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Gasco
Announces $6.5 Million Private Placement; Proceeds to
Fund Rocky Mountain Drilling Program
DENVER,
Aug. 14 /PRNewswire-FirstCall/ -- Gasco Energy, Inc.
(OTC Bulletin Board: GASE - News) today announced the
sale through a private placement of 6,500,000 shares
of common stock to a group of accredited investors.
The Company raised a total of $6.5 million at a share
price of $1.00. Proceeds will be used to accelerate
the development and exploitation of its Riverbend Project
in Uintah County, Utah and its Muddy Creek and Grindstone
Projects in Wyoming's Greater Green River Basin. Additional
use of funds includes pipeline infrastructure and the
funding of its share of a 100-square-mile, 3-D seismic
shoot over a portion of its Wyoming acreage.
The
shares sold in this private placement have not been
registered under the Securities Act of 1933 and may
not be offered or sold in the United States absent registration
or an applicable exemption from registration requirements.
Management Comments
Commenting on the private placement, Gasco CFO, King
Grant said, "We are pleased to have raised new
capital to fund the drilling and completion of new wells
in our focus areas in the Rocky Mountains during the
remainder of 2002. The completion of new wells will
assist us in growing our near-term cash flow while executing
our business model."
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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