EXHIBIT 99.1
PRESS RELEASE DATED DECEMBER 23, 2003
GASCO
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ENERGY
NEWS RELEASE / FOR RELEASE AT 9:00 AM EST, TUESDAY, DECEMBER 23, 2003
GASCO ANNOUNCES RIVERBEND COMPLETIONS
LYTHAM FEDERAL 22-22 IPS AT 2.3MMCFD
DENVER - (PR Newswire) - December 23, 2003 - Gasco Energy, Inc. (OTC BB: GASE)
today provided an interim operational update on oil and gas activities on its
Riverbend Project in Utah's Uinta Basin.
LYTHAM FEDERAL 22-22 (GASCO-OPERATED: APPROXIMATELY 70% WI)
Gasco is pleased to announce that it successfully completed eight stages over a
gross interval of greater than 4,700 feet in the Wasatch and Mesaverde sections.
During a 24-hour test, the well had initial potential of 2.3 million cubic feet
of natural gas per day (MMcfd) with initial flowing tubing pressure of 2,100
psi, utilizing a 26/64 inch choke. The well was constrained at the surface by
the production equipment. Associated fluid production was 360 barrels of water,
consisting almost entirely of frac fluid, and four barrels of condensate.
FEDERAL 32-31 (GASCO-OPERATED: APPROXIMATELY 80% WI)
All Mesaverde and Wasatch pay in the Federal 32-21 has been fully completed.
Initial production for the well during the first 24 hours was approximately 1.26
MMcfd. The well is now flowing gas to sales and is notable because it is one of
the lowest-cost completions performed by Gasco in the Uinta Basin.
Using the Schlumberger proprietary PowerSTIM* well optimization service,
Schlumberger and Gasco personnel collaborated to evaluate the reservoir and
design cost-efficient, high productivity completions for these two wells.
Commenting on the successful implementation of the PowerSTIM process, Gary
Kolstad, Schlumberger Vice President for US Land said, "This is another example
of a successful PowerSTIM implementation in tight gas reservoirs. PowerSTIM
integrates the technical and economic considerations of the reservoir and
delivers exemplary results for our Clients."
The Lytham 22-22 and the Federal 32-31 are the first two wells completed by
Gasco using Schlumberger's technique to complete all available wellbore net pay
in one completion process. Schlumberger has been successful in applying this
technique in several other fields and basins.
MANAGEMENT COMMENTS
Commenting on Uinta Basin operations, Gasco CEO and President, Mark Erickson
said: "The Lytham Federal 22-22 appears to be a commercial success. While we are
excited about the early results, we are monitoring its progress and are working
to resolve the surface constraints that can come with wells that IP at much
higher rates than anticipated. The bigger lesson to be taken from the Lytham
22-22 is that engineering and completions techniques are so vital to a
successful well in these tight gas sands. We are pleased to be working with
Schlumberger's talented team. They are bringing a whole new thought process to
Uinta completion design. We admire their progressive ideas and focus on lowering
per-unit development costs and will work together to improve cost savings and
initial production rates for the wells drilled in the 2004 program. It is good
timing to have additional gas flowing to sales. Gasco is unhedged and is
benefiting from seasonally constricted Rocky Mountain price differentials. Our
average wellhead price for December through today is ranging between $5.25 and
$6.00 Mcfe."
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 controls acreage 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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