Unrisked Net Resources
Formation Unrisked Condensate (Barrels)
Gas (MCF)
Unrisked Future Total Net Revenue (M$) Present Worth at 10%
Mesaverde 1,264,989 843,102,000 $2,246,695 $181,383
Wasatch 184,797 61,594,400 171,082 61,069
Total 1,449,786 904,696,400 $2,417,777 $242,452
The table above is based on a price deck based on average NYMEX prices for the period September 2000 through August 2002. Wellhead gas prices used in the report are $3.56 per MMBtu, escalated 3 percent per year to a maximum of $4.15 per MMBtu. Condensate prices were held constant at $25.00 per barrel throughout the life of the properties. On a low price deck of $1.65 per MMBtu for wellhead gas, holding condensate at $25.00 per barrel (and adjusting drilling costs to reflect late 1999 and early 2000, when NYMEX prices were approximately $2.50 per MMBTU), Gasco's present worth, discounted at 10 percent, is $129.6 million.
NSAI identified a total of 1,815 gross drilling locations - 1,711 Mesaverde and 104 Wasatch locations. While each of the Wastach locations is coincident with a Mesaverde location, for purposes of analysis, NSAI assumed that all of the Wasatch resources would be drilled and produced via wells that did not penetrate the deeper Mesaverde. In the report, NSAI notes that the Wasatch and Mesaverde wells can be produced and commingled via the same wellbore. The report cited lowered costs when the formations are combined, saying, "If the Wasatch and Mesaverde Formations are commingled in the same wellbore, there is potential to reduce capital costs by 60 percent for the Wasatch wells."
"This report gives strong third-party validation to First Ecom's acquisition of its equity interest in Gasco Energy," said First Ecom President and CEO Gregory Pek. "While the most likely case of the unrisked net resources for Gasco is attractive, the report also shows a higher potential which would represent a significant upside for our shareholders."
About First Ecom.com
In the future, First Ecom will focus on the acquisition, development and exploitation of petroleum and natural gas properties. As a global provider of electronic payment processing, First Ecom.com provides secure, easy-to-implement and low-cost online payment processing services and solutions to banks and their merchants worldwide.
For more information, visit www.firstecom.com or contact First Ecom.com at +(852) 2801-5181 or by e-mail at info@firstecom.com.