Gasco Energy Inc., Denver, (NYSE: GSX) says its year-end total proved reserves totaled 53.1 billion cubic feet of natural gas equivalent, less than half its proved reserves of 110.7 billion cubic feet equivalent during 2007.
All of Gasco's reserves at the end of 2008 were classified as proved developed, whereas half of its reserves in 2007 were considered proved undeveloped and half proved developed. The 2008 reserve mix is 96% natural gas and 4% liquid hydrocarbons.
The reserves, which were estimated by Netherland, Sewell & Associates Inc., are located in Gasco's Riverbend project area in Carbon, Duchesne and Uintah counties in the Uinta Basin.
Gasco says its board of directors has also cut its 2009 capital expenditure budget from $20 million to $10 million due to weakened commodity prices, high service costs for drilling and completing wells and limited capital markets. The revised budget calls for the completion of the Gate Canyon State #23-16 well, the drilling and completion of approximately two gross wells and 12 gross recompletions of uphole zones on Gasco's Riverbend project in Utah.
The company says it will fund its budget through cash flow from operations and, as a result, may accelerate or delay investment based on commodity prices and other market conditions.
Gasco says its rig will be released after it completes operations on the well it is currently drilling. It says it must pay the rig contractor approximately $4.6 million for early termination of the drilling contract, which was set to expire March 15, 2010.
Gasco has a $250 million reserve-base revolving line of credit with a borrowing base of $45 million; $35 million of that was drawn as of Dec. 31, 2008.
Recommended Reading
CERAWeek: Tecpetrol CEO Touts Argentina Conventional, Unconventional Potential
2024-03-28 - Tecpetrol CEO Ricardo Markous touted Argentina’s conventional and unconventional potential saying the country’s oil production would nearly double by 2030 while LNG exports would likely evolve over three phases.
DUG GAS+: Chesapeake in Drill-but-don’t-turn-on Mode
2024-03-28 - COO Josh Viets said Chesapeake is cutting costs and ready to take advantage once gas prices rebound.
CERAWeek: Trinidad Energy Minister on LNG Restructuring, Venezuelan Gas Supply
2024-03-28 - Stuart Young, Trinidad and Tobago’s Minister of Energy, discussed with Hart Energy at CERAWeek by S&P Global, the restructuring of Atlantic LNG, the geopolitical noise around inking deals with U.S.-sanctioned Venezuela and plans to source gas from Venezuela and Suriname.
Exclusive: Chevron Balancing Low Carbon Intensity, Global Oil, Gas Needs
2024-03-28 - Colin Parfitt, president of midstream at Chevron, discusses how the company continues to grow its traditional oil and gas business while focusing on growing its new energies production, in this Hart Energy Exclusive interview.
Baltimore Port Closure Could Dent US Coal Export Volumes, EIA Says
2024-03-28 - Baltimore handled exports of 28 million short tons last year, making up 28% of total U.S. coal exports.