Summary
Epsilon Energy Ltd. (the “Company” or “Epsilon” or “we”) was incorporated under the laws of the Province of Alberta, Canada March 14, 2005, pursuant to the ABCA. The Company is extra‑provincially registered in Ontario pursuant to the Business Corporations Act (Ontario). Epsilon is a North American on-shore focused independent natural gas and oil company engaged in the acquisition, development, gathering and production of natural gas and oil reserves. Our
4
|
· |
During the year ended December 31, 2019, Epsilon’s realized natural gas price was $2.18 per Mcf, a 13% decrease over the year ended December 31, 2018. |
|
· |
Total year ended December 31, 2019 natural gas production was 7.6 Bcf, as compared to 7.3 Bcf during 2018. |
|
· |
Gathered and delivered 87.8 Bcf gross (30.7 Bcf net to Epsilon’s interest) during the year, or 241 MMcf/d through the Auburn Gas Gathering System which represents approximately 73% of designed throughput capacity. |
|
· |
We participated in the drilling and completion of 4 gross (1.07 net) lower Marcellus wells in 2019. These wells went into production in October. In addition, 5 wells (0.39 net) which were spud in Q4 2018 were completed and 4 were turned to production in February 2019, and the 5th was turned to production in June. Two of these wells targeted the Upper Marcellus. |
|
· |
During 2019, Epsilon’s realized price for all Oklahoma production was $3.01 per Mcfe, a 21% decrease over 2018. |
|
· |
Total production for 2019 included natural gas, oil, and other liquids and was 0.29 Bcfe, as compared to 0.35 Bcfe during 2018. |
|
· |
We participated in the drilling of 2 gross (0.79 net) wells during 2019. One well (0.10 net to Epsilon) was |
5
completed and turned to production in December. Completion operations for the second well were postponed due to a significant decrease in NGL and oil prices. The well will be considered for completion when commodity prices have recovered enough to generate an attractive return on the incremental capital required for the completion operation. |
|
· |
During the year ended December 31, 2018, Epsilon’s realized natural gas price was $2.51 per Mcf, an 18% increase from the year ended, December 31, 2017. |
|
· |
Total year ended December 31, 2018, production was 7.3 Bcf of natural gas net to our revenue interest in Pennsylvania, as compared to 8.9 Bcf in 2017. |
|
· |
We participated in the drilling and completion of 4 gross (0.39 net) upper Marcellus wells during 2018. The wells were turned to production in February 2019. |
|
· |
Gathered and delivered 100.1 Bcf gross (35.0 Bcf net to Epsilon’s interest) during the year, or 274 MMcf/d through the Auburn System which represents approximately 83% of designed throughput capacity |
|
· |
During 2018, Epsilon’s realized price for all production was $3.83 per Mcfe. |
|
· |
Total production for 2018 included natural gas, oil, and other liquids and was 0.35 Bcfe. |
|
· |
We participated in the drilling of 3 gross (0.02 net) wells in the Anadarko basin during 2018. Two of the wells were completed with one well being turned to production in June, and the second in August. |
|
|
|
Gross(1) |
|
Net(2) |
|
Producing Wells |
|
|
|
|
|
Oil |
|
8 |
|
1.55 |
|
Gas |
|
152 |
|
30.75 |
|
Oil & Gas |
|
67 |
|
14.77 |
|
Total Producing Wells |
|
227 |
|
47.07 |
|
Non-producing Wells |
|
42 |
|
12.44 |
|
Total Wells |
|
269 |
|
59.51 |