GASE has an interest in over 30,000 acres in the Uinta Basin located in
Utah. Through a joint venture with Phillips Petroleum Company,GASE will
retain 20% of its interests in the earning wells being drilled and completed by
Phillips on Pannonian's lands. The agreement allows GASE to participate
with Phillips for its retained interests in all future Mesaverde Formation
development. GASE also has up to 100% interest in 200 additional Mesaverde
Formation locations and 75% to 100% interest in 130 shallower Wasatch Formation
development locations. Each well in the Wasatch and Mesaverde Formations has
potential recoverable natural gas reserves of one to two billion cubic feet
(Bcf) and two to four Bcf, respectively.
The Riverbend Project, is centrally located in the Uinta basin
of northeastern Utah It is GASE's intention to commence drilling
its Riverbend locations starting in the second quarter with expectations to
drill 10 wells in Riverbend during the next 12
months thereby potentially proving an additional 40 locations for
development drilling in 2002.
A Wasatch well takes approximately ten days to drill to 8,000 feet. The
major costs are in equipping and completing the well due to large
fracture stimulation required. Estimated investment for drilling and
completing a Wasatch well is $500,000.
These lands were obtained through lease acquisitions and farmin
agreements. Should the initial wells required to be drilled by
Phillips, pursuant to the joint venture, prove up the Mesaverde
Formation, then full field development should commence on 80 acre
spacing per well. The joint venture agreement provides for Phillips to
commence the first well by March 1, 2001 with the last to be drilled by
April 1, 2003.
Gasco Energy, Inc. Agrees to Acquire New Energy West Corporation
DENVER--(BUSINESS WIRE)--March 27, 2001--Gasco Energy, Inc.
news) announces that it has entered into a Memorandum of Understanding with
New Energy West Corporation, (NEC-CDNX) pursuant to which Gasco will
exchange five million common shares of Gasco for all of the issued and
outstanding shares of New Energy.
Gasco, formerly San Joaquin Resources Inc., is an independent oil and gas
exploration company. The Memorandum of Understanding is subject to formal
documentation being executed on or before April 20, 2001. In addition, the
transaction is subject to normal due diligence and other terms and
conditions usual in transactions of this nature as well as the approval of
the directors of both companies, the shareholders of New Energy and the
applicable regulatory authorities, including the CDNX. On closing, New
Energy will become a wholly owned subsidiary of Gasco. On a fully diluted
basis immediately prior to closing there will be approximately 28,000,000
shares of Gasco and 36,500,000 shares of New Energy outstanding. Canaccord
Capital is acting as financial advisor on this transaction.
Certain statements contained herein are ``forward-looking'' statements (as
such term is defined in the Private Securities Reform Act of 1995). Because
such statements include risks and uncertainties, actual results may differ
materially from those expressed or implied by such forward-looking
New Energy West Corporation (NEC) has leased
approximately 1585 gross acres and 1523 net
acres in nine separate blocks on the East Lost
Hills Anticline, a newly found, world-class gas
condensate field in the San Joaquin Basin of
This field is located north of Bakersfield, about
one and one half hours by road from Los Angeles.
Currently, Berkley Petroleum Corporation is
operating for a consortium of companies engaged
in delineating the field. New Energy has drillable
acreage offsetting and within one mile, all of the
Berkley wells drilled to date, including the
discovery well Bellevue East Lost Hills #17-1
which blew out at rates exceeding 100 million
cubic feet per day (Mmcf/d) and Berkley ELH #1
which flow tested at a restricted rate of 13.1
Mmcf/d. This well has been placed on
production and is reported to be producing at
an initial restricted rate of 9.6 Mmcf/d and
flowing pressure of 13,300 psi. The projected
production rate will be 20 Mmcf/d.
New Energy West has acreage approximately 3500
feet from the bottom hole location of the step out
well Berkley ELH #2, drilled to the top of the
Temblor Formation. This well is to be tested in
mid February 2001.
Reserves of the entire structure are possibly
within the range from 4 Tcf to 15 Tcf (1,000 Bcf =
1 Tcf). Reserves per well are estimated to range
from 190 Bcf to 250 Bcf. Exploration success to
date on the East Lost Hills structure has been
California is one of the largest natural gas
consuming states and has natural gas pipeline
infrastructure throughout the area.
Berkley Petroleum Corporation has previously
reported in its July 6, 2000 news release, that
Berkley ELH #1 reserves, based on the
production test, are estimated to be 190 to 250
Bcf from a 272 foot thick basal interval only.
There are four other potential hydrocarbon
zones above the tested interval in a 2750 foot
thick gross gas column that have been
identified on well logs, the gas detector logs
and samples. Berkley ELH #2 is to be completed
and tested in the Upper Temblor in a zone
stratigraphically equivalent to the interval that
blew out in Bellevue 17-1.
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