Gasco Energy, Inc.(fka GSXN)

[Timothy Smith]

Watch California for price moving developments.

Willow Springs

In Gasco's Willow Springs Prospect, the partners have completed testing the deepest objective in this well bore which features additional up-hole pay potential. Oil was produced from the deepest objective, however, hydrocarbon quantities were deemed uneconomic. There is a completion rig on location which is preparing to move up the well bore to test the next potential pay horizon. Testing of the deepest objective did confirm the presence of a structure which helps confirm the Company's geologic model. Initial wireline log analysis indicated potential additional zones of interest uphole. Testing in the next pay horizon should be undertaken in the near future. Gasco looks forward to updating investors on the well's progress when it receives further information.

"The initial Willow Springs exploratory well has the potential to encounter various pay horizons," said King Grant, Gasco's President and CEO. "The deep results do not condemn the deeper horizon, instead they confirm a structural trap which is consistent with our belief that hydrocarbons are present and exist in structural traps in deeper parts of the San Joaquin Basin. We are encouraged by the uphole pay potential in the current well bore, and by the information gained from the initial well."

NW McKittrick

The operator of the NW McKittrick shallow oil prospect has advanced the permitting process with the applicable California state and US federal agencies. Spudding of the first well, based upon final permit approval, is expected to occur later this year.