Epsilon Energy Ltd. Provides Production Guidance for the First Quarter and Year 2019
February 21, 2019 at 05:57 pm EST
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Epsilon Energy Ltd. provided production guidance for the first quarter and year 2019. For the quarter, the initial forecast of 4 to 6 MMcf/d net production from these wells is expected to increase Marcellus production to 26 Mcf/d at the end of first quarter. The performance of the Upper Marcellus wells in this group of new producers will be carefully monitored as few wells to date have targeted this section of the Marcellus in leasehold.
The Company expects to participate in the drilling and completing of an additional 8,000 to 10,000 net lateral feet to its interests in the lower Marcellus during 2019. According to information from the operator, the wells are expected to be turned to sales in fourth quarter. With the development plans referenced above, the Company anticipates production growth of 27- 33% year over year to a range of 9.7 - 10.2 Bcfe. For 2019, natural gas is expected to comprise approximately 95% of total production. The Company has hedged 4.8 Bcf of its expected natural gas volumes for the year at an average NYMEX price of $2.83 and realized price of $2.30 net of basis.
Epsilon Energy Ltd. is an onshore focused independent natural gas and oil company. The Company is engaged in the acquisition, development, gathering and production of natural gas and oil reserves. It operates through three segments: Upstream, Gathering System, and Corporate. Upstream activities segment includes acquisition, exploration, development and production of oil and natural gas reserves on properties within the United States. Gathering System segment partner with two other companies to operate a natural gas gathering system. The Company holds leasehold rights to approximately 84,684 gross (15,463 net) acres. It has natural gas production in the Marcellus Shale in Pennsylvania and oil, natural gas liquids and natural gas production in the Permian Basin in Texas and New Mexico and in the Anadarko Basin in Oklahoma. Its subsidiaries include Epsilon Energy USA Inc., Epsilon Midstream, LLC, Altolisa Holdings, LLC, and Dewey Energy Holdings, LLC.