Epsilon Energy Ltd. announcement – GuruFocus.com

  • Board declares dividend of $0.0625 per common share
  • Repurchased 259,300 shares during the quarter
  • Oklahoma production project exceeds expectations
  • FCF generation prospects remain favorable

HOUSTON, May 31, 2022 (GLOBE NEWSWIRE) — Epsilon Energy Ltd. (“Epsilon“or the”Company”) (EPSN) today announced that its Board of Directors has declared a dividend of $0.0625 per common share (annualized $0.25/sh) to shareholders of record as of the close of business June 15e 2022, payable June 30e 2022. All dividends paid by the Company are “eligible dividends” within the meaning of subsection 89(1) of the Income Tax Act (Canada), unless otherwise specified. Additionally, the Company repurchased 259,300 shares for $1.8 million (approximately $7/share) during the quarter (through May 27, 2022). The company is authorized to purchase an additional 900,000 shares under its current program and continues to view current trading levels as attractive from a valuation perspective.

Michael Raleigh, CEO, commented, “After 30 days of production on each of the two recently completed wells (0.55 Net to EPSN) at our Oklahoma project, we are pleased to report that the average well performance has exceeded our curve. of the type expected, and, at current commodity prices, will be repaid in less than six months. To date, the Company has participated in four wells (1.15 net) in the area and the average performance has exceeded the expected type curve performance. The team is currently evaluating other locations within our existing inventory to drill and complete this year.

In the Marcellus, we expect the operator to complete the previously drilled well (Net 0.18 for EPSN) in the third quarter of 2022.

Based on current strip prices, the company expects to build significant additional cash for the remainder of the year. The current cash balance is approximately $31 million and the company has no outstanding debt.

About Epsilon

Epsilon Energy Ltd. is a North American independent exploration and production company focused on land exploration, engaged in the acquisition, development, gathering and production of oil and gas reserves. Our primary area of ​​operation is the Marcellus Basin in northeastern Pennsylvania. Our assets are concentrated in areas with known hydrocarbon resources, suitable for repeatable multi-well drilling programs. For more information, please visit www.epsilonenergyltd.comwhere we regularly post announcements, updates, events, investor information, presentations and recent press releases.

Contact information:


Michael Raleigh
Chief executive officer
[email protected]