Epsilon Energy Ltd. announced that net production from the JV with Chesapeake Energy Corporation ("Chesapeake") in Susquehanna County, PA, has reached 28 MMCF/D. The achievement of this milestone, originally anticipated to occur by December 31st, 2011, was delayed slightly due to the operational challenges posed by the flooding in northeast PA in September 2011.

Epsilon anticipates the 400 MMCF/D gas gathering system in Pennsylvania to be complete and fully operational by the second half of 2012. Epsilon's 35% ownership of this system will contribute significantly to the Company's future revenues ...