Epsilon Energy Ltd.
TSX : EPS

Epsilon Energy Ltd.

January 05, 2017 18:41 ET

Epsilon Energy Ltd. Announces Commencement of Consent Solicitation and Gives Notice of Conditional Redemption in Respect of Its 7.75% Convertible Unsecured Subordinated Debentures

HOUSTON, TEXAS--(Marketwired - Jan. 5, 2017) - Epsilon Energy Ltd. (TSX:EPS) ("Epsilon" or the "Corporation"), announces that it has commenced a consent solicitation and given notice of conditional redemption in respect of its 7.75% convertible unsecured subordinated debentures (the "Debentures") due March 31, 2017 (the "Maturity Date").

The consent solicitation seeks consent from the holders of the Debentures (the "Holders") to amend certain provisions of the indenture for the Debentures (the "Indenture") such that Epsilon can make early payment of the cash amount payable on the Maturity Date in respect of the Debentures, including the principal amount together with any accrued and unpaid interest thereon less any tax required by law to be deducted (the "Full Maturity Amount").

Epsilon is soliciting consents from Holders to the proposed amendments to the Indenture (the "Indenture Amendments") to provide for the payment of the Full Maturity Amount on all outstanding Debentures prior to the Maturity Date, as more fully described in the consent solicitation and upon the terms and subject to the conditions set out in the consent solicitation. If Holders representing at least 66-2/3% of the principal amount of all of the outstanding Debentures provide a consent to the Indenture Amendments on or prior to the January 30, 2017, Epsilon will make payment of the Full Maturity Amount on February 16, 2017. In the event the consent solicitation is successful, all current holders, including non-consenting holders, will be bound by the Indenture Amendments.

The consent solicitation and the consent form are available on Epsilon's website at http://www.epsilonenergyltd.com.

About Epsilon Energy Ltd.

Epsilon Energy Ltd. is a North American natural gas development, production and midstream company with a current focus on the Marcellus Shale of Pennsylvania.

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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