DENVER,
Feb. 7 /PRNewswire-FirstCall/ -- Gasco Energy, Inc.
(OTC Bulletin Board: GASE - News) today announced
the sale through a private placement of 10,927 shares
of convertible preferred stock to a group of accredited
investors, including members of Gasco's management.
The Company raised a total of $4,808,000 at a preferred-share
price of $440. Proceeds will be used to accelerate
the development and exploitation of its Riverbend
Project in the Uinta Basin in Utah. Additional uses
include general corporate purposes and the repayment
of a $1.4 million note that was issued to Shama Zoe,
LP in late 2002 in connection with the satisfaction
of that group's option to put 1,400,000 shares to
the Company at a price of $1.00 per share.
The convertible preferred stock has the following
terms:
-- Dividends accrue at a rate of 7% per annum payable
semi-annually in
cash, additional shares of convertible preferred stock
or shares of
common stock at Gasco's option.
--
The conversion price is $0.70 per common share making
each share of
convertible preferred stock convertible into approximately
629 shares
of Gasco common stock.
-- Shares are convertible into Gasco common shares
at any time at the
holder's election.
-- Gasco may redeem shares of the preferred stock
at a price of 105% of
the purchase price at any time after February 10,
2006.
-- The preferred stock votes as a class on issues
that affect preferred
series holder's interests and votes with shares of
common stock on all
other issues on an as-converted basis.
-- The holders of the preferred stock will have the
right to elect one
member to Gasco's board of directors.
The
shares sold in this private placement have not been
registered under the Securities Act of 1933 and may
not be offered or sold in the United States absent
registration or an applicable exemption from registration
requirements.
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 in the Greater
Green River Basin of Wyoming. To learn more, visit
www.gascoenergy.com .
-----------------------------------
Source: Gasco Energy, Inc.
