Gasco Announces Riverbend Completions

Gasco Energy, Inc. updates oil and gas activities on its Riverbend Project in Utah's Uinta Basin.

Lytham Federal 22-22 (Gasco-operated: approximately 70% WI)
Gasco is pleased to announce that it successfully completed eight stages over a gross interval of greater than 4,700 feet in the Wasatch and Mesaverde sections. During a 24-hour test, the well had initial potential of 2.3 million cubic feet of natural gas per day (MMcfd) with initial flowing tubing pressure of 2,100 psi, utilizing a 26/64 inch choke. The well was constrained at the surface by the production equipment. Associated fluid production was 360 barrels of water, consisting almost entirely of frac fluid, and four barrels of condensate.

Federal 32-31 (Gasco-operated: approximately 80% WI)
All Mesaverde and Wasatch pay in the Federal 32-21 has been fully completed. Initial production for the well during the first 24 hours was approximately 1.26 MMcfd. The well is now flowing gas to sales and is notable because it is one of the lowest-cost completions performed by Gasco in the Uinta Basin.

Using the Schlumberger proprietary PowerSTIM* well optimization service, Schlumberger and Gasco personnel collaborated to evaluate the reservoir and design cost-efficient, high productivity completions for these two wells.

Commenting on the successful implementation of the PowerSTIM process, Gary Kolstad, Schlumberger Vice President for US Land said, "This is another example of a successful PowerSTIM implementation in tight gas reservoirs. PowerSTIM integrates the technical and economic considerations of the reservoir and delivers exemplary results for our Clients."

The Lytham 22-22 and the Federal 32-31 are the first two wells completed by Gasco using Schlumberger's technique to complete all available wellbore net pay in one completion process. Schlumberger has been successful in applying this technique in several other fields and basins.

Commenting on Uinta Basin operations, Gasco CEO and President, Mark Erickson said: "The Lytham Federal 22-22 appears to be a commercial success. While we are excited about the early results, we are monitoring its progress and are working to resolve the surface constraints that can come with wells that IP at much higher rates than anticipated. The bigger lesson to be taken from the Lytham 22-22 is that engineering and completions techniques are so vital to a successful well in these tight gas sands. We are pleased to be working with Schlumberger's talented team. They are bringing a whole new thought process to Uinta completion design. We admire their progressive ideas and focus on lowering per-unit development costs and will work together to improve cost savings and initial production rates for the wells drilled in the 2004 program. It is good timing to have additional gas flowing to sales. Gasco is unhedged and is benefiting from seasonally constricted Rocky Mountain price differentials. Our average wellhead price for December through today is ranging between $5.25 and $6.00 Mcfe."