EXHIBIT 99.1
Gasco
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Energy
GASCO ENERGY PROVED RESERVES INCREASE 190%
DENVER - February 23, 2005 - Gasco Energy (AMEX: GSX) today announced 2004
year-end proved reserves of 41.3 billion cubic feet equivalent (Bcfe).
2004 Proved Reserves
Gasco's year-end, estimated proved reserves were approximately 39.7 Bcf of
natural gas and 274,074 barrels of condensate. Gasco's reserves grew by 190%
over year-end 2003's estimated total of 14.2 Bcfe. The company's reserve mix is
96% natural gas and 4% liquid hydrocarbons. Liquids reserves include condensate
only. Approximately 21% of total reserves are categorized as proved developed
and 79% were proved undeveloped. In accordance with SEC guidelines, reserve
estimates do not include any probable or possible reserves which may exist for
Gasco's properties.
Gasco's estimated, pre-tax future net cash flows discounted at 10% (commonly
known as the SEC PV-10 figure) for proved reserves at year end was $32.3
million. The 2004 PV-10 calculation used net year-end commodity prices of $5.24
per million British thermal units (MMBtu) of natural gas and $42.25 per barrel
of crude oil (Bbl). Reserve estimates are engineered by independent reservoir
engineering consultants, Netherland Sewell and Associates and conform to the
definition as set forth in the SEC Regulation S-X Part 210.4-10 (a) as clarified
by subsequent Commission Staff Accounting bulletins. The proved reserves are
also in accordance with Financial Accounting Standards Board Statement No. 69
requirements.
Proved Reserves at December 31, 2004
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Net Reserves Future Net Revenue ($)
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Oil Gas Present Worth
(Barrels) (Mcf) Total at 10%
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Category
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Proved Developed
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Producing 39,103 3,916,089 14,160,100 7,973,500
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Non-Producing 30,649 4,247,038 16,867,800 6,736,100
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Proved Undeveloped 204,322 31,537,029 77,351,400 17,592,000
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Total Proved 274,074 39,700,156 $ 108,379,300 $ 32,301,600
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Assumes commodity prices of $5.24 MMBtu of natural gas and $42.25 per Bbl of
liquids.
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Management Comment
Mark Erickson, Gasco's President and CEO, said: "We are pleased with our reserve
growth year-over-year. Given that many wells were either in the early completion
stages or were recently turned to sales in the latter half of 2004, we look at
the reserves as additional validation of our Uinta Basin geologic model. All of
the reserves in this report are under our core Uinta Basin Riverbend Project,
where Gasco is focusing its capital investment. Our 2005 plan should allow Gasco
to further prove up additional acreage as we continue optimizing our Mesaverde
completion techniques and demonstrate additional success in the Blackhawk
formation."
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
Item 8.01 of the Company's Current Report on Form 8-K filed with the Securities
and Exchange Commission on October 14, 2004.
Contact for Gasco Energy, Inc.: Investor Relations: 303-483-0044
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