| Gasco
Provides Utah and Wyoming Operations Update
DENVER,
July 31 /PRNewswire-FirstCall/ -- Gasco Energy, Inc.
(OTC Bulletin Board: GASE - News) today provided an
interim operations update on wells on its Riverbend
Project in Utah's Uinta Basin and on its Wyoming Projects
in the Greater Green River Basin.
Riverbend Project Update
Year to date, Gasco has caused eight wells to be drilled
on the Riverbend Project, two of which are Gasco-operated.
Completion operations are underway on the Gasco-operated
Federal #42-29 (approximately 40% WI). Gasco engineers
expect the well to be completed in the Wasatch and Mesaverde
formations with respective net pay of 75 feet and 275
feet by the end of September. This well encountered
the thickest pay to date of wells drilled by Gasco or
Phillips in the Riverbend Project area. Ten completion
intervals are planned, involving pumping approximately
2 million pounds of proppant. Natural gas is expected
to flow into the sales line in late August from the
deeper zones.
The Gasco-operated Federal #23-29 (25% WI) continues
completion operations. The well is scheduled to be completed
in the Wasatch and Mesaverde formations by the end of
August. Gas from the first completed interval began
flowing into the sales line on June 8 at a sustained
rate of 250 thousand cubic feet per day (Mcfd) and three
barrels of condensate per day and is currently shut
in while the shallower zones are being completed. An
additional interval has been completed and is flowing
separately at rates of 200 Mcfd - 450 Mcfd, with approximately
five barrels of condensate per day. Company engineers
are evaluating the initial production characteristics
resulting from the fracture procedures. Five more frac
intervals are planned for this well.
Two frac jobs on the Alger Pass Unit #1 (35% WI) have
been completed successfully. The well is currently flowing
back and is being tested. Initial flow-back rates indicate
positive re-stimulation results.
The Phillips operated Federal 23-12 (20% WI) has been
completed in four zones and is now flowing at a sustained
rate of almost 1.1 million cubic feet of natural gas
per day, approximately 100 barrels of water per day
and flowing casing pressures of 2,100- 2,300 psi. The
flow rates and pressures continue to strengthen as the
well cleans up.
Recent activity reports show the Phillips Federal 43-24
(non-operated, 14% WI) drilling through 10,500 feet
with a projected total depth of 11,500 feet. The well,
which was spud on July 9, 2002, encountered the top
of the Mesaverde at 8,150 feet and is encountering significant
gas shows.
Wyoming Projects Update
Year to date, Gasco has caused five wells to be drilled
on the Wyoming Projects. Gasco anticipates that at least
two additional wells will spud before the end of 2002.
The Muddy Creek 13-3 (non-operated, 35% WI) is a confirmation
well to the Muddy Creek 33-27 and will be drilled to
9,700 feet. Gasco and its partner expect a spud date
sometime in the third quarter and will earn 4,960 gross
acres.
The Federal CD 14-4 (non-operated, 35% WI) is proposed
to total depth of 11,000 feet and will earn 21,000 gross
acres. Expected spud is this fall.
Gasco is participating in a 100-square-mile 3-D seismic
shoot, a portion of which covers its acreage in the
Grindstone Project in the northern portion of its Green
River Basin acreage. Burlington Resources is preparing
to resume work on the remaining 100 miles of its 180-mile
total high-resolution 2-D seismic program. The shooting
and processing of these programs are expected to be
completed this fall. Gasco will begin analyzing the
data in early 2003 and will use this information in
developing its 2003 and beyond drilling program.
Management Comments
Commenting on recent operations, Gasco CEO, Mark Erickson
said: "The trend is definitely positive. We continue
to be encouraged by the results from the Gasco wells
as well as the results of the wells drilled by our joint
interest partners in both Wyoming and Utah. In Wyoming,
we believe that we have two discoveries. The Grindstone
well appears to have identified an over-pressure cell
with Jonah attributes and the Muddy Creek well appears
to have identified a normal pressured, shallow (<
10,000') opportunity with regional extension. In Utah,
we are seeing improved results over previous well completions
resulting from improved flow back methods and successful
deployment of Halliburton's flow-through plugs. Our
acreage positions continue to yield significant drillable
projects for Gasco and its partners going forward."
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
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