Oil and Gas Emerger Epsilon (EPSN) Increases Borrowing Base and Provides Permian Update

Epsilon Energy Ltd. (EPSN) announced the results of a borrowing base redetermination on its senior secured reserve-based revolving credit facility with Frost Bank.

As of June 21, 2024, Frost set the Company’s borrowing base at $45M. This will remain unchanged until the next redetermination in the fourth quarter of 2024. This borrowing base now includes the newly acquired and developed properties in Ector County, Texas.

In Ector County, Texas, the recently completed Ava well, the sixth well drilled in the Pradera Fuego project, began flow-back in mid-May. The well is the top performer in the project to date, exceeding pre-drill estimates. Completion operations are now underway on the Katy well, the seventh 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.

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