DENVER,
Oct. 14 /PRNewswire-FirstCall/ -- Gasco Energy, Inc.
(OTC Bulletin Board: GASE -News), an acquirer and
exploiter of petroleum and natural gas properties
in the United States, today announced that it proposes
to make a private offering of $40 million aggregate
principal amount of Convertible Senior Notes due 2011.
The initial purchasers will also have a 30-day option
to purchase up to an additional $10 million of such
notes. Net proceeds from the private offering will
be used to fund capital expenditures to develop oil
and gas properties, working capital and general corporate
purposes, which may include future acquisitions of
interests in oil and gas properties.
The offering will be made only to qualified institutional
buyers in accordance with Rule 144A under the Securities
Act of 1933. The notes will be convertible into Gasco
Energy common stock, subject to certain conditions,
at a specified conversion price, which is subject
to certain adjustments. The Company will have a call
option, pursuant to which it may redeem the securities,
in part or in whole, on or after October 10, 2009,
at 100% of the principal amount if the closing price
of the common stock exceeds 130% of the conversion
price, in accordance with conditions specified in
the offering memorandum.
Offers and sales of the notes will be made only in
the United States to qualified institutional buyers
in transactions exempt from the registration requirements
of the Securities Act of 1933, as amended. Neither
the notes nor the shares of the Company's common stock
into which they will be convertible have been registered
under the Securities Act of 1933, as amended, or any
state securities laws, and they may not be offered
or sold in the United States absent registration or
an applicable exemption from registration requirements.
This announcement does not constitute an offer to
sell, or the solicitation of an offer to buy, any
securities and shall not constitute an offer, solicitation
or sale in any jurisdiction in which such offer, solicitation
or sale would be unlawful.
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.
