Epsilon Energy Ltd. has completed its previously announced bought deal offering of 7.75% convertible unsecured subordinated debentures (the "Debentures") for aggregate gross proceeds of $40.0 million. The Offering was conducted by way of a short form prospectus dated February 21, 2012 through a syndicate of underwriters co-led by Cormark Securities Inc. and Clarus Securities Inc. and including CIBC World Markets Inc., Raymond James Ltd., Global Hunter Services LLC and Stonecap Securities Inc., who purchased a total of 40,000 Debentures at a price of $1,000 per Debenture.

Epsilon intends to use the net proceeds of the Offering to fund capital expenditures associated with Epsilon's previously announced exploration and development programs. The Debentures will be listed for trading on the Toronto Stock Exchange under the symbol EPS.DB.

Tags: Epsilon Energy Ltd