2014 Uinta Basin Energy Summit

2014 Uinta Basin
Energy Summit
Mike Decker, COO & EVP
Company Overview
Return to Growth
• Proven management team
• Improved financial strength from 2013 restructuring
• Oil and liquids-rich natural gas drilling program in Utah
• Highly levered to increased natural gas prices
• Carried exploratory drilling program in California
• Active effort to grow production and upside
3
Overview
• Denver-based exploration
and production company
focused on developing oil &
gas in the western U.S.
• Proved
Gasco’s Asset Base
• 2013 Net Prod.: 1.9 Bcfe
• Producing Wells: 135
gross wells (47.5 net)
Reserve Base(1)
- 2013 NYMEX – 23.7 Bcfe;
$20.1 MM PV-10
- 100% in Utah (Uinta
Basin, Riverbend Project)
- 87% Natural Gas / 80%
PDP
Uinta Core
Assets
California
Projects
Denver
HQ
Natural Gas
Crude Oil
(1 )
(2)
• 2013 Gross Prod.: 7.3
Bcfe
• Total Acreage: 146,584
gross, 56,223 net (2)
• Core leasehold in Uinta
Basin (UT): 113,101 gross,
42,259 net
• Approximately 90% of
Uinta Basin leasehold HBP
• Exploratory leasehold in
San Joaquin Basin (CA):
33,483 gross, 13,964 net
NYMEX Prices @ 2/4/14
All acreage numbers as of 12/31/13.
4
Uinta Basin Joint Venture
• $34 MM transaction closed March 22, 2012
• Gasco sold to Wapiti Energy an undivided 50% interest in certain of its
producing properties and 50% of its undeveloped leasehold
• Gasco received $19.2 MM in cash and a $15 MM drilling carry
• Gasco participating for a 10% working interest in the $37.5 MM carried
program (22.5% NRI BPO / 50.0% NRI APO)
• Drilling program commenced in Q214
5
2013 Operational
Results & Performance
Gas Production – Forecast vs. Actual
660
Actual
Monthly Gas Production (MMCF)
640
NSAI 2012 EOY
620
NSAI 2013 EOY
600
580
560
540
520
500
• 2013 Forecasted Production (gross) – 6.4 Bcf
• 2013 Actual Production (not sales) – 7.3 Bcf
• 14% More gas production than forecast
• Increased production due to all wells now being on plunger lift, more efficient
use of plunger lift and better use of chemicals (foamers).
7
LOE/MCFE
LOE – Fixed Costs
$0.40
$0.35
Field Operations
Overhead
Maintenance
Artificial Lift
$0.30
LOE – Variable Costs
$0.70
Water Disposal
$0.60
$0.50
Workovers
Chemicals
$0.25
$0.40
$0.20
$0.30
$0.15
$0.20
$0.10
$0.05
$0.10
$0.00
$0.00
$2.00
Total LOE
$1.80
$1.60
$1.40
$1.20
$1.00
• Total LOE decreased more than 40%.
• Chemicals decreased nearly 80% sustainable into 2014.
• Water disposal decreased more than 50%
- sustainable into 2014.
$0.80
$0.60
8
YE 2013 NSAI Reserve Summary
SEC Prices
Category (Net to Gasco)
Total Proved Gas (mmcf)
Total Proved Oil (mbbls)
Total Proved NGL’s (mbbls)
Total Proved (mmcfe)
Total PW 10 (M$)*
Gas Price ($/mmbtu)
Oil Price ($/bo)
12/31/12
12,603.7
251.6
0.0
14,113.4
12/31/13
20,427.3
287.1
471.1
24,976.5
Delta
7,823.6
35.5
471.1
10,863.1
%
62.1%
14.1%
N/A
77.0%
$10,317.6
$14,796.5
$4,478.9
43.4%
$2.61
$79.21
$3.55
$96.94
$0.94
$17.73
36.0%
22.4%
9
2014 Plan
UINTA BASIN DEVELOPMENT
11
“Mega” Resource
Play
Green River/Wasatch Oil
12-13 Billion BO (in-place
tar)
500-750 MMBO recoverable
(USGS 1994; Fouch 1992)
Mesaverde/Mancos/Dakota
Gas
12 TCF mean undiscovered
(USGS 2002)
CURRENT CUM 7-2014
694 MMBO
6.82 TCFG
Uinta Basin Regional Map
13
Uinta Natural Gas Pay Horizons
Estimated
Ultimate
Recoveries
Wasatch
(7000’ - 9000’)
0.3 to 1.0 Bcf Estimated
Normal-pressured Gas
Mesaverde
(9000’ - 12,000’)
Upper and Lower
0.5 to 1.2 Bcf
Normal to over-pressured Gas
Blackhawk Fluvial
(12,000’ - 12,500’)
0.2 to 0.6 Bcf Estimated
Over-pressured Gas


Blackhawk Marine
(12,500’ - 13,000’)
0.6 to 2.0 Bcf Estimated
Over-pressured Gas
Mancos
(13,000’ - 16,500’)
1.0 to 3.0 Bcf Estimated
Over-pressured gas
Other Objectives
Dakota / Morrison
(16,500’ - 18,000’)
Over-pressured gas

Advanced learning curve

Over 100 wells drilled

22 Mancos well drilled

200 miles high resolution 2-D seismic
Low risk, predictable results

Multiple stacked pays

100% drilling success to date
Economic Mancos shale vertical completions
with horizontal upside
Note: Hypothetical case; actual well results may vary from this diagram
14
2014 Gas Drilling Locations
Pads Scheduled for Gas
Drilling in 2014
15
2014 New Gas Wells
• Number of new gas wells
15
Average Well (1)
TD
• Capital WI
10% - 50.0%
• Wasatch Mesaverde
~11,800’
$2.8 mm
• Pre / Post-payout WI (carry only)
22.5% / 50.0%
• Spring Canyon Pad
~12,500’
$3.2 mm
• Pre / Post-payout NRI (carry only)
18.0% / 39.9%
• Total Net EUR
9.8 Bcfe
1) Twenty-one permits have been approved. As permits are
acquired for additional wells and the initial results are
evaluated, the program will ramp up.
• Net Capex
$7.9 million
2) Before Wapiti Carry
• Net Cash Impairment
$6.6 million
• Program IRR
26%
• Program PV10
$5.7 million
8/8ths AFE (2)
16
2014 Green River Locations
Green River
Project
• 6 - New Drill Permits In Hand
• 91 - Green River PUD’s
• 470 - Future Non-Proved Locations
• 15 (7 in 2014) - Current Workover
Candidates
• Up to 6 New Drills
• Average Per Well 8/8ths EUR = 80
mboe
• Average 8/8ths AFE = $1.5 million
17
2014 - New Green River Oil Wells
•
# new oil wells
6
Well (1)
•
Average WI
18.8 - 50.0%
•
Average NRI
•
TD
Net AFE
1. Federal 14-17G-9-19
4,950’
$750.0 m
15.8 – 39.7%
2. Federal 23-18G-9-19
5,700’
$750.0 m
Total Net EUR
132 mbo
3. Federal 31-21G-9-19
5,700’
$750.0 m
•
Net Capex
$3.0 million
4. Federal 13-18G-9-19
5,700’
$750.0 m
•
Net Cash Impairment
$2.9 million
5. Federal 24-20G-9-19
5,700’
$750.0 m
•
Program IRR
39%
6. Federal 23-29G-9-19
5,700’
$750.0 m
•
Program PV10
$2.0 million
1) All wells are permitted.
18
California Project
San Joaquin Basin
California Project Inventory
• Strategy has been to develop exploratory
prospects and farm them out to other
operators in return for;
− Prospect fees to recover past costs.
To date, Gasco has recovered $3MM
of its $3.4MM program investment
through prospect fees.
− 20% Gasco carry on up to three wells
per project area - well count is
dependent on the size of the prospect
• These are high risk – high return projects
− To date Gasco has been carried in
three wells, all dry holes.
− 3 additional wells are committed to
and planned for 2014 subject to
permitting delays.
• Current Acreage Totals
− 37,000 Gross Acres
− 16,000 Net Acres
• Unrisked potential of nearly 350 MMBoe
and 400 Bcf net to Gasco
20
2013 Financial & Operational Results1
PRODUCTION INFORMATION
Gas production (mmcfe)
Gas price ($’s/mcf) 2
Year Ended
12/31/12
2,406.5
$2.82
$’s/mcfe 3
Year Ended
12/31/13
1,799.7
$4.29
Oil production (mbo)
Oil price ($’s/bbl)
25.8
$81.38
22.1
$84.38
Equivalent production (mmcfe) 3
2,561.3
1,932.3
REVENUES
Gas 2
Oil
Total
$’s/mcfe 3
$6,779.5
$2,100.1
$8,879.6
$2.65
$0.82
$3.47
$7,715.5
$1,862.2
$9,577.7
$3.99
$0.96
$4.96
OPERATING EXPENSES
Lease Operating Expense & Production Taxes
Transportation & Processing
General & Administrative
Total
$4,960.0
$1,704.7
$4,818.6
$11,483.3
$1.94
$0.67
$1.88
$4.48
$3,312.4
$3,017.9
$5,071.1
$11,401.4
$1.71
$1.56
$2.62
$5.90
ADJUSTED NET CASH FLOW (LOSS) 4
$(2,603.7)
$(1.02)
$(1,823.7)
$(0.94)
Restructuring Costs - 2013
Other Public Company Costs - 2013
$
$
$1,794.9
$602.8
$0.93
$0.31
-
1. 2012 Results are audited as are the initial 3 quarters of 2013. 4Q 2013 is unaudited.
2. Includes the effect of NGL revenues
3. Oil at 6:1
4. Net operating cash flow after G&A
22
Uinta Basin, Utah - Regional Activity

101,120 gross acres HBP and/or HBU

12,081 gross acres subject to expiry of varying terms
Berry / Bill Barrett
Newfield
Gasco’s Current
Activity in Green
River Oil Play
QEP Res. / XTO / EOG / Anadarko
Gasco
Gasco
Rye Patch Area
XTO 2010 Activity
Hz Mancos
Gasco / XTO



113,101 gross / 42,259 net acres
135 gross producing wells in Utah
All values as of 12/31/13
Gasco Leases
Gasco Mancos
Wells or Locations
Other Deep Gas Wells
& Locations
Targeting Green River (oil), Wasatch, Mesaverde, Blackhawk and Mancos / Dakota formations (7,000’- 18,000’+)
23

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