Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-38770 EPSILON ENERGY LTD. (Exact name of registrant as specified in its charter) Alberta, Canada 98-1476367 (State or other ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ⌧ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 ◻ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-38770 EPSILON ENERGY LTD. (Exact name of registrant as specified in its charter) Alberta, Canada 98-1476367 (State or other ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ⌧ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020. OR ◻ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-38770 EPSILON ENERGY LTD. (Exact name of registrant as specified in its charter) Alberta, Canada 98-1476367 (State or Other Jurisdiction of Incorporation or Organizat ...

Financial Performance - Total revenue for the three months ended September 30, 2020, was $5,810,611, a 11.3% increase from $5,219,194 in the same period of 2019[13] - Net income (loss) for the three months ended September 30, 2020, was $(292,783), compared to a net income of $1,453,298 for the same period in 2019[13] - Total operating revenue for the nine months ended September 30, 2020, was $18,517,244, a decrease from $19,928,780 in the same period of 2019, representing a decline of approximately 7.1%[108] - Net earnings for the nine months ended September 30, 2020, were a loss of $548,518, compared to a profit of $6,664,832 in the same period of 2019, indicating a significant downturn[108] - The company recorded a net loss available to shareholders of $292,783 for the three months ended September 30, 2020, compared to a net income of $1,453,298 for the same period in 2019[100] Assets and Liabilities - Total current assets decreased to $17,855,454 as of September 30, 2020, down 20.5% from $22,424,324 at December 31, 2019[12] - Total assets decreased to $87,339,453 as of September 30, 2020, down 10.6% from $97,669,203 at December 31, 2019[12] - Total liabilities decreased to $20,010,103 as of September 30, 2020, down 6.1% from $21,306,209 at December 31, 2019[12] - Total shareholders' equity decreased to $67,329,350 as of September 30, 2020, down 11.9% from $76,362,994 at December 31, 2019[12] Cash Flow and Capital Expenditures - Cash provided by operating activities for the nine months ended September 30, 2020, was $12,093,463, slightly up from $11,829,159 in the same period of 2019[23] - Capital expenditures for the nine months ended September 30, 2020, totaled $3,595,395, down from $8,336,192 in the same period of 2019, reflecting a reduction of approximately 56.8%[108] - The company utilized $1.4 million and $5.5 million for investing activities during the three and nine months ended September 30, 2020, primarily for leasehold and development costs[197] Shareholder Actions - The company executed a buyback of common shares totaling $9,078,522 during the nine months ended September 30, 2020[23] - As of September 30, 2020, the company had a total of 3,690,444 shares repurchased at an average price of $3.16 per share[64] - The company announced a substantial issuer bid to repurchase up to approximately $6.2 million of its common shares, ultimately accepting 2,337,034 shares for a total consideration of $7,151,324 at $3.06 per share[144] Impairments and Expenses - The company recognized an impairment of $1,760,000 on its proved properties due to historically low commodity prices[23] - The company reported impairment expenses of $1,760,000 for the nine months ended September 30, 2020, which were not present in the same period of 2019[108] - Stock-based compensation expenses for the nine months ended September 30, 2020, amounted to $585,105, compared to $401,161 in the same period of 2019[23] Market and Operational Conditions - The company did not incur significant disruptions to operations during the COVID-19 pandemic but recognized impairments on its legacy assets[25] - Epsilon is currently assessing the impact of adopting new accounting standards, including ASU 2016-13, effective January 1, 2023, which will change the measurement of credit losses[37] - The company expects local production to remain flat or decline modestly throughout the remainder of 2020 due to capital discipline pressures in the market[141] Revenue Breakdown - Natural gas revenue for the nine months ended September 30, 2020, was $11,470,012, a decrease of 9.7% from $12,698,643 in the same period of 2019[82] - Gathering and compression fees for the nine months ended September 30, 2020, were $6,800,347, down from $6,923,058 in the same period of 2019, reflecting a decrease of 1.8%[82] - Natural gas production for the three months ended September 30, 2020, was 3.0 Bcf, up from 1.8 Bcf in the same period in 2019, while total production for the nine months was 8.5 Bcf, compared to 5.4 Bcf in 2019[156] Derivative Contracts and Risk Management - The company engages in price risk management activities to mitigate exposure to fluctuations in commodity prices, securing fixed price contracts for a portion of expected sales volumes[116] - Epsilon recognized gains on commodity derivative contracts of $419,879 and $2,055,548 for the three and nine months ended September 30, 2020, respectively[120] - The company received net cash settlements of $1,657,323 and $4,035,092 from derivative contracts for the three and nine months ended September 30, 2020, respectively[188]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ⌧ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 ◻ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-38770 EPSILON ENERGY LTD. (Exact name of registrant as specified in its charter) Alberta, Canada 98-1476367 (State or other ...

Table of Contents Title of each class Trading Symbol Name of each exchange on which registered Common Shares, no par value "EPSN" NASDAQ Global Market UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file nu ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-38770 EPSILON ENERGY LTD. (Exact name of registrant as specified in its charter) Alberta, Canada 98-1476367 (State or Other Jurisdiction of Incorporation or Organizat ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-38770 EPSILON ENERGY LTD. (Exact name of registrant as specified in its charter) Alberta, Canada 98-1476367 (State or o ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-38770 EPSILON ENERGY LTD. (Exact name of registrant as specified in its charter) Alberta, Canada 98-1476367 (State or other ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10‑Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-38770 EPSILON ENERGY LTD. (Exact name of registrant as specified in its charter) Alberta, Canada 98-1476367 (State or other ...