EPSILON REPORT SRTONG OIL, GAS SHOWS ON BLOCK 41

SANA'A, June 05 - Epsilon Energy Ltd. has said that the Duda 1 has encountered strong oil and gas shows in the Naifa formation over approximately 58 gross meters at a depth of approximately 1,400 meters.

In its update on its drilling program on Block 41 in the country, Epsilon said that drilling in Duda 1 (formerly Al Waya 2) would continue to a depth of approximately 1,900 meters in order to test two additional zones, the Madbi and Fractured Basement, according to marketwire website.

Epsilon plans to log, core and test all three targeted zones. At this time, no definitive conclusions can be made about commerciality, including production rates or reserves, of the Duda 1 until the well is completed and tested in all zones. This well was renamed from the Al Waya 2 to the Duda 1 after mechanical issues put the well in position to drill down-throne from the Al Waya 2, which was next target in Epsilon's drilling program.

As such, the decision was made to rename the well to the Duda 1 and to continue drilling towards the down-throne target.