DENVER, Nov. 12, 2013 /PRNewswire/ -- Gasco Energy, Inc.
(OTCQB: GSXN) ("Gasco" or the "Company") today announced financial
and operating results for the third quarter ended September 30, 2013.
Q3-13 Financial
Results
Oil and gas sales for the third quarter ended September 30, 2013 were $2.5 million, as compared to $1.8 million for the same period in 2012.
Natural gas sales comprised 79% of total oil and gas sales
for Q3-13. The 38% year-over-year increase in oil and
gas sales is primarily attributed to a 57% increase in the average
price received for the Company's natural gas volumes, offset in
part by an 11% decrease in equivalent production volumes.
Gasco's average realized natural gas price was $4.40 per thousand cubic feet of natural gas
(Mcf) for Q3-13, as compared to $2.81
per Mcf in the prior-year period. Gasco currently does not hedge
its natural gas volumes.
The average realized oil price for Q3-13 was $89.57 per barrel, as compared to $83.14 per barrel for the prior-year
period. Gasco currently does not hedge its crude oil
volumes.
For Q3-13, Gasco reported a net loss of $3.1 million, or $0.02 per basic and diluted share, as compared to
a net loss of $3.2 million, or
$0.02 per basic and diluted share in
Q3-12.
As of September 30, 2013, Gasco's
total assets were $51.3 million, its
stockholders' equity was $10.0
million, and cash and cash equivalents were $2.0 million.
Net cash provided by operating activities during Q3-13 was
$96,000, as compared to net cash
provided by operating activities of $1.2
million in the comparable 2012 reporting period. Net
cash used in investing activities during Q3-13 was $118,000, as compared to $768,000 in the prior-year period.
Q3-13 Unit Cost and Expense Comparisons
Gasco Energy,
Inc.
|
Q3-13
|
Q2-13
|
Q3-12
|
%
Change
|
Unit Cost
Analysis
|
Sequential
|
Q-o-Q
|
Sales Volumes in
Barrels of Oil Equivalent (Mcfe)
|
483,387
|
565,480
|
542,092
|
-15%
|
-11%
|
Average Price
Received Gas ($ / Mcf)
|
$
4.40
|
$
4.50
|
$
2.81
|
-2%
|
57%
|
Average Price
Received Oil ($ / Bbl)
|
89.57
|
82.92
|
83.14
|
8%
|
8%
|
LOE
Components
|
|
|
|
|
|
Direct
Operating Expenses ($ / Mcfe)
|
1.53
|
1.65
|
1.29
|
-7%
|
19%
|
Workover
Expense ($ / Mcfe)
|
0.00
|
0.10
|
0.42
|
-98%
|
-99%
|
Production Tax ($ / Mcfe)
|
0.16
|
0.06
|
0.10
|
156%
|
64%
|
Total Lease
Operating Expense ($ / Mcfe)
|
1.69
|
1.81
|
1.80
|
-7%
|
-6%
|
Transportation
Expense ($ / Mcfe)
|
1.70
|
1.60
|
0.60
|
6%
|
181%
|
DD&A Expense
($ / Mcfe)
|
0.74
|
0.70
|
0.97
|
5%
|
-24%
|
G&A Expense ($
/ Mcfe)
|
1.79
|
2.55
|
1.98
|
-30%
|
-10%
|
Non-cash Stock-based Compensation Expense ($ / Mcfe)
|
$
0.08
|
$
0.08
|
$
0.15
|
-4%
|
-44%
|
Q3-13 Production
Estimated cumulative net production for Q3-13 was 483.4 million
cubic feet of natural gas equivalent (MMcfe), as compared to 542.1
MMcfe in the prior-year period. Included in the Q3-13
equivalent calculation are production volumes of 5,882 barrels of
liquid hydrocarbons, as compared to the prior-year period
production volumes of 4,304 barrels of liquid hydrocarbons.
Net production changes are attributed to normal production
declines in existing wells, which were partially offset by new
producing wells and recompletions and workovers of existing
wells.
Nine-Month 2013 Period
Note Regarding Uinta Basin Joint Venture
During Q1-12, Gasco conveyed a 50% interest in certain of its
Uinta Basin properties to its joint venture partner concurrent with
the March 22, 2012 closing of the
transaction. Due to the late first quarter 2012 closing date
of the 50% interest conveyance, operational and financial results
for the nine-month period ended September
30, 2013 are generally comparable to the prior nine-month
period.
Oil and gas sales for the nine-month period of 2013 were
$7.2 million, as compared to
$6.6 million for the same period in
2012. The 10% increase in oil and gas sales during the
nine-month period of 2013, as compared to the prior-year period, is
primarily attributed to a 57% increase in prices received for
natural gas volumes, offset in part by a 26% decline in equivalent
production.
The average prices received for the nine-month period ending
September 30, 2013 were $4.13 per Mcf and $84.02 per barrel of oil, as compared to
$2.63 per Mcf and $84.84 per barrel in the same period of 2012.
For the nine-month period of 2013, Gasco reported a net loss of
$7.8 million, or $0.05 per share, as compared to a net loss of
$13.4 million, or $0.08 per share in the prior-year period.
Included in the nine-month period of 2013 results are a non-cash
gain of $0.8 million attributed to
derivatives and $1.0 million non-cash
loss related to an impairment of the carrying value of the
Company's inventory. During June
2012, the Company settled its remaining commodity hedge
contract, and the Company currently does not have any commodity
hedges in place.
Net cash provided by operating activities for the nine-month
period of 2013 was $0.4 million as
compared to net cash used in operating activities of $2.2 million for the same period in 2012.
The Company invested approximately $1.3
million during the first nine months of 2013 in oil and gas
activities. Net cash provided by investing activities during
the nine-month period of 2012 included $19.2
million in cash proceeds from the sale of certain of the
Company's Uinta Basin assets as part of the previously announced
Uinta Basin joint venture.
Outlook
Due to the extended decline in natural gas prices in recent
years resulting primarily from excess domestic production, Gasco
has not been able to recover its exploration and development costs
as anticipated. As such, there is substantial doubt regarding
the Company's ability to generate sufficient cash flows from
operations to fund its ongoing operations, and the Company
currently anticipates that cash on hand, available cash under the
credit facility described below and forecasted cash flows from
operations will only be sufficient to fund cash requirements for
working capital through February
2014. This expectation has been revised from Gasco's
previous estimate included in the Form 10-Q for the quarter ended
June 30, 2013 due to the completion
of the October 2013 transaction
discussed below, the implementation of cost savings measures and
cash management strategies. This estimate is based on various
assumptions, including those related to future natural gas and oil
prices, production results and the effectiveness of the Company's
cash management strategy discussed below, some or all of which may
not prove to be correct and may result in the Company's inability
to meet cash requirements prior to the end of February
2014. As a result of these factors, there is
substantial doubt about the Company's ability to continue as a
going concern.
Restructuring Transactions
Gasco has been seeking to restructure or refinance its debt or
sell assets to improve the Company's liquidity position since
mid-year 2012. During this period, Gasco operated without a credit
facility, was delisted from the NYSE MKT LLC, and defaulted under
Gasco's 5.5% Convertible Senior Notes due 2015 (the "2015
Notes").
The Company and Stephens Inc., Gasco's financial advisor,
conducted a process to evaluate various strategic
alternatives. As previously announced, the restructuring
agreements resulting from this process involved an investment in
the Company by Markham LLC ("Markham") and Orogen Energy, Inc.
("Orogen"). On October 17, 2013,
these investors acquired the $45,168,000 aggregate principal amount of Gasco's
2015 Notes and accrued interest thereon, all 182,065 outstanding
Series C convertible preferred shares ("Series C Stock") and common
shares owned by the holders of the 2015 Notes. Then on October 18, 2013, the investors exchanged the
2015 Notes, accrued interest and Series C Stock for 393,550,372
shares of the Company's common stock and 50,000 shares of the
newly-created Series D convertible preferred stock ("Series D
Stock") (the "Restructuring Transactions"). As a result of the
Restructuring Transactions, the new investors now have
fully-diluted control of approximately 97.9% of the equity of the
Company. In addition, the Company recorded a derivative instruments
liability of $71,000 to cover the
potential put of warrants of the Company to it.
The new Series D Stock is convertible into 7,295,744,128 shares
of common stock and is redeemable October
19, 2014 at the option of the holders for $100 per share plus accrued and unpaid dividends
of 10% per annum.
Because the Company does not currently have a sufficient number
of authorized and unreserved common shares to permit the full
conversion of the Series D Stock, Gasco's Board of Directors has
approved and adopted an amendment to its charter to increase the
number of common shares and has recommended to the stockholders
that they approve the charter amendment by written consent. The
written consent approving the charter amendment was subsequently
executed by Markham and Orogen on October
23, 2013, but the charter amendment is not yet effective
pending the completion of required SEC filings.
In addition to the exchange of debt and securities for the new
common and preferred shares, Markham and Orogen have established a
120-day, $5 million senior secured
credit facility to fund the Company's working capital and capital
expenditure requirements. For extending the credit facility,
Gasco also issued to Markham and Orogen a total of 250,000 shares
of Gasco common stock.
Following the closing of the Restructuring Transactions, the
size of Gasco's Board of Directors was set at three members
effective immediately and Gasco accepted the resignations of
Richard J. Burgess, Charles B. Crowell, Steven D. Furbush and John A. Schmit as directors. Richard S. Langdon remains a director and
interim President and Chief Executive Officer of the Company.
G. Wade Stubblefield was appointed
to the Board of Directors of the Company upon the closing and the
Company intends to add L. Edward
Parker as a director upon compliance with Section 14(f) of
the Securities Exchange Act of 1934, as amended, and making
required SEC filings.
Teleconference Call
Management will not host a third quarter 2013 financial and
operating results conference call.
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 Gasco's website at www.gascoenergy.com.
Forward-looking Statements
Certain statements set forth in this press release relate to
management's future plans, objectives and expectations. Such
statements are forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended. All
statements other than statements of historical fact included in
this press release, including, without limitation, statements
regarding Gasco's strategic alternatives, future financial
position, expectations with respect to its liquidity, capital
resources and ability to continue as a going concern, business
strategy, budgets, projected costs and plans and objectives of
management for future operations, 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 press
release or otherwise expressed by us 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 by known and unknown risks and
uncertainties (some of which are beyond Gasco's control), which may
cause Gasco's actual 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 results to vary from those Gasco expects include Gasco's
ability to maintain adequate cash flow from operations or obtain
adequate financing to fund Gasco's capital expenditures and meet
working capital needs and its related ability to continue as a
going concern; volatility and decline in Gasco's stock price and
the ability of its common stock to remain traded on the OTCQB
Marketplace; the ability to meet firm commitment delivery
obligations in gathering, transportation and processing agreements
or otherwise satisfy minimum volume deficiency payment obligations;
the ability to maintain relationships with suppliers, customers;
employees, stockholders and other third parties in light of its
current liquidity situation and recent results of operations;
overall demand for natural gas and oil in the United States and related fluctuations in
natural gas and oil prices, upon which Gasco's operating results
are directly dependent and which impact Gasco's ability to produce
economically; any requirement that Gasco write down the carrying
value of its oil and gas properties due to reductions in natural
gas and oil prices or substantial downward adjustments to its
estimated proved reserves; Gasco's ability to manage commodity
price exposure; any failure by the gathering, transportation or
processing facilities of Gasco's natural gas, which would
negatively affect its ability to deliver its natural gas production
for sale; marketing of oil and natural gas; pipeline constraints;
shortages of supplies, equipment and personnel, and increases in
operating costs and other expenses generally; estimated reserves of
natural gas and oil and underlying assumptions of such estimated
reserves; operating hazards inherent to the natural gas and oil
business and the drilling of wells; acquisition and development of
oil and gas properties, and replacement of reserves; delays in
obtaining drilling permits and the timing and amount of future
production of natural gas and oil; technological changes;
competition; scope and extent of Gasco's insurance coverage; title
defects and deficiencies; federal and state regulatory or
legislative developments, including with respect to environmental
matters; general economic conditions in the United States and key international
markets, including credit and capital market constraints; and other
risks described in (1) Part I, Item 1A "Risk Factors," Part II,
Item 7 "Management's Discussion and Analysis of Financial Condition
and Results of Operations," Part II, Item 7A "Quantitative and
Qualitative Disclosure About Market Risk" and elsewhere in Gasco's
Annual Report on Form 10-K for the year ended December 31, 2012, (2) Part I, Item 2
"Management's Discussion and Analysis of Financial Condition and
Results of Operations", Part II, Item 1A "Risk Factors," Part II,
Item 3 "Quantitative and Qualitative Disclosures About Market Risk"
and elsewhere in Gasco's Quarterly Report on Form 10-Q for the
quarter ended September 30, 2013, and
(3) Gasco's other reports and registration statements filed from
time to time with the SEC.
Any of these factors could cause Gasco's actual results to
differ materially from the results implied by these or any other
forward-looking statements made by Gasco. Gasco cannot assure
you that its future 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 Gasco, or persons acting
on its behalf, are expressly qualified in their entirety by these
factors. Gasco's forward-looking statements speak only as of
the date made. Gasco assumes no duty to update or revise its
forward-looking statements based on changes in internal estimates
or expectations or otherwise.
[Financial and Operational Tables Accompany this News
Release]
The notes accompanying the financial statements are an
integral part of the consolidated financial statements and can be
found in Gasco's Filing on Form 10-Q for the quarter ended
September 30, 2013 filed with the SEC
on November 12, 2013.
GASCO ENERGY,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
2013
|
|
2012
|
ASSETS
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
|
$
2,008,434
|
|
$
2,938,086
|
Accounts
receivable
|
|
|
|
|
Joint interest
billings
|
|
1,760,277
|
|
1,753,204
|
Revenue
|
|
780,952
|
|
777,567
|
Inventory
|
|
359,515
|
|
1,730,733
|
Inventory held
for sale
|
|
351,575
|
|
-
|
Prepaid
expenses
|
|
14,370
|
|
153,848
|
Total
|
|
5,275,123
|
|
7,353,438
|
|
|
|
|
|
PROPERTY, PLANT
AND EQUIPMENT, at cost
|
|
|
|
|
Oil and gas
properties (full cost method)
|
|
|
|
|
Proved properties
|
|
265,443,594
|
|
264,814,427
|
Unproved
properties
|
|
31,717,970
|
|
31,486,314
|
Facilities and
equipment
|
|
1,522,990
|
|
1,493,314
|
Furniture,
fixtures and other
|
|
504,441
|
|
506,511
|
Total
|
|
299,188,995
|
|
298,300,566
|
Less
accumulated depletion, depreciation, amortization and
impairment
|
|
(254,367,017)
|
|
(253,176,523)
|
Total
|
|
44,821,978
|
|
45,124,043
|
|
|
|
|
|
NONCURRENT
ASSETS
|
|
|
|
|
Deposits
|
|
551,370
|
|
531,443
|
Deferred financing
costs
|
|
629,361
|
|
845,367
|
Total
|
|
1,180,731
|
|
1,376,810
|
|
|
|
|
|
TOTAL
ASSETS
|
|
$
51,277,832
|
|
$
53,854,291
|
|
|
|
|
|
GASCO ENERGY,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
(continued)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
December
31,
|
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
5.5% Convertible
Senior Notes due 2015, net of unamortized discount
of
$14,731,680
|
|
|
$
30,436,320
|
|
$
-
|
Accounts
payable
|
|
|
1,569,713
|
|
1,548,121
|
Revenue
payable
|
|
|
2,914,938
|
|
2,454,282
|
Advances from joint
interest owners
|
|
|
47,667
|
|
47,667
|
Accrued
interest
|
|
|
2,495,022
|
|
586,556
|
Accrued
expenses
|
|
|
236,000
|
|
396,000
|
Total
|
|
|
37,699,660
|
|
5,032,626
|
|
|
|
|
|
|
NONCURRENT
LIABILITIES
|
|
|
|
|
|
5.5% Convertible
Senior Notes due 2015, net of unamortized
discount of
$18,530,539
|
|
|
-
|
|
26,637,461
|
Deferred income from
sale of assets
|
|
|
2,311,338
|
|
2,463,177
|
Asset
retirement obligation
|
|
|
876,201
|
|
815,660
|
Derivative
instruments
|
|
|
71,000
|
|
907,500
|
Deferred
rent
|
|
|
283,718
|
|
294,236
|
Total
|
|
|
3,542,257
|
|
31,118,034
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
Series B Convertible
Preferred stock - $0.001 par value; 20,000 shares
authorized; zero shares
outstanding
|
|
|
-
|
|
-
|
Series C Convertible
Preferred stock - $0.001 par value; 2,000,000
shares authorized; 182,065
shares outstanding as of September 30, 2013
and December 31,
2012
|
|
|
182
|
|
182
|
Common
stock - $0.0001 par value; 600,000,000 shares
authorized; 169,731,980
shares issued and 169,658,280 outstanding as of September 30, 2013 and 169,823,681 shares issued and
169,749,981 outstanding as of
December 31, 2012
|
|
|
16,973
|
|
16,982
|
Additional
paid-in capital
|
|
|
262,764,582
|
|
262,624,918
|
Accumulated
deficit
|
|
|
(252,615,527)
|
|
(244,808,156)
|
Less cost of
treasury stock of 73,700 common shares
|
|
|
(130,295)
|
|
(130,295)
|
Total
|
|
|
10,035,915
|
|
17,703,631
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
|
$
51,277,832
|
|
$
53,854,291
|
|
GASCO ENERGY,
INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
Gas
|
|
|
$1,973,446
|
|
$
1,450,782
|
Oil
|
|
|
526,879
|
|
357,843
|
Total
|
|
|
2,500,325
|
|
1,808,625
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
Lease
operating
|
|
|
815,295
|
|
975,520
|
Transportation and
processing
|
|
|
820,411
|
|
326,861
|
Depletion,
depreciation, amortization and accretion
|
|
|
356,480
|
|
524,995
|
Impairment
|
|
|
789,143
|
|
1,016,000
|
General and
administrative
|
|
|
904,701
|
|
1,154,063
|
Total
|
|
|
3,686,030
|
|
3,997,439
|
|
|
|
|
|
|
OPERATING
LOSS
|
|
|
(1,185,705)
|
|
(2,188,814)
|
|
|
|
|
|
|
OTHER (EXPENSE)
INCOME
|
|
|
|
|
|
Interest
expense
|
|
|
(2,077,831)
|
|
(1,752,716)
|
Derivative
gains
|
|
|
104,000
|
|
720,000
|
Amortization of
deferred income from sale of assets
|
|
|
50,613
|
|
50,613
|
Interest
income
|
|
|
-
|
|
7
|
Total
|
|
|
(1,923,218)
|
|
(982,096)
|
|
|
|
|
|
|
NET
LOSS
|
|
|
$
(3,108,923)
|
|
$
(3,170,910)
|
|
|
|
|
|
|
NET LOSS PER
COMMON SHARE – BASIC AND DILUTED
|
|
|
$ (0.02)
|
|
$
(0.02)
|
|
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING -
|
|
|
|
|
|
BASIC AND
DILUTED
|
|
|
169,554,076
|
|
169,324,481
|
|
|
|
|
|
|
GASCO ENERGY,
INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
September
30,
|
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
Gas
|
|
|
$
5,793,536
|
|
$
5,031,824
|
Oil
|
|
|
1,439,290
|
|
1,560,941
|
Total
|
|
|
7,232,826
|
|
6,592,765
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
Lease
operating
|
|
|
2,416,559
|
|
3,815,987
|
Transportation and
processing
|
|
|
2,179,655
|
|
1,502,224
|
Depletion,
depreciation, amortization and accretion
|
|
|
1,125,258
|
|
2,023,261
|
Impairment
|
|
|
1,019,643
|
|
9,071,000
|
General and
administrative
|
|
|
3,364,092
|
|
3,671,664
|
Total
|
|
|
10,105,207
|
|
20,084,136
|
|
|
|
|
|
|
OPERATING
LOSS
|
|
|
(2,872,381)
|
|
(13,491,371)
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
Interest
expense
|
|
|
(5,923,329)
|
|
(5,141,430)
|
Gain on sale of
assets
|
|
|
-
|
|
2,567,574
|
Derivative
gains
|
|
|
836,500
|
|
2,508,090
|
Amortization of
deferred income from sale of assets
|
|
|
151,839
|
|
151,839
|
Interest
income
|
|
|
-
|
|
24,685
|
Total
|
|
|
(4,934,990)
|
|
110,758
|
|
|
|
|
|
|
NET
LOSS
|
|
|
$
(7,807,371)
|
|
$(13,380,613)
|
|
|
|
|
|
|
NET LOSS PER
COMMON SHARE – BASIC AND DILUTED
|
|
|
$
(0.05)
|
|
$
(0.08)
|
|
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING -
|
|
|
|
|
|
BASIC AND
DILUTED
|
|
|
169,554,076
|
|
168,814,549
|
|
|
|
|
|
|
GASCO ENERGY,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
|
|
2013
|
|
2012
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
Net
loss
|
|
|
$
(7,807,371)
|
|
$(13,380,613)
|
Adjustment to
reconcile net loss to net cash provided by (used in)
operating
activities:
|
|
|
|
|
|
Depletion, depreciation,
amortization, accretion and impairment expense
|
|
|
2,144,901
|
|
11,094,261
|
Stock-based
compensation
|
|
|
139,655
|
|
215,947
|
Change in fair value of
derivative instruments
|
|
|
(836,500)
|
|
(1,252,142)
|
Gain on sale of
assets
|
|
|
-
|
|
(2,567,574)
|
Amortization of debt
discount, deferred expenses and other
|
|
|
3,852,508
|
|
3,013,155
|
Payment of
deposit
|
|
|
(19,927)
|
|
(38,138)
|
Changes in operating assets
and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
|
|
(10,458)
|
|
13,338
|
Inventory
|
|
|
-
|
|
(1,463)
|
Note
receivable
|
|
|
-
|
|
500,000
|
Prepaid
expenses
|
|
|
139,478
|
|
110,266
|
Accounts
payable
|
|
|
539,592
|
|
(1,111,826)
|
Revenue
payable
|
|
|
460,656
|
|
538,338
|
Accrued
interest
|
|
|
1,908,466
|
|
621,060
|
Accrued
expenses
|
|
|
(160,000)
|
|
(142)
|
Net cash provided by (used in) operating activities
|
|
|
351,000
|
|
(2,245,533)
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
Cash paid for
acquisitions, development and exploration
|
|
|
(1,280,652)
|
|
(4,522,011)
|
Cash paid for
furniture, fixtures and other
|
|
|
-
|
|
(205,774)
|
Proceeds from sale of
assets
|
|
|
-
|
|
19,192,321
|
Decrease in advances
from joint interest owners
|
|
|
-
|
|
(50,845)
|
Net cash (used in) provided by investing activities
|
|
|
(1,280,652)
|
|
14,413,691
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
Borrowings under line
of credit
|
|
|
-
|
|
2,000,000
|
Repayment of
borrowings
|
|
|
-
|
|
(10,544,969)
|
Net cash used
in financing activities
|
|
|
-
|
|
(8,544,969)
|
|
|
|
|
|
|
NET (DECREASE)
INCREASE IN CASH AND CASH EQUIVALENTS
|
|
|
(929,652)
|
|
3,623,189
|
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS:
|
|
|
|
|
|
BEGINNING OF PERIOD
|
|
|
2,938,086
|
|
1,965,967
|
END OF PERIOD
|
|
|
$
2,008,434
|
|
$
5,589,156
|
|
SOURCE Gasco Energy, Inc.