Gasco & Burlington to Develop Wyoming Acreage
Gasco Energy, Inc. announced an exploration agreement with Burlington Resources to explore and potentially develop a series of deep natural gas plays in Wyoming's Greater Green River Basin. Financial terms were not released. The companies will jointly explore and develop seven Areas of Mutual Interest (AMI) under an umbrella Exploration Agreement covering approximately 332,000 acres in west central Wyoming. Burlington will be the operator of each AMI, holding a 50% working interest. Gasco will own a 25% working interest and a private company will own the remaining 25% working interest.
As part of the Exploration Agreement, Burlington will acquire approximately 180 miles of high-resolution 2-D seismic data and has the obligation to drill two wells. Those costs will be borne 100% by Burlington Resources. The partners will proportionately share subsequent costs associated with drilling additional wells. The Exploration Agreement calls for Burlington to make drilling decisions on each AMI between today and August 2003.
Mark A. Erickson, Gasco President and CEO, said: "This is a milestone event for Gasco. The AMI Agreement with Burlington establishes a new core operating area for Gasco, and strengthens the company's total operating position in the Rocky Mountains. This agreement gives both companies multiple ground-floor opportunities to explore and, if successful, develop large natural gas deposits in the Greater Green River Basin. According to the U. S. Geological Survey (Gautier, Dolton, et al 1995), the Greater Green River Basin has produced more than 7.3 trillion cubic feet of natural gas and 849 million barrels of oil, making it one of the country's giant oil and gas fields.
Burlington Resources is a world-class operator to partner with to develop the many highly fractured, tight-gas-sands prospects we jointly expect to find. We are certain the AMI will prove to be a mutually beneficial relationship to our companies."