HOUSTON, June 28, 2023 (GLOBE NEWSWIRE) -- Epsilon Energy Ltd. (“Epsilon” or the “Company”) (NASDAQ: EPSN) today reported the closing of a new senior secured reserve-based revolving credit facility (the “Credit Facility”) with Frost Bank as the issuing bank and sole lender. The new Credit Facility will replace the Company’s previous credit facility.
Highlights of the Credit Facility are listed below:
- Four year term (matures June 28, 2027)
- Initial borrowing base of $35 million, supported by the Company’s upstream assets in Pennsylvania, with semi-annual redeterminations
- Initial commitments of $35 million
- Interest is charged on drawdowns at the Daily Simple SOFR rate plus a margin of 3.25%, payable quarterly
“Our new credit facility includes attractive commercial terms and covenants that will enable us to flexibly deploy incremental capital to attractive opportunities within our existing asset base and potential future acquisitions, to the benefit of our shareholders,” commented Andrew Williamson, Epsilon’s Chief Financial Officer. “We remain committed to our high quality balance sheet and capital structure, and will be prudent in our use of leverage going forward. I would like to thank Frost for their confidence in our business.”
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 complemented by additional upstream assets in the Permian and Anadarko basins. For more information, please visit www.epsilonenergyltd.com, where we routinely post announcements, updates, events, investor information, presentations and recent news releases.
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. 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.
Chief Executive Officer
Chief Financial Officer