60% natural gas) of production (Q3 2025 figure) and approximately 6,400 net deep acres and 2,200 net shallow acres of leasehold, all located in Dewey County, Oklahoma.

The purchase price was $2.5 million in cash.

RedOaks Energy Advisors LLC assisted the Company with the sell-side process.

About Epsilon

Epsilon Energy Ltd. is a North American onshore natural gas and oil production and gathering company with assets across the Marcellus, Powder River, Permian, Western Canadian Sedimentary basins.

Contact Information:

281-670-0002

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

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

FAQ

What did Epsilon Energy (EPSN) sell on December 11, 2025?

Epsilon sold its wholly owned subsidiary Dewey Energy Holdings LLC and associated Anadarko basin assets to an undisclosed private buyer.

How much production did EPSN divest in the Anadarko Basin sale?

The assets sold included approximately 813 Mcfe/d of production (Q3 2025 figure), of which 60% was natural gas.

What acreage did Epsilon (EPSN) transfer in the Dewey County sale?

The transaction transferred about 6,400 net deep acres and 2,200 net shallow acres in Dewey County, Oklahoma.

How much cash did EPSN receive from the sale of Dewey Energy Holdings?

The purchase price for the sale was $2.5 million in cash.

Who advised Epsilon Energy on the sale of its Anadarko assets?

RedOaks Energy Advisors LLC assisted Epsilon with the sell-side process.