DENVER, Oct. 23, 2012 /PRNewswire/ -- Gasco Energy,
Inc. (NYSE MKT: GSX) ("Gasco" or the "Company") today provided an
interim operations update on its Riverbend Project in Utah's Uinta Basin and on its California projects in the San Joaquin Basin.
Riverbend Project Operations Update
Quarterly Production
Estimated cumulative net
production for the quarter ended September
30, 2012 was 545 million cubic feet equivalent
(MMcfe). By commodity for Q3-12, Gasco reported net crude oil
volumes of 4,854 barrels and net natural gas volumes of 516
MMcf. Crude oil volumes for Q3-12 represent a 15% increase,
as compared to Q2-12 crude oil volumes.
During Q1-12, Gasco conveyed a 50% interest in certain of its
Uinta Basin properties to its joint venture partner concurrent with
the March 22, 2012 closing of the
joint venture. Q3-12 is the second full reporting period in
which Gasco's Uinta Basin net production reflects this conveyance
under the terms of the Gasco-operated joint venture. Due
to the 50% interest conveyance, operational and financial results
for the three-month and nine-month periods ended September 30, 2012 are not similarly comparable
to the same periods ended September 30,
2011. The Uinta Basin accounts for 100% of Gasco's
production.
Gasco
Energy Net Production Detail*
|
|
Three-months
Ended
|
Nine-months
Ended
|
Period-over-Period
Comparison
|
Sept.
30,
2012**
|
Jun.
30,
2012
|
Seq.
Quarterly
Chg.
|
Sept.
30,
2011
|
Sept.
30,
2012**
|
Sept.
30,
2011
|
Natural
Gas / MMcf
|
516
|
563
|
-8%
|
880
|
1,911
|
2,824
|
Oil /
Bbls
|
4,854
|
4,209
|
15%
|
8,424
|
18,484
|
28,902
|
Natural
Gas Equivalents / MMcfe
|
545
|
588
|
-7%
|
930
|
2,022
|
2,997
|
*Due to the 50% interest conveyance, net
production volumes for the three-month and nine-month periods ended
September 30, 2012 are not similarly comparable to the same periods
ended September 30, 2011.
**Includes preliminary production estimates for
Q3-12 and the nine-month period ended September 30, 2012 and
reflects Gasco's 50% interest in its Uinta Basin joint venture
effective as of March 22, 2012.
|
Green River Oil Well Workover Program
During
the third quarter 2012, Gasco implemented a workover program to
target by-passed oil in older Wasatch / Mesaverde wells and Green River oil wells. Since the third
quarter, Gasco engineers have performed five workovers in the Green
River Formation which have yielded a per-well average of a 15% to
20% increase in net oil production, as compared to rates recorded
prior to the well workovers. Average daily net oil production
has improved by 43%, to recent rates of 76 barrels of oil per day
(BOPD) in September 2012, from 53
BOPD in April 2012.
The workover program presents a low-cost opportunity to boost
oil production in advance of the new-drill Green River oil program that is expected to
commence later in the fourth quarter of 2012 or early first quarter
of 2013, depending on rig availability. The Company continues
to identify wells suitable for by-passed oil workovers, and has
identified an additional 10 wells for workover activities and
further production enhancement.
Q4-12 Drilling Plans
Gasco plans to commence
its Uinta Basin drilling and completions program during the fourth
quarter of 2012 or early first quarter of 2013. The six-well
program is in the final stages of permitting and the Company
expects to receive the permits during November. Gasco
recently staked five additional, high-graded Green River oil well locations that are in
process of having drilling applications submitted to the regulatory
agencies. The Company is also in the process of permitting
its Uinta Basin natural gas well program.
Management Comment
"With modest capital
expenditures for our oil well workover program, field personnel are
improving production in advance of our new-drill program and we
have an additional 10 oil wells to workover," said King Grant, Gasco's president and CEO. "Our
plans are dependent upon securing both a drilling rig and the
necessary well permits to begin drilling our new-drill Green River program. We still expect the
program to commence in late Q4-12, however, it could begin early in
the first quarter 2013. Either way, we are benefitting from
sustained strong oil prices and an improving natural gas market,
each of which we expect to continue into 2013."
California Projects Update
Northwest
McKittrick
Gasco controls 599 gross (120 net)
acres in the Northwest McKittrick
project that hold net unrisked prospect potential of approximately
3 million barrels of oil. The operator of the Northwest McKittrick project has received the
necessary permits to drill the first earning well. The
drilling design is being finalized, and Gasco understands from the
operator that the well is expected to be spudded before year end,
which is consistent with previous disclosure regarding Northwest McKittrick timing.
Antelope Valley Trend
The 3D seismic continues
to be processed and is undergoing ongoing evaluation. The
first Antelope Valley test well is expected to be spud before July
2013.
About Gasco Energy
Denver-based Gasco Energy, Inc. is a natural
gas and petroleum exploitation, development and production company
engaged in locating and developing hydrocarbon resources, primarily
in the Rocky Mountain region and in California's San Joaquin Basin. Gasco's
principal business is the acquisition of leasehold interests in
petroleum and natural gas rights, either directly or indirectly,
and the exploitation and development of properties subject to these
leases. Gasco focuses its drilling efforts in the Riverbend
Project located in the Uinta Basin of northeastern Utah, targeting the oil-bearing Green River
Formation and the natural gas-prone Wasatch, Mesaverde, Blackhawk, Mancos, Dakota and Morrison formations. To learn more,
visit Gasco's website at 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 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, liquidity, capital 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 Gasco's
ability to maintain adequate cash flow from operations or obtain
adequate financing to fund our operations and meet working capital
needs; the ability to pursue strategic restricting, refinancing or
other transactions; the ability to maintain relationships with
suppliers and customers; volatility and recent declines in Gasco's
stock price; overall demand for natural gas and oil in the United States; 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; 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, 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.