Gasco Energy Announces Uinta Basin Joint Venture; Transaction Valued At $35.75 Million Accelerates Uinta Basin Development

Gasco Energy, Inc. GSX today announced that its subsidiary, Gasco Production Company ("Gasco" or the "Company"), has signed agreements, subject to customary closing conditions, to enter into a series of transactions with Wapiti Oil & Gas II, L.L.C., a Delaware limited liability company ("Wapiti"), pursuant to which it will, at closing, (I) sell to Wapiti an undivided 50% interest in its Uinta Basin producing oil and gas assets for $20.75 million in cash and (II) transfer to Wapiti an undivided 50% interest in its Uinta Basin non-producing oil and gas assets in exchange for, among other agreements, Wapiti's commitment to fund $30 million of the drilling and completion costs associated with the exploration and development of the transferred assets. Of Wapiti's funding commitment, $15 million will be paid on behalf of the Company, and the Company has agreed provide an additional $7.5 million of drilling and completion costs. Accordingly, the total program will be $37.5 million; provided that, if on February 23, 2013, the 5-year NYMEX natural gas strip pricing is at least $5.00/MMBTU, the drilling and completion program will be expanded by $6.25 million to $43.75 million with Wapiti paying for $5 million of the additional costs.