Epsilon Energy Ltd.
TSX : EPS

Epsilon Energy Ltd.

January 09, 2008 10:47 ET

Epsilon Energy Announces Two Potentially Significant Oil and Gas Discoveries in West Virginia

CONCORD, ONTARIO--(Marketwire - Jan. 9, 2008) -

NOT FOR DISTRIBUTION IN THE U.S. OR TO U.S. NEWSWIRE SERVICES

Epsilon Energy Ltd. ("Epsilon" or the "Company") (TSX:EPS) is pleased to provide an update on two significant events pertaining to its on going drilling program on the Blue Jacket Project in Cabell County, West Virginia. The Company has a 63% working interest in the Blue Jacket project, which is operated by Hard Rock Exploration.

HR # 216 Well

The HR #216 well encountered a fractured oil zone while drilling a horizontal lateral. During testing, the well has cumulatively produced over 1,400 bbls of oil and is being flowed daily on an intermittent basis at rates of up to 40 bbls per hour. Limited on site oil storage capacity has restricted the production test. An oil zone within the gas prone Lower Huron shale is very rare the general area and the Company is unsure of the potential longevity of this well and its ultimate productivity. It will take numerous months of recorded production and wellhead pressure data before the true recovery potential is known from this discovery.

HR #219 Well

The HR #219 well has encountered natural gas shows in excess of a calculated daily production rate of 2 Mmcf/d of natural gas while drilling. The well is expected to be completed and tested within the next several weeks. Natural gas flows at the rate encountered during the drilling of this well are not a normal occurrence in this general area and may or may not prove to be significant. It will take numerous months of recorded production and wellhead pressure data before the true recovery potential is known from this discovery.

About Epsilon Energy Ltd.

Epsilon is engaged in the acquisition, exploration, development and production of oil and natural gas reserves in the Middle East and North America. The Corporation has exploration, development and production rights to approximately 910,000 gross (274,000 net) leasehold acres in the United States and Canada and approximately 1,400,000 (791,000 net) leasehold acres in the Republic of Yemen.

Forward-Looking Statements

Certain statements contained in this new release and the Prospectus 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 assumptions 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.

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