DENVER, April 8, 2013 /PRNewswire/ -- Gasco Energy, Inc.
(NYSE MKT: GSX) ("Gasco" or the "Company") today announced that it
has elected not to make the $1,242,120 semi-annual interest payment due on
April 5, 2013 on its outstanding
5.50% Convertible Senior Notes due 2015 (the "2015 Notes").
The indenture governing the 2015 Notes provides that the failure
to make such interest payment constitutes an event of default after
a 30-day cure period. Accordingly, if the Company has not made the
interest payment by May 6, 2013, an
event of default under the indenture will occur. As of April 8, 2013, there was $45,168,000 aggregate principal amount of 2015
Notes outstanding.
During the cure period, the Company intends to engage in
discussions with the holders of the 2015 Notes regarding a
forbearance agreement in connection with the interest payment
and/or a modification of the indenture governing the 2015
Notes. As previously disclosed, the Company has engaged a
financial advisor to assist it in evaluating potential strategic
alternatives, such as a strategic restructuring, refinancing or
other transaction to provide it with additional liquidity.
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.
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 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
Gasco's ability to obtain a forbearance agreement in connection
with the interest payment and/or a modification of the indenture
governing the 2015 Notes, and Gasco's ability to execute any
potential strategic alternatives to provide it with additional
liquidity, 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.