Epsilon Energy to Acquire Yorktown Energy Partners’ Peak Assets in Powder River Basin, Wyoming
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Epsilon Energy has entered into definitive agreements to acquire two entities (Peak Exploration and Production and Peak BLM Lease) majority owned by funds of Yorktown Energy Partners for approximately $86.26 million.
The acquired Peak assets include 40,500 net acres in the core of the PRB, with Q2 2025 production of 2.2 MBoepd (56 percent oil, 44 percent gas).
“This is a key step forward for the company. We are acquiring a large under exploited asset at an attractive price. The acquisition brings additional balance to our portfolio and importantly, provides both control of the investment cadence and increased optionality to deploy capital for our shareholders as conditions warrant,” said Jason Stabell, Epsilon’s chief executive officer.
“We are excited to add Yorktown as a large shareholder. I personally have long history with the firm going back over 20 years. We want to thank the Peak team, led by Jack Vaughn, for their help putting this together and we’re excited to work with them going forward,” added Stabell.
Combined consideration due at closing is the issuance of 6 million Epsilon common shares and the assumption of an estimated $49 million of debt. Additional contingent consideration of up to 2.5 million Epsilon common shares could be due subject to the ability to access acreage currently affected by a drilling permit moratorium in Converse County, Wyoming.
At closing, 2 Peak shareholder designees will join the Epsilon board of directors. Epsilon’s management team will lead the combined company.
The transactions are expected to close in Q4 2025, subject to obtaining the requisite Epsilon shareholder approval.
Epsilon Energy is a North American on-shore focused independent natural gas and oil company engaged in the acquisition, development, gathering and production of natural gas and oil reserves. Their areas of operation are the Marcellus basin in northeast Pennsylvania, the Permian Basin in Texas and New Mexico, and the Anadarko basin in Oklahoma.
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