HOUSTON, TEXAS--(Marketwired - Jan. 30, 2017) - Epsilon Energy Ltd. ("Epsilon" or the "Corporation") (TSX:EPS) announces that the holders of approximately $28 million principal amount of its 7.75% convertible unsecured subordinated debentures (the "Debentures") consented to the to the proposed amendments to the indenture for the Debentures (the "Indenture Amendments") to provide for the early payment of the cash amount payable in respect of the Debentures, including the principal amount together with any accrued and unpaid interest thereon less any tax required by law to be deducted (the "Full Maturity Amount") on February 16, 2017. 

The consents received represent approximately 77.8% of the total principal amount of debentures outstanding. The total principal amount of Debentures currently outstanding is $38,465,000, and the Corporation expects to pay a total of $39,951,435.14 on the redemption of the Debentures. It was a condition to Epsilon's obligation to pay the Full Maturity Amount early that holders representing at least 66-2/3% of the principal amount of all of the outstanding Debentures provide a consent to the Indenture Amendments on or prior to January 30, 2017. The Toronto Stock Exchange has accepted notice of the Indenture Amendments and the early redemption, subject to receipt of final documentation. Payment of the Full Maturity Amount will be made to all Debenture holders, and all current holders, including non-consenting holders, will be bound by the Indenture Amendments. The supplemental indenture reflecting the Indenture Amendments will be dated and executed by Epsilon and the Trustee as at January 31, 2017, and will become effective as of that date.

About Epsilon Energy Ltd.

Epsilon Energy Ltd. is a North American natural gas development, production and midstream company with a current focus on the Marcellus Shale of Pennsylvania. 

Forward-Looking Statements

Certain statements contained in this news release constitute forward looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", 'may", "will", "project", "should", 'believe", and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements are based on reasonable assumption but no assurance can be given that these expectations will prove to be correct and the forward-looking statements included in this news release should not be unduly relied upon.

Special note for news distribution in the United States

The securities described in the news release have not been registered under the United Stated Securities Act of 1933, as amended, (the "1933 Act") or state securities laws. Any holder of these securities, by purchasing such securities, agrees for the benefit of Epsilon that such securities may not be offered, sold, or otherwise transferred only (A) to the Corporation or its affiliates; (B) outside the United States in accordance with applicable state laws and either (1) Rule 144(as) under the 1933 Act or (2) Rule 144 under the 1933 Act, if applicable.