Epsilon Energy Ltd. Announces 2012 First Quarter Results and Appointment of Lane Bond as Chief Financial Officer
(firmenpresse) - CONCORD, ONTARIO -- (Marketwire) -- 05/14/12 -- Epsilon Energy Ltd. ("Epsilon") (TSX: EPS) is pleased to announce its first quarter 2012 results. Interim Unaudited Condensed Consolidated Financial Statements and Management Discussion and Analysis for the three months ended March 31, 2012 and 2011 are available on Sedar at or on Epsilon's website at .
EPSILON ENERGY LTD. HIGHLIGHTS
In the first quarter of 2012, revenues increased 270% compared to the first quarter of 2011, and 63% sequentially over the fourth quarter of 2011. The increase in revenues was driven by a significant increase in production and sales volumes, primarily from our activities in the Marcellus Shale in Pennsylvania, and the addition of revenues from our gas gathering and compression system serving that same region that went online in September 2011. These results were offset by a $2.27 or 47% decrease in the realized price per Mcf of gas in the first quarter of 2012 versus 2011, and $1.00 or 28% decrease in the first quarter of 2012 versus the fourth quarter of 2011. Our natural gas production exit rate as of March 31, 2012 was 36.8 Mmcf/day compared to 2.8 Mmcf/day as of March 31, 2011 and 17.5 Mmcf/day as of December 31, 2011.
The Auburn gas gathering system ("Auburn GGS") of which Epsilon owns 35% contributed approximately $1.4 million in revenue during the first quarter 2012. The system began operating in September 2011 and gas began free flowing through the Auburn compressor station to Tennessee Gas Pipeline in mid-March 2012. In a press release dated May 4, 2012 the Company announced that Auburn GGS was operating at 200 Mmcf/d. Construction continues for the Auburn GGS for future incremental volumes.
On February 28th, 2012, the Corporation completed a CDN$40 million public offering of 7.75% convertible unsecured subordinated debentures for aggregate net proceeds of $38.1 million. The convertible debentures are convertible into common shares at the holder's option at any time prior to maturity at a conversion price equal to CDN$4.45 per common share. The Company recognized $361,267 in financing expense associated with the Convertible Debentures in the first quarter of 2012.
Zoran Arandjelovic, Epsilon's Executive Chairman, CEO and President stated: "Because of our operational and capital commitment throughout 2011, we achieved a dramatic increase in production from our Marcellus Shale property, more than doubling our daily production rate during the quarter. This trend has continued with Epsilon reaching a production milestone of 50 Mmcf of gas per day as announced on May 4, 2012. As we look forward, we continue to focus on expansion of our oil production through our ongoing exploratory efforts in the Bakken Shale and Midale Dolomite in Saskatchewan and the Brown Dense Limestone in Mississippi."
The Company is also pleased to announce the Board of Directors has approved the promotion of Lane Bond to Chief Financial Officer, effective May 10, 2012. Mr. Bond has served as Epsilon's Director of Finance since January 2012. Mr. Bond's financial career spans over 25 years with extensive management and oil and gas experience domestically and internationally. He was previously employed by Occidental Petroleum Corp. where he served in various senior management capacities within the finance and accounting functions in the United States, Yemen, Libya, Siberia, Pakistan and Indonesia. Mr. Bond holds a Masters in Business Administration from the University of Tulsa and a Bachelor of Science in Accounting from the University of Arkansas.
Epsilon Energy Ltd. is engaged in the exploration and production of natural gas reserves in North America. Established in 2005, the Corporation has been a producer of natural gas and oil since 2006. Epsilon's ongoing business strategy involves focused targeting of lower risk natural gas properties within the Marcellus Shale and other parts of Canada and the United States.
Forward-Looking Statements
Certain statements contained in this news release constitute forward looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", 'may", "will", "project", "should", 'believe", and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements are based on reasonable assumption but no assurance can be given that these expectations will prove to be correct and the forward-looking statements included in this news release should not be unduly relied upon.
Special note for news distribution in the United States
The securities described in the news release have not been registered under the United Stated Securities Act of 1933, as amended, (the "1933 Act") or state securities laws. Any holder of these securities, by purchasing such securities, agrees for the benefit of Epsilon Energy Ltd. (the "Corporation") that such securities may not be offered, sold, or otherwise transferred only (A) to the Corporation or its affiliates; (B) outside the United States in accordance with applicable state laws and either (1) Rule 144(as) under the 1933 Act or (2) Rule 144 under the 1933 Act, if applicable.
Contacts:
Epsilon Energy Ltd.
Lisa Bromiley
Vice President of Business Development
(281) 670-0002
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 14.05.2012 - 12:49 Uhr
Sprache: Deutsch
News-ID 145964
Anzahl Zeichen: 0
contact information:
Town:
CONCORD, ONTARIO
Kategorie:
Oil & Gas
Diese Pressemitteilung wurde bisher 127 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Epsilon Energy Ltd. Announces 2012 First Quarter Results and Appointment of Lane Bond as Chief Financial Officer"
steht unter der journalistisch-redaktionellen Verantwortung von
Epsilon Energy Ltd. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
