Gasco Energy Continues to Evaluate Strategic Alternatives
DENVER, May 13, 2013 /PRNewswire/ -- Gasco Energy, Inc. (OTCQB: GSXN) ("Gasco" or the "Company") today announced that it is continuing to evaluate its strategic alternatives for the Company's assets, including a sale of the Company or all of its assets. Stephens, Inc., Gasco's financial advisor, has been assisting and continues to assist in the evaluation process, which is intended to maximize the value of Gasco's assets.
As previously disclosed, since mid-year 2012, the Company has been seeking to restructure or refinance its debt or to sell some or all of its assets to improve its liquidity position. While these efforts have not been successful to date, Gasco is continuing to evaluate and pursue various options to address the Company's liquidity constraints.
It is possible these strategic alternatives will require the Company to make a pre-package, pre-arranged or other type of filing for protection under Chapter 11 of the U.S. Bankruptcy Code. In addition, because the Company has not made the required interest payment on its outstanding 5.50% convertible senior notes due 2015 (the "notes") within 30 days after the date when due, an event of default has occurred under the indenture governing the notes and an involuntary petition for bankruptcy may be filed against Gasco. These factors raise substantial doubt about the Company's ability to continue as a going concern.
The Company cannot provide any assurances that it will be successful in accomplishing any of these plans or that any of these actions can be effected on a timely basis, on satisfactory terms or maintained once initiated. Furthermore, the Company's cash management strategies may limit its ability to successfully execute its strategic alternatives.
The strategic review process has not been initiated as a result of any particular offer. The Company does not intend to disclose developments with respect to this process except to the extent required under applicable securities regulations.
About Gasco Energy
Denver-based Gasco Energy, Inc. is a natural gas and petroleum exploitation, development and production company engaged in locating and developing hydrocarbon resources, primarily in the Rocky Mountain region and in California's San Joaquin Basin. Gasco's principal business is the acquisition of leasehold interests in petroleum and natural gas rights, either directly or indirectly, and the exploitation and development of properties subject to these leases. Gasco focuses its drilling efforts in the Riverbend Project located in the Uinta Basin of northeastern Utah, targeting the oil-bearing Green River Formation and the natural gas-prone Wasatch, Mesaverde, Blackhawk, Mancos, Dakota and Morrison formations. To learn more, visit http://www.gascoenergy.com.
Not an Offer
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities or other assets.
Certain statements set forth in this press release relate to management's future plans, objectives and expectations. Such statements are forward-looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this press release, including, without limitation, statements regarding the Company's ability to pursue and execute strategic alternatives, are forward-looking statements. These statements express, or are based on, management's current expectations and forecasts about future events. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "should," "would," "could," "expect," "intend," "project," "estimate," "anticipate," "plan," "believe," "foresee," or "continue" or the negative thereof or similar terminology.
Although any forward-looking statements contained in this news release or otherwise expressed by the Company are to the knowledge and in the judgment of management, believed to be reasonable when made, there can be no assurances that any of these expectations will prove correct or that any of the actions that are planned will be taken. Forward-looking statements involve and may be affected by inaccurate assumptions, and known and unknown risks and uncertainties (some of which are beyond the Company's control), that may cause the Company's actual actions, performance and financial results in future periods to differ materially from any expectation, projection, estimate or forecasted result. The key factors that may cause actual actions or results to vary from those the Company expects are described in (1) Part I, "Item 1A–Risk Factors," "Item 7–Management's Discussion and Analysis of Financial Condition and Results of Operations," "Item 7A–Quantitative and Qualitative Disclosure About Market Risk" and elsewhere in the Company's Annual Report on Form 10-K for the year ended December 31, 2012 and (2) the Company's other reports and registration statements filed from time to time with the SEC.
Any of these factors could cause the Company's actual actions or results to differ materially from those implied by these or any other forward-looking statements made by the Company. The Company cannot assure you that its future actions and results will meet its expectations. When you consider these forward-looking statements, you should keep in mind these factors. All subsequent written and oral forward-looking statements attributable to the Company are expressly qualified in their entirety by these factors. The Company's forward-looking statements speak only as of the date made. The Company assumes no duty to update or revise its forward-looking statements based on changes in internal estimates or expectations or otherwise.
SOURCE Gasco Energy, Inc.