| Gasco
Energy Redeems Shares for Acreage
DENVER,
May 24 /PRNewswire-FirstCall/ -- Gasco Energy, Inc.
(OTC Bulletin Board: GASE - News) today announced a
letter of intent to negotiate and execute an agreement
to redeem 6.25 million shares of common stock and 500
shares of preferred stock in exchange for up to 30%
of its undeveloped oil and gas acreage. The transaction
simplifies the Company's capital structure by eliminating
all preferred stock and the associated preferential
voting rights. It also potentially accelerates the development
of the Company's acreage in the Rocky Mountains with
additional exploitation and development funding by the
new working interest owners.
The
proposed agreement with Brek Energy Corporation and
certain other shareholders associated with Brek provides
for the redemption of the common and preferred stock
owned by the shareholders in exchange for 25% of Gasco's
undeveloped acreage. All acreage conveyed under the
agreement would be subject to the restrictions and burdens
existing prior to the transfer. The agreement would
give Brek the opportunity to earn an additional 5% of
Gasco's undeveloped acreage by drilling 10 wells on
the transferred acreage over a three year period following
the first closing.
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 owns more than 115,000 gross acres
in Utah and approximately 137,000 gross acres 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.
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