EXHIBIT 99.1
Gasco
- ------
Energy
For Immediate Release on Wednesday, August 1, 2007
GASCO ENERGY ANNOUNCES FINANCIAL PARTNER
FOR RIVERBEND PROJECT DRILLING PROGRAM
DENVER - (PR Newswire) - August 1, 2007 - Gasco Energy, Inc. today announced
that it has entered into a definitive agreement with a subsidiary of NFR Energy,
LLC whereby the subsidiary will participate in a 30-well drilling program in
Gasco's Riverbend Project.
NFR Energy, LLC, a private company created to invest in worldwide oil and gas
exploitation opportunities, has agreed to participate in 30 wells drilled by
Gasco in 2007 and into early 2008. The terms of the agreement allow for NFR to
earn two-thirds of Gasco's interest in each 40-acre drilling location, 100 feet
below total depth drilled, in exchange for paying its share of the costs. Also
included is a per-well location fee paid to Gasco as operator of project.
The agreement covers substantially all of Gasco's 2007 drilling program,
retroactive for certain wells drilled year-to-date, and as such includes 13
gross operated wells spudded (3.5 net to Gasco's interest / 6.9 net to NFR) in
2007. Not included in the deal are the Federal #14-31 Mancos test and two Wilkin
Ridge area wells drilled in 2007. At signing, Gasco received cash consideration
of $19.0 million for the interest in the aforementioned wells and in wells
expected to be spud prior to August 1, 2007.
General Terms of the Agreement:
*Contract Area consists of Gasco Energy's leasehold position in portions of
Uintah County, Utah. It does not include assets in California, Nevada or
Wyoming.
*Program targets Wasatch, Mesaverde and Blackhawk development locations.
*Gasco can continue to independently develop its acreage.
*Upon completion of the 30-well program NFR will have earned 67% of Gasco's
interest in 1,200 gross acres in the Riverbend Project.
Management Comments
Commenting on the new financial and drilling partner, Gasco CEO Mark Erickson
said: "We are pleased to have a well-funded partner who can help us accelerate
our development of the Riverbend Project. In addition, NFR brings additional
drilling and operating experience as well as capital to our Utah project. We can
now ensure that we can continue drilling ahead in Utah with three rigs into
2008. The additional activity allows us to capitalize on economies of scale and
further drive down drilling and operating costs while proving up our large
leasehold position. We own or control approximately 124,000 gross / 75,000 net
acres in the Uinta Basin, yielding a very large number of potential locations.
Today's agreement with NFR provides Gasco with a way to continue to exploit the
stacked pay zones under our leasehold. The 30-well program represents a small
fraction of our 75,000 net acres in the Uinta Basin and is consistent with our
stated 2007 drilling Capex of approximately $40 million. We are also provided
the flexibility to proceed with additional Riverbend drilling plans independent
of this agreement."
About Gasco Energy
Gasco Energy, Inc. is a Denver-based natural gas and petroleum exploitation and
development and production company engaged in locating and developing
hydrocarbons resources, primarily in the Rocky Mountain region. 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 1. of the Company's 2006 amended Form 10-K filed with the Securities and
Exchange Commission on April 5, 2007.
Contact for Gasco Energy, Inc.: Investor Relations: 303-483-0044