Gasco
Energy Announces Second Quarter 2005 Financial and Operational
Results
DENVER,
Aug. 10 /PRNewswire-FirstCall/ -- Gasco Energy (Amex:
GSX
- News)
yesterday reported its financial and operating results
for the quarter and six months ended June 30, 2005.
Financial
Results
The
company reported a net loss for the second quarter
2005 of $1.0 million, or $0.01 per share, as compared
to a net loss for the second quarter of 2004 of
$800,000 or $0.01 per share. All per share figures
are basic and diluted. Total revenues grew by 209%
to a company-record $2.5 million, as compared to
$810,000 in the same period in 2004. The growth
in revenue is attributed in part to the addition
of gathering system revenues and an increase in
interest income, $322,000 and $355,000, respectively.
Oil
and gas sales for the second quarter 2005 were $1.9
million as compared to $777,000 for the same period
in 2004. The company attributes the 144% increase
in oil and gas sales to higher sales volumes and
a modest increase in average prices received.
First-half
2005
The
company reported a net loss for the six-months ended
June 30, 2005 of $2.7 million, or $0.04 per share,
as compared to a net loss for the second half of
2004 of $1.4 million or $0.02 per share. Total revenues
grew by 137% to a company-record $3.8 million, as
compared to $1.6 million in the same period in 2004.
The growth in revenue is attributed in part to the
addition of gathering system revenues and an increase
in interest income, $456,000 and $715,000, respectively.
Oil
and gas sales for the first half of 2005 were $2.7
million as compared to $1.5 million for the same
period in 2004. The company attributes the 80% increase
in oil and gas sales to higher average prices received
in the second quarter 2005 and to higher sales volumes
in the second quarter 2005.
Operations
Gasco
posted record quarterly production of 300.2 million
cubic feet of natural gas equivalent (MMcfe) versus
130.3 MMcfe for the second quarter 2004, an increase
of 129%. The average price received for sales of
Gasco's natural gas and liquids was $6.12 per thousand
cubic feet of gas (Mcf) and $52.44 per barrel of
liquid hydrocarbons for the second quarter 2005.
This compares to $5.96 per Mcf and $36.36 per barrel
for the same period in 2004.
Gasco
posted record first-half production of 447.3 MMcfe
versus 266.2 MMcfe for the second half of 2004,
a 68% increase. For the first-half 2005, the average
price received for sales of Gasco's natural gas
and liquids was $5.82 per Mcf and $51.23 per barrel
of liquid hydrocarbons. This compares to $5.74 per
Mcf and $34.34 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 half of 2005, the company spudded and
reached total depth on nine gross wells (approximately
4.8 net wells) in the Riverbend area. Other activity
included initial completion operations on 12 wells
and the re-entry of eight wells to complete behind-pipe
pay zones. Exiting the second quarter 2005, Gasco
had 30 gross wells on production and one additional
gross well in completion. Currently, three drilling
rigs are operating in the Uinta Basin Riverbend
project area, two for Gasco Energy and one drilling
inside of the JVEA.
Teleconference
Call
A
conference call with investors, analysts and other
interested parties is scheduled for 11:00 a.m. EDT
on Wednesday, August 10, 2005 to discuss 2005 second
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, August 10, 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 8090556
Internet: Live and rebroadcast over the Internet: log on to
www.gascoenergy.com
Replay: Available through Friday, August 12 at (800) 642-1687
(US/Canada) and (706) 645-9291 (International) using passcode
8090556 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 August 9, 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)
June 30, December 31,
2005 2004
ASSETS
CURRENT ASSETS
Cash and cash equivalents $20,642,843 $25,717,081
Restricted investment 3,277,084 3,535,055
Short-term investments 13,000,000 27,000,000
Accounts receivable
Joint interest billings 4,015,253 429,779
Revenue 1,207,085 615,265
Inventory 566,440 1,009,914
Prepaid expenses 274,699 458,555
Total 42,983,404 58,765,649
PROPERTY, PLANT AND EQUIPMENT, at cost
Oil and gas properties (full cost method)
Proved mineral interests 46,554,580 29,811,483
Unproved mineral interests 17,945,375 18,449,330
Gathering assets 3,560,325 2,469,580
Equipment 97,398 89,900
Furniture, fixtures and other 168,886 158,590
Total 68,326,564 50,978,883
Less accumulated depreciation,
depletion and amortization (3,322,087) (2,247,032)
Total 65,004,477 48,731,851
OTHER ASSETS
Restricted investment 5,556,489 6,778,040
Deferred financing costs 2,863,544 3,092,628
Total 8,420,033 9,870,668
TOTAL ASSETS $116,407,914 $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 August 9, 2005.
GASCO ENERGY, INC.
CONSOLIDATED BALANCE SHEETS (continued)
(Unaudited)
June 30, December 31,
2005 2004
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $1,454,997 $1,447,149
Revenue payable 781,131 334,765
Advances from joint interest owners 2,508,560 891,999
Accrued interest 844,098 695,139
Accrued expenses 1,812,213 2,677,352
Total 7,400,999 6,046,404
NONCURRENT LIABILITIES
5.5% Convertible Senior Notes 65,000,000 65,000,000
Asset retirement obligation 156,665 108,566
Deferred rent expense 53,724 --
Total 65,210,389 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;
300,000,000 shares authorized;
71,420,136 shares issued and
71,346,436 outstanding in 2005;
70,590,909 shares issued and
70,517,209 shares outstanding in 2004 7,142 7,059
Additional paid in capital 76,332,167 76,346,463
Deferred compensation (215,903) (512,440)
Accumulated deficit (32,196,586) (29,497,591)
Less cost of treasury stock of
73,700 common shares (130,295) (130,295)
Total 43,796,526 46,213,198
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $116,407,914 $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 August 9, 2005.
GASCO ENERGY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
June 30,
2005 2004
REVENUES
Gas $1,760,425 $731,163
Oil 111,441 45,992
Gathering 322,130 --
Interest income 354,904 33,148
Total 2,548,900 810,303
OPERATING EXPENSES
General and administrative 1,374,923 918,083
Lease operating 205,270 255,744
Gathering operations 191,781 --
Depletion, depreciation and amortization 767,470 264,204
Interest expense 1,008,323 93,253
Total 3,547,767 1,531,284
NET LOSS (998,867) (720,981)
Preferred stock dividends (14,050) (78,893)
NET LOSS ATTRIBUTABLE TO COMMON
STOCKHOLDERS $(1,012,917) $(799,874)
NET LOSS PER COMMON SHARE - BASIC
AND DILUTED $(0.01) $(0.01)
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING - BASIC AND DILUTED 70,677,053 63,369,148
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 August 9, 2005.
GASCO ENERGY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Six Months Ended
June 30,
2005 2004
REVENUES
Gas $2,475,157 $1,432,787
Oil 188,236 95,886
Gathering 455,897 --
Interest income 714,957 48,405
Total 3,834,247 1,577,078
OPERATING EXPENSES
General and administrative 2,598,721 1,763,234
Lease operating 361,702 416,812
Gathering operations 416,528 --
Depletion, depreciation and amortization 1,139,706 501,339
Interest expense 2,016,585 160,760
Total 6,533,242 2,842,145
NET LOSS (2,698,995) (1,265,067)
Preferred stock dividends (21,212) (112,886)
NET LOSS ATTRIBUTABLE TO COMMON
STOCKHOLDERS $(2,720,207) $(1,377,953)
NET LOSS PER COMMON SHARE - BASIC
AND DILUTED $(0.04) $(0.02)
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING - BASIC AND DILUTED 70,128,560 59,271,972
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 August 9, 2005.
GASCO ENERGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended
June 30,
2005 2004
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $(2,698,995) $(1,265,067)
Adjustment to reconcile net loss
to net cash used in operating activities
Depreciation, depletion and
impairment expense 1,133,707 491,676
Accretion of asset
retirement obligation 5,999 9,663
Stock compensation 378,969 90,524
Amortization of beneficial
conversion feature -- 16,668
Non-cash rent expense 23,724 --
Landlord incentive payment 30,000 --
Amortization of deferred
financing costs 229,084 18,620
Changes in operating assets
and liabilities:
Accounts receivable (4,177,294) (589,504)
Inventory 443,474 (949,342)
Prepaid expenses 183,856 102,012
Accounts payable (67,586) 232,116
Revenue payable 446,366 484,233
Advances from joint interest owners 1,616,561 214,993
Accrued interest 148,959 --
Accrued expenses (865,139) (633,558)
Net cash used in
operating activities (3,168,315) (1,776,966)
CASH FLOWS FROM INVESTING ACTIVITIES
Cash paid for furniture,
fixtures and other (68,948) (37,551)
Cash paid for acquisitions,
development and exploration (18,123,387) (7,461,894)
Proceeds from property sales 828,102 --
Proceeds from sale of
short-term investments 14,000,000 --
Net cash used in
investing activities (3,364,233) (7,499,445)
CASH FLOWS FROM FINANCING ACTIVITIES
Preferred dividends 21,212) (20,569)
Cash designated as restricted (159,020) --
Cash undesignated as restricted 1,638,542 250,000
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
financing activities 1,458,310 20,333,109
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (5,074,238) 11,056,698
CASH AND CASH EQUIVALENTS:
BEGINNING OF PERIOD 25,717,081 3,081,109
END OF PERIOD $ 20,642,843 $14,137,807
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 August 9, 2005.
|
