Epsilon Energy Ltd.
TSX : EPS

Epsilon Energy Ltd.

April 25, 2008 11:13 ET

Epsilon Energy Ltd. Provides an Update on Its Block 41 Project in the Republic of Yemen

CONCORD, ONTARIO--(Marketwire - April 25, 2008) - Epsilon Energy Ltd. ("Epsilon" or the "Company") (TSX:EPS) is pleased to provide an update on its Block 41 project in the Republic of Yemen.

The Ministry of Minerals ("MOM") and the Petroleum Exploration and Production Authority ("PEPA") have officially approved the Block 41 Joint Operating Agreement. Following that approval, MOM called a meeting for all parties to the Block 41 Production Sharing Agreement on Wednesday, April 23rd. As a result of that meeting, Epsilon was declared the official operator of Block 41 Production Sharing Agreement. The Company is now waiting for the government to process the paper work to formally recognize the Company as the official operator of the Block 41 Production Sharing Agreement, which is expected to occur shortly.

Fred Zaziski, Epsilon's President, stated "Epsilon is on the verge of completing all of the bureaucratic hurdles necessary to becoming an operator of Block 41. We are ready to commence drilling operations on the Al Waya 2 well, a step-out well that will test three oil zones; the Naifa, Madbi and Fractured Basement, as soon as this is done."

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 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.

Special note for news distribution in the United States

The securities described in this news release have not been registered under the United States 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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