Epsilon Energy Ltd
For the period ended Jun 30, 2024. Filed Aug 13, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 13, 2024
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Operational Highlights
Marcellus Shale – Pennsylvania
During the three months ended June 30, 2024, Epsilon's realized natural gas price was $1.44 per Mcf, a 4% increase over the three months ended June 30, 2023. During the six months ended June 30, 2024, Epsilon's realized natural gas price was $1.62 per Mcf, a 19% decrease over the six months ended June 30, 2023.
During the three months ended June 30, 2024, Epsilon’s net revenue interest natural gas production was 1.3 Bcf compared to 2.0 Bcf during the same period in 2023, a 36% decrease. During the six months ended June 30, 2024, Epsilon’s net revenue interest natural gas production was 2.8 Bcf compared to 4.5 Bcf during the same period in 2023, a 34% decrease.
| ● | Gathered and delivered 9.2 Bcf gross (3.2 net to Epsilon's interest) during the three months ended June 30, 2024, or 101 MMcf/d through the Auburn Gas Gathering System. Gathered and delivered 23.2 Bcf gross (8.1 net to Epsilon's interest) during the six months ended June 30, 2024, or 128 MMcf/d through the Auburn Gas Gathering System. |
| ● | On May 17, 2024, Epsilon Energy USA, Inc. ("Epsilon”) executed a new Anchor Shipper Gas Gathering Agreement for Northern Pennsylvania (the "ASGGA”) with operator Appalachia Midstream Services, LLC for a primary term of ten years and an effective date of January 1, 2024. Epsilon simultaneously terminated the prior agreement. The new ASGGA establishes fixed gathering, compression and cross-flow rates for all shippers on each system into which Epsilon produces natural gas. These rates will be adjusted annually by the Consumer Price Index for All Urban Consumers ("CPI-U”) commencing January 2025. Notably, the gathering rates in Auburn GGS, Rome GGS & Overfield GGS will no longer be subject to a cost-of-service redetermination annually; however, acreage dedications, service priority levels, required shipper approvals and shipper voting procedures are all substantially similar to the prior agreement. The new fixed rate for gathering services in Auburn GGS for 2024 is $0.475 per MMBtu. |
| ● | At June 30, 2024, the Company had seven gross (.7 net) drilled and completed wells waiting to be turned in line. |
Permian Basin – Texas and New Mexico
During the three months ended June 30, 2024, Epsilon's realized price for all Permian Basin production was $53.84 per Boe (85% liquids), a 13% increase over the three months ended June 30, 2023. During the six months ended June 30, 2024, Epsilon's realized price for all Permian Basin production was $53.59 per Boe (86% liquids), a 13% increase over the six months ended June 30, 2023.
| ● | Total net revenue interest production for the three months ended June 30, 2024, which included oil, natural gas liquids, and natural gas, was 65.9 Mboe compared to 14.9 Mboe during the same period in 2023, a 342% increase. Total net revenue interest production for the six months ended June 30, 2024, which included oil, natural gas liquids, and natural gas, was 118.2 Mboe compared to 14.9 Mboe during the same period in 2023, a 693% increase. |
At June 30, 2024, the Company had 1 gross (.25 net) well drilled and awaiting completion in Texas.
Anadarko, NW Stack Trend – Oklahoma
During the three months ended June 30, 2024, Epsilon's realized price for all Oklahoma production was $4.26 per Mcfe (58% natural gas), a 10% decline from the three months ended June 30, 2023. During the six months ended June 30, 2024, Epsilon's realized price for all Oklahoma production was $4.39 per Mcfe (59% natural gas), a 22% decline from the six months ended June 30, 2023.
Total net revenue interest production for the three months ended June 30, 2024 included natural gas, oil and other liquids and was 0.11 Bcfe, a 39% decrease from the same period in 2023. Total net revenue interest production for the six months ended June 30, 2024 included natural gas, oil and other liquids and was 0.22 Bcfe, a 37% decrease from the same period in 2023.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.