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Epsilon Energy
to Conduct Seismic Surveys in Ethiopia
06-18-2008
Epsilon Energy announces it has
entered into an exclusive Study Agreement (the "Northwest Area Study Agreement")
with the Ministry of Mines and Energy in the Federal Democratic Republic of
Ethiopia. The Northwest Area Study Agreement covers 154,871.53 square kilometers
(96,232.7 square miles) in the northwestern sector of the country, with an
initial one year term.
There have been virtually no prior oil and gas exploration activities within the
lands covered by the Northwest Area Study Agreement. Epsilon intends to utilize
Landsat or SPOT imagery, coupled with gravity and/or magnetic surveys, which
will be supplemented with land based efforts to identify sedimentary basins that
have potential for oil and/or gas deposits. Upon completion of the Northwest
Area Study Agreement, Epsilon has an exclusive right to negotiate an agreement
or agreements to further explore for oil and gas on any or all of the land
covered by the Northwest Area Study Agreement by obtaining an oil and gas
concession or concessions from the Ministry.
Fred Zaziski, Epsilon's President and CEO, stated "the Northwest Area Study
Agreement allows the Company to further expand its international oil & gas
activities in a region that it believes is vastly under-explored. As per the
Northwest Area Study Agreement, any concessions Epsilon may obtain as a result
of this endeavor will reflect historical production sharing agreement terms. The
rights the Company has acquired in the Northwest Area Study Agreement truly
provide mutual benefits to both the Ministry and Epsilon. The Company is looking
forward to a long and fruitful cooperative effort between both parties".
Epsilon is engaged in the acquisition, exploration, development and production
of oil and natural gas reserves in the Middle East and North America. In the
Republic of Yemen, Epsilon has a 57.14% paying interest and a 50% undivided
interest in the Block 41 Production Sharing Agreement, which covers
approximately 1.4 million gross (791,000 net) acres onshore. In North America,
Epsilon has producing properties in West Virginia, New York and Ohio and is
focused on additional exploration and development projects targeting the
Marcellus Shale in the Appalachian Basin and the Utica Shale in Quebec, Canada.
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