Epsilon Energy Announces New CEO and Director

HOUSTON, TEXAS--(Marketwired - July 24, 2013) - The Board of Directors of Epsilon Energy Ltd. ("Epsilon" or the "Company") (TSX:EPS) is very pleased to announce the appointment of Michael Raleigh as Chief Executive Officer of the Company effective today. Mr. Raleigh has also been appointed to the Board of Directors of the Company effective today.

The Board believes that Mr. Raleigh's extensive industry experience, especially in the area of non-conventional oil and gas asset optimization, closely matches the Company's primary strategic objective of maximizing the value of its upstream and downstream position in the Marcellus Shale. In addition, as a significant shareholder of Epsilon, Mr. Raleigh's interests are closely aligned with all shareholders.

John Lovoi, Epsilon's Chairman, comments, "We are very pleased that Mike has agreed to lead Epsilon's team at this exciting time for the company. I have worked closely with Mike since 2005 and have great respect for his technical capabilities. Like the new Board of Directors of Epsilon, which own approximately 30% of Epsilon's outstanding common stock, Mike is highly motivated to assist the company in creating greater shareholder value. To this end, he has declined to receive additional compensation for his role at Epsilon. We are truly fortunate to have someone of Mike's caliber join the team."

Michael Raleigh, CEO of Epsilon, comments, "It is certainly a privilege to be given the opportunity to lead the Epsilon team. I am excited about the company's prospects for the future and anticipate the combined strengths and talents of the staff, with the support of the new Board, to create greater shareholder value in the future."

Mr. Raleigh's biography is set out below.

Michael Raleigh

As detailed below, for the last 35 years, Michael Raleigh has held a number of positions in the global oil and gas business, primarily in the areas of reservoir development strategy, property valuations, completions and production. Mr. Raleigh's experience ranges across North and South America, the UK North Sea, Russia, the Caspian area and the Middle East. Most recently, in mid-2005, Michael Raleigh became a technical consultant to JVL Advisors and a founding partner of Lobo Baya, LLC. Lobo Baya currently manages and serves as the General Partner to four Permian based drilling partnerships focused on non-conventional oil and gas development. These private partnerships have deployed over $200 mm of capital and created a very attractive portfolio of non-conventional assets for its limited partners.

In 1985, Mr. Raleigh co-founded an engineering and software development business which was merged into Intera and then sold to Schlumberger Oilfield Services in late 1996. The key reservoir modeling platform within the acquired business, ECLIPSE, is now the global industry standard for comprehensive reservoir evaluation and asset management. While at Schlumberger from 2000 through 2004, Mr. Raleigh pioneered the origination of several large ($100 million and greater) field development projects coupled with structured finance. Schlumberger products and services coupled with other service companies' offerings and third party risked capital were deployed in return for production payments. These projects proved very successful for Schlumberger and its partners. Prior to the acquisition of Intera by Schlumberger, Mr. Raleigh provided expertise on such varied projects as Permian Basin waterfloods, Rockies, Mid-continent and Gulf Coast tight gas and coal bed completions and asset development; economic feasibility studies for the giant Cantarell complex, advising senior management of PEMEX; the North Kuwait Oilfields, determining the economic damages caused by the Iraqi invasions and provided support for Kuwait's claims at the UN. While at the predecessor company, from 1985 through 1996, Mr. Raleigh oversaw project management for various oil and gas development projects including conventional oil and gas, secondary oil recovery and unconventional gas production assets focusing on tight gas, shale gas and coal-bed methane. From 1997 until March 2000, Mr. Raleigh served as Head of the European Division of Schlumberger's consulting services division covering Middle East, Europe, Africa, Russia and the North Sea providing integrated geosciences and engineering asset management solutions. He was responsible for managing a group of professionals in Moscow, Aberdeen, Dubai and London. Mr. Raleigh established relationships with many senior operating personnel in the global oil and gas business including a number of the National Oil Companies.

Mr. Raleigh graduated from Queens University in Canada in 1979 with a Bachelor of Science Degree in Chemical Engineering and received his Master's Degree in Business Administration from the University of Colorado in 1993.

About Epsilon:

Epsilon Energy Ltd. is a North American onshore exploration and production 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 Energy Ltd. (the "Corporation") 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.