Gasco Energy, Inc. (NYSE MKT: GSX)
ABOUT GASCO ENERGY | Overview
Denver-based Gasco Energy, Inc. (NYSE MKT: GSX) is a natural gas and oil exploitation and development company focused on natural-gas-rich prospects in the Rocky Mountain area of the United States, specifically in Utah's Uinta Basin. Additional exploration leasehold is located in California and Nevada.
The Company's principal business strategy is to enhance stockholder value by using technologies new to a specific area to generate and develop high-potential exploitation resources in this area. 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 currently focuses its efforts in the Riverbend Project located in the Uinta Basin of northeastern Utah, targeting the Wasatch, Mesaverde and Blackhawk, Mancos and Dakota/Morrison gas bearing formations and the oil-prone Green River Formation. As of December 31, 2011, Gasco held interests in 184,612 gross acres (86,178 net acres) located in Utah, California and Nevada.
The Rockies represent the largest untapped, drillable potential for natural gas supply in North America. The Potential Gas Committee (PGC) estimates ultimate recovery of total gas reserves in the Rockies at 230 trillion cubic feet, excluding coalbed methane. The PGC estimates the greatest potential for non-associated natural gas in the Rocky Mountain region is concentrated in southwestern and south-central Wyoming, adjacent northwestern Colorado and northeastern Utah. This region includes the Uinta, Piceance and Greater Green River Basins.
ABOUT GASCO ENERGY | Management
Gasco's highly qualified management and technical team has extensive industry experience and a proven track record in oil and gas exploitation and development. The team has successfully developed several "early stage" oil and gas companies in the U.S. and Canada.
ABOUT GASCO ENERGY | Directors
| Richard S. Langdon |
| Interim Chief Executive Officer, Board Member |
Mr. Langdon assumed the role of Interim Chief Executive Officer on May 14, 2013. He has served as a director and a member of the Audit Committee since March 2003. In January 2010, Mr. Langdon was appointed Chairman of the Audit Committee and a member of the Compensation Committee. Mr. Langdon is currently the President and Chief Executive Officer of KMD Operating Company LLC, a position held since November 2011, and President and Chief Executive Officer of Sigma Energy Ventures, LLC, a position held since November 2007, each of which is a privately held exploration and production company active in California and Texas, respectively. Mr. Langdon was the President and Chief Executive Officer of Matris Exploration Company L.P., a privately held exploration and production company, from July 2004 until the merger of Matris Exploration into KMD Operating in November 2011, which merger was effective January 2011. From 1997 until December 2002, Mr. Langdon also served as Executive Vice President and Chief Financial Officer of EEX Corporation, an NYSE listed exploration and production company acquired by Newfield Exploration in late 2002. Prior to joining EEX Corporation, Mr. Langdon was an oil and gas consultant from August 1996 to March 1997. He also held various positions with the Pennzoil Companies from 1991 through 1996, including Executive Vice President – International Marketing (Pennzoil Products Company) from June 1996 to August 1996, Senior Vice President – Business Development & Shared Services (Pennzoil Company) from January 1996 to June 1996, and Senior Vice President – Commercial & Control (Pennzoil Exploration & Production Company) from December 1991 to December 1995. Mr. Langdon is currently the Chairman of the board of directors of Constellation Energy Partners LLC, a public limited liability company focused on the acquisition, development and exploitation of oil and natural gas properties and related midstream assets. Mr. Langdon holds a B.S. in Mechanical Engineering and an M.B.A. from the University of Texas at Austin.
| Michael K. Decker |
| Executive Vice President and Chief Operating Officer |
Mr. Decker has served as our Executive Vice President and Chief Operating Officer since July 2001 and also served as a director from July 2001 until October 2003. Mr. Decker has over thirty three years of oil and gas exploration, development, operations and mergers and acquisitions experience. He founded and served as the President of Black Diamond Energy, LLC from August 1999 until July 2001. From 1990 to August 1999 Mr. Decker served as the Vice President of Exploitation of Prima Energy Corporation, a NASDAQ traded oil and gas company. From 1988 to 1990, he was employed by Bonneville Fuels Corporation as a Senior Geologist and by Tenneco Exploration and Production Company as a Senior Project Geological Engineer from 1977 to 1988. Mr. Decker is currently on the board of the Potential Gas Committee, an independent natural gas resource assessment organization, and previously served as chairman. He holds a B.S. in Geological Engineering from the Colorado School of Mines.
| Richard P. Crist |
| Vice President, Business Development and Exploration |
Mr. Crist joined Gasco on March 1, 2012. With over 42 years of oil and gas experience, Mr. Crist has a broad range of managerial and technical expertise that includes 25 years in corporate and senior management roles. He has relevant expertise in new business development in the Rockies and other North American basins. His past positions include senior technical and business development roles at energy companies including Denver-based White Birch Energy, Elk Resources, a Denver-based oil and gas company focused on the US Rocky Mountain region, GLOBEX Energy, Inc., Triton Energy Corporation, The Superior Oil Company and Sinclair/Atlantic Richfield where he began his career as a geophysicist. Mr. Crist earned his degree as an engineer of geophysics with a minor in geology from the Colorado School of Mines in Golden, Colo. He is a member in good standing of the Society of Exploration Geophysicists and the American Association of Petroleum Geologists and is a Certified Petroleum Geologist.
| Peggy Herald |
| Vice President-Accounting and Administration, Chief Accounting Officer and Treasurer |
Ms. Herald joined Gasco in 2002 as Controller, was later named Vice President and Controller and was appointed Chief Accounting Officer in June 2006 and was appointed Vice President, Accounting and Administration in May 2007. In June 2010 her responsibilities were expanded to include the position of Corporate Treasurer, as well. She has over 20 years of financial, accounting and reporting experience in the oil and gas industry. Prior to joining Gasco, she served as the Financial Reporting Manager for Hallwood Energy Corporation, where she managed the financial reporting process for several publicly traded oil and gas corporations and limited partnerships. She also worked in public accounting for five years at Deloitte & Touche LLP and KPMG LLP. Ms. Herald holds a Bachelor of Science in Accounting from Regis University.
| Camille A. Gerard |
| Controller and Corporate Secretary |
Ms. Gerard joined us in May 2008 and in June 2010 was promoted to Corporate Secretary. Ms. Gerard has over 20 years of energy industry and consulting experience in internal auditing, e-marketing, and commodity management, including transportation and marketing of natural gas and pulp and paper. From May 2005 through May 2008, Ms. Gerard was the founder of Risk Management Consulting, LLC, a Denver-based company that performed Sarbanes-Oxley reviews for such companies as Gasco Energy, EKS&H, and St. Mary Land and Exploration. Ms. Gerard has also worked in natural gas marketing with Xcel Energy, pulp and paper trading with Enron Industrial Markets, launching and managing marketing support for a start-up trading website for Enron Net Works, and Marketing Support for Northern Natural Gas. She holds a Bachelor of Science in Geology from the University of Louisiana at Lafayette and MBA with a specialization in Internal Auditing from Louisiana State University. She is a Certified Internal auditor and Certified Public Accountant.
| Diane Westerberg |
| Land Manager |
Prior to joining Gasco, Ms. Westerberg was Land Manager with Suncor Energy USA. She has 30 years of experience in the oil and gas industry holding a variety of positions related to land. Ms. Westerberg has been employed by majors, independents and limited partnerships and been active in the Rocky Mountains, Gulf Coast, West Coast and Appalachian Basin. She is a member of the American Association of Petroleum Landmen and the Denver Association of Petroleum Landmen. Ms. Westerberg received her Bachelors of Science Degree in Business Administration from Regis University and her Juris Doctorate from the University of Denver.
Gasco Energy is committed to providing expertise to enhance the reputation and governance of the company through its Board of Directors.
| Charles B. Crowell |
| Chairman of the Board of Directors |
| W. King Grant |
| President, Chief Executive Officer and Director |
| Richard S. Langdon |
| Director and Chairman of Audit and Nominating Committees and Member of the Compensation Committee |
| Richard J. Burgess |
| Director and Member of Audit, Nominating and Compensation Committees |
| Richard J. Burgess |
| Director and Member of Audit, Nominating and Compensation Committees |
| John A. Schmit |
| Director and Member of the Executive, Audit and Nominating Committees and Chairman of the Compensation Committee |
| Steven D. (Dean) Furbush |
| Director, Member of Audit, Nominating and Compensation Committees | OPERATIONS | Overview
OPERATIONS | Overview
Denver-based Gasco Energy (NYSE MKT: GSX) is an independent exploitation and production company focused on developing tight gas sands in the United States Rocky Mountains. The Company's primary project is in the prolific hydrocarbon-bearing Uinta Basin of Utah. SEC-defined proved reserves at December 31, 2011 were 19.9 Bcfe, 100% of which were in Utah, 92% were natural gas and 100% were proved developed.
Gasco also owns or controls leasehold in the San Joaquin Basin in California and in exploratory areas of Nevada.
Gasco's 2012 initial capital expenditure budget ("Capex") is $5.0 million for oil and gas activities. In the Uinta Basin, the Company is allocating approximately $3.6 million for the drilling and completion of seven gross (1.3 net) new Green River Formation oil wells and six gross (2.0 net) new-drill natural gas wells. The Uinta drilling program is expected to commence during the third quarter of 2012.
The Company has allocated an additional $1.4 million to progress its exploration program, principally focusing on its California projects, including ongoing leasing and seismic acquisition.
The Company expects that the Capex budget will be funded primarily from cash on hand and cash flow from operations. The 2012 Capex budget is subject to market conditions, drilling results, oilfield service availability, and commodity prices. The 2012 Capex does not include any promotes or carries in its California projects.
At December 31, 2011, the Company owned or controlled approximately 111,926 gross acres, or 41,661 acres net its interest. Riverbend is a statistical play yielding predictable reserve adds marked by low geologic risk. The key to the project is in leveraging proven drilling and completion technologies, in particular stage fracing techniques, to best recover the gas in place.
Historically, Gasco's engineering and geologic efforts focused on three tight-sand formations in the Uinta basin: the Wasatch, Mesaverde and Blackhawk formations. A typical well drilled into these formations may encounter multiple, distinct natural gas sands located between approximately 6,000 and 13,000 feet in depth that are completed using up to 10 staged fracture stimulations. During 2006 and into 2007, increased industry activity to the deeper Mancos shale began to occur. Initial results derived from public data are encouraging.
During the second quarter of 2007, Gasco spudded its first Mancos Shale test well and, based on early success here, continues to actively target the Mancos shale in its current drilling program. A key internal driver at Gasco is to continue reducing drilling days improving operational factors within our control to improve well economics. The current target is 20 to 25 days to drill from below surface casing to the Upper Mancos interval between 13,000 feet and 15,000 feet. The fastest Mancos well was drilled to 14,250 feet in 16 days. Our current plan is for all wells in the Riverbend Project to be drilled to the Upper Mancos.
In December 2011, Gasco began drilling two 50% working interest wells to test the productive potential of the oil-prone Green River Formation. The Federal 34-19 was successfully completed in three stages and the Federal 23-30 was successfully completed in four stages. The Federal 34-19G and the Federal 23-30G had initial seven-day average rates of 67 BOPD and 50 BOPD, respectively. The wells continue to produce as expected. Based on the early success of these Green River wells, Gasco plans to drill seven gross (1.3 net) new Green River wells in its 2012 capital expenditure program.
OPERATIONS | California
As of December 31, 2011, Gasco's leasehold interest in the San Joaquin Basin is approximately 37,959 gross acres (14,603 net) in Kern and San Luis Obispo Counties of Southern California. Leasehold rental payments and geological expenses are current in order to preserve the acreage positions. The Company is actively marketing these prospects to attract drilling partners for further exploration of the area. The project is in close proximity to the Midway-Sunset and Belgian Anticline oil fields which combined have cumulative production in excess of 2 billion barrels of oil.
Below is a description of the various projects in this area as of April 2012:
Northwest McKittrick. The operator of this shallow oil prospect continues to work with the applicable California state agencies to acquire the appropriate permits. Progress has been slowed due to California state budget issues and forced furloughs affecting the regulatory agencies. While some progress has been made, final approval is still pending from Federal and California agencies.
Willow Springs. The operator of this oil prospect has drilled and reached total depth on the initial well. The operator has run a seven inch liner to total depth with the intent of testing the well. It is anticipated that the well will be tested within the next 45 to 60 days.
Antelope Valley. The operator of these oil and liquids-rich prospects is currently processing and interpreting the 3-D seismic data over the Antelope Valley prospects. Our agreement with the operator requires that the initial earning well be spud during the first half of 2012.
S.W. Cymric. In Q1-12, the S.W. Cymric prospect, featuring both shallow and deep oil and gas potential pay horizons, was sold for a prospect fee of $750,000 and includes a best-efforts drilling commitment subject to seismic evaluation. Gasco will be carried for a 20% working interest in the first well.
San Joaquin Basin. We continue to develop new prospects and acquire acreage along the west side of the San Joaquin Basin. The new prospects are a continuation of the structural and stratigraphic geologic model that we have been working on for the past nine years that has yielded recent success along the west side as demonstrated by discoveries and field development by other operators with similar geologic models.
Wednesday, September 26, 2012
Wednesday September 26, 2012 at 10:10 AM PDT
| Market Value1 || $12,255,949 || a/o Feb 01, 2013 |
| Shares Outstanding || 169,749,981 || a/o Nov 14, 2012 |
| Float || Not Available |
| Authorized Shares || Not Available |
| Par Value || 0.0001 |
| Shareholders of Record || 323 || a/o Mar 04, 2008 |