| Gasco
Energy to Present at Upcoming Energy Conferences
DENVER,
March 30 /PRNewswire-FirstCall/ -- Gasco Energy, Inc.
(Amex: GSX - News) today announced that it has executed
a revolving line of credit agreement led by JPMorgan
providing for a $250 million credit line with an initial
borrowing base of $17 million. The borrowing base is
determined by reference to Gasco's proved reserves at
June 30, 2005. Loans made under this revolving credit
agreement are secured by a pledge of the capital stock
of Gasco's significant subsidiaries, guaranties by Gasco's
significant subsidiaries, and mortgages on substantially
all of the Company's oil & gas properties.
Each loan bears interest at a Eurodollar rate or a base
rate, as requested by Gasco, plus an applicable percentage
based on Gasco's usage of the facility. The applicable
margin above the Eurodollar rate ranges from 1.25% to
2.00% depending on the Company's usage under the credit
line. In addition, under the terms of the $250 million
credit agreement, Gasco pays a commitment fee quarterly
in arrears based on a percentage multiplied by the daily
amount that the aggregate commitments exceed borrowings
under the agreement. Gasco did not borrow any funds
at the time of execution of the credit agreement. For
further detail please refer to our disclosure on Form
8-K filed today with the SEC.
The credit facility is available to provide funds for
the exploration, development and/or acquisition of oil
and gas properties, to refinance existing indebtedness
and for working capital and other general corporate
purposes. Interest on funds drawn will be paid monthly
with the principal due March 2010. The agreement provides
for semi-annual evaluation of the borrowing base, which
will be determined as a percentage of the discounted
present value of the Company's oil and natural gas reserves.
"By obtaining a revolving line of credit, Gasco
adds additional flexibility to its growth capital needs,"
said King Grant, Gasco's Chief Financial Officer. "We
spent considerable time evaluating our options to find
the best possible lending relationship and we are pleased
to work with JPMorgan. With this credit facility, which
is tied to our reserve base, we are further capable
of funding our drilling & completion plans."
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 controls acreage
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 Item 1A of the Company's 2005 annual report on Form
10-K filed with the Securities and Exchange Commission
on March 3, 2006.Source: Gasco Energy, Inc.
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