| Gasco
Energy Provides Riverbend Project Activity Update
Production Rises With Drilling Activity
DENVER,
Sept. 7 /PRNewswire-FirstCall/ -- Gasco Energy, Inc.
(OTC Bulletin Board: GASE -News ) today provided an
interim oil and gas activities and operational update
on its Riverbend Project in Utah's Uinta Basin.
Drilling Activity
In August, Gasco spudded two wells, completed two wells
that are flowing to sales, and one well is awaiting
completion.
Year to date, Gasco has drilled six gross wells. Five
wells have been completed and are flowing to sales and
one is awaiting completion. The wells are part of Gasco's
proposed 15 gross well program for 2004.
Two wells are currently being drilled in the Riverbend
Project's Riverbend Area. One will test the Wasatch,
Mesaverde and Blackhawk formations and the second well
is being drilled to the Wasatch and Mesaverde formations.
Please reference www.gascoenergy.com/areas.html for
a detailed map of the four Riverbend Project areas:
Riverbend, West Desert, Wilkin Ridge and Gate Canyon.
Production
Cumulative monthly gross production for August 2004
was 173.5 million cubic feet equivalent (MMcfe), or
47.2 MMcfe net. This is a 28.9% percent increase from
July's cumulative gross production of 134.6 MMcfe and
an 18.5% increase from July's net production of 39.8
MMcfe. Production data provided assumes net revenue
interest which factors in an average of 20% royalty
payments to mineral owners.
Production could be affected for September due to the
expansion of the Riverbend gathering system that is
resulting in periodic well shut-ins and well completion
delays associated with the construction process. Gasco
is also performing routine well maintenance and analysis
during this period.
Management Comment
Commenting on the Riverbend Project, Gasco CEO and President,
Mark Erickson said: "This update is the first of
what we anticipate to be approximately monthly updates
on our oil and gas activities in Utah and Wyoming. With
two rigs drilling in the Riverbend Area, we will be
able to provide investors with meaningful drilling and
completion, and related activity updates.
"In the past we have occasionally reported initial
production (IP) rates for completed wells. Our reservoir
engineers continue extensive geo-technical modeling
to best understand reservoir characteristics. Their
work shows that the relationship between IP rates and
estimated reserves does not correlate with a high degree
of reliability. A much better predictor of estimated
reserves is the long-term well performance and production
decline analysis, which we believe is best assessed
after at least six months of production history. As
a consequence, Gasco will no longer announce IP rates.
We instead suggest that investors focus on the drilling
and completion activity and the gross and net production
figures, which are two of the metrics that management
uses to gauge progress."
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 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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