Epsilon Energy Ltd.

Epsilon Energy Ltd.

February 26, 2009 13:38 ET

Epsilon Energy Provides Republic of Yemen Operations Update

CONCORD, ONTARIO--(Marketwire - Feb. 26, 2009) - Epsilon Energy ("Epsilon" or "the Company") (TSX:EPS) today provided the following operations update on Block 41 in the Republic of Yemen:

Mukalla #1 - This well will be plugged and abandoned after testing operations failed to yield commercial results. The Mukalla #1 represents the Company's final obligation well under its approved 2008 Exploration Program with the Ministry of Minerals. The Company has now fulfilled all its exploratory obligations for Block 41.

Epsilon's management, together with its partners Oil and Gas Mine Company ("OGMC") and Geopetrol Shawba Corp., will re-evaluate all of the available data from the four well program that has been completed and make recommendations to Epsilon's Board of Directors with respect to future exploration activities on Block 41, if any.

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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