September 4, 2009 / 3:46 PM / in 8 years

UPDATE 1-Epsilon Energy cuts natural gas production by 45 pct

* Curtails natural gas production to 2.1 Mmcf/d

* Says has shut Poulsen No. 1H well

* Cuts production from Poulsen No. 2H well to 1.5 Mmcf/d

Sept 4 (Reuters) - Canada’s Epsilon Energy Ltd EPS.TO said it is curtailing its natural gas production by nearly 45 percent due to lower prices.

The oil and gas company said it is cutting down on natural gas production from about 3.8 million cubic feet per day (Mmcf/d) to about 2.1 Mmcf/d.

Epsilon said it has shut its Poulsen No. 1H well and curtailed the natural gas production from the Poulsen No. 2H well to about 1.5 Mmcf/d.

Three additional wells within the Highway 706 project in the Marcellus Shale are ready to commence natural gas production, if warranted, Epsilon said.

“With natural gas prices dipping below $2.00/mcf, we will continue to manage natural gas production rates from our Highway 706 project in order to optimize our cash flows,” Chief Executive Zoran Arandjelovic said in a statement.

Epsilon shares, which have gained more than 30 percent in the past three months, were down 6 Canadian cents at C$1.25 Friday morning on the Toronto Stock Exchange. (Reporting by Krishna Chaithanya in Bangalore; Editing by Maju Samuel)

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