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Board declares dividend of $0.0625 per common share
Repurchased 259,300 shares during the quarter
Oklahoma production project exceeding expectations
Outlook for FCF generation remains favorable
HOUSTON, May 31, 2022 (GLOBE NEWSWIRE) -- Epsilon Energy Ltd. (“Epsilon” or the “Company”) (NASDAQ: EPSN) today announced that its Board of Directors has declared a dividend of $0.0625 per share of common stock (annualized $0.25/sh) to the stock holders of record at the close of business on June 15th 2022, payable on June 30th 2022. All dividends paid by the Company are “eligible dividends” as defined in subsection 89(1) of the Income Tax Act (Canada), unless indicated otherwise. In addition the Company repurchased 259,300 shares for $1.8 MM (approximately $7/share) during the quarter (through May 27, 2022). The company is authorized to purchase an additional 900,000 shares under its current program and continues to regard current trading levels as attractive from a valuation perspective.
Michael Raleigh, CEO, commented, “After 30 days of production on each of the two (0.55 Net to EPSN) recently completed wells in our Oklahoma project we are excited to report that the average performance of the wells exceeded our expected type curve, and, at current commodity prices, will achieve payout in less than six months. To date the Company has participated in four wells (1.15 Net) in the region and the average performance has exceeded the expected type curve performance. The team is currently evaluating other locations within our existing inventory to drill and complete this year.
In the Marcellus, we expect the operator to complete the previously drilled well (0.18 Net to EPSN) in the third quarter of 2022.
Based on current strip prices, the company anticipates building significant incremental cash for the balance of the year. The current cash balance is approximately $31 million and the company has no outstanding debt.”
Epsilon Energy Ltd. is a North American on-shore focused independent exploration and production company engaged in the acquisition, development, gathering and production of oil and gas reserves. Our primary area of operation is the Marcellus basin in northeast Pennsylvania. Our assets are concentrated in areas with known hydrocarbon resources, which are conducive to multi-well, repeatable drilling programs. For more information, please visit www.epsilonenergyltd.com, where we routinely post announcements, updates, events, investor information, presentations and recent news releases.
Chief Executive Officer