Epsilon Energy Ltd.
TSX : EPS

Epsilon Energy Ltd.

April 15, 2008 10:54 ET

Epsilon Energy Provides Operational Update on Utica Shale in St. Lawrence Lowlands

CONCORD, ONTARIO--(Marketwire - April 15, 2008) - Epsilon Energy ("Epsilon" or the "Company") (TSX:EPS) is pleased to announce a new gas discovery in the Utica shale of the St. Lawrence Lowlands operated by Forest Oil Corporation, a large US oil and gas company. This discovery has significantly enhanced Epsilon's interest in gas properties within the St. Lawrence Lowlands.

On April 1, 2008, Forest Oil Corporation announced that following positive production tests results of up to 1 MMcfe/d of gas from two wells drilled in 2007, it plans to drill three horizontal wells during 2008, commence first production during 2009, and continue on with full scale development during 2010 on its acreage on the St. Lawrence Lowlands in Quebec. Forest has committed to spend CDN$10 million to earn a 60% interest in approximately 112,000 acres held by Gastem. Epsilon's interest in Gastem acreage comprises 25% of Gastem's working interest and is elective on a well-by-well basis. Epsilon elected up-front to not participate in the two wells drilled on Gastem Yamaska acreage. However, Epsilon has the right to participate in future operations, leaving aside those well and its direct offsets.

An excerpt from Forest Oil Corporation's April 1st press release follows:

"Over the last two years, Forest has accumulated approximately 269,000 net acres, under lease or farmout, in the St. Lawrence Lowlands in Quebec, Canada. Two vertical pilot wells were drilled in 2007, testing the Utica Shale, to a total depth of approximately 4,800 feet. Production rates tested up to 1 MMcfe/d. Although the play is still in the early stages, Forest believes the initial results are encouraging due to the following factors:

- Shallow depth of the shale

- Rock properties are comparable to other more established shale plays

- High-quality natural gas with minimal impurities

- Infrastructure in place with nearby access to major pipelines

- Premium natural gas pricing to NYMEX makes the economics compelling

Forest plans to drill three horizontal wells in 2008 to refine its drilling and completion techniques. Based on technical data and the vertical pilot well program, the preliminary net resource potential on Forest's acreage is estimated to be approximately 4 Tcfe. First production is expected in 2009 with the potential for a full scale drilling program in 2010 and beyond."

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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