tradeBLOG

12.4.2001 gasco energy is an oil & gas company whose natural gas properties could potentially begin producing in the billion-dollar range, but is still trading under $3 per share. recently, gasco's (OTCBB: GASE) properties and future revenues in utah were independently evaluated in a report that states that the estimated unrisked future net revenue on GASE's interest will most likely produce $2.42 billion. note that the report discusses net revenues, which are calculated by deducting state production and ad valorem taxes, operating expenses and ALL future capital costs from the gross revenues. while these are net revenues, as opposed to net income, this can mean great news for GASE's existing and future shareholders. in evaluating probabilities of occurrence, the report states "there is very little risk of not encountering gas in this basin-centered gas accumulation". in fact according to NSAI, the property's most likely present worth is $242 million discounted at 10% based on average NYMEX prices for the period 09/00 to 08/02. Wellhead prices used in the report are $3.56 per MMBtu, escalated 3% per year to a maximum of $4.15 per MMBtu. based on GASE's recoverable resources, property's present worth and industry partnerships London based Canaccord Capital recently issued an Investment report estimating the value of Gasco's licenses to be $740 Million, or $14.80 per share. despite all the recent developments, the company's stock is still trading below $3.