DENVER, April 24, 2012 /PRNewswire/ -- Gasco Energy, Inc. (NYSE Amex: GSX) today provided an interim operations update on its Riverbend Project in Utah's Uinta Basin and on its California projects in the San Joaquin Basin.
Riverbend Project Operations Update
Green River Oil Well Completion Operations
As previously announced, during Q1-12 Gasco successfully
completed two Green River Formation oil wells, the Federal
#34-19 and the Federal #23-30. The wells are on
artificial lift and continue to produce oil as
expected. The Company expects to drill additional
Green River oil wells during the second half of 2012.
As previously announced, the wells had seven-day average
initial production rates of 67 barrels of oil per day
(BOPD) and 50 BOPD, respectively. After nearly 90
days on production, the wells have averaged approximately
21 and 15 BOPD and both have now stabilized at
approximately these same average rates.
Natural Gas Completion Operations
During Q1-12, Gasco recompleted 1.0 gross wells (0.85
net prior to adjusting for JV interest) natural gas
wells to target up-hole pay zones in exiting wellbores.
Gasco currently has an inventory of 14 operated wells
with up-hole recompletions and has one Upper Mancos well
awaiting initial completion activities. The Company
contracts drilling rigs as needed and does not currently
have a rig under contract at this time. Increased
activity in drilling natural gas wells and in recompletions
is scheduled to commence during the second half of
2012. As of April 23, 2012, Gasco operated 135 gross
wells.
Quarterly Production
Estimated cumulative net production for the quarter ended
March 31, 2012 was 891 million cubic feet equivalent
(MMcfe), a 7.1% decrease from Q1-11's production of 959
MMcfe, and a 0.1% increase in sequential quarterly
equivalent production of 884 MMcfe. During Q1-12,
Gasco's Uinta Basin joint venture partner received its
50% interest in 10 days of production subsequent to the
March 22, 2012 closing of the joint venture. The
Company estimates that approximately 36 MMcfe of production
was attributed to the joint venture partner's interest
in the 10-day period. On a comparable basis,
sequential quarterly production would have grown by 4.9%
and quarter-over-quarter production would have decreased by
3.3%.
By commodity, Gasco posted improved crude oil volumes of 9,885 barrels of oil for Q1-12, as compared to 7,950 barrels in Q4-11, a 24.3% increase sequentially. The Company attributes the oil production growth to the addition of two new-drill Green River Formation oil wells that began producing during Q1-12. Natural gas volumes of 832 MMcf for Q1-12 were off only fractionally as compared to the Q4-11 sequential quarter.
Gasco Energy Net Production Detail | |||||
Three-months Ended | % Change | ||||
Period-over-Period Comparison |
Mar. 31, |
Dec. 31, |
Mar. 31, |
Sequential |
Quarter- |
Natural Gas / MMcf | 832 | 836 | 913 | 0.00% | -8.9% |
Oil / Bbls | 9,885 | 7,950 | 7,574 | 24.3% | 30.5% |
Natural Gas Equivalents / MMcfe | 891 | 884 | 959 | 0.1% | -7.1% |
*Includes preliminary production estimates for Q1-12 |
California Projects Update
Willow Springs
The Willow Springs operator recently commenced testing the
initial well. Testing is ongoing and further details
will be provided once testing operations have been
completed to the satisfaction of the operator.
Antelope Valley Trend
The operator of this prospect trend is finalizing 3-D
seismic data processing. They are working the data
and have begun to select initial locations.
Management Comment
"We are encouraged that the Willow Springs operator
has opted to test the well to determine the potential for
economic rates of hydrocarbon production," said King
Grant, Gasco's President and CEO. "While it
is too early to determine the ultimate success of this
well, oil shows and log analysis indicated that further
testing should be performed. The impact of our Green
River oil program was evidenced by the 24% growth in
sequential quarter oil production Q1-12 did not
reflect the full effect of the sale of reserves and
production to our JV partner, but it does demonstrate the
potential impact of our Green River oil program on our
operations."
About Gasco Energy
Denver-based Gasco Energy, Inc. is a natural gas and
petroleum exploitation, development and production company
engaged in locating and developing hydrocarbon resources,
primarily in the Rocky Mountain region and in
California's San Joaquin Basin. Gasco's
principal business is the acquisition of leasehold
interests in petroleum and natural gas rights, either
directly or indirectly, and the exploitation and
development of properties subject to these leases.
Gasco focuses its drilling efforts in the Riverbend Project
located in the Uinta Basin of northeastern Utah, targeting
the oil-bearing Green River Formation and the natural
gas-prone Wasatch, Mesaverde, Blackhawk, Mancos, Dakota and
Morrison formations. To learn more, visit Gasco's
website at 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 meaning 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 Gasco's future financial position, potential
resources, business strategy, budgets, projected costs and
plans and objectives of management for future operations,
are forward-looking statements. These statements express,
or are based on, management's expectations about future
events. In addition, forward-looking statements generally
can be identified by the use of forward-looking terminology
such as "may," "will,"
"should," "expect," "intend,"
"project," "estimate,"
"anticipate," "plan,"
"believe," "foresee," 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 Gasco, believed to be reasonable under the circumstances, 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 assumptions which may be inaccurate, and known and unknown risks and uncertainties (some of which are beyond Gasco's control), that may cause Gasco'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 Gasco expects include the consummation of recently announced asset sales or transactions on a timely basis; 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; competition from other companies with greater resources; environmental and other government regulations, including new or proposed legislation; defects in title to properties; increases in Gasco's cost of borrowing or inability or unavailability of capital resources to fund capital expenditures; pipeline constraints; overall demand for natural gas and oil in the United States; changes in general economic conditions in the United States; Gasco's ability to manage interest rate and commodity price exposure; changes in Gasco's borrowing arrangements; the condition of credit and capital markets in the United States; and other risks described in (1) Part I, "Item 1A-Risk Factors," "Item 7-Management's Discussion and Analysis of Financial Condition and Results of Operations," "Item 7A-Quantitative and Qualitative Disclosure About Market Risk" and elsewhere in Gasco's Annual Report on Form 10-K for the year ended December 31, 2011 filed with the SEC on March 28, 2012, and (2) Gasco's reports and registration statements filed from time to time with the SEC.
Any of these factors could cause Gasco's actual results to differ materially from the results implied by these or any other forward-looking statements made by Gasco or on its behalf. Gasco cannot assure you that its future results will meet its expectations. When you consider these forward-looking statements, you should keep in mind these factors. All subsequent written and oral forward-looking statements attributable to Gasco, or persons acting on its behalf, are expressly qualified in their entirety by these factors. Gasco's forward-looking statements speak only as of the date made. Gasco assumes no duty to update or revise its forward-looking statements based on changes in internal estimates or expectations or otherwise.
SOURCE Gasco Energy, Inc.
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