Epsilon Energy Ltd.
TSX : EPS

Epsilon Energy Ltd.

June 16, 2009 13:54 ET

Epsilon Energy Completes the Sale of Legacy Assets in West Virginia

CONCORD, ONTARIO--(Marketwire - June 16, 2009) - Epsilon Energy Ltd. ("Epsilon" or "the Company") (TSX:EPS) announced today that the Company has consummated the sale of its Amber Bank and Blue Jacket properties (collectively referred to as the "Legacy Assets") in West Virginia to an unrelated third party purchaser for a gross amount of USD$14.0 million (USD$13.0 million net). Previously, on June 5, 2009, the Company announced the signing of a Binding Letter of Intent with regards to this transaction.

About Epsilon Energy

Epsilon Energy is engaged in the exploration and production of oil and natural gas reserves in North America, the Middle East, and Africa. Established in 2005, the Company has been a producer of oil and natural gas since 2006. Epsilon's ongoing business strategy involves developing a well-balanced inventory of oil and natural gas projects, including high potential oil & gas properties in the Middle East and Africa coupled with lower risk oil and natural gas properties within 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.

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