Welcome to Epsilon Energy Ltd.
Epsilon Energy Ltd. has recently closed on a farm out agreement for a Marcellus shale joint venture with Chesapeake Energy Corporation. For more information, please see the following press releases:
This farm out values Epsilon’s assets in the Highway 706 area in Susquehanna County, Pennsylvania at $200 million. Chesapeake’s total investment in the proposed joint venture will be $195 million payable as follows:
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Chesapeake will pay $5 million to Epsilon in cash on closing of the transaction.
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Chesapeake will carry the first $95 million of Epsilon’s 50% share of leasehold, drilling, completing, equipping and gathering costs attributable to the prospect by contributing $95 million to the proposed joint venture on Epsilon's behalf within 30 months after the closing date.
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Chesapeake will also contribute an additional $95 million for its own behalf for its 50% share of leasehold, drilling, completing, equipping and gathering costs within 30 months after the closing date.
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Epsilon Energy is engaged in the acquisition, exploration, development and production of oil and natural gas reserves in North America, the Middle East and Africa.
Epsilon Energy's strategy involves developing a well-balanced inventory of oil and natural gas projects in North American, the Middle East and Africa, including high potential oil properties in the Republic of Yemen and the Federal Democratic Republic of Ethiopia, coupled with lower risk properties within the Appalachian basin in the United States and the provinces of Saskatchewan and Quebec in Canada.
As of November 2009, Epsilon had exploration, drilling and production rights in four countries:
- United States: 87,000 gross (40,000 net) acres in the Appalachian basin
- Republic of Yemen: 1,400,000 gross (791,000 net) acres on Block 41
- Ethiopia: 19,607,000 gross & net acres in northwestern Ethiopia
- Canada: Saskatchewan - 40,00 gross (22,000 net) in the Bakken shale. Quebec - An elective interest of up to 25% of Gastem Inc. (TSXV: GMR) interest in a portion of its acreage holdings in the St. Lawrence Lowlands and Gaspe Peninsula
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