DENVER,
Feb. 18 /PRNewswire-FirstCall/ -- Gasco Energy, Inc.
(OTC Bulletin Board: GASE -News ) today provided an
update on corporate and operational matters.
Officers Compensation Packages Restructured
The Board of Directors voted to implement near-term
cost-cutting measures intended to reduce general and
administrative expenses. The measures include overhead
reductions, in particular, a 36% reduction in the
cash component of senior management compensation.
As a result of this reduction, management will receive
incentive compensation in the form of bonuses and
stock options based upon their performance measured
against operational and financial targets in accordance
with industry practice.
"Management and the Board believe that belt-tightening
is certainly prudent right now. Gasco is fortunate
to have excellent oil and gas projects along with
great industry partners, and the Company is poised
for meaningful growth in production and reserves."
said Gasco CEO and president, Mark Erickson. "Now
that initial Riverbend production is on line, practicing
financial discipline will accelerate Gasco's ability
to achieve cash flow breakeven and make more capital
available for drilling and completion activities."
Pending Changes to Board of Directors
Gasco announced pending resignations from the Board
of Directors of Michael Decker, executive vice president
and chief operating officer, and W. King Grant, executive
vice president and chief financial officer. Their
resignations from the Board will facilitate the nomination
of two new outside board members. Mr. Decker and Mr.
Grant will continue to serve Gasco as corporate officers,
providing their respective operational and financial
acumen. The resignations are effective upon the appointment
of the new outside directors. The Company expects
to name the new directors in the coming weeks.
The new directors will afford Gasco access to additional
outside knowledge and networks while augmenting independent
representation. Specifically the Company will add
accounting and oil and gas financial expertise, strengthening
its audit committee. After the changes, Gasco will
continue to have a total of seven members of its Board
of Directors.
"Mike and King are a key part of Gasco's efforts
to grow shareholder value and their service on the
Board and management contributions are greatly appreciated
and essential to the success of our company,"
said Mark Erickson. "Their resignations and the
pending appointment of new directors are indicative
of our transformation from an early-stage oil and
gas company to one with increasing production and
a large inventory of drillable locations. Our core
acreage positions provide the Company with many opportunities.
The new nominees will bolster Gasco's efforts at delivering
responsible corporate governance, ultimately benefiting
our shareholders going forward."
Operations Update
Subsequent to the recently announced Riverbend compression
enhancement, Gasco is proceeding with the completions
on the Federal 23-21 (Gasco-operated; Gasco 50% minimum
working interest [WI]) and the Federal 42-29 (Gasco-
operated; Gasco approximately 65% WI). Over the next
three weeks two or three more frac stages will be
completed in the Federal 23-21 and two more frac stages
will be done in the Federal 42-29.
Gasco is also preparing to begin drilling its next
well in the Riverbend program, the Federal 32-31 (Gasco
operated, currently 100% WI). This well will be a
southerly extension to the current Riverbend area
of production.
Commenting on Gasco's general financial standing,
Gasco CFO, King Grant said: "Despite a tough
past year in the capital markets for Gasco, we are
capitalized, debt-free and well-positioned to pursue
our growth plan. Our recent Riverbend production,
facilitated by the compression upgrade, allows Gasco
to obtain a year-end reserve report which we expect
to incorporate into our annual report for the year
ended December 31, 2002 on Form 10-K. Booking reserves
is a truly important milestone for Gasco, in part
because it should improve our ability to access alternative
forms of financing such as reserve- based credit facilities
from commercial banks or mezzanine financing from
private capital providers. While there can be no guarantees
that we will be successful in attracting capital,
we certainly will be in a much better position with
proved reserves and production."
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 .
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
Part I, Item 1 of the Company's latest Annual Report
on Form 10-K filed with the Securities and Exchange
Commission. Source: Gasco Energy, Inc.
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Source: Gasco Energy, Inc.
