Epsilon Energy announces increased borrowing base, Permian operations update

The company states: “Epsilon Energy reported the results of a borrowing base redetermination on the Company’s senior secured reserve-based revolving credit facility with Frost Bank. Effective on June 21, 2024, the Lender redetermined the Company’s borrowing base at $45 million, which will remain until the next redetermination in the fourth quarter of 2024. The borrowing base now includes the recently acquired and developed properties in Ector County, Texas. The Lender’s total commitment is equal to the borrowing base amount. All other terms of the Credit Facility remain the same. In Ector County, Texas, the recently completed Ava well, the sixth well drilled in the Pradera Fuego project, started flow-back in mid-May. Over the last twenty-five days, the well has averaged 1,290 BOEPD from a ~11,000′ lateral. The well is the best performer in the project so far, outperforming pre-drill estimates. Completion operations are now underway on the Katy well, with flow-back expected next month. This well extends into the large undeveloped Cowden leasehold, in which the Company acquired an interest in June 2023. Epsilon holds a 25% working interest in the Pradera Fuego project.”