Epsilon Energy has substantially ended its natural gas production curtailment of its operated properties due to low natural gas prices, which was previously announced on September 4, 2009.
Effective tomorrow, the Corporation will commence natural gas production from the Poulsen #1H (previously shut-in) and will continue to produce natural gas from the Poulsen #2H at an expected combined rate of approximately 3.2 Mmcf/d to 3.4 Mmcf/d. The Corporation's overall daily natural gas production is expected to be in the range of 3.8 Mmcf/d to 4.0 Mmcf/d (balance of 0.6 Mmcf/d coming from non-operated New York production). In addition to the two aforementioned wells, the Corporation has three additional wells within its Highway 706 project, which previously tested at a combined natural gas production rate of 8.5 Mmcf/d. Those three wells are ready to commence natural gas production, if warranted. The Corporation will continue to monitor natural gas prices to determine when, in light of the current low natural gas price environment, to bring those wells online.
Zoran Arandjelovic, Epsilon's Executive Chairman, President and CEO, stated, "With natural gas prices recently dipping below $2.00/mcf and rebounding to $3.00/mcf, management believes it is now prudent to increase its operated natural gas production. We will continue to closely monitor natural gas prices and manage natural gas production rates from the Highway 706 project, our 100% owned and operated project in the Marcellus shale, in order to optimize our cash flows."
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