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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): June 25, 2024

EPSILON ENERGY LTD.

(Exact name of registrant as specified in charter)

Alberta, Canada

001-38770

98-1476367

(State or Other Jurisdiction of Incorporation)

(Commission File Number)

(I.R.S. Employer Identification Number)

500 Dallas St., Suite 1250

Houston, Texas 77002

(Address of principal executive offices, including zip code)

(281) 670-0002

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

       Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

       Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

       Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

       Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act:

Title of each class:

    

Trading Symbol(s)

    

Name of each exchange on which registered:

Common Shares, no par value

EPSN

NASDAQ Capital Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Item 7.01 Regulation FD Disclosure.

On June 25, 2024, Epsilon Energy Ltd. (“Epsilon” or the “Company”) issued a press release announcing an increased borrowing base on the Company’s senior secured reserve-based revolving credit facility. The Company also provided a Permian operations update. A copy of the press release is filed herewith as Exhibit 99.1.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit NumberDescription

99.1

Press Release dated June 25, 2024

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

EPSILON ENERGY LTD.

Date: June 25, 2024

By:

/s/ J. Andrew Williamson

J. Andrew Williamson

Chief Financial Officer

2

Exhibit 99.1

News Release

EPSILON ANNOUNCES AN INCREASED BORROWING BASE AND PERMIAN OPERATIONS UPDATE

Houston, Texas–June 25, 2024 – Epsilon Energy Ltd. (“Epsilon” or the “Company”) (NASDAQ: EPSN) today reported the results of a borrowing base redetermination on the Company’s senior secured reserve-based revolving credit facility (the “Credit Facility”) with Frost Bank (the “Lender”).

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 (gross, 79% oil) 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 (7th well in the project), 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 (18.75% NRI) in the Pradera Fuego project.

About Epsilon

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

Contact Information:

281-670-0002

Jason Stabell
Chief Executive Officer
[email protected]

Andrew Williamson
Chief Financial Officer
[email protected]