DENVER,
Oct. 15 /PRNewswire-FirstCall/ -- Gasco Energy, Inc.
(OTC Bulletin Board: GASE - News) today announced
the closing of its sale of $2.5 million of 8% Convertible
Debentures in a private placement. Proceeds will be
used to accelerate the development and exploitation
of its core-area Riverbend Project in the Uinta Basin
in Utah and for ongoing operations.
Specifically, proceeds will in part be applied to
Gasco's share of costs to complete two shut-in natural
gas wells, the Lytham Federal 22-22 and the Federal
32-31. In addition, Gasco will contribute its share
of recompletion costs on two additional wells, the
Federal 42-29 and the Federal 23-21. All activity
is concentrated on Gasco's Riverbend project in the
Uinta Basin. Further information about the completion
plans will be forthcoming.
The $2.5 Million 8% Convertible Debentures include
the following terms:
-- Interest rate is 8% per annum payable monthly.
-- Monthly principal payments of $37,500 begin in
the fourth quarter of
2006.
-- Maturity date is October 15, 2008.
-- Payment is secured by the producing and completed
wellbores that Gasco
develops using this financing.
-- Convertible Debentures are convertible into 4,166,667
of Gasco common
shares at any time at the holder's election. The conversion
price is
$0.60 per common share.
-- The holders have the right to designate a single
nominee to Gasco's
Board of Directors. Mr. John Schmit, Vice President
of Investments
for RENN Capital Group, Inc., joins the Board of Gasco,
effective
immediately.
The
sale of the Convertible Debentures was not registered
under the Securities Act of 1933. The Convertible
Debentures may not be offered or sold in the United
States absent registration or an applicable exemption
from the registration requirements.
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.
