DENVER,
May 11 /PRNewswire-FirstCall/ -- Gasco Energy (Amex:
GSX
- News)
yesterday reported its financial and operating results
for the quarter ended March 31, 2005.
Financial
Results
The
company reported a net loss for the first quarter
2005 of $1.7 million, or $0.02 per share, as compared
to a net loss for the first quarter of 2004 of $578,000
or $0.01 per share. All per share figures are basic
and diluted. Total revenues grew by 68% to a company-record
$1.3 million, as compared to $767,000 in the same
period in 2004. The growth in revenue is attributed
to the addition of gathering system revenues and
an increase in interest income, $134,000 and $360,000,
respectively.
Oil
and gas sales for the first quarter 2005 were $792,000
as compared to $752,000 for the same period in 2004.
The company attributes the modest 5% increase in
oil and gas sales to lower average prices received
in the first quarter 2005 and to the sale of approximately
50% of the Company's interest in two wells during
2004 that contributed significantly to first quarter
2004 production.
Net
cash used in operating activities for the first
quarter 2005 was a deficit of $520,000, down 72%
from a deficit of $1.8 million for 2004's same period.
The decreased deficit was due to the increased component
of non-cash items in the company's net loss for
the quarter and the net change in operating assets
and liabilities as a result of the company's increased
level of operations in 2005 as compared to 2004,
offset by the larger net loss in 2005 as compared
to 2004.
Operations
Gasco
posted record quarterly production of 147.1 million
cubic feet of natural gas equivalent (MMcfe) versus
135.9 MMcfe for the first quarter 2004, an increase
of 8%. The average price received for sales of Gasco's
natural gas and liquids was $5.19 per thousand cubic
feet of gas (Mcf) and $49.58 per barrel of liquid
hydrocarbons for the first quarter 2005. This compares
to $5.53 per Mcf and $32.83 per barrel for the same
period in 2004.
The
Company's initial 2005 capital expenditure budget
is set at $38 million for the drilling, completion
and pipeline connection of 20 gross, or approximately
13-14 net, wells in Gasco's Riverbend Project. During
the first quarter 2005, the company spudded and
reached total depth on five gross wells (approximately
2.9 net wells) in the Riverbend area. Other activity
included initial completion operations on five wells
and the re-entry of four wells to complete behind-pipe
pay zones. Exiting the first quarter 2005, Gasco
had 24 gross wells on production and two additional
gross wells awaiting completion. Currently, three
drilling rigs are operating in the Uinta Basin Riverbend
project area.
Management
Comment
Commenting
on the first quarter 2005 results, Gasco CEO and
President, Mark Erickson said: "Gasco is beginning
to see the benefits of improved economies of scale
in the Riverbend Project. Frac dates are now on
a regular schedule, drilling operations are running
more smoothly and rig crew performance is looking
better. Improving upon that which is in our control
offers Gasco a better chance at off-setting rising
service costs that are beginning to have an impact
on the E&P sector in our areas of operations."
Teleconference
Call
A
conference call with investors, analysts and other
interested parties is scheduled for 11:00 a.m. EDT
on Wednesday, May 11, 2005 to discuss 2005 first
quarter financial and operating results. You are
invited to listen to the call which will be broadcast
live over the Internet at www.gascoenergy.com.
Date: Wednesday, May 11, 2005
Time: 11:00 a.m. EDT
10:00 a.m. CDT
9:00 a.m. MDT
8:00 a.m. PDT
Call: (866) 392-4171 (US/Canada) and (706) 634-6345 (International),
passcode 21330
Internet: Live and rebroadcast over the Internet: log on to
www.gascoenergy.com
Replay: Available until Friday, May 13 at (800) 642-1687 (US/Canada)
and (706) 645-9291 (International) using passcode 21330 and
for 30 days at www.gascoenergy.com
The
notes accompanying the financial statements are
an integral part of the consolidated financial statements
and can be found in Gasco's filing on Form 10-Q
dated May 10, 2005.
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 the Company's Annual Report
on Form 10-K filed with the Securities and Exchange
Commission on March 16, 2005.
Contact for Gasco Energy, Inc.: Investor Relations: 303-483-0044
GASCO ENERGY, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31, December 31,
2005 2004
ASSETS
CURRENT ASSETS
Cash and cash equivalents $24,229,089 $ 25,717,081
Restricted investment 3,277,084 3,535,055
Short-term investments 22,000,000 27,000,000
Accounts receivable 1,580,003 1,045,044
Inventory 1,508,196 1,009,914
Prepaid expenses 332,152 458,555
Total 52,926,524 58,765,649
PROPERTY, PLANT AND EQUIPMENT, at cost
Oil and gas properties (full cost method)
Proved mineral interests 35,667,806 29,811,483
Unproved mineral interests 17,666,872 18,449,330
Gathering assets 3,216,447 2,269,580
Equipment 90,316 89,900
Furniture, fixtures and other 147,041 158,590
Total 56,788,482 50,978,883
Less accumulated depreciation,
depletion and amortization (2,560,557) (2,247,032)
Total 54,227,925 48,731,851
OTHER ASSETS
Restricted investment 7,141,628 6,778,040
Deferred financing costs 2,978,086 3,092,628
Total 10,119,714 9,870,668
TOTAL ASSETS $117,274,163 $117,368,168
The
notes accompanying the financial statements are
an integral part of the consolidated financial statements
and can be found in Gasco's filing on Form 10-Q
dated May 10, 2005.
GASCO ENERGY, INC.
CONSOLIDATED BALANCE SHEETS (continued)
(Unaudited)
March 31, December 31,
2005 2004
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $310,916 $1,447,149
Revenue payable 409,978 334,765
Advances from joint interest owners 1,225,534 891,999
Accrued interest 1,588,889 695,139
Accrued expenses 3,972,088 2,677,352
Total 7,507,405 6,046,404
NONCURRENT LIABILITES
5.5% Convertible Senior Notes 65,000,000 65,000,000
Asset retirement obligation 121,362 108,566
Deferred rent expense 13,735 --
Total 65,135,097 65,108,566
STOCKHOLDERS' EQUITY
Series B Convertible Preferred stock
- $.001 par value; 20,000 shares
authorized; 943 shares issued and
outstanding with a liquidation
preference of $414,920 in 2005 and
2,255 shares issued and outstanding with
a liquidation preference of $992,200
in 2004 1 2
Common stock - $.0001 par value;
100,000,000 shares authorized;
71,415,594 shares issued and
71,341,894 outstanding in 2005;
70,590,909 shares issued and
70,517,209 shares outstanding in 2004 7,142 7,059
Additional paid in capital 76,339,572 76,346,463
Deferred compensation (387,040) (512,440)
Accumulated deficit (31,197,719) (29,497,591)
Less cost of treasury stock of
73,700 common shares (130,295) (130,295)
Total 44,631,661 46,213,198
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $117,274,661 $117,368,168
The
notes accompanying the financial statements are
an integral part of the consolidated financial statements
and can be found in Gasco's filing on Form 10-Q
dated May 10, 2005.
GASCO ENERGY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
March 31,
2005 2004
REVENUES
Gas $714,732 $701,624
Oil 76,795 49,894
Gathering 133,767 --
Interest income 360,053 15,257
Total 1,285,347 766,775
OPERATING EXPENSES
General and administrative 1,223,798 845,151
Lease operating 156,432 161,068
Gathering operations 224,747 --
Depletion, depreciation and amortization 372,236 237,135
Interest expense 1,008,262 67,507
Total 2,985,475 1,310,861
NET LOSS (1,700,128) (544,086)
Preferred stock dividends (7,162) (33,993)
NET LOSS ATTRIBUTABLE TO COMMON
STOCKHOLDERS $(1,707,290) $(578,079)
NET LOSS PER COMMON SHARE
- BASIC AND DILUTED $(0.02) $(0.01)
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING - BASIC AND DILUTED 70,042,691 55,570,587
The
notes accompanying the financial statements are
an integral part of the consolidated financial statements
and can be found in Gasco's filing on Form 10-Q
dated May 10, 2005.
GASCO ENERGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
March 31,
2005 2004
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $(1,700,128) $(544,086)
Adjustment to reconcile net loss to
net cash used in operating activities
Depreciation, depletion and impairment
expense 369,596 232,303
Accretion of asset retirement obligation 2,640 4,832
Amortization of deferred compensation 125,400 27,656
Amortization of beneficial conversion
feature -- 8,334
Non-cash rent expense 13,735 --
Amortization of deferred financing costs 114,542 9,310
Changes in operating assets and
liabilities:
Accounts receivable (534,959) (370,713)
Inventory (498,282) (614,825)
Prepaid expenses 126,403 390,477
Accounts payable (1,136,233) (385,996)
Revenue payable 75,213 245,085
Advances from joint interest owners 333,535 --
Accrued interest 893,750 --
Accrued expenses 1,294,736 (844,220)
Net cash used in operating
activities (520,052) (1,841,143)
CASH FLOWS FROM INVESTING ACTIVITIES
Cash paid for furniture, fixtures
and other (44,522) (10,966)
Cash paid for acquisitions, development
and exploration (6,639,094) (4,341,561)
Proceeds from property sales 828,102 --
Proceeds from sale of short-term
investments 5,000,000 --
Net cash used in investing
activities (855,514) (4,352,527)
CASH FLOWS FROM FINANCING ACTIVITIES
Preferred dividends (6,809) (20,555)
Cash designated as restricted (105,617) --
Exercise of options to purchase
common stock -- 33,336
Proceeds from sale of common stock -- 21,500,001
Cash paid for offering costs -- (1,429,659)
Net cash provided by (used in)
financing activities (112,426) 20,083,123
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (1,487,992) 13,888,753
CASH AND CASH EQUIVALENTS:
BEGINNING OF PERIOD 25,717,081 3,081,109
END OF PERIOD $24,229,089 $16,969,862
The
notes accompanying the financial statements are
an integral part of the consolidated financial statements
and can be found in Gasco's filing on Form 10-Q
dated May 10, 2005.
