DENVER,
Nov. 3 /PRNewswire-FirstCall/ -- Gasco Energy (Amex:
GSX
- News)
today reported its financial and operating results for
the quarter and nine months ended September 30, 2005.
Financial
Results
For
the first time in company history, Gasco reported
net income for a reporting period. Net income for
the third quarter 2005 was $643,000, or $0.01 per
share, as compared to a net loss for the third quarter
of 2004 of $564,000 or $0.01 per share. All per share
figures are basic and diluted. Total revenues grew
by 446% to a company-record $4.7 million, as compared
to $860,000 in the same period in 2004. The growth
in total revenue is attributed to higher commodity
prices received, increased production and growing
gathering system revenues.
Oil
and gas sales for the third quarter 2005 were a company-record
$4.0 million as compared to $817,000 for the same
period in 2004. The company attributes the 390% increase
in oil and gas sales to higher sales volumes and an
increase in average commodity prices received.
9-month
Period
Gasco
reported a net loss for the nine months ended September
30, 2005 of approximately $2.1 million, or $0.03 per
share, as compared to a net loss for the same period
in 2004 of $1.9 million or $0.03 per share. Total
revenues grew by 250% to another company-record $8.5
million, as compared to $2.4 million in the same period
in 2004. The growth in total revenue is attributed
to higher commodity prices received, increased production
and growing gathering system revenues.
Oil
and gas sales for the nine-month period of 2005 were
$6.6 million as compared to $2.3 million for the same
period in 2004. The company attributes the 186% increase
in oil and gas sales to higher average commodity prices
received in the second and third quarters of 2005
and to higher sales volumes in the nine-month period
of 2005.
Net
cash provided by operating activities for the nine
months ended September 30, 2005 was $2.2 million.
This compares to net cash used in operating activities
of $1.7 million in the same period in 2004. It is
the first time Gasco has posted operating cash flow.
Operations
Gasco
posted record quarterly production of 489 million
cubic feet of natural gas equivalent (MMcfe) versus
138 MMcfe for the third quarter 2004, an increase
of 254%. The average price received for sales of Gasco's
natural gas and liquids was $8.02 per thousand cubic
feet of gas (Mcf) and $62.40 per barrel of liquid
hydrocarbons for the third quarter 2005. This compares
to $5.84 per Mcf and $42.22 per barrel for the same
period in 2004.
Gasco
posted record nine-month production of 937 MMcfe versus
404 MMcfe for the same period in 2004, a 132% increase.
For the nine months of 2005, the average price received
for sales of Gasco's natural gas and liquids was $6.98
per Mcf and $55.93 per barrel of liquid hydrocarbons.
This compares to $5.78 per Mcf and $37.07 per barrel
for the same period in 2004.
During
the first nine months of 2005, the company spudded
16 wells (11.1 net) and reached total depth on 14
gross wells (9.1 net wells) in the Riverbend area.
Other activity included initial completion operations
on 16 wells and the re-entry of nine wells to complete
behind-pipe pay zones. Exiting the third quarter 2005,
Gasco had 35 gross wells on production and one additional
gross well in completion. Currently, three drilling
rigs are operating in the Riverbend project area,
two for Gasco Energy and one drilling inside of the
JVEA.
2005
CAPEX Increased to $50 Million
The
Company's 2005 initial capital expenditure budget
of $38 million has been increased to $50 million to
allow for increased activity in the fourth quarter.
Upon completion of its 2005 drilling program, Gasco
anticipates that it will have spudded 22 wells, drilled
and completed 20 wells (13 net) and conducted completion
operations on two additional wells. The increased
budget includes spudding two additional wells, initial
completion operations on two wells, and increased
costs associated with the company's drilling program.
Teleconference
Call
A
conference call with investors, analysts and other
interested parties is scheduled for 11:00 a.m. EST
on Friday, November 4, 2005 to discuss 2005 third
quarter financial and operating results. You are invited
to listen to the call which will be broadcast live
over the Internet at www.gascoenergy.com.
Included in the conference call will be a slide show
highlighting financial and operating results. Gasco
will also cover in detail the recently identified
Blackhawk Formation Spring Canyon marine trend and
its impact on exploitation opportunities in the Riverbend
Project. The slides that accompany the conference
call will be available at 9:00 a.m. EST at www.gascoenergy.com
and will also be presented in conjunction with the
webcast.
Date: Friday, November 4, 2005
Time: 11:00 a.m. EST
10:00 a.m. CST
9:00 a.m. MST
8:00 a.m. PST
Call: (866) 392-4171 (US/Canada) and (706) 634-6345 (International),
pass code 1843031
Internet: Live and rebroadcast over the Internet: log on to
www.gascoenergy.com
Replay: Available through Monday, November 7 at (800) 642-1687
(US/Canada) and (706) 645-9291 (International) using pass code
1843031 and for 30 days at www.gascoenergy.com
The
notes accompanying the financial statements are an
integral part of the consolidated financial statements
and can be found in Gasco's filing on Form 10-Q dated
November 3, 2005.
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 the
Company's Annual Report on Form 10-K filed with the
Securities and Exchange Commission on March 16, 2005.
GASCO ENERGY, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
September 30, December 31,
2005 2004
ASSETS
CURRENT ASSETS
Cash and cash equivalents $12,651,002 $25,717,081
Restricted investment 3,575,000 3,535,055
Short-term investments 10,000,000 27,000,000
Accounts receivable
Joint interest billings 204,788 429,779
Revenue 2,254,314 615,265
Inventory 1,836,054 1,009,914
Prepaid expenses 251,419 458,555
Total 30,772,577 58,765,649
PROPERTY, PLANT AND EQUIPMENT, at cost
Oil and gas properties (full cost method)
Proved mineral interests 67,973,865 29,811,483
Unproved mineral interests 13,003,729 18,449,330
Gathering assets 4,302,260 2,469,580
Equipment 118,144 89,900
Furniture, fixtures and other 185,326 158,590
Total 85,583,324 50,978,883
Less accumulated depreciation,
depletion and amortization (4,530,199) (2,247,032)
Total 81,053,125 48,731,851
OTHER ASSETS
Restricted investment 5,307,884 6,778,040
Deferred financing costs 2,749,002 3,092,628
Total 8,056,886 9,870,668
TOTAL ASSETS $ 119,882,588 $ 117,368,168
Accompanying notes are an integral part of the consolidated financial
statements and are in Gasco's 10-Q filed on 11/3/05.
GASCO ENERGY, INC.
CONSOLIDATED BALANCE SHEETS (continued)
(Unaudited)
September 30, December 31,
2005 2004
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $598,616 $1,447,149
Revenue payable 1,340,885 334,765
Advances from joint interest owners 1,235,305 891,999
Accrued interest 1,737,849 695,139
Accrued expenses 4,223,089 2,677,352
Total 9,135,744 6,046,404
NONCURRENT LIABILITES
5.5% Convertible Senior Notes 65,000,000 65,000,000
Asset retirement obligation 167,745 108,566
Deferred rent expense 69,897 --
Total 65,237,642 65,108,566
STOCKHOLDERS' EQUITY
Series B Convertible Preferred stock -
$.001 par value; 20,000 shares
authorized; 763 shares issued and
outstanding with a liquidation
preference of $335,720 in 2005 and
2,255 shares issued and outstanding
with a liquidation preference of
$992,200 in 2004 1 2
Common stock - $.0001 par value;
300,000,000 shares authorized;
71,978,392 shares issued and
71,904,692 outstanding in 2005;
70,590,909 shares issued and
70,517,209 shares outstanding in 2004 7,198 7,059
Additional paid in capital 77,517,563 76,346,463
Deferred compensation (337,982) (512,440)
Accumulated deficit (31,547,283) (29,497,591)
Less cost of treasury stock of
73,700 common shares (130,295) (130,295)
Total 45,509,202 46,213,198
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $119,882,588 $117,368,168
Accompanying notes are an integral part of the consolidated financial
statements and are in Gasco's 10-Q filed on 11/3/05.
GASCO ENERGY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
September 30,
2005 2004
REVENUES
Gas $3,793,771 $757,073
Oil 166,727 60,252
Gathering 471,478 --
Interest income 264,751 43,065
Total 4,696,727 860,390
OPERATING EXPENSES
Lease operating 236,413 179,241
Gathering operations 267,792 --
Depletion, depreciation and amortization 1,211,550 283,522
General and administrative 1,323,376 869,982
Interest expense 1,008,293 68,056
Total 4,047,424 1,400,801
NET INCOME (LOSS) 649,303 (540,411)
Preferred stock dividends (6,212) (23,754)
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON
STOCKHOLDERS $643,091 $(564,165)
NET INCOME (LOSS) PER COMMON SHARE
BASIC $0.01 $(0.01)
DILUTED $0.01 $(0.01)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
BASIC 70,991,812 65,835,129
DILUTED 75,838,798 65,835,129
Accompanying notes are an integral part of the consolidated financial
statements and are in Gasco's 10-Q filed on 11/3/05.
GASCO ENERGY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Nine Months Ended
September 30,
2005 2004
REVENUES
Gas $6,268,928 $2,189,860
Oil 354,963 156,138
Gathering 927,375 --
Interest income 979,708 91,470
Total 8,530,974 2,437,468
OPERATING EXPENSES
Lease operating 598,115 596,053
Gathering operations 684,320 --
Depletion, depreciation and amortization 2,351,256 784,861
General and administrative 3,922,097 2,633,216
Interest expense 3,024,878 228,816
Total 10,580,666 4,242,946
NET LOSS (2,049,692) (1,805,478)
Preferred stock dividends (27,433) (136,640)
NET LOSS ATTRIBUTABLE TO COMMON
STOCKHOLDERS $(2,077,125) $(1,942,118)
NET LOSS PER COMMON SHARE -
BASIC AND DILUTED $(0.03) $(0.03)
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING - BASIC AND DILUTED 70,661,070 61,289,142
Accompanying notes are an integral part of the consolidated financial
statements and are in Gasco's 10-Q filed on 11/3/05.
GASCO ENERGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended
September 30,
2005 2004
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $(2,049,692) $(1,805,478)
Adjustment to reconcile net loss to
net cash used in operating activities
Depreciation, depletion and
impairment expense 2,341,819 770,411
Accretion of asset retirement
obligation 9,437 14,450
Stock compensation 539,378 241,002
Amortization of beneficial conversion
feature -- 25,002
Non-cash rent expense 39,897 --
Landlord incentive payment 30,000 --
Amortization of deferred financing costs 343,626 27,930
Changes in operating assets and
liabilities:
Accounts receivable (1,414,058) 74,489
Inventory (826,140) --
Prepaid expenses 207,136 155,865
Accounts payable (988,953) (1,296,167)
Revenue payable 1,006,120 8,427
Advances from joint interest owners 343,306 971,272
Accrued interest 1,042,710 --
Accrued expenses 1,545,737 (908,416)
Net cash provided by (used in)
operating activities 2,170,323 (1,721,213)
CASH FLOWS FROM INVESTING ACTIVITIES
Cash paid for furniture, fixtures and
other (85,388) (50,575)
Cash paid for acquisitions, development
and exploration (35,356,065) (12,187,200)
Proceeds from property sales 828,102 4,314,984
Proceeds from sale of short-term
investments 17,000,000 --
Cash designated as restricted (208,331) --
Cash undesignated as restricted 1,638,542 250,000
Net cash used in investing activities (16,183,140) (7,672,791)
CASH FLOWS FROM FINANCING ACTIVITIES
Preferred dividends (21,501) (26,962)
Exercise of options to purchase
common stock 968,239 33,336
Proceeds from sale of common stock -- 21,500,001
Cash paid for offering costs -- (1,429,659)
Net cash provided by financing activities 946,738 20,076,716
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (13,066,079) 10,682,712
CASH AND CASH EQUIVALENTS:
BEGINNING OF PERIOD 25,717,081 3,081,109
END OF PERIOD $ 12,651,002 $13,763,821
Accompanying notes are an integral part of the consolidated financial
statements and are in Gasco's 10-Q filed on 11
