Gasco Energy Announces Fourth Quarter and Year-End 2008 Financial Results

– Oil & Gas Sales Increase 86% Year-over-Year

impairment charge, (Non-GAAP)

– Gate Canyon Extended Test Confirms Mancos Potential

“On the field level, we continue to make marked advances. Along with reduced drilling days and better economies of scale in field operations, one particular area of marked improvement is evolving modification and refinement of our fracture stimulation designs. Recent designs including modified fluid properties and proppant types and schedules are resulting in lower costs, allowing us to substantially increase the job size for a similar investment. Wells have been cleaning up quicker and flowing back at higher rates and pressures. Long-term production has been higher, resulting in increased economic ultimate recoveries.”

Through the Company’s actions such as reducing its 2009 capital expenditure budget, investing its cash balances conservatively and releasing the single drilling rig from operation, Gasco’s management believes that the Company has adequate liquidity from its expected cash flow and available credit to continue its operations through 2009. Furthermore, management remains focused on our goal of divesting non-core assets, such as our sale of four gross producing wells (one net) during the third quarter of 2008. However, if Gasco needs additional liquidity for future activities, it may be required to consider several options for raising additional funds, such as selling securities, selling assets or farm-outs or similar arrangements but the Company may be unable to complete any of these transactions on mutually acceptable terms or at all. Any financing obtained through the sale of equity will likely result in substantial dilution to Gasco stockholders.

Any failure to be in compliance with any material provision or covenant of the Credit Agreement could result in a default which would, absent a waiver or amendment, require immediate repayment of outstanding indebtedness under the Credit Agreement. Additionally, should the obligation to repay indebtedness under the Credit Agreement be accelerated, the Company would be in default under the indenture governing the Company’s 5.50% Convertible Senior Notes due 2011, which would require repayment of the outstanding principal, interest and liquidated damages, if any, on such convertible notes. To the extent it becomes necessary to address any anticipated covenant compliance issues, the Company may be required to sell a portion of its assets or issue additional securities, which would be dilutive to our shareholders. Given the condition of current credit and capital markets, any sale of assets or issuance of additional securities may not be on terms acceptable to the Company.

At recent production levels, approximately 65% of Gasco’s net production volumes were hedged through the following instruments:

Gasco 2009 Swap Agreements

Any of these factors could cause our actual results to differ materially from the results implied by these or any other forward-looking statements made by us or on our behalf. We cannot assure you that our future results will meet our expectations. When you consider these forward-looking statements, you should keep in mind these factors. All subsequent written and oral forward-looking statements attributable to the Company, or persons acting on its behalf, are expressly qualified in their entirety by these factors. Our forward-looking statements speak only as of the date made. The Company assumes no duty to update or revise its forward-looking statements based on changes in internal estimates or expectations or otherwise.

SOURCE Gasco Energy, Inc.

(888) 688-9880