Epsilon Energy Ltd. has entered into a Participation Agreement with a private Canadian company covering joint oil & gas exploration and development activities in a 63,360 gross acre Area of Mutual Interest covering the Bakken oil play in southeast Saskatchewan province subject to completion of due diligence.
Under the terms of the Participation Agreement the Company has the ability to earn a 50% interest in approximately 8,960 gross (7,806 net) acres within the AMI. The private Canadian company will be the Operator of the AMI and drilling operations on the first well are expected to commence within the next 60 - 90 days. The Company estimates it will spend a minimum amount of US $5.0 million on this project. The project lies within the favorable Saskatchewan province royalty area.
Fred Zaziski, Epsilon's President, stated, "We are looking forward to a successful joint venture in the Bakken oil play, which exposes us to one of the hottest oil plays in North America. This project will further strengthen and diversify our portfolio of oil and gas assets."
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