Epsilon Announces New Senior Secured Reserve-Based Revolving Credit Facility
29 June 2023 - 6:05AM
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.”
About Epsilon
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.
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. 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.
Contact Information:
281-670-0002
Jason StabellChief Executive
OfficerJason.Stabell@EpsilonEnergyLTD.com
Andrew WilliamsonChief Financial
OfficerAndrew.Williamson@EpsilonEnergyLTD.com
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