Gasco Energy Provides Third Quarter 2011 Operations Update

Gasco Energy, Inc.

today provided an interim operations update on its Riverbend Project in Utah's Uinta Basin and on its California projects in the San Joaquin Basin. Gasco recently spud two wells that will test the productive potential of the Green River Formation at approximately 5,500 feet proposed total vertical depth. Gasco operates both wells with a 100% working interest. Drilling of the wells, the Federal 23-30-G-9-19 (76.8% NRI) and the Federal 34-19G-9-19 (80% NRI), was commenced with a spudder rig and surface casing was set. The timetable to finish drilling and to complete these two wells is dependent upon the drilling rig schedule and frac crew availability, although the plan is to finish drilling and completion by the end of November. As previously disclosed, the Company has elected to defer its uphole natural gas well recompletion program until the fourth quarter in anticipation of stronger seasonal natural gas prices. The exact timing of the recompletions is based on frac crew availability. At September 30, 2011, Gasco operated 133 gross wells. Gasco currently has an inventory of 18 operated wells with up-hole recompletions and has one Upper Mancos well awaiting initial completion activities. Estimated cumulative net production for the quarter ended September 30, 2011 was 930.3 million cubic feet equivalent (MMcfe), an 18.4% decrease from Q310 production of 1,140 MMcfe. The 16.0% decline in sequential quarterly equivalent production, 930.3 MMcfe in Q311, as compared to 1,108.1 MMcfe in Q211, is attributed to a third-party gathering company's high line pressures (8%), unusually high compressor downtime (2%) and to the normal decline associated with tight sand reservoirs. Normal sequential quarterly decline would be approximately 4%. Gasco understands that the gathering system operator has devised a plan to reduce the line pressures and that it expects to implement the plan during the fourth quarter 2011. Gasco had decreased liquids volumes due to workover operations, compressor downtime and normal production declines. Gasco produced approximately 8,424 barrels of liquids during Q311. This compares to 12,904 barrels of liquids production during Q211, or a 34.9% decline. Natural gas volumes of 879.8 MMcf for Q311 were down 14.6% sequentially, as compared to 1,030.7 MMcf in Q211. The operator of this shallow oil prospect continues to work with the California State Agencies to acquire the appropriate permits. While some progress has been made, final approval is still pending from the California Fish and Game Department. The operator of this oil prospect has been analyzing the recently acquired 3D seismic data and is currently high-grading drillable locations based upon the ongoing 3D interpretation. Well permitting has commenced, and Gasco understands that the project is on schedule to have its initial well spud by year-end 2011.