Epsilon Announces New and Revised Senior Secured Reserve-Based Revolving Credit Facility

Epsilon Energy Ltd. (“Epsilon” or the “Company”) (NASDAQ: EPSN) today announced the closing of a new and revised senior Secured Reserve-based Revolving Credit Facility (the “Credit Facility”) with Frost Bank as administrative agent and Frost Bank and Texas Capital Bank as lenders. The new credit facility replaces the Company’s previous credit facility.

Highlights of the term credit facility:

• Epsilon Energy USA Inc. and Epsilon Energy Ltd. as co-borrowers
• Four-year term (expires October 8, 2029)
• Initial funding base and commitments of $47.5 million (backed by the company’s existing U.S. upstream assets), which will be restated and increased upon the closing of the acquisition of the Peak businesses later in the fourth quarter of 2025 (including the acquired assets).
• Semi-annual redeterminations
• Withdrawals will be charged interest at the 3-month term SOFR rate plus a 3-4% margin (depending on facility usage), payable quarterly

The new credit facility will initially be funded at the same time as the completion of the Peak business acquisition. Proceeds will go toward repaying Peak’s existing term loan, with an estimated balance at closing of $49.6 million.

“The new and revised credit facility adds capacity and maturity to the obligations and allows the company to comfortably complete the acquisitions announced in August, while maintaining a strong balance sheet and liquidity going forward,” said Andrew Williamson, Chief Financial Officer of Epsilon.

A copy of the new loan agreement is available in the Form 8K filed after this release.

About Epsilon

Epsilon Energy Ltd. is a North American onshore natural gas and oil production and gathering company with assets in Pennsylvania, Texas, Alberta CA, New Mexico and Oklahoma

Forward-Looking Statements

Certain statements in this press release are forward-looking statements. The use 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 there can be no assurance that these expectations will prove to be correct and undue reliance should not be placed on the forward-looking statements contained in this press release.

Contact details:

281-670-0002

Jason Stabell
General manager
Jason.Stabell@EpsilonEnergyLTD.com

Andrew Williamson
Head of Finance
Andrew.Williamson@EpsilonEnergyLTD.com