Utah Focus for $32 Million Gasco Capital Budget

Gasco Energy reported that its Board of Directors has approved an initial 2008 capital expenditure budget (Capex) of $32 million. The program includes the drilling and completion of approximately 24 gross (eight net) wells on Gasco's Riverbend Project located in the Uinta Basin of Utah. The wells in the program will be drilled to develop the natural-gas-bearing upper and middle Mancos shale intervals and associated uphole pay zones in each wellbore. The Capex budget does not include possible acquisitions, but may include installation of pipeline infrastructure, distribution facilities and certain geophysical operations. Gasco intends to fund the budget primarily from cash flow from operations and borrowings under the company's $250 million reserve-based revolving line of credit facility with a borrowing base of $47 million of which $12 million was drawn at 9/30/07. The borrowing base will redetermined based on year-end 2007 proven reserves.