Epsilon Energy Ltd.
TSX : EPS

Epsilon Energy Ltd.

November 18, 2008 14:51 ET

Epsilon Energy Ltd. Provides Operational Update on Block 41 in the Republic of Yemen

CONCORD, ONTARIO--(Marketwire - Nov. 18, 2008) - Epsilon Energy Ltd (TSX:EPS) ("Epsilon" or the "Company"), with its wholly owned subsidiary Epsilon Energy Yemen ltd. (EEYL) and its partners Oil and Gas Mine Company (OGMC), Geopetrol Shabwa Corp. and Yemen Oil and Gas Corporation (YOGC), are pleased to provide the following operations update on Block 41 in the Republic of Yemen:

Kaninah #1

Drilling operations have commenced on the Kaninah #1. The well is currently at a depth of approximately 550 meters on the way to a total planned depth of 2330 meters.

West Mahrawa #2

Drilling operations on the West Mahrawa #2 has been completed. The West Mahrawa #2 was drilled to a depth of approximately 2,582 meters. The drilling rig has been released and a work over rig is being brought in to test the well for commercial oil production, which is expected to take two to four weeks.

About Epsilon Energy Ltd.

Epsilon is engaged in the acquisition, exploration, development and production of oil and natural gas reserves in the Middle East, Africa and North America:

- Republic of Yemen: Epsilon has a 57.14% paying interest and a 50% undivided interest in the Block 41 Production Sharing Agreement, which covers approximately 5,600 sq. km onshore.

- Democratic Federal Republic of Ethiopia: Epsilon has signed a study agreement covering 154,871.53 sq. km with the option to acquire oil & gas concessions for the entire area or portions thereof.

- North America: Epsilon has producing properties in West Virginia, New York and Ohio and is focused on additional exploration and development projects targeting the Marcellus Shale in the Appalachian Basin the United States, Bakken Oil Shale in the Saskatchewan province of Canada and the Utica Shale in the Quebec province of Canada.

Additional information is available on the Epsilon Energy Ltd. Web site. http://www.epsilonenergyltd.com/

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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