Termination of Memorandum of Understanding

April 26, 2001 - Gasco Energy, Inc. (OTC BB: GASE), )announces that the Memorandum of Understanding with New Energy West Corporation ("New Energy"), pursuant to which Gasco was to acquire all of the issued and outstanding shares of New Energy, has been mutually terminated. The parties could not reach a satisfactory resolve in order to finalize the proposed formal agreement due to a combination of market conditions and the economic parameters that formed the basis of the transaction. Management of Gasco will continue to explore other opportunities that are available from time to time in an effort to maximize shareholder value in the company.

Certain statements contained herein are "forward-looking" statements (as such term is defined in the Private Securities Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements.

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