DENVER, Oct. 20 /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 has closed its previously announced private
offering of $65 million 5.50% Convertible Senior Notes
due 2011. The notes were issued at par. The principal
amount of the notes reflects the exercise of the option
by the initial purchasers to purchase up to an additional
$20 million of the 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 notes are convertible into Gasco Energy common
stock at a conversion rate of 250 shares of common
stock per $1,000 principal amount of notes (equivalent
to a conversion price of $4.00 per share), 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.
The notes were sold 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 are
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. The notes are eligible
for trading in accordance with Rule 144A under the
Securities Act of 1933.
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.
