Epsilon Energy Ltd. (Canada) announced that it 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.

Epsilon Energy Ltd. (Canada) announced that it has initiated natural gas natural gas production on its Highway 706 project in northeastern Pennsylvania, which is focused on the Marcellus shale. This represents a very significant milestone for Epsilon, as it is the Company's first domestic project in which it is the operator and holds a 100% working interest. The commencement of natural gas production from Highway 706 signifies the culmination of two and a half years of work, in which the Company acquired approximately 12,000 acres of prospective Marcellus shale leasehold, assembled 25 miles of pipeline right-of-way, drilled a combination of 3 vertical and 5 horizontal wells, and hydraulically fractured and completed 5 of those wells to date. The Company has initiated natural gas production from the Poulson #1H and is currently working out related start-up issues. The Poulson #2H will be hooked up for production next. Both wells lie between the compressor site to the north and the tap into the Tennessee Gas Pipeline to the south. Epsilon is currently extending its gathering system to the north of the compressor site in order to bring on three wells that have previously yielded a combined natural gas production rate of 8.5 Mmcf per day. This section of the gathering system is expected to be completed in approximately 60-90 days.

Epsilon Energy Ltd. (Canada) announced the resignation of Fred Zaziski as President and Chief Executive Officer of the company, effective immediately, for personal reasons. Mr. Zaziski has served as an officer of Epsilon since 2007 and was of great assistance to the Company with its efforts internationally.