Completion Activity:
During the quarter, Gasco Energy carried out no initial completion operations and re-entered three gross wells (0.92 net) to complete behind-pipe pay zones.
For first quarter of 2009, Gasco Energy operated 130 gross wells. The company currently has an inventory of 32 operated wells with up-hole recompletions and four upper Mancos wells awaiting initial completion activities. Due to low gas prices in the Rockies, Gasco Energy is selectively recompleting up-hole pay to assure its required volumes under its derivative contracts.
Drilling Activity
During the first quarter of 2009, Gasco Energy reached total depth on two gross wells (0.84 net), one that was underway for the year-end 2008. Gasco Energy drills one new well during the first quarter of 2009 and, upon reaching total depth on this well, Gasco Energy laid down the rig, as earlier announced.
Gate Canyon State #23-16
The Gate Canyon State #23-16 well, which formerly producing for 60 days, came on at an early production rate of 5.7 million cubic feet of natural gas per day (MMcf/d) flowing up 5 1/2 casing while cleaning up frac fluid. The well averaged 3.2 MMcf/d and 2.6 MMcf/d for the first 30 and 60 days, correspondingly. Tubing will be snubbed in the hole over the next two to three weeks. The well continues to flow back frac fluid and is producing from multiple fracture stimulated intervals within the Mancos and lower Blackhawk formations.
