Gasco Energy, Inc.(fka GSXN)

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Gasco Energy Inc., Denver, (NYSE Amex: GSX) reports the recent discovery of oil and gas reserves by Occidental Petroleum Corp., Los Angeles, (NYSE: OXY) in Kern County, California may have a positive effect on its assets.

Oxy reported in July that it believes there are between 150 million and 250 million gross barrels of oil equivalent reserves within the outlined area where the company has drilled six wells to date to delineate the discovery.

The discovery is approximately 10 miles from certain of Gasco's San Joaquin Basin leasehold. Gasco owns or controls approximately 18,655 gross acres and 14,750 net mineral acres Kern and San Luis Obispo counties. Its geologists are currently evaluating the productive potential of its leasehold due to heightened interest in leasing activity and in potential farm-outs, drilling partners or other possible joint venture opportunities in the area proximate to the significant discovery.

Gasco's total assets at June 30 were $103.5 million, as compared to $153.9 million at year-end 2008. Net cash provided by operating activities for the first half of 2009 was $13 million as compared to $13.1 million for the same period in 2008.

The company reported oil and gas sales for the second quarter of $3.4 million, compared to $12.6 million for the same period in 2008. The decrease in oil and gas sales during the second quarter is primarily attributed to a 72% decrease in prices received for sales of the company’s natural gas and a 55% decrease in prices received for oil volumes, combined with a 9% decrease in production quarter-over-quarter. Gathering and processing revenues from Gasco's midstream assets were $1 million for the second quarter, as compared to $1.1 million in the prior-year period. Total revenues for the second quarter were $4.4 million, as compared to $14.1 million in the second quarter 2008.

Oil and gas sales for the first half of 2009 were $7.6 million, as compared to $21.1 million for the same period in 2008. The decrease in oil and gas sales during the first half of the year as compared to the prior-year period is primarily attributed to a 65% decrease in prices received for sales of the company’s natural gas and a 60% decrease in prices received for oil volumes, partially offset by a 2% increase in oil and gas production.

Long-term debt was $34.9 million at June 30 as compared to $31 million at Dec. 31, 2007. Gasco currently has a $250 million credit facility with JPMorgan, of which $35 million is available for borrowing capacity and $34.9 million is drawn.
http://www.oilandgasinvestor.com/Headlines/2009/WebAugust/item43525.php

Gasco has interests in the Rocky Mountain region.