EXECUTIVE SUMMARY Assumed Management Control July 2013 Strongly Aligned Management and Board Own 30% of the Common Equity Management Team Outright Purchases vs Grants or Options Streamline, High Grade, Stabilize Finances SG&A…
EPSILON ASSET FOCUSED TEAM New management team: - Michael Raleigh, CEO and Director - Lane Bond, CFO - Paul Atwood, VP Financial Planning Focused strategy - Maximization of Marcellus assets - Return this value to shareholders -…
LEADERSHIP WITH 30% OWNERSHIP OF EPSILON Michael Raleigh 35 years global energy experience development strategies, valuations, completions & production Founding partner of Lobo Baya, LLC. and technical advisor to JVL Advisors LLC.…
MARCELLUS ASSET - UPSTREAM OVERVIEW 11,500 gross (5,750 net) acres within the high quality Gas In Place (GIP) window of the Marcellus Shale Play 197.5 Bcfe of Proved + Probable reserves Dec, 2014 2014 average daily working…
MARCELLUS UPSTREAM RESERVES APPRAISAL YEAR-END 2014 Net Reserves Increased 13% with Low Invested Capital Replaced Production by +250% Year Over Year Includes all Lower Marcellus Wells plus 0.3 Net Upper Marcellus Well Upper…
ACTUAL PRODUCTION vs 3rd PARTY RESERVES & EPSILON FORECAST 8
LOWER MARCELLUS - WELL RESERVES vs COMPLETION OPTIMIZATION Epsilon commissioned engineering study to determine reserve sensitivity to completion Marcellus Asset team optimizing completions Newer short stage length fracs (288 on…
MARCELLUS UPSTREAM YEAR-END 2014 RESERVES SUMMARY FY 2014 working interest production 17 Bcf (average daily rate of 47 mmcf/d) Reserves are based on Old Completion Technique (Long Interval Stages) 2014 Reserve Report Summaries…
UPPER MARCELLUS THICKNESS (FEET) UPPER MARCELLUS RESOURCE Mapped Thickness across area averages 186 thick EPSILON LEASEHOLD Epsilon Well Data Upper Marcellus Offset Cabot Type Log Thickness Significant Offset Upper…
EXISTING UPPER MARCELLUS SINGLE WELL PERFORMANCE APPRAISAL Koromlan Unit Outline Koromlan 1H & 3H Lower Marcellus Producers Koromlan 2H Upper Marcellus Performance 7 Undeveloped Lower Marcellus Locations Epsilon commissioned…
MARCELLUS DOWNSPACING ANALYSIS Engineering Study Confirmed Downspacing Optimization is in the 700-800 range consistent with estimates from other Marcellus offset operators Study indicated that 15 years cumulative production is similar…
MARCELLUS 2015 CAPITAL EXPENDITURES (MM) - UPSTREAM & MIDSTREAM 2015 Upstream Capital Expenditures up to 10 mm Ability to Propose wells Completion of 14 Gross (0.14 Net) Wells Discretionary Capital Deployment 2015 Midstream…
MARCELLUS MIDSTREAM - POTENTIAL Midstream Overview 35% ownership interest with partners Statoil USA and Williams Partners (formerly Access Midstream Partners) 18,000 acre dedication by anchor shippers Epsilon, Statoil & Chesapeake…
MARCELLUS DOWNSTREAM TAKEAWAY CAPACITY ADDITIONS Major Projects that should have the most impact on price and takeaway capacity: Constitution, Atlantic Sunrise, Marc II/PennEast and Northeast Direct Pipeline (combined 4.4 Bcf/d)…
MARCELLUS NE 10.2 Bcf/D CAPACITY SCHEDULE ADDITIONS INTO 2018 Curtailment Basis expanded NE Prod grew +6 Bcf/d in 3 years Source: Range Resources,TPH 17
BALANCE SHEET DEBT SUMMARY Type Instrument Amount Due Date Interest US 100 MM facility Reserve Senior secured September LIBOR plus US 30 MM availability based credit facility 2016 2.75 to 3.75 (7 MM drawn at 12/31/14) 2017 March…
CONTACT INFORMATION Epsilon Energy 16701 Greenspoint Park Dr., Suite 195 Houston, Texas 77060 Main: 281.670.0002 Fax: 281.668.0985 Michael Raleigh Chief Executive Officer Michael.RaleighEpsilonEnergyLTD.com…
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