Gasco Drilling Crews Make Hole in Record Time

Gasco Energy, Inc. reported that its most recent two Blackhawk wells have reached total depth (TD) in record time, resulting in a combined savings of $400,000.

The reduction to 25 and 28 actual drilling days from a presently budgeted 30 days (for a 12,500' well, drilled out from surface casing) is an integral part of Gasco's cost-reduction initiative which continues to improve per-well economics on its Riverbend Project in Utah's Uinta Basin.

Previously, the record time from spud to TD for a Gasco-operated Blackhawk well was 29 days for a well drilled earlier this year. Nearby, another operator has drilled a well to the Blackhawk in as little as 22 days, which the company believes it can achieve and exceed.

In a memo to the crews, Mike Decker, Gasco's COO said, "I would like to congratulate the rig crews and drilling managers of Rigs 611 and 270, as well as the rest of the Gasco team, for getting these wells down so quickly. Improved rig performance combined with markedly better drill bit design and technology allows us to see faster times to TD. Reducing drilling days, an input over which we have some control, is an important part of our goal of reducing the cost of our wells. Only recently, our budgeted drilling days were 33 to 35 days, and now we are beginning to see sub-30-day wells. This is one of the initial results of our Riverbend Project now moving into a developmental drilling stage. Extrapolated over the course of a full-year drilling program, reduced drilling days will have a meaningful impact on our per-well investment and our per-well economics."

Gasco Energy, Inc. is a Denver-based natural gas and oil exploitation and development company that focuses on natural-gas-rich prospects in the Rocky Mountain area of the United States. The Company currently is active in the Uinta Basin in Utah and controls acreage in the Greater Green River Basin of Wyoming.