EXHIBIT 99.1
PRESS RELEASE DATED APRIL 9, 2003
[GRAPHIC OMITTED]
NEWS RELEASE / FOR RELEASE AT 9:00 AM EST, WEDNESDAY, APRIL 9, 2003
GASCO ANNOUNCES YEAR-END RESERVE ESTIMATES AND PROVIDES
RIVERBEND PROJECT PRODUCTION
DENVER -- April 9, 2003 /PRNewswire / -- Gasco Energy (OTCBB: GASE) today
announced year-end reserve estimates.
Estimated year-end, proved reserves were approximately 21.5 billion cubic feet
equivalent (Bcfe). This marks the first reserve estimates for Gasco based on
recent production from its Riverbend and Wyoming Projects. The company's reserve
mix is 96% natural gas and 4% liquid hydrocarbons with approximately 28% of
total reserves proved developed.
Gasco's estimated, pre-tax future net cash flows discounted at 10% (commonly
known as the Securities and Exchange Commission PV-10 figure) for proved
reserves at year end was $12.3 million. The 2002 PV-10 calculation used net
year-end commodity prices of $3.39 per thousand cubic feet (Mcf) of natural gas
and $29.60 per barrel of crude oil (Bbl). Reserve estimates were prepared by
James R. Stell, a third party, registered petroleum engineer, and conform to the
definition as set forth in the SEC Regulation S-X Part 210.4-10 (a) as clarified
by subsequent Commission Staff Accounting bulletins. The proved reserves are
also in accordance with Financial Accounting Standards Board Statement No. 69
requirements and are available in the company's Report on Form 10-K for the year
ended December 31, 2002.
PROVED RESERVES AT JANUARY 1, 2003
PROVED
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DEVELOPED
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PRODUCING NON-PRODUCING UNDEVELOPED TOTAL PROVED
NET REMAINING RESERVES
Oil/ Condensate - Bbls 5,691 25,802 110,070 141,652
Gas - Mcf 874,114 5,015,867 14,732,286 20,622,266
Equivalent - (Mcfe) 908,260 5,170,679 15,392,706 21,472,178
INCOME DATA
Future Gross Revenue $3,144,215 $17,418,672 $53,200,520 $73,763,407
Deductions 832,245 7,119,690 31,006,485 38,958,420
Future Net Income (FNI) $2,311,970 $10,298,982 $22,194,035 $34,804,987
SEC PV-10* $1,452,875 $ 5,467,175 $5,391,953 $12,312,002
*ASSUMING COMMODITY PRICES OF $3.39 MCF AND $29.60 PER BBL.
PRODUCTION UPDATE
Gasco's current gross and net production is approximately 2.9 MMcf/d and 1.25
MMcf/d, respectively. The most recently drilled well, the Lytham 22-22 (100% WI,
pending partner's election) is currently awaiting a pipeline connection and will
be completed as soon as the tie-in is made. The Federal 32-21 is currently
drilling through 11,000 feet and has experienced gas shows in both the Wasatch
and the Mesaverde.
MANAGEMENT COMMENTS
Mark Erickson, Gasco's President and CEO, said: "We are certainly excited to be
able to announce the reserve estimates for Gasco. The majority of the reserves
in this initial report are under our core Riverbend Project in Utah, where Gasco
is focusing its capital investment. This report demonstrates Riverbend's
commerciality while improving our access capital to further develop this
gas-rich resource. We are currently experiencing higher gas prices than those
used in the reserve report and look forward to continued strong prices with the
addition of the Kern River pipeline expansion scheduled for completion in May
2003. We do not see domestic gas supply issues improving in the coming 12 to 18
months, making this an opportune time to continue drilling our acreage. We have
one well drilling ahead and will assess the remainder of 2003's CAPEX as a
function of cash flow and new sources of funding."
ABOUT GASCO ENERGY
Gasco Energy, Inc. is a Denver-based natural gas and oil exploitation and
development company that focuses on natural-gas-rich prospects in the Rocky
Mountain area of the United States. The Company currently is active in the Uinta
Basin in Utah and in the Greater Green River Basin of Wyoming. To learn more,
visit WWW.GASCOENERGY.COM.
FORWARD-LOOKING STATEMENTS
Certain statements set forth in this press release relate to management's future
plans, objectives and expectations. Such statements are forward-looking within
the meanings of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. All statements
other than statements of historical facts included in this press release,
including, without limitation, statements regarding the Company's future
financial position, potential resources, business strategy, budgets, projected
costs and plans and objectives of management for future operations, are
forward-looking statements. In addition, forward-looking statements generally
can be identified by the use of forward-looking terminology such as "may,"
"will," "expect," "intend," "project," "estimate," "anticipate," "believe," or
"continue" or the negative thereof or similar terminology. Although any
forward-looking statements contained in this press release are to the knowledge
or in the judgment of the officers and directors of the Company, believed to be
reasonable, there can be no assurances that any of these expectations will prove
correct or that any of the actions that are planned will be taken.
Forward-looking statements involve known and unknown risks and uncertainties
that may cause the Company's actual performance and financial results in future
periods to differ materially from any projection, estimate or forecasted result.
Some of the key factors that may cause actual results to vary from those the
Company expects include inherent uncertainties in interpreting engineering and
reserve or production data; operating hazards; delays or cancellations of
drilling operations because of weather and other natural and economic forces;
fluctuations in oil and natural gas prices in response to changes in supply;
competition from other companies with greater resources; environmental and other
government regulations; defects in title to properties; increases in the
Company's cost of borrowing or inability or unavailability of capital resources
to fund capital expenditures; and other risks described under "Risk Factors" in
Part I, Item 1 of the Company's latest Annual Report on Form 10-K filed with the
Securities and Exchange Commission.
Contact for Gasco Energy, Inc.: Investor Relations: 800-645-9254
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