DENVER, June 18, 2012 /PRNewswire/ -- Gasco Energy, Inc.
(NYSE Amex: GSX) ("Gasco" or the "Company") announced today that
the Bureau of Land Management (BLM) has signed the Record of
Decision on the Environmental Impact Statement (EIS) that
authorizes development of Gasco's Uinta Basin field in Duchesne, and Uintah Counties in Utah. This field includes Gasco's core
Riverbend Project.
With this decision, Gasco has demonstrated its ability to meet
the strict federal regulatory requirements of multiple agencies
that reviewed the company's proposal. The BLM's decision is further
evidence of Gasco's expertise in safely and responsibly developing
natural resources for the benefit of American consumers.
"This is the culmination of eight years of work and substantial
effort from our team, the BLM, U.S. Fish and Wildlife Service, the
Advisory Council for Historic Preservation and the Environmental
Protection Agency, to responsibly develop the energy resources
within this field," Gasco Chief Executive Officer and President
W. King Grant said. "We have enjoyed
a very collaborative and successful working relationship with all
of the federal agencies involved, as well as state, county and
local government stakeholders."
BLM confirmed, "The final plan approved today reduces surface
disturbance, eliminates floodplain impacts, protects the viewshed
for Green River, Desolation
Canyon, and Nine-Mile Canyon, and reduces impacts to water, soil
and air quality." BLM Utah State Director Juan Palma noted that "Today's announcement is a
prime example of the successful collaboration among the BLM,
Environmental Protection Agency, the U.S. Fish and Wildlife Service
and Uinta and Duchesne
Counties."
The Environmental Protection Agency supports Gasco's project and
stated in an article published by Bloomberg on March 16, 2012 that: "We worked closely together
to address environmental and public-health impacts and believe the
final environmental impact statement addresses them well," the EPA
said in an e-mail. "The Gasco Project is a good example of a
domestic energy development project that will go forward with vital
safeguards to control pollution."
Gasco's project will tap an existing gas field that already has
135 producing wells and extensive infrastructure, pipelines, and
roads. Gasco will also continue to explore for oil and gas in
other areas within the project area. Gasco believes this
further exploration and development of the field could yield nearly
three trillion cubic feet (Tcf) of natural gas through 2053.
The project area is located primarily on 177,644 acres of
BLM-administered lands. Development of these resources will bring
secure, domestic energy to American consumers while creating 2,710
jobs and $613 million in economic
activity annually, according to a recent study prepared for the
Western Energy Alliance.
As a result of a collaborative process among federal, state,
local and tribal governments, Gasco and the Utah conservation community, BLM altered the
boundaries of the project to further protect the resources
associated with the Green River and Nine Mile Canyon. Gasco
agreed to this change to further protect the valuable wild and
scenic values along the Green River and the downstream Desolation
Canyon.
The BLM's approval follows an extensive review that considered
and incorporated feedback from outside groups. In response to
comments submitted by EPA and other stakeholders, BLM developed a
preferred alternative – known as "Alternative F" – that, among
other steps, reduces the project's scale to 1,298 wells from the
1,491 originally proposed by Gasco. According to the EPA, this plan
"substantially reduces potential impacts to air quality and water
resources" by adding "vital environmental safeguards" to the
project.
"We realize that there is concern and a misperception by some
that Gasco's project area is within close proximity to Desolation
Canyon," Mr. Grant said. "In fact, our project area is six miles
from the northern edge of Desolation Canyon. Gasco appreciates that
the Green River is a popular river rafting location, and it
specifically removed all wells that would be visible from the Green
River viewshed. Gasco is committed to responsible development and
environmental stewardship throughout implementation of the
project.
"Today's decision is a milestone, but it does not represent an
endpoint in our dialogue with our stakeholders," Mr. Grant said.
"We stand ready to answer questions and work collaboratively with
all who share our goal of balancing prudent energy development with
common-sense environmental stewardship."
About Gasco
Denver-based Gasco Energy,
Inc. (NYSE Amex: GSX) is an independent oil and gas company focused
on building shareholder value through the development of large
natural gas deposits in the U.S. Rocky Mountain region and on
exploratory oil plays in the San
Joaquin Basin in California. Focused primarily on Utah's Uinta Basin, Gasco targets multiple,
tight-gas sands and shales that are regionally extensive across its
leasehold. Gasco's SEC-defined proved reserves at year-end 2011
were approximately 19.9 billion cubic feet of natural gas
equivalent, comprised 92% of natural gas and 100% of the quantities
are proved developed. The Company operates more than 130 producing
wells in its core Riverbend Project in the Uinta Basin.
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 meaning 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 Gasco's future financial position, potential resources,
business strategy, budgets, projected costs and plans and
objectives of management for future operations, are forward-looking
statements. These statements express, or are based on, management's
expectations about future events. In addition, forward-looking
statements generally can be identified by the use of
forward-looking terminology such as "may," "will," "should,"
"expect," "intend," "project," "estimate," "anticipate," "plan,"
"believe," "foresee," 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 Gasco, believed to be reasonable under the
circumstances, 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
assumptions which may be inaccurate, and known and unknown risks
and uncertainties (some of which are beyond Gasco's control), that
may cause Gasco'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 Gasco expects include the
consummation of recently announced asset sales or transactions on a
timely basis; 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; competition from other companies with greater resources;
environmental and other government regulations, including new or
proposed legislation; defects in title to properties; increases in
Gasco's cost of borrowing or inability or unavailability of capital
resources to fund capital expenditures; pipeline constraints;
overall demand for natural gas and oil in the United States; changes in general economic
conditions in the United States;
Gasco's ability to manage interest rate and commodity price
exposure; changes in Gasco's borrowing arrangements; the condition
of credit and capital markets in the
United States; and other risks described in (1) Part I,
"Item 1A–Risk Factors," "Item 7–Management's Discussion and
Analysis of Financial Condition and Results of Operations," "Item
7A–Quantitative and Qualitative Disclosure About Market Risk" and
elsewhere in Gasco's Annual Report on Form 10-K for the year ended
December 31, 2011 filed with the SEC
on March 28, 2012, and (2) Gasco's
reports and registration statements filed from time to time with
the SEC.
Any of these factors could cause Gasco's actual results to
differ materially from the results implied by these or any other
forward-looking statements made by Gasco or on its behalf.
Gasco cannot assure you that its future results will meet its
expectations. When you consider these forward-looking
statements, you should keep in mind these factors. All
subsequent written and oral forward-looking statements attributable
to Gasco, or persons acting on its behalf, are expressly qualified
in their entirety by these factors. Gasco's forward-looking
statements speak only as of the date made. Gasco assumes no
duty to update or revise its forward-looking statements based on
changes in internal estimates or expectations or otherwise.
SOURCE Gasco Energy, Inc.