PEILIITC0

14421 County Rd. 10 • Ft. Lupton, Colorado 80621 • (303) 857-9999 • FAX(303) 857-0577 • E-MAIL Permitco l @aol com

February27,2006

DivisionofOil,Gas &Mining1594West NorthTemple,Suite1210Box145801SaltLakeCity,UT 84114-5801

Re: GascoProduction CompanyWilkinRidgeFederal#32-17-10-171978' FNLand 1972'FELSWNESection17, T10S - R17EUintahCounty, UtahLease No.UTU-75082

Gentlemen:

Enclosed please find twocopies of the Applicationfor Permit to Drill,alongwithone copy of theOnshore OrderNo.1 which was filedwith the BLMinVernal,Utah.

Ifyou shouldneedadditionalinformation,please don't hesitateto contactme. ApprovedcopiesoftheA.P.D.shouldbe sent to Permitco Inc.at theaddressshownabove.

Sincerely,

PERMITCOINC.

Venessa LangmacherConsultantforGascoProduction Company

RECEIVED

Enc. MARÛÍ ÎÛÛ$

cc: GascoProduction Company- Englewood,CO DNOFOlL,GAS&MININGShawn Elworthy- Roosevelt,

STATE OF UTAH FORM 3

DEPARTMENT OF NATURAL RESOURCES AMENDED REPORT ODIVISION OF OIL, GAS AND MINING (highlight changes)

APPLICATION FOR PERMIT TO DRILLUMNERAL5LEASENO.: 6. SULRFACE:

1A. TYPEOFWORK: DRILL Ë REENTER O DEEPEN O 7. IFINDIAN,ALLOTTEEORTRIBENAME:

N/AB. TYPE OF WELL: OILO GAS OTHER SINGLEZONEO MULTlPLEZONE O 8. UNIT or CA AGREEMENT NAME:

WilkinRidge2. NAME OF OPERATOR: 9. WELL NAME and NUMBER:

Gasco ProductionCompany WilkinRidge Federal #32-17-10-173. ADDRESS OF OPERATOR: PHONE NUMBER: 10. FIELD AND POOL, OR WILDCAT:

8 Inverness DriveEast, Suite #100,Englewood,CO80112 303-483-0044 lay4. LOCATION OF WELL (FOOTAGES) 11. QTR/QTR, SECTION, T NSHIP, RANGE

MERIDIAN:

AT SURFACE: 1978' FNLand 972' FEL Sec. 17,T10S-R17E

AT PROPOSED PRODUCING ZONE: SWNE tj y Zj

14. DISTANCE IN MILES AND DIRECTION FROM NEAREST TOWN OR POST OFFICE: 12. COUNTY: 13. STATE:

Approximately23.4milessoutheastofMyton,UT. Duchesne | UTAH15. DISTANCE TO NEAREST PROPERTY OR LEASE LINE (FEET) 16. NUMBER OF ACRES IN LEASE: 17. NUMBER OF ACRES ASSIGNED TO THIS WELL:

1972' 1276.52 40 Acres: SWNE18. DISTANCE TO NEAREST WELL (DRILLING, COMPLETED, OR 19. PROPOSED DEPTH: 20. BOND DESCRIPTlON:

APPLIED FOR) ON THIS LEASE (FEET):

2700' 13,400' Bond No.UT-123321. ELEVATIONS (SHOW WHETHER DF, RT, GR, ETC.): 22. APPROXIMATE DATE WORK WILL START: 23. ESTIMATED DURATION:

5933' GL ASAP 35 Days

24. PROPOSEDCASINGANDCEMENTINGPROGRAMSIZE OF HOLE CASING SIZE, GRADE, AND WEIGHT PER FOOT SETTING DEPTH CEMENT TYPE, QUANTITY, YIELD, AND SLURRY WEIGHT

17-1/2" 13-3/8",H-40,48# 200' 200 sx PremiumType 5, 15.6ppg, 1.18 yield12-1/4" 8-5/8",J-55, 32# 3,645' 615 sx Hi-Lift,11 ppg, 3.91 yield+ 185 sx 10-2 RFC,14.2 ppg, 1.63 yield7-7/8" 4-1/2",P-110,13.5# 13,400' 523sx Hi-Lift,11.5ppg, 3.05 yield &1429sx 50/50 Poz, 14.1ppg, 1.28 yield

25. ATTACHMENTSVERIFY THE FOLLOWING ARE ATTACHED IN ACCORDANCE WITH THE UTAH OIL AND GAS CONSERVATION GENERAL RULES:

WELL PLAT OR MAP PREPARED BY LICENSED SURVEYOR OR ENGINEER COMPLETE DRILLING PROGRAM[¯]

EVIDENCE OF DIVlS10N OF WATER RIGHTS APPROVAL FOR USE OF WATER FORM 5, IF OPERATOR IS PERSON OR COMPANY OTHER THAN THE LEASE OWNER

AGENT: PermitCoInc. AGENT'S PHONE NO.: 303-857-9999

A nt for Gasco Production CompanyVenessa La gmacher TITLE SeNAME (PL SE

DATE February27,2006

(This space for State use only) RECE IVEDAPI NUMBER ASSIGNED: APPROVAL:

pproved by th

Uta DIV.0FOlL,GAS&MINING(11/2001) On (See instructions on Reverse

T10S, R1'7E, S.L.B.&M GASCO PRODUCTION COMPANYWell location, WILKINRIDGEFEDERAL#32-17-10-17, located as shown in the SW1/4 NE 1/4 of Section 17 T10S, R17E

ASB9°48'45"W

- 2625.29' (Meas.) SB948'55"W - 2628.93' (Meas.)x S.L.B.&M. Duchesne County, Utah.

'c'ÎÎ^o°""'c'o' Î's 'c"

Î'4°" BASIS OF ELEVATlONHigh, Pi/e High, Pile High, Pileor stone or stone or stone SPOT ELEVATIONIN THE SW 1/4 OF SECTION 20, T10S,

R17E, S.L.B.&M. TAKEN FROM THE WILKINRIDGEQUADRANGLE,UTAH, DUCHESNE COUNTY, 7.5 MINUTEQUAD. (TOPOGRAPHIC MAP) PUBLISHED BY THE UNITEDSTATES DEPARTMENT OF THE INTERIOR, GEOLOGICALSURVEY. SAID ELEVATIONIS MARKED AS BEING 6275 FEET.

BASIS OF BEARINGSI

W/LK/NR/DGE EEDERAL BASIS OF BEARINGS IS A G.P.S. OBSERVATION.

No

1910 BrassCop, 0.7'High, Pileor stone o o oo - o

zSCALE

---- CERTIFICATETHIS IS TO CERTIFYTHAT THE ABOVE PLAT WAS PREPARED FROMFIELD NOTES OF ACTUALSURVEYS MADEBY ME OR UNDER MYSUPERVISIONAND THAT THE SAME ARE TRUE AND CORRECTTO TIBEST OF MY KNOWLEDGEAND B

REGISTEREDLAND.SPIRWYOR

Brass Cap Brass Cop S E,,UcTAHS89°56'W

- 2629.44' (G.L.O.) NB9°49'J9"E- 2620.21' (Meas.) 7 ||

ÜNTAH SGINEER NG AN.;

þVEYING85 SOUTH 200 EAST H 84078

(AUTONOMOUS NAD 83) (801) 78 1Ë1LEGEND LATITUDE =

39°56'44.58" (39.945717)' SCALE DATE SURVEYED: DATE DRAWN:LONGITUDE =

110°01'40.48" (110.027911) 1" = 1000' 09-19-05 09-28-05= 90 SYMBOL

(AUTONOMOUSNAD 27) PARTY FILE= PROPOSED WELL HEAD. LATITUDE =

39°56'44.71" (39.945753) J.W. C.W. L.K. G.L.O. PLATWEATHER REFERENCESA = SECTION CORNERS LOCATED· LONGITUDE=

110°01'37.94" (110.027206) WARM GASCO PRODUCTION

CONFIDENTIAL- TIGHTHOLE

ONSHOREOIL&GASORDERNO.1

ApprovalofOperations on OnshoreFederal and IndianOil&Gas Leases

WilkinRidge Federal#32-17-10-171978'FNLand 1972'FEL

SWNESection17,T10S - R17EDuchesne County,Utah

Prepared For:

Gasco Production Company

PERMITC0INC.14421 CountyRoad 10 /

Ft. Lupton,Colorado 80621303/857-9999

CopiesSent To:

3 - Bureau of LandManagement - Vernal,UT1 - UtahDivisionofOil,Gas &Mining- SLC,UT2 - Gasco Production Company- Englewood,CO1 - Shawn Elworthy- Roosevelt, UT

PEIL

APPLICATIONFORPERMITTODRIL - ORREENTER

24. AttachmentsThe following, completed in accordance with the requirements of Onshore Oil and Gas Order No. 1, shall be attached to this form:

1. Well plat certified by a registered surveyor.Attached.

2. A Drilling PlanAttached.

3. A Surface Use Plan (if the location is on National Forest System Lands, the SUPO shall be filed with the Appropriate Forest

Service Office.See Surface Use Plan Attached.

4. Bond to cover the operations unless covered by an existing bond on file (see Item 20).

Bond coveragefor this wellis provided by Gasco Production CompanyundertheirBLMBond No.Bond No.UT-1233.

5. Operator certification.Please be advised that Gasco Production Company is considered to be the operatorofthe abovementioned well.Gasco ProductionCompanyagreesto be responsible under the termsandconditionsofthe lease for the operationsconductedupon the leased lands.

6. Such other site specific information and/or plans as may be required by the authorized

ONSHOREORDERNO.1 00NFIDENTIAL- TIGHTHOLEGascoProductionCompanyWilkinRidgeFederal #32-17-10-17 Lease No.UTU-75082

1978' FNLand1972' FELSWNESection17, T10S - R17E DRILLINGPROGRAMDuchesneCounty,Utah Page 1

ONSHOREOlL&GASORDERNO.1ApprovalofOperationson Onshore

FederalandIndianOilandGas Leases

Allleaseand/orunitoperationswillbeconductedinsucha mannerthatfullcomplianceismadewithapplicablelaws,regulations(43CFR3100),OnshoreOilandGasOrderNo.1,andtheapprovedplanofoperations.Theoperatorisfullyresponsiblefortheactionsofhissubcontractors.Acopyoftheseconditionswillbe furnishedthefieldrepresentativetoinsurecompliance.

1. ESTIMATEDTOPSOFIMPORTANTGEOLOGICMARKERS

Formation Depth Subsea

Wasatch 5,270' 675'

Mesaverde 9,505' -3,560'

Castlegate 12,085' -6,140'

Blackhawk 12,355' -6,410'

Aberdeen 13,115' -7,170'

T.D. 13,400' -7,455'

2. ESTIMATEDDEPTHOFANTICIPATEDWATER,OIL,GASORMINERALFORMATIONS:

Substance Formation Depth

Gas Wasatch 5,400' - 9,505'

Gas Mesaverde 9,505' - 12,085'

Gas Blackhawk 12,355' - 13,300'

Allfreshwaterprospectivelyvaluablemineralsencounteredduringdrilling,willbe recordedby depth and adequatelyprotected. Alloiland gas showswillbe testedto determinecommercialpotential.

PEIL

ONSHOREORDERNO.1 m)NFIDENTIAL- TIGHTHOLEGascoProductionCompanyWilkinRidgeFederal#32-17-10-17 Lease No.UTU-750821978'FNLand 1972'FELSWNESection17,T10S- R17E DRILLINGPROGRAMDuchesneCounty,Utah Page 2

3. PRESSURECONTROLEQUIPMENT

GascoProductionCompany'sminimumspecificationsforpressurecontrolequipmentareas follows:

RamType: 11"Hydraulicdoublewithannular,5000psiw.p.

Ramtypepreventersandassociatedequipmentshallbe testedtoapprovedstackworkingpressureif isolatedby testplugor to 70 percentof internalyieldpressure ofcasing. Pressure shallbemaintainedforat least 10minutesoruntilrequirementsoftestaremet,whicheveris longer. Ifa testplugis utilized,no bleed-offpressure isacceptable.Fora testnotutilizinga testplug,ifa declineinpressureofmorethan10 percentin30 minutesoccurs,thetestshallbe consideredtohavefailed.Valveoncasinghead belowtestplugshallbe open duringtestofBOPstack.

Annulartypepreventers(ifused)shallbe testedto50 percentofratedworkingpressure. Pressureshallbe maintainedat least 10minutesor untilprovisionsoftestare met,whicheveris longer.

Asa minimum,theabovetestshallbe performed:

a. wheninitiallyinstalled;b. wheneveranyseal subjecttotestpressure is brokenc. followingrelatedrepairs;andd. at 30-dayintervals

Valvesshallbe testedfromworkingpressure sideduringBOPEtestswithalldownstreamvalvesopen.

Whentestingthekilllinevalve(s)thecheckvalveshallbe heldopenortheballremoved.

Annularpreventersshallbe functionallyoperatedat leastweekly.

Pipeandblindramsshallbe activatedeachtrip,however,thisfunctionneed notbe performedmorethanoncea day.

ABOPEpitleveldrillshallbe conductedweeklyforeachdrillingcrew.

Pressuretestsshallapplytoallrelatedwellcontrolequipment.

Alloftheabovedescribedtestsand/ordrillsshallbe recordedinthedrillinglog.

ONSHOREORDERNO.1 m)NFlDENTIAL- TIGHTHOLEGascoProductionCompanyWilkinRidgeFederal#32-17-10-17 Lease No.UTU-750821978' FNLand 1972' FELSWNESection17,T10S- R17E DRILLINGPROGRAMDuchesneCounty,Utah Page 3

BOPsystemsshallbe consistentwithAPIRP53. Pressuretestswillbe conductedbeforedrillingoutfromundercasingstringswhichhave been set and cementedinplace. Blowoutpreventercontrolswillbe installedpriortodrillingthesurfacecasingplugandwillremaininuse untilthewelliscompletedorabandoned.Preventerswillbe inspectedandoperatedat leastdailytoensuregoodmechanicalworkingorder,and thisinspection willbe recordedon the dailydrillingreport. Preventerswillbepressuretestedbeforedrillingcasingcementplugs.

TheDistrictOfficeshouldbe notified,withsufficientleadtime,inordertohavetheBLMrepresentativeon locationduringpressuretesting.

a. ThesizeandratingoftheBOPstackis shownontheattacheddiagram.Althougha righasnotbeen chosentodrillthiswell,mostoftheequipmentforthisdepthofholeintheareausea 11",5000psiworkingpressureblowoutpreventor.

b. Achokelineanda killlineare tobe properlyinstalled.The killlineis _not to be used as afill-upline.

c. Theaccumulatorsystemshallhavea pressurecapacitytoprovideforrepeatedoperationofhydraulicpreventers.

d. Drillstringsafetyvalve(s),tofitalltoolsinthedrillstring,aretobe maintainedon therigfloorwhiledrillingoperationsare inprogress.

4. PROPOSEDCASINGANDCEMENTINGPROGRAM:

a. The proposedcasingandcementingprogramshallbe conductedas approvedto protectand/orisolateallusablewaterzones, potentiallyproductivezones, lostcirculationzones,abnormallypressuredzones, and anyprospectivelyvaluabledeposits of minerals.Anyisolatingmediumotherthancementshallreceiveapprovalpriortouse. Thecasingsettingdepthshallbe calculatedtopositionthecasingseatoppositea competentformationwhichwillcontainthe maximumpressureto which it willbe exposedduring normaldrillingoperations.Determinationofcasingsettingdepth shallbe based on all relevantfactors,including;presencelabsence of hydrocarbons;fracture gradients; usable water zones;formationpressures;lostcirculationzones;otherminerals;orotherunusualcharacteristics.Allindicationsofusablewatershallbe reported.

b. Casingdesign shallassumeformationpressure gradientsof0.44 to 0.50 psi per footforexploratorywells(lackingbetterdata).

ONSHOREORDERNO.1 WNFIDENTIAL- TlGHTHOLEGascoProductionCompanyWilkinRidgeFederal #32-17-10-17 Lease No.UTU-750821978' FNLand1972' FELSWNESection17,T10S - R17E DRILLINGPROGRAMDuchesneCounty,Utah Page 4

c. Casingdesignshallassumefracturegradientsfrom0.70to 1.00 psiperfootforexploratorywells(lackingbetterdata)

d. Casingcollarsshallhavea minimumclearanceof0.422inchesofallsidesinthehole/casingannulus,withrecognitionthatvariancescanbe grantedforjustifiedexceptions.

e. Allwaitingoncementtimesshallbe adequatetoachievea minimumof500psicompressivestrengthat thecasingshoe priortodrillingout.

f. Allcasingexcepttheconductorcasing,shallbe neworreconditionedandtestedusedcasingthatmeetsorexceedsAPIstandardsfornewcasing.

g. Thesurfacecasingshallbe cementedbacktosurfaceeitherduringtheprimarycementjoborby remedialcementing.

h. Allindicationsofusablewatershallbe reportedtotheauthorizedofficerpriortorunningthenextstringofcasingorbeforepluggingordersarerequested,whicheveroccursfirst.

i. Threecentralizerswillbe runon thebottomthreejointsofsurfacecasingwitha minimumofonecentralizerperjointstartingwiththeshoejoint.

j. Topplugsshallbe used toreducecontaminationofcementbydisplacementfluid.Abottomplugor otheracceptabletechnique,suchas a suitablepreflushfluid,innerstringcementmethod,etc.shallbe utilizedtohelpisolatethecementfromcontaminationbythemudfluidbeingdisplacedaheadofthecementslurry.

k. Allcasingstringsbelowtheconductorshallbe pressuretestedto0.22psiperfootofcasingstringlengthor1500 psi,whicheverisgreater,but nottoexceed70 percentoftheminimuminternalyield.Ifpressuredeclinesmorethan10percentin30minutes,correctiveactionshallbe taken.

l. Onallexploratorywells,andonthatportionofanywellapprovedfora 5MBOPEsystemorgreater,a pressureintegritytestofeachcasingshoeshallbe performed.Formationat theshoeshallbe testedtoa minimumofthemudweightequivalentanticipatedtocontroltheformationpressuretothenextcasingdepthorat totaldepthofthewell. Thistestshallbeperformedbeforedrillingmorethan20 feet ofnewhole.

PElk

ONSHOREORDERNO.1 00NFIDENTIAL- TIGHTHOLEGascoProductionCompanyWilkinRidgeFederal #32-17-10-17 Lease No.UTU-750821978' FNLand 1972' FELSWNESection17, T10S- Ri7E DRILLINGPROGRAMDuchesneCounty,Utah Page 5

m. Theproposedcasingprogramwillbe as follows:

Purpose Depth HoleSize 0.D. Weight Grade Type New/Used

Conductor 0-200' 17-1/2" 13-3/8" 48# H-40 - - - New

Surface 0-3,645' 12-1/4" 8-5/8" 32# J-55 ST&C New

Production 0-13,400' 7-7/8" 4-1/2" 13.5# P-110 LT&C New

n. Casingdesignsubjectto revisionbased on geologicconditionsencountered.

o. Thecementprogramwillbe as follows:

Conductor TypeandAmount

TOC@Surface 200 sx PremiumType5 mixed@15.6 ppg,1.18 yield

Surface Typeand Amount

TOC@Surface Lead:615sxHi-Liftmixed@11ppg,3.91yieldTail:185 sx 10-2 RFCmixed@14.2 ppg,1.63 yield

Production TypeandAmount

TOC@2,500' Lead:523 sxHi-Liftmixed@11.5 ppg,3.05yieldTail:1429 sx50:50Poz mixed@14.1 ppg,1.28 yield

p. Anticipatedcementtopswillbe reportedas to depth;nottheexpectednumberof sacksofcementtobe used. The DistrictOfficeshouldbe notified,withsufficientleadtime,inorderto havea BLMrepresentativeon locationwhilerunningallcasingstringsand cementing.

q. Aftercementingbutbeforecommencinganytest,thecasingstringshallstandcementeduntilthecementhas reacheda compressivestrengthofat least500psiat theshoe. WOCtimeshallbe recordedinthedriller'slog.

r. Thefollowingreportsshallbe filedwiththeDistrictManagerwithin30 daysaftertheworkiscompleted.

PEIL

ONSHOREORDERNO.1 ouNFIDENTIAL- TlGHTHOLEGascoProductionCompanyWilkinRidgeFederal #32-17-10-17 Lease No.UTU-750821978'FNLand1972'FELSWNESection17,T10S - R17E DRILLINGPROGRAMDuchesne County,Utah Page 6

1. Progress reports,Form3160-5 (formerly9-331)"SundryNoticesand ReportsonWells",mustincludecompleteinformationconcerning:

a. Settingofeachstringofcasing,showingthesize,grade,weightofcasingset, holesize, settingdepth,amountsandtypeofcementused, whethercementcirculatedor the top of thecementbehindthe casing,depth ofcementingtoolsused, casingtest methodandresults,andthe date workwas done. Showthespud date onthefirstreportssubmitted.

b. Temperatureorbondlogsmustbesubmittedforeachwellwherethecasingcementwas notcirculatedtothesurface.

s. Auxiliaryequipmenttobe used is as follows:

1. Kellycock

2. Nobitfloatis deemednecessary.

3. Asub witha fullopeningvalve.

5. MUDPROGRAM

a. The proposedcirculatingmediumstobe employedindrillingareas follows:

Interval MudType MudWt. Visc. F/L pH

0 - 200' FreshWater 8.33 1 - - - 7

200' - 3,645' FreshWater 8.33 1 - - - 7-8

3,645' - 13,400' Fresh Water/DAP 9.0-11.5 30-40 12-20 8

Therewillbe sufficientmudon locationtocontrola blowoutshouldoneoccur.Amudtestshallbe performedevery24hoursaftermuddinguptodetermine,as applicable:density,viscosity,gelstrength,staticfiltrationloss,andPh.

b. Mudmonitoringequipmentto be used is as follows:

PEIL

ONSHOREORDERNO.1 boNFIDENTIAL- TIGHTHOLEGascoProductionCompanyWilkinRidgeFederal #32-17-10-17 Lease No.UTU-75082

1978'FNLand1972' FELSWNESection17,T10S- Ri7E DRILLINGPROGRAMDuchesneCounty,Utah Page 7

1. Periodiccheckswillbe madeeachtourofthemudsystem.The mudlevelwillbecheckedvisually.

c. Nochromateadditiveswillbe used inthemudsystemonFederaland/orindianlandswithoutpriorBLMapprovaltoensureadequateprotectionoffreshwateraquifers.

d. NochemicalssubjecttoreportingunderSARATitlelllinanamountequaltoorgreaterthan10,000 pounds willbe used, produced,stored, transported,or disposed of annuallyinassociationwiththedrillingofthiswell. Furthermore,no extremelyhazardoussubstances,as definedin40 CFR355, inthresholdplanningquantities,willbe used, produced,stored,transported,or disposedofinassociationwiththedrillingofthiswell.

e. The useofmaterialsunderBLMjurisdictionwillconformto43 CFR3610.2-3.

6. EVALUATIONPROGRAM

The anticipatedtypeandamountoftesting,loggingandcoringareas follows:

a. Nodrillstemtestsareanticipated,however,ifDST'sarerun,thefollowingrequirementswillbe adheredto:

Initialopeningofdrillstemtesttoolsshallbe restrictedtodaylighthours unlessspecificapprovaltostartduringotherhoursisobtainedfromtheauthorizedofficer.However,DST'smaybe allowedtocontinueatnightifthetestwasinitiatedduringdaylighthoursandtherate

offlowis stabilizedand ifadequatelightingis available(i.e.lightingwhichis adequateforvisibilityandvapor-proofforsafeoperations).Packerscanbe released,buttrippingshallnotbeginbeforedaylight,unlesspriorapprovalis obtainedfromtheauthorizedofficer.ClosedchamberDSTsmaybe accomplisheddayornight.

A DSTthatflowstothesurfacewithevidenceof hydrocarbonsshallbe eitherreversedoutofthetestingstringundercontrolledsurfaceconditions.Thiswouldinvolveprovidedsomemeansforreversecirculation.

Separationequipmentrequiredfortheanticipatedrecoveryshallbe properlyinstalledbeforea teststarts.

Allengineswithin100feetofthewellborethatarerequiredto"run"duringthetestshallhavesparkarrestersorwatercooledexhausts.

ONSHOREORDERNO.1 bcNFIDENTIAL- TIGHTHOLEGascoProductionCompanyWilkinRidgeFederal #32-17-10-17 Lease No.UTU-750821978' FNLand1972'FELSWNESection17, T10S - R17E DRILLINGPROGRAMDuchesneCounty,Utah Page 8

b..

Theloggingprogramwillconsistofa SchlumbergerPlatformExpressorequivalenttobe runfromTDtoBase ofSurfaceCasing.

c. Nocoresareanticipated.

d. Whetherthe well is completedas a dry hole or as a producer,"WellCompletionandRecompletionReportandLog"(Form3160-4)willbe submittednotlaterthan30 daysaftercompletionofthewelloraftercompletionofoperationsbeingperformed,inaccordancewith43 CFR 3164. Twocopies of all logs,core descriptions,coreanalyses,well-testdata,geologicsummaries,sampledescription,andallothersurveysordataobtainedandcompiledduringthe drilling,workover,and/orcompletionoperations,willbe filedwithform3160-4.Samples(cutting,fluids,and/orgases0 willbe submittedwhenrequestedbytheauthorizedofficer(AO).

e. Theanticipatedcompletionprogramisas follows:PerformmulitstagefracsandcompleteallproductiveMesaverdeandWasatchsandspresentinwellbore.Produceallzones together.

f. Dailydrillingandcompletionprogressreportsshallbe submittedtotheBLMinVernalonaweeklybasis.

7. ABNORMALTEMPERATURESORPRESSURES

a. The expectedbottomhole pressure is 8040 psi. The maximumbottom hole temperatureanticipatedis241degrees F.

b. No hydrogensulfidegas is anticipated.Abnormalpressures willbe controlledwithmudweightand5000#BOPandrotatinghead.

8. ANTICIPATEDSTARTINGDATESANDNOTIFICATIONOFOPERATIONS

a. Drillingis plannedtocommenceuponapprovalofthisapplication.

b. Itis anticipatedthatthedrillingofthiswellwilltakeapproximately35 days.

c. The BLMinVernal,Utahshall be notifiedofthe anticipateddate of locationconstructioncommencementandofanticipatedspuddate.

ONSHOREORDERNO.1 GUNFIDENTIAL- TIGHTHOLEGascoProductionCompanyWilkinRidgeFederal #32-17-10-17 Lease No.UTU-750821978' FNLand 1972' FELSWNESection17, T10S - R17E DRILLINGPROGRAMDuchesneCounty,Utah Page 9

d. Nolocationwillbe constructedormoved,nowellwillbe plugged,andnodrillingorworkoverequipmentwillbe removedfroma wellto be placed in a suspendedstatuswithoutpriorapprovalof the AO. Ifoperationsare to be suspended, priorapprovalof the AOwillbeobtainedandnotificationgivenbeforeresumptionofoperations.

e. The spuddate willbe reportedorallyto the AOwithin48 hours afterspudding.Ifthespuddingoccursonaweekendorholiday,thereportwillbesubmittedonthefollowingregularworkday. Theoralreportwillbe followedupwitha SundryNotice.

f. InaccordancewithOnshoreOilandGasOrderNo.1,thiswellwillbe reportedonForm3160-

6 "MonthlyReportofOperations",startingwiththemonthinwhichoperationscommenceandcontinueeach monthuntilthewellis physicallypluggedand abandoned. ThisreportwillbefiledwiththeVernalBLMDistrictOffice,170South500 East,Vernal,UT 84078.

g. ImmediateReport:Spills,blowouts,fires,leaks,accidents,oranyotherunusualoccurrencesshallbe promptlyreportedinaccordancewiththerequirementsofNTL-3Aorits revision.

h. Ifa replacementrigiscontemplatedforcompletionoperations,a "SundryNotice"Form3160-5 tothateffectwillbe filed,forpriorapprovaloftheAO,and allconditionsofthisapprovedplanareapplicableduringalloperationsconductedwiththereplacementrig.

i. Shouldthewellbe successfullycompletedforproduction,theAOwillbe notifiedwhenthewellisplacedina producingstatus.Suchnotificationwillbe sentbytelegramorotherwrittencommunications,not laterthan5 days followingthedate on whichthewellis placedonproduction.

j. PursuanttoOnshoreOrderNo.7,withtheapprovaloftheDistrictEngineer,producedwatermaybe temporarilydisposedofintounlinedpitsfora periodofup to90 days. Duringtheperiodso authorized,an applicationforapprovalofthepermanentdisposalmethod,alongwiththe requiredwateranalysisand otherinformation,must be submittedto theDistrictEngineer.

k. PursuanttoNTL-4A,lessees oroperatorsareauthorizedtovent/flaregasduringinitialwellevaluationtests,notexceedinga periodof30 days ortheproductionof50 MMCFofgas,whicheveroccursfirst. Anapplicationmustbe filedwiththeDistrictEngineerandapprovalreceived,foranyventing/flaringofgasbeyondthe initial30 dayorauthorizedtestperiod.

PEIL

ONSHOREORDERNO.1 00NFlDENTIAL- TlGHTHOLEGascoProductionCompanyWilkinRidge Federal#32-17-10-17 Lease No.UTU-750821978' FNLand 1972'FELSWNESection17,T10S- R17E DRILLINGPROGRAMDuchesneCounty,Utah Page 10

l. Aschematicfacilitiesdiagramas requiredby43 CFR3162.7-5(b.9.d.),shallbe submittedtothe appropriate DistrictOfficewithinsixty (60) days of installationor first production,whicheveroccursfirst.Allsitesecurityregulationsas specifiedinOnshoreOrderNo.3 shallbe adheredto. Allproductlinesenteringand leavinghydrocarbonstoragetankswillbeeffectivelysealedinaccordancewith43 CFR3162.7-5(b.4.).

m. A firstproductionconferencewillbe scheduledwithin15 days afterreceiptof the firstproductionnotice.

n. Nowellabandonmentoperationswillbe commencedwithoutthepriorapprovaloftheAO.Inthecaseofnewlydrilleddryholesorfailures,andinemergencysituations,oralapprovalwillbe obtainedfromtheSO. A"SubsequentReportofAbandonment"Form3160-5,willbefiledwiththeAOwithin30daysfollowingcompletionofthewellforabandonment.Thisreportwillindicatewhereplugswere placedandthe currentstatus ofsurfacerestoration. Finalabandonmentwillnot be approved untilthe surfacereclamationwork requiredby theapprovedAPDorapprovedabandonmentnoticehas been completedtothesatisfactionoftheAOor his representative,ortheappropriateSurfaceManagingAgency.

o. PursuanttoOnshoreOilandGasOrderNo.1, lessees andoperatorshavetheresponsibilityto see that theirexploration,development,production,and constructionoperationsareconductedina mannerwhichconformswithapplicableFederallawsandregulationsandwithState and local laws and regulationsto the extentthat such State and local laws areapplicabletooperationsonFederalorIndianlands.

BureauofLandManagement170South500 EastVernal,Utah84078

Phone:435/781-4400 Fax:435/781-4410AfterHours:

MattBaker PetroleumEngineer 435/828-4470

MichaelLee PetroleumEngineer 435/828-7875

PElb

BOP SCHEMATIC .

5000 PSl WORKlNG PRESSURE PLAN VlEW Cl10\ΠMANWOLD

PlfS FLARE GAS BUSIER(IF AVAILADLE)

FLOWLINEDRILLING 2"-20UU PSI WP

NIPPLE BALL VALVEFILL-UP LINl 2"-2000

PSI WP BALL ULEED/PAWICVALVE LINE (3~)

ANNULAR 2-3"-5000

(5000 PSI WP) PSI WP PLUG

11" X 5000 PSI VALVES

SHAFFER FLANGE 3"-5000 PSI WP PLUG-

-- -- - VALVE W/GAUGE

SHAFFER r- 2-3"-5000 PSt ADJUSTABLE MANUALBLIND RAMS 2-3 -5000 PSI WP PLUG VALVES POSfllvE CHOKE

(DOUBLE RAM WP PLUG VALVES

HYDRAULIC BOP POSIIIVE CI10KE WEliI FROM CI10KE5000 PSI WP) HYDRAULIC REMO1E LINEPIPE RAMS COWIROL (HCR)

5000 PSI PRESSURE GAUCE

2"-5000 PSI WPCHECK VALVE 3"-5000 PSI WP VALVE (i ICR)

.D S.500

3"-50UU PSI WilSVALVE

2"-5000 PSI WP AUlOMAIIC CilOKE

VALVES (2) Cil0KE LINE (LD.)

KILL LINE

BULL PLUG E CASING HEAD 2"-5000 PSI WP VALVE lilE IlYDRAULIC CLOSING UNIT WILL BE LOCAlED MORE lilAN

30' FROM lHE WELLHEAD. CHOKE AND BLEED/PANIC LINES

WILL GO 10 lllE PIT AND FLARE. ALL CONNECllONS IN

SURFACECil0KE LINES AND MANIFOLD WILL BE FLANGED OR WELDED.

CASINGALL FLANGES Si10ULD BE RING JOIN T GASKET TYPE. ALL

lURNS IN LINES SHALL BE CONSlRUClED USING TARGETING

90 IEES UR ELLS. ALL LINES SilALL DE

ONSHOREORDERNO.1 oCNFIDENTIAL- TlGHTHOLEGascoProductionCompanyWilkinRidgeFederal #32-17-10-17 Lease No. UTU-750821978'FNLand 1972' FELSWNESection17, T10S - Ri7E SURFACEUSEPLANDuchesneCounty,Utah Page 1

ONSHOREOIL&GASORDERNO.1NOTIFICATIONREQUIREMENTS

LocationConstruction- forty-eight(48)hourspriortoconstructionoflocationandaccessroads.

LocationCompletion- priortomovingon thedrillingrig.

SpudNotice - at least twenty-four(24) hourspriortospuddingthewell.

CasingStringand - twenty-four(24) hourspriorto runningcasingandCementing cementingallcasingstrings.

BOPandRelated - twenty-four(24) hourspriorto initiatingpressuretests:EquipmentTests

FirstProduction- withinfive(5)businessdays afternewwellbeginsorNotice productionresumesafterwellhas been offproductionformorethan

ninety(90)days.

Theonsiteinspectionforthesubjectwellsitewas conductedonTuesday,October4, 2005atapproximately3:30p.m. Weatherconditionswerecool,windyandovercast.Inattendanceat theonsiteinspectionwerethefollowingindividuals:

KarlWright NaturalResourceSpecialist BureauofLandManagementToddMegrath WildlifeBiologist SWCAVenessa Langmacher PermittingAgent PermitcoInc.Jesse Walton Surveyor UintahEngineeringandLandSurveyingCalebRounsaville FieldSupervisor Gasco ProductionCompany

1. EXISTINGROADS

a. Theproposedwellsiteis locatedapproximately23.4milessouthofMyton,Utah.

ONSHOREORDERNO.1 GONFlDENTIAL- TlGHTHOLEGascoProductionCompanyWilkinRidge Federal#32-17-10-17 Lease No.UTU-750821978' FNLand1972' FELSWNESection17, T10S - R17E SURFACEUSEPLANDuchesneCounty,Utah Page 2

b. Directionstothe locationfromMyton,Utahareas follows:

Proceedina southeasterlydirectionfromMyton,Utahforapproximately12.7milestotheCastlePeak Mine.Stay rightandcontinuesoutherlyfor6.6 milestoa forkintheroad.Turnrightandproceedsouthwesterlyfor1.2milesuntilreachinga secondforkin theroad. Turnrightandproceedsouthwesterly2.1 miles.Turnrightontotheproposednewaccessandproceedwesterly0.8 milesuntilreachingtheproposedlocation.

c. Forlocationofaccessroadswithina 2-Mileradius,see MapsA&B.

d. Improvementtoexistingmainroadswillnotbe required.

e. Allexistingroadswillbe maintainedandkeptingoodrepairduringalldrillingandcompletionoperationsassociatedwiththiswell.

f. Existingroadsand newlyconstructedroadsonsurfaceunderthejurisdictionofanySurfaceManagingAgencyshallbe maintainedinaccordancewiththestandardsoftheSMA.

2. PLANNEDACCESSROADS

a. Therewillbe 0.8 milesofnewaccesstobe constructed.

b. Themaximumgradeis approximately5%.

c. Noturnoutsareplanned.

d. Nolowwatercrossingsorculvertswillbe necessary.

e. Theaccessroadwascenterlinesurveyedat thetimeofstaking.

f. The use ofsurfacingmaterialis notanticipated,howeveritmaybe necessarydependingonweatherconditions.

g. Nocattleguardswillbe necessary.

ONSHOREORDERNO.1 DONFlDENTIAL- TIGHTHOLEGascoProductionCompanyWilkinRidge Federal#32-17-10-17 Lease No.UTU-750821978' FNLand 1972'FELSWNESection17, T10S - R17E SURFACEUSEPLANDuchesneCounty,Utah Page 3

h. Surfacedisturbanceandvehiculartravelwillbe limitedtotheapprovedlocationandapprovedaccessroute. Anyadditionalareaneededwillbe approvedinadvance.

i. AccessroadsandsurfacedisturbingactivitieswillconformtostandardsoutlinedintheBureauofLandManagementandForestServicepublication:SurfaceOperatinqStandardsforOiland Gas Explorationand Development,(1989).

j. The roadwillbe constructed/upgradedtomeetthestandardsoftheanticipatedtrafficflowandallweatherroadrequirements.Construction/upgradingshallincludeditching,draining,graveling,crowingandcappingtheroadbedas necessarytoprovidea wellconstructedsafe road. Priorto upgrading,theroadshallbe clearedofanysnowcoverandallowedtodrycompletely.Travelingoffthe30 footright-of-waywillnotbe allowed.Roaddrainagecrossingsshallbe ofthetypicaldrycreekdrainagecrossingtype.Crossingsshallbe designedsotheywillnotcausesiltationoraccumulationofdebrisinthedrainagecrossingnorshallthedrainagesbe blockedbytheroadbed.Erosionofdrainageditchesbyrunoffwatershallbe preventedbydivertingwateroffat frequentintervalsbymeansofcutouts.Upgradingshallnotbe allowedduringmuddyconditions.Shouldmudholesdevelop,theyshallbe filledinanddetoursaroundthemavoided.

k. NochemicalssubjecttoreportingunderSARATitlelllinan amountequaltoorgreaterthan10,000poundswillbe used,produced,stored,transported,ordisposedofannuallyinassociationwiththedrillingofthiswell.Furthermore,noextremelyhazardoussubstances,as definedin40 CFR355,inthresholdplanningquantities,willbe used,produced,stored,transported,or disposedof in associationwiththedrillingofthiswell.

l. Nofederalrightofwayswillbe necessarybecause allaccessiswithintheWilkinRidgeUnit.

m. Aroadandpipelineeasementwillbe requestedfromSlTLAfortheportionofroad/pipelinelocatedinSection16,T10S- R17E.

3. LOCATIONOFEXISTINGWELLSWITHINA1-MILERADIUSOFTHEPROPOSEDLOCATION.(SeeMap"C")

a. Waterwells- none

b. Injectionwells- none

c. Producingwells- two e

ONSHOREORDERNO.1 o NFlDENTIAL- TIGHTHOLEGascoProductionCompanyWilkinRidge Federal #32-17-10-17 Lease No.UTU-750821978'FNLand1972'FELSWNESection17, T10S - R17E SURFACEUSEPLANDuchesneCounty,Utah Page 4

d. Drillingwells- none

e. Shut-inwells- none

f. Temporarilyabandonedwells- none

g. Disposalwells-none

h. Abandonedwells- one

i. DryHoles- none

4. LOCATIONOFTANKBATTERIESANDPRODUCTIONFACILITIES.

a. Allpermanentstructures(onsiteforsixmonthsor longer)constructedorinstalled(includingoilwellpumpjacks)willbe paintedCarlsbadCanyon.Allfacilitieswillbepaintedwithinsixmonthsofinstallation.FacilitiesrequiredtocomplywiththeOccupationalSafetyand Health Act (OSHA)willbe excluded.

b. Ifstoragefacilities/tankbatteriesareconstructedonthislease, thefacility/batteryorthewellpad shallsurroundedbya containmentdikeofsufficientcapacitytocontainat aminimum,theentirecontentsofthelargesttankwithinthefacility/battery,unlessmorestringentprotectiverequirementsare deemednecessarybytheauthorizedofficer.

c. Ifproductionis established,a productionfacilitydiagramwillbe submittedviaSundryNotice.

d. Allloadinglineswillbe placedinsidethebermsurroundingthetankbattery.

e. Gasmeterrunsforeachwellwillbe locatedwithin500feet ofthewellhead.The gas flowlinewillbe buriedoranchoreddownfromthewellheadtotheseparator.Meterrunswillbe housedand/orfenced.

f. Theoilandgas measurementfacilitieswillbe installedonthewelllocation.Theoilandgas meterswillbe calibratedinplacepriortoanydeliveries.Tests formeteraccuracywillbe conductedmonthlyforthefirstthreemonthsonnewmeterinstallationsandat leastquarterlythereafter.TheAOwillbe providedwitha date andtimeforthe initialmeter

ONSHOREORDERNO.1 uòNFlDENTIAL- TIGHTHOLEGascoProductionCompanyWilkinRidgeFederal #32-17-10-17 Lease No.UTU-750821978' FNLand1972'FELSWNESection17,T10S- R17E SURFACEUSEPLANDuchesneCounty,Utah Page 5

calibrationandallfuturemeterprovingschedules.Acopyofthemetercalibrationreportswillbe submittedtotheVernalFieldOffice.AllmetermeasurementfacilitieswillconformwithOnshoreOiland Gas OrderNo.4 forliquidhydrocarbonsandOnshoreOiland GasOrderNo.5 fornaturalgas measurement.

g. Ifat anytimethefacilitieslocatedon publiclandandauthorizedbythetermsoftheleaseareno longerincludedinthe lease (duetoa contractionintheunitorotherlease or unitboundarychange),BLMwillprocessa change inauthorizationtotheappropriatestatute.Theauthorizationwillbe subjecttoappropriaterentalor otherfinancialobligationasdeterminedby theauthorizedofficer.

h. Anynecessarypitswillbe properlyfencedtopreventanywildlifeentry.

i. Allsite securityguidelinesidentifiedin43 CFR3162.7regulationswillbe adheredto.

j. Alloff-leasestorage,off-leasemeasurement,orcomminglingon-leaseoroff-leasewillhave priorwrittenapprovalfromtheDistrictManager.

k. Allaccess roadswillbe maintainedas necessarytopreventerosionand accommodateyear-roundtraffic.

l. The roadwillbe maintainedina safe useablecondition.

m. Producedwaterwillbe storedina 300bblheated, insulatedtank,thenhauledtoacommercialdisposalsitesuchas DisposalInc.,orBrennanBottom.

n. Pipelineswillfollowthe routeshownonMapD. See Pipelinedetailattached.

5. LOCATIONANDTYPEOFWATERSUPPLY

a. Theproposedwatersourcewillbe theNebeckerWaterStationinMyton.TheWaterUseClaim# is 43-1721.

b. Waterwillbe hauledbyNebeckerWaterService tothe locationovertheaccess roadsshownonMapsAandB.

c. Nowaterwellwillbe drilledon thislease.

ONSHOREORDERNO.1 UONFIDENTlAL- TIGHTHOLEGascoProductionCompanyWilkinRidge Federal#32-17-10-17 Lease No.UTU-750821978' FNLand 1972'FELSWNESection17, T10S - R17E SURFACEUSEPLANDuchesneCounty,Utah Page 6

6. SOURCEOFCONSTRUCTIONMATERIAL

a. Surfaceandsubsoilmaterialsintheimmediateareawillbe utilized.

b. Anygravelused willbe obtainedfroma commercialsource.

c. Theuse ofmaterialsunderBLMjurisdictionwillconformwith43 CFR3610.2.3.Constructionmaterialwillnotbe locatedon lease.

d. Noconstructionmaterialswillbe removedfromFederalland.

7. METHODSOFHANDLINGWASTEDISPOSAL

a. The reservepitwillbe constructedso as nottoleak,break,orallowdischarge.

b. AttherequestoftheBLM,thereservepitwillbe linedwitha 12milliner. Iffracturedrockis encountered,thepitwillbe firstlinedwithsufficientbedding(eitherstrawordirt)tocoveranyrocks. The linerwilloverlapthepitwallsand be coveredwithdirtand/orrockstoholditinplace. Notrash,scrappipe,etc.,thatcouldpuncturethe linerwillbe disposedofinthepit. Morestringentprotectiverequirementsmaybe deemednecessarybytheA.O.

c. Burningwillnotbe allowed.Alltrashwillbe containedina trashcageanditscontentsremovedat theendofdrillingoperationsandhauledtoan approveddisposalsight.

d. Afterfirstproduction,producedwastewaterwillbe confinedtoa unlinedpitorstoragetankfora periodnottoexceedninety(90)days. Duringthe90-dayperiod,in accordancewithOnshoreOrderNo.7, an applicationforapprovalofa permanentdisposalmethodandlocation,alongwiththerequiredwateranalysis,willbe submittedfortheAO'sapproval.Failuretofilean applicationwithinthetimeallowedwillbe consideredanincidentofnoncompliance.

e. Drillcuttingsaretobe containedandburiedinthereservepit.

f. Anysaltsand/orchemicalswhicharean integralpartofthedrillingsystemwillbedisposedofinthesamemanneras thedrillingfluid.

g. Achemicalporta-toiletwillbe furnishedwiththedrillingrig. ye

PEIL

ONSHOREORDERNO.1 u)NFIDENTIAL- TIGHTHOLEGascoProductionCompanyWilkinRidge Federal#32-17-10-17 Lease No.UTU-750821978'FNLand1972'FELSWNESection17, T10S - R17E SURFACEUSE PLANDuchesneCounty,Utah Page 7

h. Theproducedfluidswillbe producedintoa testtankuntilsuchtimeas constructionofproductionfacilitiesis completed.Anyspillsofoil,gas saltwaterorotherproducedfluidswillbe cleanedupand removed.

8. ANCILLARYFACILITIES

Thereareno airstrips,camps,orotherfacilitiesplannedduringthedrillingoftheproposedwell.

9. WELLSITELAYOUT

a. Theoperatororhis/hercontractorshallcontacttheBLMOfficeat 435/781-4400 forty-eight(48)hourspriortoconstructionactivities.

b. The reservepitwillbe locatedonthenorthwestside ofthe location.

c. Theflarepitwillbe located on theeastsideofthereservepit, a minimumof100feetfromthewellhead and 30 feet fromthereservepitfence.

d. Thestockpiledtopsoil(firstsix inches) willbe storedonthesouthside ofthe location,betweenCorners9 and2. Topsoilalongtheaccessroutewillbe windrowedontheuphillside.

e. Accesstothewellpadwillbefromtheeastas shownonthePit&Pad Layout.

f. See LocationLayoutfororientationofrig,cross sectionofdrillpad and cutsandfills.

g. The locationofmudtanks;reservepit,trashcage;pipe racks;livingfacilitiesandsoilstockpileswillbe shownontheLocationLayout.

h. Allpitswillbe fencedaccordingtothefollowingminimumstandards:

1. 39 inchnetwireshallbe usedwithat leastonestrandorbarbedwireontopofthenet wire(barbedwireis notnecessaryifpipeorsometypeofreinforcementrodis attachedtothetopoftheentirefence).

2. The netwireshallbe nomorethan2-inchesabovetheground.The barbedwireshallbe 3-inchesabovethenetwire.Totalheightofthefenceshallbe at least p,42-inches.

PE

ONSHOREORDERNO.1 oCNFlDENTIAL- TlGHTHOLEGascoProductionCompanyWilkinRidge Federal #32-17-10-17 Lease No.UTU-750821978'FNLand1972' FELSWNESection17, T10S - R17E SURFACEUSEPLANDuchesneCounty,Utah Page 8

3. Cornerpostsshallbe cementedand/orbraced insucha mannertokeep thefencetightat alltimes.

4. Standardsteel,wood,orpipeposts shallbe used betweenthecornerbraces.Maximumdistancebetweenanytwoposts shallbe no greaterthan16feet.

5. Allwireshallbe stretched,byusinga stretchingdevice,beforeitis attachedtothecornerposts.

i. The reservepitfencingwillbe on threesidesduringdrillingoperationsand onthefourthsidewhenthe rigmovesoffthelocation.Pitswillbe fencedandmaintaineduntilcleanup.

10. PLANSFORRESTORATIONOFSURFACE

ProducingLocation

a. Immediatelyuponwellcompletion,thelocationandsurroundingareawillbe clearedofallunused tubing,equipment,debris, materials,trashand junknotrequiredfor production.

b. Immediatelyuponwellcompletion,anyhydrocarbonsonthepitshallbe removedinaccordancewith43 CFR 3162.7-1.

c. Ifa plasticnylonreinforcedlineris used itshallbe tornandperforatedbeforebackfillingofthereservepit.

d. The reservepitandthatportionofthe locationnotneededforproductionfacilitiesoroperationswillbe recontouredtotheapproximatenaturalcontours.The reservepitwillbereclaimedwithin120days fromthedate ofwellcompletion.Beforeanydirtworktakesplace,thereservepitmusthave allfluidsandhydrocarbonsremovedandallcans,barrels,pipe,etc.,willbe removed.

e. Reclamationofunuseddisturbedareasonthewellpadlaccessroadnolongerneededforoperations,such as cutslopes,andfillareaswillbe accomplishedbygrading,levelingand seedingas recommendedbytheAuthorizedOfficer.Thefollowingseedmixturehasbeen requestedbytheBureauofLandManagement.

PEIL

ONSHOREORDERNO.1 u)NFIDENTIAL- TIGHTHOLEGascoProductionCompanyWilkinRidge Federal#32-17-10-17 Lease No.UTU-750821978' FNLand1972' FELSWNESection17, T10S - R17E SURFACEUSEPLANDuchesneCounty,Utah Page 9

Species Pounds PLS/Acres

IndianRicegrass 4

HighCrestedWheatgrass 4

Needlegrass 4

Threadgrass 4

TOTAL 12

Seedingwillbe performedimmediatelyafterthelocationhas been reclaimedandthepithas been backfilled,regardlessofthetimeofyear. Seed willbe broadcastand walkedinwitha dozer.

f. Thetopsoilstockpilewillbe seededas soonas the locationhas been constructedwiththesamerecommendedseedmix.Theseedwillbe walkedinwitha cat.

DrvHole

g. Atsuch timeas thewellis pluggedandabandoned,theoperatorshallsubmitasubsequentreportofabandonmentandBLMwillattach theappropriatesurfacerehabilitationconditionsofapproval.

InterimSurfaceReclamationwillbe as follows:

1. Immediatelyafterfinalwellcompletion,the locationandsurroundingareawillbe clearedofallunusedtubing,materials,trash,anddebrisnotrequiredforproductionoperations.

2. Beforeany dirt workassociatedwithlocationrestorationtakesplace,thereservepitshallbe as dryas possible. Alldebrisinthereservepitwillbe removed.Otherwaste andspoilmaterialswillbe disposedofimmediately,weatherpermitting,uponfinalwellcompletion.

3. Ifa synthetic,nylonre-enforced,lineris used, theexcesslinerwillbe cutoffandremovedand theremaininglinerwillbe tornandperforatedwhilebackfillingthereservepit.Alternatively,thepitwillbe pumpeddry,thelinerfoldedintothepit,andthepitbackfilled.The linerwillbe buriedtoa minimumoffour(4)feetdeep.

PEIL

ONSHOREORDERNO.1 00NFIDENTIAL- TIGHTHOLEGascoProductionCompanyWilkinRidgeFederal #32-17-10-17 Lease No.UTU-750821978' FNLand1972' FELSWNESection17,T10S - R17E SURFACEUSEPLANDuchesneCounty,Utah Page 10

4. The reservepitwillbe reclaimedwithin180 daysfromthedate offinalwellcompletion,weatherpermitting.

5. The reservepitand thatportionofthelocationnotneededforproductionandstoragefacilities,and everydayproductionoperations,willbe reshapedtotheapproximateoriginalcontourstotheextentpossible. Thiswillbe completedbybackfillingandcrowningthepittopreventwaterfromstanding. Topsoilwillbe re-spreadup totheriganchorpoints,excludingthearea neededforproductionand storagefacilitiesand everydayproductionoperations. Re-seeding,usingappropriatereclamationmethods,willoccurimmediatelyfollowingthere-spreadingoftopsoil,weatherpermitting.TheAuthorizedOfficerwillprovidea seedmixturetore-vegetatethereservepitandotherunuseddisturbedareasatthetimeoftheonsite.

11. SURFACEOWNERSHIP

AccessRoads - ThemajorityoftheaccessroadsaremaintainedbytheCountyRoadDepartmentortheBureauofLandManagement.

Wellpad - Thewellpad is locatedon landsmanagedbytheBLM.

12. OTHERINFORMATION

a. AClassIllarcheologicalsurveywillbe conductedbyGrandRiverInstitute.Acopyofthiswillbe submittedtotheappropriateagenciesbyGrandRiverInstitute.

b. Theoperatoris responsibleforinformingallpersonsintheareaswhoareassociatedwiththisprojectthattheywillbe subjecttoprosecutionforknowinglydisturbinghistoricorarchaeologicalsites,orforcollectingartifacts.Ifhistoricorarchaeologicalmaterialsareuncoveredduringconstruction,theoperatoris toimmediatelystopworkthatmightfurtherdisturbsuchmaterials,andcontacttheauthorizedofficer(AO).WithinfiveworkingdaystheAOwillinformtheoperatoras to:

-whether thematerialsappeareligiblefortheNationalRegisterofHistoricPlaces;

-the mitigationmeasures theoperatorwilllikelyhave to undertakebeforethesitecanbeused (assuminginsitupreservationisnotnecessary);and

ONSHOREORDERNO.1 GUNFlDENTIAL- TlGHTHOLEGascoProductionCompanyWilkinRidge Federal #32-17-10-17 Lease No.UTU-750821978'FNLand1972' FELSWNESection17, T10S - R17E SURFACEUSEPLANDuchesneCounty,Utah Page 11

-a timeframefortheAOtocompleteand expeditedreviewunder36 CFR800.11toconfirm,throughtheStateHistoricPreservationOfficer,thatthefindingsoftheAOarecorrectandthatmitigationisappropriate.Iftheoperatorwishes,at anytime,torelocateactivitiestoavoidtheexpenseofmitigationand/orthedelaysassociatedwiththisprocess,theAOwillassumeresponsibilityforwhateverrecordationand stabilizationoftheexposedmaterialsmaybe required.Otherwise,theoperatorwillbe responsibleformitigationcosts. TheAOwillprovidetechnicalandproceduralguidelinesfortheconductofmitigation.UponverificationfromtheAOthatrequiredmitigationhas been completed,theoperatorwillthenbe allowedto resumeconstruction.

c. Theoperatorwillcontrolnoxiousweedsalongrights-of-wayforroads,pipelines,wellsites,or otherapplicablefacilities.Alistofnoxiousweeds maybe obtainedfromtheBLM,ortheappropriateCountyExtensionOffice.On BLMadministeredlanditis requiredthataPesticideUseProposalshallbe submitted,and givenapproval,priortotheapplicationofherbicidesorotherpesticidesorpossiblehazardouschemicals.

d. Drillingrigsand/orequipmentused duringdrillingoperationsonthiswellsitewillnotbestackedorstoredon FederalLandsaftertheconclusionofdrillingoperationsorat anyothertimewithoutBLMauthorization.However, ifBLMauthorizationis obtained,it is onlya temporarymeasure.

e. Alllease and/orunitoperationswillbe conductedinsucha mannerthatfullcomplianceismadewithallapplicablelaws,regulations,OnshoreOilandGas Orders,theapprovedplanofoperations,andanyapplicableNoticeto Lessees. The operatoris fullyresponsiblefortheactionsofhissubcontractors.Acopyoftheseconditionswillbefurnishedthefieldrepresentativeto insurecompliance.

f. AcompletecopyoftheapprovedAPDshallbe on locationduringconstructionofthelocationand drillingactivities.

g. There willbe nodeviationfromtheproposeddrillingand/orworkoverprogramwithoutpriorapprovalfromtheAO. Safedrillingandoperatingpracticesmustbe observed.Allwells,whetherdrilling,producing,suspendedorabandonedwillbe identifiedinaccordancewith43 CFR3162.

h. "SundryNoticeandReportonWells"(Form3160-5)willbe filedforapprovalforallchangesofplansandotheroperationsinaccordancewith43 CFR3162.3-2.

PEIL

ONSHOREORDERNO.1 CONFIDENTIAL- TIGHTHOLEGascoProductionCompanyWilkinRidge Federal #32-17-10-17 Lease No.UTU-750821978'FNLand1972'FELSWNESection17,TiOS- R17E SURFACEUSEPLANDuchesneCounty,Utah Page 12

i. Thispermitwillbe validfora periodofoneyearfromthedate ofapproval.Anextensionperiodmaybe granted,ifrequested,priortotheexpirationoftheoriginalapprovalperiod.Afterpermittermination,a newapplicationwillbe filedforapprovalforanyfutureoperations.

j. Theoperatoror hiscontractorshallcontacttheBLMOfficesat 435/781-4400 48 hourspriortoconstructionactivities.

k. The BLMOfficeshallbe notifieduponsite completionpriortomovingon thedrillingrig.

13. LESSEE'SOROPERATOR'SREPRESENTATIVEANDÒERTIFICATION

PermitMatters Drilling&CompletionMatters

PERMITCOINC. Gasco Production Company14421 CountyRoad10 8 InvernessDriveEast, Suite100Ft.Lupton,CO80621 Englewood,CO80112303/857-9999(0) John Longwell303/857-0577(F) 303/483-0044(0)LisaSmith 303/483-0011(F)

ShawnElworthyRoosevelt,UT(Cell)435-823-4272

CERTIFICATION

I herebycertifythatI,orpersonsundermydirectsupervision,have inspectedtheproposeddrillsiteandaccessroute;thatIam familiarwiththeconditionswhichpresentlyexist;thatthestatementsmade inthisplanare, tothebestofmyknowledge,trueandcorrect;and,thattheworkassociatedwiththeoperationsproposedhereinwillbe performedbyGASCOEnergy,Inc.anditscontractorsandsubcontractorsin conformitywiththeplanandthetermsandconditionsunderwhichit is approved.

Thisstatementis subjecttotheprovisionsof18.U.S.C.1001 forthefilingofa falsestatement.

October27,2005 '40&D Ï 69VAN UADate: VenessaLangmacher- ERMlTCOINC.

AuthorizedAgentfor: g eGascoProductionCompany 9PERi

PIPELINElNFORMATIONWilkinRidge Federal #32-17-10-17

1. Thetypeofpipelineis a singlewellflowline.

2. Theoutsidediameter(O.D.)ofallwillbe 8 inchesmaximum.

3. Theanticipatedproductionthroughthe lineis approximately2000 MCFperday.

4. Theanticipatedmaximumtestpressure is 1000 psi.

5. Theanticipatedoperatingpressure is 100-200 psi.

6. Thetypeofpipeissteel.

7. Themethodofcouplingiswelded.

8. Thepipelinewillbelaid onsurfacebecause oftheextremelyrockysurface.

9. Therearenootherpipelinestobe associated insame rightofway.

10. Therewillbe otherobjectstobe associatedin thesamerightofway.(Risers,Pig LaunchersPigTraps,metersandotherappurtenancesas required.)

11. Thetotallengthofpipelineis approximately7900 feet (2100' State Land, 5800' BLMLand)-

see MapD.

12. The linewillbe laidonsurfaceas shownonMapD. The pipelinewillfollowexistingor proposedroads.

13. Theconstructionwidthfortotalsurfacedisturbingactivitiesis 30 feet.

14. Theestimatedtotalacreageinvolvingallsurfacedisturbingactivitiesis 5.4acres.

15. Anysurfacedisturbancecreatedas a resultofthepipelineconstructionwillbe reclaimedutilizingthereclamationproceduresandseedmixturespecifiedbytheBureauofLandManagement.

16. The linewillbe testedwithgas pressureto1000psi.

PEIL

GASCO PRODUCTION COMPANYWILKIN RIDGE FEDERAL #32-17-10-17

LOCATED IN DUCHES COUNTY, UTAHSECTION 17, T10S, R17E, S.L.B.&M.

i

I -

PHOTO: VIEW FROM CORNER #5 TO LOCATION STAKE CAMERA ANGLE: SOUTHEASTERLY

I

I

PHOTO: VIEW FROM BEGINNING OF PROPOSED ACCESS CAMERA ANGLE: NORTHWESTERLY

Uintah Engineering & Land Surveying LOCATIONPHOTOs 09 26 05 PHOTO

85 South 200 East Vernal, Utah 84078 310NT DAY YEAR

smeeà. 435-789-1017 uels@uelsinc.com TAKENBY:J.W. DRAWNBY:C.P. REVISED:

T10Si

PROPOSED LOCATION:WILKIN RIDGE FEDERAL #32-17-10-17

18 15

.YT 6

LEGEND: GASCO PRODUCTION COMPANYEMSTINGROAD N Wil KIN RIDGE FEDERAL #32-17-10-17

---------- I'ROPONE D \( ( ENS R \D SECTION 17, T10S, R17E, S.L.B.&iL1978' FNI 1972' FEL

- Fintah Engineering & I and Surveyittg TOPOGR \ PH I C ()L) 26 (§85 South 200 East Vernal, Klash 84078 9 \ Ÿ \10NTH DAY \EAR

(435) 789-1017 * FAX (435) 789-1813SCAL£:1"= 2000' DRAWNBY:CP REVISED:10-10-05

9

PROPOSED LOCATION:WILKIN RIDGE FEDERAL #32-17-10-17

LEGEND: GASCO PRODUCTION COMPANY

p' DISPOSAL WELLS WATER WELLS N WILKIN RIDGE FEDERAL #32-17-10-17O PRODUCING WELLS ABANDONED WELLS SECTION 17, T10S, R17E, S.L.B.&M.

SHUT IN WELLS -@- TEMPORARILY ABANDONED 1978' FNL 1972' FEL

- Uintah Engineering & Land Surveying TOPOGR A PH I c 09 26 0585 South 200 East Vernal, Utah 84078 M A P MONTH DW YEAR

(435) 789-1017 * FAX (435) 789-1813SCAIÆ:1"=2000 DRAWNBY:C.P.

I

UASCO PRODUCTION COMPAN fLOCATION LAYOUT FOR

WILKINRIDGE FEDERAL #32-17-10-17SECTION 17, T10S, R17E, S.L.B.&M.

1978' FNL 1972' FEL E-9.5'Proposed Access B. 22 4

E- J.2F-1Road

8. 28. 7' | 7

\ 65''

, Sta. J+80E- 0. 8B. J1. 1'

Round Cornersas Needed .

SCALE: 1" = 50'DATE: 09-28-05

Drawn By L.K.

it I Approx.

ELARE P/T PIPE RACKS Fill Slope

C-2.4' C-f.f'20 WIDE BENCH 6 El J4J' a Jyp'

B. J2 3, 20 D-- DOG HOUSE

C-10.4 100 so' sto. reso

§- -4. J'backi ¯2 ¯ C-2 5'

27 s'= 1J,900 Ðb/s. ±

¯

ii¯ E/. J4.4'

roto/ Pit Volume¯

.-

¯¯¯

- J,9JO Cu. Yds. - g- x

PUMP

MUD SHED

TOILET

HOPPER

--

POWER¯¯ ---- TRASH

RESERVE P/TS--- (10' Deep)

TOOLS

FUEL Sta. 0+55 STORAGETANK

B. J9.2'Û-·f7.] 20' WIDE BENCH

00

Cut Slope E/. J1.9'

Bev. Ungraded Ground at Location Stake = 5933.0' UINTAH ENGINEERING & LAND SURVEYINGBev. Graded Ground at Location Stoke = 5931.9 es so. 2oo s.,, . v,,..z. 222, evoys . (so,)

txASCO PRODUCTION COMPAN fTYPICAL CROSS SECTIONS FOR

×-section WILKINRIDGE FEDERAL #32-17-10-17scale SECTION 17, T10S, R17E, S.L.B.&M.

1" = So' 1978' FNL 1972' FEL

DATE: 09-28-05Drawn By L.K.

65' 150'

Preconstruction E/L/.Grade

- S9. J+80

150'10' 100' 45

Slope= 1 1/2: 1LOCA T/ON STA E (7)p.)

10' 100' 45' 150'

II cur SM. O 55

45' 150'I I i i

NOTE:Topsoil should not beStripped Below Finished SU 0+¾Grode on Substructure Area. * NO TE:

E/LL QUANT/TY/NCLUDES

APPROXlMATE YARDAGES 5X EOR COMPACT/ON

CUT EXCESS MATERIAL = 4,010 Cu. Yds.(6") Topsoil Stripping = 2,040 Cu. Yds.

Topsoil & Pit Backfill = 4,010 Cu. Yds.

Remaining Location = 9,020 Cu. Yds. (1/2 Pit Vol.)

EXCESS UNBALANCE = 0 Cu. Yds.

TOTAL CUT = 11,060 CU.YDS- (After Rehabilitation)

FILL = 7,050 CU.YDS. UINTAH ENGINEERING & LAND SURVEYING85 So. 200 East * Vernal, Utah 84078 * (801)

FEDERALSTIPULATIONS

Anywildlifestipulationsthatpertaintothislease willbe attachedas aConditionalofApprovalbytheBureauofLandManagernent.

PEIL

Archeoloqy

AClassll!ArcheologicalSurveywillbe conductedbyGrandRiverInstitute. AcopyofthisreportwillbesubmitteddirectlytotheappropriateagenciesbyGrandRiverInstitute.

PEILIIT

GAS00Energy

Bureau of Land ManagementVemal Field Office170 S. 500 E.Vernal, UT 84078

Attn: Minerals

Re: AllWells

Gentlernen:

This letter is to inform you that Permitco Inc. is authorized to act as Agent and to sign

documents on behalf of Gasco Production Company, a wholly owned subsidiary of Gasco

Energy, Inc. when necessary for filingcounty, state and federal permits including Onshore

Order No. 1, Right of Way applications,etc., for the above mentionedwell.

It should be understood that Permitco is acting as Agent only in those matters stated

above and is not responsible for drilling, completion, production or compliance with

regulations.

Gasco Production Company agrees to accept full responsibility for operations conducted in

order to drill, complete and produce the above-mentioned well.

Yo ry truly,

rk 1 ChouryLand Manager

USDOEnergyac.4 irveness 06vs East. 80te H-236 Tel: (303) 483-0044 Email: invast©sascoenergy com

Ër:lewood. CO 30112-5525 Fax 1303:483-0011 Website: www.µscoerergy.ccm OTCBB

WORKSHEETAPPLICATION FOR PERMIT TO DRILL

APD RECEIVED: 03/01/2006 API NO. ASSIGNED: 43-013-33079

WELL NAME: WILKIN RIDGE FED 32-17-10-17

OPERATOR: GASCO PRODUCTION ( N2575 ) PHONE NUMBER: 303-857-9999

CONTACT: VENESSA LANGMACHER

PROPOSED LOCATION: INSPECT LOCATN BY: / /

SWNE 17 100S 170E . .

Tech Review Initials DateSURFACE: 1978 FNL 1972 FEL

BOTTOM: 1978 FNL 1972 FEL Engineering

COUNTY: DUCHESNE GeologyLATITUDE: 39.94575 LONGITUDE: -110.0272

UTM SURF EASTINGS:583104 NORTHINGS: 4421979 Surface

FIELD NAME: EIGHT MILE FLAT ( 95 )

LEASE TYPE: 1 - Federal

LEASE NUMBER: UTU-75082 PROPOSED FORMATION: BLKHK

SURFACE OWNER: 1 - Federal COALBED METHANE WELL? NO

RECEIVED AND/OR REVIEWED: LOCATION AND SITING:

Plat R649-2-3.

Bond:Fed[1] Ind[] Stal] Fee[]Unit: WILKIN RIDGE DEEP

(No. VT-1233 )Potash (Y/N)

R649-3-2. General

Oil Shale 190-5 (B) or 190-3 or 190-13 Siting:460 From Qtr/Qtr & 920'Between Wells

Water Permit R649-3-3. Exception

(No.43-1721 )Drilling Unit

RDCC Review (Y/N)Board Cause No:

(Date: ) Eff Date:

Fee Surf Agreement (Y/N) Siting:

Intent to Commingle (Y/N) .R649-3-11. Directional Drill

COMMENTS:

T10S Ri7E

EIGHT MILE FLAT FIELD

WILKIN RIDGEFED 31 17-10-17

WILKIN RIDGEFED 3‡ 17-10-17

eMLhl RiiERBI ND 16-17-Kl 17

Wiß! DESERTSPRING 11-20 10 17

e

WRBU8770 WILKIN RIDGE16-a-ID-U4 FED 24 20 10-17

IFEDERAI jüNIPŒ21-29 .

DERAL FIDBML I

WILKIN RIDGE

OPERATOR: GASCO PROD CO (N2575)

SEC: 17,20 T.10S R.17E

FIELD: EIGHT MILE FLAT (95)

COUNTY: DUCHESNE

SPACING:R649-3-2/GENERALSITINGTVellsSt s

N Utah 00 Gas and MaagX LOCATION ABANDONED

NEW LOCATIONField Status Unit status g PLUGGED & ABANDONED

ABANDONED EXPLORATORY y PRODUCING GAS

ACTIVEGAS STORAGE e PRODUCING OILNF Pr O1L 4 SHUT-IN GAS

COMBINED NF5ECONDARY e SHUT-INOILINACTIVE NDLING )g' TEMP. ABANDONEDPROPOSED o TEST WELLSTORAGE GF THERML A WATERINJECTIONTERMINATED PP OIL g WATER SUPPLY PREPARED BY: DIANA \Vif[TNET

SECONDARY Af WATERDISPOSAL DATE:06-MARCH-2DD6

TERMINATED -

JON M. HUNTSMAN, JR,Governor

GARY R. HERBERTaa• Lieutenant Governor

State of Utah March 7, 2006

Department ofNatural Resources

MICHAEL R. STYLERExecutive Director Gasco Production Company

Division of 8 Inverness Drive East, Suite #100

Oil, Gas & Mining Englewood, CO 80112

JOHN R. BAZADivision Director

Re: Wilkin Ridge Federal 32-17-10-17 Well, 1978' FNL, 1972' FEL, SW NE,Sec. 17, T. 10 South, R. 17 East, Duchesne County, Utah

Gentlemen:

Pursuant to the provisions and requirements of Utah Code Ann.§ 40-6-1 etseq., Utah Administrative Code R649-3-1 et seq., and the attached Conditions ofApproval, approval to drill the referenced well is granted.

This approval shall expire one year from the above date unless substantial andcontinuous operation is underway, or a request for extension is made prior to theexpiration date. The API identification number assigned to this well is 43-013-33079.

Sincerely,

Gil HuntAssociate Director

pabEnclosures

cc: Duchesne County AssessorBureau of Land Management, Vernal District Office

1594 West North Temple, Suite 1210, PO Box 145801, Salt Lake City, UT 84114-5801telephone (801) 538-5340• facsimile (801) 359-3940•TTY (801) 538-7458 •

Operator: Gasco Production CompanyWell Name & Number Wilkin Ridge Federal 32-17-10-17

API Number: 43-013-33079Lease: UTU-75082

Location: SW NE Sec. 17 T. 10 South R. 17 East

Conditions of Approval

1. GeneralCompliance with the requirements of Utah Admin. R. 649-1 et seq., the Oil and GasConservation General Rules, and the applicable terms and provisions of the approvedApplication for permit to drill.

2. Notification RequirementsNotify the Division within 24 hours of spudding the well.• Contact Carol Daniels at (801) 538-5284.

Notify the Division prior to commencing operations to plug and abandon the well.• Contact Dan Jarvis at (801) 538-5338

3. Reporting RequirementsAll required reports, forms and submittals will be promptly filed with the Division,including but not limited to the Entity Action Form (Form 6), Report of WaterEncountered During Drilling (Form 7), Weekly Progress Reports for drilling andcompletion operations, and Sundry Notices and Reports on Wells requesting approval ofchange of plans or other operational actions.

4. This proposed well is located in an area for which drilling units (well spacing patterns) havenot been established through an order of the Board of Oil, Gas and Mining (the "Board").In order to avoid the possibility of waste or injury to correlative rights, the operator isrequested, once the well has been drilled, completed, and has produced, to analyzegeological and engineering data generated therefrom, as well as any similar data fromsurrounding areas if available. As soon as is practicable after completion of its analysis,and if the analysis suggests an area larger than the quarter-quarter section upon which thewell is located is being drained, the operator is requested to seek an appropriate orderfrom the Board establishing drilling and spacing units in conformance with such analysisby filing a Request for Agency Action with the Board.

5. State approval of this well does not supersede the required federal approval, which must beobtained prior to

STATE OF UTAH FORM9DEPARTMENTOF NATURALRESOURCES

DIVISION OF OIL, GAS AND MINING 5. LEASEDESIGNATIONANDSERIALNUMBERUTU-75082

6. IF INDIAN,ALLOTTEEOR TRIBENAME:SUNDRY NOTICES AND REPORTS ON WELLS NA7 UNITor CAAGREEMENTNAME:

Do not use thisform for proposals to drillnew wells, significantlydeepen existingwells below currentbottom41ole depth, reenter plugged wells, or to NAdrillhorizontal laterals UseAPPLICATIONFOR PERMITTO DRILLform for such proposals1. TYPE OF WELL 8 WELLNAMEand NUMBEROlL WELL GASWELL OTHER WilkinRidge Fed 32-17-10-172 NAMEOF OPERATOR: 9 API NUMBER

Gasco Production Company 43013330793 ADDRESS OF OPERATOR PHONE NUMBER 10. FIELDAND POOL, OR WILDCAT:8 Invemess Dr E, Ste 100 crry Englewood STATE ÛO e 80112 (303) 483-0044 8 Mile Flat

4 LOCATIONOF WELL

FOOTAGESATSURFACE: $7 COUNTY: Duchesne

QTR/QTR, SECTION, TOWNSHIP, RANGE, MERIDIAN: STATE:UTAH

st CHECK APPROPRIATE BOXES TO INDICATE NATURE OF NOTICE, REPORT, OR OTHER DATATYPE OF SUBMISSION TYPE OF ACTION

O ^CIDIZE DEEPEN REPERFORATE CURRENT FORMATIONNOTICE OF INTENT

(Submitin Duplicate) ALTERCASING FRACTURETREAT SIDETRACKTOREPAIR WELL

Approximate date work willstart: CASINGMR NEWCONSTRUCTION TEMPORARILYABANDON

O CHANGETO PREVIOUS PLANS OPERATOR CHANGE TUBINGREPAIR

O CHANGETUBWG PLUG ANDABANDON VENT OR FURE

O SUBSEQUENT REPORT CHANGEWELLNAME PLUG BACK WATER DISPOSAL(Submit Original Form Only)

CHANGEWELL STATUS PRODUCTION (STARTIRESUME) WATER SHUT-OFFDate ofworkcompletion:

O COMMINGLEPRODUCING FORMATIONS RECLAMATIONOF WELLSITE OTHER: Extend PermitO CONVERT WELLTYPE RECOMPLETE - DIFFERENT FORMATION

12 DESCRIBE PROPOSED OR COMPLETED OPERATIONS. Clearly show allpertinent details including dates, depths, volumes, etc

Gasco Production Company would like to request a one year extension on this APD from the date it is due to expire(2/26/2008)

Approved by theUtah Divisionof

Oil,Gas and Mining

Date: coPY SENTTOOPERATOR

NAME(PLEASEPRI everly Walker TITLE Engineering Tech

SIGNATURE /( , DATE 2/15/2008

(This space for State use only)

RECEIVEDFEB19 2008

(5/2000) (See Instructions on Reverse Side) DIV.OFOlL,GAS&

Application for Permit to DrillRequest for Permit Extension

Validation(thisform shouldaccompany the SundryNotice requesting permit extension)

API:Well Name: Wilkin Ridge Federal 32-17-10-17Location: SWNE Sec 17-T10S-R17E Duchesne County, UtahCompany Permit Issued to: Gasco production CompanyDate Original Permit Issued: 3/7/2006

The undersigned as owner with legal rights to drill on the property as permittedabove, hereby verifies that the information as submitted in the previouslyapproved application to drill, remains valid and does not require revision.

Following is a checklist of some items related to the application, which should beverified.

If located on private land, has the ownership changed, if so, has the surfaceagreement been updated? YesONom

Have any wells been drilled in the vicinity of the proposed well which would affectthe spacing or siting requirements for this location? YesO NoO

Has there been any unit or other agreements put in place that could affect thepermitting or operation of this proposed well? YesONoO

Have there been any changes to the access route including ownership, or right-of-way, which could affect the proposed location? YesONo121

Has the approved source of water for drilling changed? YesO NoO

Have there been any physical changes to the surface location or access routewhich willrequire a change in plans from what was discussed at the onsiteevaluation? YesONoO

I s IIin ce, which covers this proposed well?i1YesŒNeoO

Title: Engineering Technician

Representing: Gasco Production Company

RECEIVEDFEBi 9 2008

D1V.OFOIL,GAS&

Form 3160-3 FORM APPROVED(August 1999) OMB No. 1004-0136

UNITED STATES Expires November 30, 2000

DEPARTMENT OF THE INTERIOR Lease Serial No.BUREAU OF LAND MANAGEMENT UTU-75082

APPLICÀTlONFORPERMITTODRILLORREEffIndian,AllotteeorTribeName

N/Ala. Type of Work: DRILL Q REENTER 7. If Unit or CA Agreement, Name and No.

WilkinRidge8. Lease Name and Well No.

b. Type of Wen: Oil Well Gas Well Other Single Zone Multiple Zone WilkinRidge Federal#32-17-f0-17

2. Name of Operator 303-483-0044 8 Inverness DriveEast, Suite #100 9. API Well No.

GascoProduction Company Englewood,CO80112 43-013- ¾0-83. Name of Agent 303-857-9999 14421CountyRoad 10 10. Field and Pool, or Exploratory

Permitco Inc. - Agent Fort Lupton,CO80621 WilkinRidge4. Location of Well (Report location clearly and in accordance with any State requirements.*) 11. Sec., T., R., M., or Blk, and Survey or Area

At surface 1978'FNLand 1972'FEL Section 17,T10S-R17EAt proposed prod. zone SWNE14. Distance in miles and direction from nearest town or post office* 12. County or Parish 13. State

Approximately23.4milessoutheastofMyton,UT. Duchesne UT15. Distancetiomproposed* 16. No. of Acres in lease 17. Spacing Unit <edicated to this well

onoe

e g unit line, ifany) 1972' 1276.52 40 Acres: SWNE18. Distance from proposed location* 19. Proposed Depth . 20. BLM/BIA Bond No. on file

to nearest well, drillmg, completed,applied for, on this lease, ft 2700' 13,400' Bond No.UT-1233

21. Elevations (Show whether DF, KDB, RT, GL, etc.) 22. Approximate date work will start* 23. Estimated duration

5933' GL ASAP 35 Days24. Attachments

The following, completed in accordance with the requirements of Onshore Oil and Gas Order No. 1, shall be attached to this form:

1. Well plat certified by a registered surveyor. 4. Bond to cover the operations unless covered by an existing bond on file (see

2. A Drilling Plan. Item 20 above).

3. A Surface Use Plan (if the location is on National Forest System Lands, 1 5. Operator certification.

SUPO shall be filed with the appropriate Forest Service Office. 6. Such other site specific information and/or plans as may be required by the

CONRDENTIAL-TIGHTHOLE authorized office.

2 gnature Name (Printed/Typed) ' Date1&d0t I Venessa Langmacher 10/27/2005

Title

AuthorizedAgentfor GascoProduction CompanyApproved by Name (Printed/Typed) DeDEC01 2008Title FieldManager office

MineralResources VERNALRELDOFRCEApplication approval does not warrant or certify that the applicant holds legal or equitable title to thoserights in the subject lease which would entitle the applicant toc°".dutonpe o ther onany,

are attached. CONDITIONSOF APPROVALATTACHEDTitle 18 U.S.C. Section 1001and.Title 43 U.S.C. Section 1212, make it a crime for any person knowingly and willfully to make to any department or agency of theUnited,States any false, fictitious or fraudulent statements or representations as to any matter within its jurisdiction.

*(Instructions on reverse) RECEIVEDDECO8 2008 NOTICEOFAPPROVAL

5 12ee c5

UNITED STATES DEPARTMENT OF THE INTERIORBUREAU OF LAND MANAGEMENT

VERNAL FIELD OFFICE170 South 500 East VERNAL, UT 84078 (435) 781-4400

CONDITIONS OF APPROVAL FOR APPLICATION FOR PERMIT TO DRILL

Company: Gasco Production Company Location: SWNE, Sec. 17, T10S, R17EWell No: Wilkin Ridge Federal 32-17-10-17 Lease No: UTU-75082API No: 43-013-33079 Agreement: Wilkin Ridge Unit

Title Name Office Phone Number Cell Phone NumberPetroleum Engineer: Matt Baker (435) 781-4490 (435) 828-4470Petroleum Engineer: Michael Lee (435) 781-4432 (435) 828-7875Petroleum Engineer: Ryan Angus (435) 781-4430 (435) 828-7368Supervisory Petroleum Technician: Jamie Sparger (435) 781-4502 (435) 828-3913Supervisory NRS: Karl Wright (435) 781-4484NRS/Enviro Scientist: Holly Villa (435) 781-4404 (435) 828-3544NRS/Enviro Scientist: James Hereford (435) 781-3412 (435) 828-3546NRS/Enviro Scientist: Chuck Macdonald (435) 781-4441 (435) 828-7481NRS/Enviro Scientist: Dan Emmett (435) 781-3414 (435) 828-4029NRS/Enviro Scientist: Paul Percival (435) 781-4493 (435) 828-7381NRS/Enviro Scientist: Anna Figueroa (435) 781-3407 (435) 828-3548NRS/Enviro Scientist: Verlyn Pindell (435) 781-3402 (435) 828-3547NRS/Enviro Scientist: Nathan Packer (435) 781-3405 (435) 828-3545NRS/Enviro Scientist: David Gordon (435) 781-4424

Fax: (435) 781-3420

A COPY OF THESE CONDITIONS SHALL BE FURNISHED TO YOURFIELD REPRESENTATIVE TO INSURE COMPLIANCE

All lease and/or unit operations are to be conducted in such a manner that full compliance is made with theapplicable laws, regulations (43 CFR Part 3160), and this approved Application for Permit to Drill includingSurface and Downhole Conditions of Approval. The operator is considered fully responsible for the actions of hissubcontractors. A copy of the approved APD must be on location during construction, drilling, and completionoperations. This permit is approved for a two (2) year period, or until lease expiration, whichever occursfirst. An additional extension, up to two (2) years, may be applied for by sundry notice prior to expiration.

NOTIFICATION REQUIREMENTS

Location Construction - Forty-Eight (48) hours prior to construction of location and(Notify Environmental Scientist) access roads.Location Completion - Prior to moving on the drilling rig.(Notify Environmental Scientist)Spud Notice - Twenty-Four (24) hours prior to spudding the well.(Notify Petroleum Engineer)Casing String & Cemenúng - Twenty-Four (24) hours prior to running casing and(Notify Supv. Petroleum Tech.) cementing all casing stringsBOP & Related Equipment Tests - Twenty-Four (24) hours prior to initiating pressure tests.(Notify Supv. Petroleum Tech.)First Production Notice - Within Five (5) business days after new well begins or(Notify Petroleum Engineer) production resumes after well has been off production for

more than ninety

Page 2 of 6Well: Wilkin Ridge Federal 32-17-10-17

12/2/2008

SURFACE USE PROGRAMCONDITIONSOF APPROVAL (COAs)

• If there is an active Gilsonite mining operation within 2 miles of the well location, operator shallnotify the Gilsonite operator at least 48 hours prior to any blasting during construction.

• If paleontological materials are uncovered during construction, the operator is to immediatelystop work and contact the Authorized Officer (AO). A determination will be made by the AO asto what mitigation may be necessary for the discovered paleontologic material beforeconstruction can continue.

• Surface Conditions of Approval or monitoringare listed in the Surface Use Plan of the APDs.

• The operator willcontrol noxious weeds along access road use authorizations, pipeline routeauthorizations, well sites, or other applicable facilities by spraying or mechanical removal. OnBLMadministered land, it is required that a Pesticide Use Proposal be submitted, approved anda permit issued prior to the application of herbicides, pesticides or possibly hazardouschemicals.

• A timingrestriction on construction and drilling (including completion) from March 1 - June 30, isin order to protect sage grouse lek nesting habitat.

• A timing restriction on construction and drilling (including completion) from February 1 - July 15,is in order to protect Golden Eagle nesting.

• If it is anticipated that construction or drilling would occur during the given timing restrictions forsage grouse or golden eagle a BLMor qualified biologist shall be notifiedso surveys can beconducted. Depending upon the results of the survey, permission to proceed may or may notbe recommended or granted (depending on the species being surveyed and the condition of thehabitat).

• Within 90 calendar days of the approval date for thisApplication for Permit to Drill (APD), theoperator/lessee will submit to the Authorized Officer (AO), on Sundry Notice Form 3160-5, anInterim Surface Reclamation Plan for surface disturbance on well pads, access roads, andpipelines. At a minimum, this will include the Best Management Practice of the reshaping of thepad to the originalcontour to the extent possible; the re-spreading of the top soil up to the riganchor points; and, reseeding the area using appropriate reclamation methods.

The interim seed mix for reclamation will be:

Hy-crest Crested Agropyron cristatum 4 lbs per acreWheatgrassIndian Rice Grass Oryzopsis hymenoides 4 lbs per acreNeedle and Threadgrass Stipa comata 4 lbs per acre

• Following well plugging and abandonment, the location, access roads, pipelines, and otherfacilities shall be reclaimed. All disturbed surfaces shall be reshaped to approximate the originalcontour; the top soil re-spread over the surface; and, the surface re-vegetated. The surface ofapproved staging areas where construction activities did not occur may require disking orripping and

Page 3 of 6Well: Wilkin Ridge Federal 32-17-10-17

12/2/2008

DOWNHOLE PROGRAMCONDITIONS OF APPROVAL (COAs)

SITE SPECIFIC DOWNHOLE COAs:

• None.

AII provisions outlined in Onshore Oil & Gas Order #2 Drilling Operations shall be strictlyadhered to. The following items are emphasized:

DRILLINGICOMPLETIONIPRODUCING OPERATING STANDARDS

• The spud date and timeshall be reported orally to Vernal Field Office within 24 hours ofspudding.

• Notify Vernal Field Office Supervisory Petroleum Enqineerinq Technician at least 24 hours inadvance of casinq cementinq operations and BOPE & casinq pressure tests.

• All requirements listed in Onshore Order #2 III.E. Special Drilling Operations are applicable forair drilling of surface hole.

• Blowout prevention equipment (BOPE) shall remain in use until the well is completed orabandoned. Closing unit controls shall remain unobstructed and readily accessible at all times.Choke manifolds shall be located outside of the rig substructure.

• All BOPE components shall be inspected daily and those inspections shall be recorded in thedaily drilling report. Components shall be operated and tested as required by Onshore Oil &Gas Order No. 2 to insure good mechanical working order. All BOPE pressure tests shall beperformed by a test pump with a chart recorder and NOT by the rig pumps. Test shall bereported in the driller's log.

• BOP drills shall be initially conducted by each drilling crew within 24 hours of drilling out fromunder the surface casing and weekly thereafter as specified in Onshore Oil & Gas Order No. 2.

• Casing pressure tests are required before drilling out from under all casing strings set andcemented in place.

• No aggressivelfresh hard-banded drill pipe shall be used within casing.

• Cement baskets shall not be run on surface casing.

• The operator must report all shows of water or water-bearing sands to the BLM. Ifflowingwateris encountered it must be sampled, analyzed, and a copy of the analyses submitted to the BLMVernal Field Office.

• The operator must report encounters of all non oil & gas mineral resources (such as Gilsonite,tar sands, oilshale, trona,etc.) to the Vernal Field Office, in writing, within5 workingdays ofeach encounter. Each report shall include the well namelnumber, well location, date and depth(from KB or GL) of encounter, vertical footage of the encounter and, the name of the

Page 4 of 6Well: Wilkin Ridge Federal 32-17-10-17

12/2/2008

making the report (along with a telephone number) should the BLMneed to obtain additionalinformation.

• A complete set of angular deviation and directional surveys of a directional well will besubmitted to the Vernal BLMoffice engineer within30 days of the completion of the well.

• While actively drilling, chronologic drilling progress reports shall be filed directly with the BLM,Vernal Field Office on a weekly basis in sundry, letter format or e-mail to the PetroleumEngineers until the well is completed.

• A cement bond log (CBL) will be run from the production casing shoe to the top of cement andshall be utilized to determine the bond quality for the production casing. Submit a field copy ofthe CBL to this office.

• Please submit an electronic copy of all other logs run on this well in LAS format toUT_VN_Welllogs@BLM.gov. This submission will supersede the requirement forsubmittal of paper logs to the BLM.

• There shall be no deviation from the proposed drilling, completion, and/or workover program asapproved. Safe drilling and operating practices must be observed. Any changes in operationmust have prior approval from the BLMVernal Field

Page 5 of 6Well: Wilkin Ridge Federal 32-17-10-17

12/2/2008

OPERATING REQUIREMENT REMINDERS:

• All wells, whether drilling, producing, suspended, or abandoned, shall be identified inaccordance with 43 CFR 3162.6. There shall be a sign or marker with the name of the operator,lease serial number, well number, and surveyed description of the well.

• In accordance with 43 CFR 3162.4-3, this well shall be reported on the "Monthly Report ofOperations" (Oiland Gas Operations Report ((OGOR)) starting with the month in whichoperations commence and continue each month until the well is physically plugged andabandoned. This report shall be filed in duplicate, directly with the Minerals ManagementService, P.O. Box 17110, Denver, Colorado 80217-0110, or call 1-800-525-7922 (303) 231-3650 for reporting information.

• Should the well be successfully completed for production, the BLMVernal Field office must benotified when it is placed in a producing status. Such notificationwill be by writtencommunication and must be received in this officeby not later than the fifth business dayfollowing the date on which the well is placed on production. The notification shall provide, as aminimum, the following informational items:

o Operator name, address, and telephonenumber.

o Well name and number.

o Well location (¼¼,Sec., Twn, Rng, and P.M.).

o Date well was placed in a producing status (date of first production for which royalty willbe paid).

o The nature of the well's production, (i.e., crude oil, or crude oil and casing head gas, ornatural gas and entrained liquid hydrocarbons).

o The Federal or indian lease prefix and number on which the well is located; otherwisethe non-Federal or non-Indian land category, i.e., State or private.

o Unit agreement and/or participating area name and number, if applicable.

o Communitization agreement number, if applicable.

• Any venting or flaring of gas shall be done in accordance with Notice to Lessees (NTL) 4A andneeds prior approval from the BLMVernal Field Office.

• All undesirable events (fires, accidents, blowouts, spills, discharges) as specified in NTL 3A willbe reported to the BLM,Vernal Field Office. Major events, as defined in NTL3A, shall bereported verbally within 24 hours, followed by a written report within 15 days. "Other than MajorEvents" will be reported in writing within 15 days. "Minor Events" will be reported on theMonthly Report of Operations and Production.

• Whether the well is completed as a dry hole or as a producer, "Well Completion andRecompletion Report and Log" (BLM Form 3160-4) shall be submitted not later than 30 daysafter completion of the well or after completion of operations being performed, in accordancewith 43 CFR 3162.4-1. Two copies of all logs run, core descriptions, and all other surveys

Page 6 of 6Well: Wilkin Ridge Federal 32-17-10-17

12/2/2008

data obtained and compiled during the drilling, workover, and/or completion operations, shall befiled on BLMForm 3160-4. Submit with the well completion report a geologic report including,at a minimum, formation tops, and a summary and conclusions. Also include deviation surveys,sample descriptions, strip logs, core data, drill stem test data, and results of production tests ifperformed. Samples (cuttings, fluid, and/or gas) shall be submitted only when requested by theBLM,Vernal Field Office.

• All off-lease storage, off-lease measurement, or comminglingon-lease or off-lease, shall haveprior written approval from the BLMVernal Field Office.

• Oil and gas meters shall be calibrated in place prior to any deliveries. The BLMVernal FieldOffice Petroleum Engineers will be provided witha date and timefor the initial meter calibrationand all future meter proving schedules. A copy of the meter calibration reports shall besubmitted to the BLMVernal Field Office. AIImeasurement facilities will conform to the APIstandards for liquid hydrocarbons and the AGA standards for natural gas measurement. Allmeasurement points shall be identified as the point of sale or allocation for royalty purposes.

• A schematic facilities diagram as required by Onshore Oil & Gas Order No. 3 shall be submittedto the BLM Vernal Field Office within 30 days of installation or first production, whichever occursfirst. All site security regulations as specified in Onshore Oil & Gas Order No. 3 shall beadhered to. All product lines entering and leaving hydrocarbon storage tanks will be effectivelysealed in accordance with Onshore Oil & Gas Order No. 3.

• Any additional construction, reconstruction, or alterations of facilities, including roads, gatheringlines, batteries, etc., which will result in the disturbance of new ground, shall require the filing ofa suitable plan and need prior approval of the BLMVernal Field Office. Emergency approvalmay be obtained orally, but such approval does not waive the written report requirement.

• No location shall be constructed or moved, no well shall be plugged, and no drilling or workoverequipment shall be removed from a well to be placed in a suspended status without priorapproval of the BLMVernal Field Office. If operations are to be suspended for more than 30days, prior approval of the BLMVernal Field Officeshall be obtained and notification givenbefore resumption of operations.

• Pursuant to Onshore Oil & Gas Order No. 7, this is authorization for pit disposal of waterproduced from thiswell for a period of 90 days from the date of initial production. A permanentdisposal method must be approved by this officeand in operation prior to the end of this 90-dayperiod. In order to meet this deadline, an application for the proposed permanent disposalmethod shall be submitted along with any necessary water analyses, as soon as possible, butno later than 45 days after the date of first production. Any method of disposal which has notbeen approved prior to the end of the authorized 90-day period will be considered as an Incidentof Noncompliance and will be grounds for issuing a shut-in order until an acceptable manner fordisposing of said water is provided and approved by this office.

• Unless the plugging is to take place immediately upon receipt of oral approval, the Field OfficePetroleum Engineers must be notifiedat least 24 hours in advance of the plugging of the well, inorder that a representative may witness plugging operations. Ifa well is suspended orabandoned, all pits must be fenced immediately until they are backfilled. The "SubsequentReport of Abandonment" (Form BLM3160-5) must be submitted within 30 days after the actualplugging of the well bore, showing location of plugs, amount of cement in each, and amount ofcasing left in hole, and the current status of the surface

O OO State of Utah

DEPARTMENT OF NATURAL RESOURCESMICHAELR. STYLER

JON M. HUNTSMAN, JR. Executive Director

covernor Division of Oil, Gas and MiningGARY R. HERBERT JOHN R. BAZALieutenant Govemor Division Director June 4, 2009

Gasco Production Company8 Inverness Dr. East, Ste. 100Englewood, CO 80112

Re: APD Rescinded - Wilkin Ridge Fed 32-17-10-17, Sec. 17 T. 10S, R. 17EDuchesne County, Utah API No. 43-013-33079

Ladies and Gentlemen:

The Application for Permit to Drill (APD) for the subject well wasapproved by the Division of Oil, Gas and Mining (Division) on March 7, 2006.On February 26, 2007 and on February 20, 2008 the Division granted a one-yearAPD extension. No drilling activity at this location has been reported to thedivision. Therefore, approval to drill the well is hereby rescinded, effective June4, 2009.

A new APD must be filed with this office for approval pri_orto thecommencement of any future work on the subject location.

If any previously unreported operations have been performed on this welllocation, it is imperative that you notify the Division immediately.

Sincerely,

iana MasonEnvironmental Scientist

cc: Well FileBureau of Land Management, Vernal

UTAH

DNR

1594 West North Temple, Suite 1210, PO Box 145801, Salt Lake City, UT 84114-5801telephone (801) 538-5340 . facsimile (801) 359-3940 . TTY (801) 538-7458 •www.ogm.utah.gov OIL, GAS &

API Well No: 43013330790000

STATE OF UTAHDEPARTMENT OF NATURAL RESOURCES

DIVISION OF OIL, GAS, AND MINING

FORM 9

5.LEASE DESIGNATION AND SERIAL NUMBER: UTU-75082

SUNDRY NOTICES AND REPORTS ON WELLSDo not use this form for proposals to drill new wells, significantly deepen existing wells below currentbottom-hole depth, reenter plugged wells, or to drill horizontal laterals. Use APPLICATION FOR PERMIT TODRILL form for such proposals.

6. IF INDIAN, ALLOTTEE OR TRIBE NAME:

7.UNIT or CA AGREEMENT NAME: WILKIN RIDGE DEEP

1. TYPE OF WELL Gas Well

8. WELL NAME and NUMBER: WILKIN RIDGE FED 32-17-10-17

2. NAME OF OPERATOR: GASCO PRODUCTION COMPANY

9. API NUMBER: 43013330790000

3. ADDRESS OF OPERATOR: PHONE NUMBER: 8 Inverness Dr. East, Suite 100 , Englewood, CO, 80112 303 483-0044 Ext

9. FIELD and POOL or WILDCAT: EIGHT MILE FLAT

4. LOCATION OF WELL FOOTAGES AT SURFACE: 1978 FNL 1972 FEL QTR/QTR, SECTION, TOWNSHIP, RANGE, MERIDIAN: Qtr/Qtr: SWNE Section: 17 Township: 10.0S Range: 17.0E Meridian: S

COUNTY: DUCHESNE

STATE: UTAH

11.

CHECK APPROPRIATE BOXES TO INDICATE NATURE OF NOTICE, REPORT, OR OTHER DATA

TYPE OF SUBMISSION TYPE OF ACTION

NOTICE OF INTENTApproximate date work will start:

1/7/2011

SUBSEQUENT REPORTDate of Work Completion:

SPUD REPORTDate of Spud:

DRILLING REPORTReport Date:

ACIDIZE ALTER CASING CASING REPAIR

CHANGE TO PREVIOUS PLANS CHANGE TUBING CHANGE WELL NAME

CHANGE WELL STATUS COMMINGLE PRODUCING FORMATIONS CONVERT WELL TYPE

DEEPEN FRACTURE TREAT NEW CONSTRUCTION

OPERATOR CHANGE PLUG AND ABANDON PLUG BACK

PRODUCTION START OR RESUME RECLAMATION OF WELL SITE RECOMPLETE DIFFERENT FORMATION

REPERFORATE CURRENT FORMATION SIDETRACK TO REPAIR WELL TEMPORARY ABANDON

TUBING REPAIR VENT OR FLARE WATER DISPOSAL

WATER SHUTOFF SI TA STATUS EXTENSION APD EXTENSION

WILDCAT WELL DETERMINATION OTHER OTHER:

12. DESCRIBE PROPOSED OR COMPLETED OPERATIONS. Clearly show all pertinent details including dates, depths, volumes, etc.

Gasco would like to dispose of water at Integrated Water management, LLCstate approved commercial disposal facility located in Section 30, 2 south

Range 4 west in North Blue Bench UT. This facility would be used in additionto the currently approved disposal facilities that Gasco uses to dispose of

water from this well.

NAME (PLEASE PRINT) PHONE NUMBER Roger Knight 303 996-1803

TITLE EHS Supervisor

SIGNATURE N/A

DATE 12/29/2010

December 29, 2010

12/30/2010

iPI Well No: 43013330790000

FORM 9

STATE OF UTAHDEPARTMENT OF NATURAL RESOURCES

DIVISION OF OIL, GAS, AND MINING 5.LEAS7E ODE2sIGNATION AND SERIAL NUMBER:

SUNDRY NOTICES AND REPORTS ON WELLS 6. IF INDIAN, ALLOTTEE OR TRIBE NAME:

Do not use this form for proposals to drill new wells, significantly deepen e×isting wells below currentbottom-hole depth, reenter plugged wells, or to drill horizontal laterals. Use APPLICATION FOR PERMIT TO 7.UNIT or CA AGREEMENT NAME:

DRILL form for such proposals. WILKIN RIDGE DEEP

1. TYPE OF WELL 8. WELL NAME and NUMBER:Gas Well WILKIN RIDGE FED 32-17-10-17

2. NAME OF OPERATOR: 9. API NUMBER:GASCO PRODUCTION COMPANY 43013330790000

3. ADDRESS OF OPERATOR: PHONE NUMBER: 9. FIELD and POOL or WILDCAT:8 Inverness Dr. East, Suite 100 , Englewood, CO, 80112 303 483-0044 Ext EIGHT MILE FLAT

4.LOCATIONOFWELL COUNTY:FOOTAGES AT SURFACE: DUCHESNE

1978 FNL 1972 FELQTR/QTR, SECTION, TOWNSHIP, RANGE, MERIDIAN: STATE:

Qtr/Qtr: SWNE Section: 17 Township: 10.05 Range: 17.0E Meridian: S UTAH

11.CHECK APPROPRIATE BOXES TO INDICATE NATURE OF NOTICE, REPORT, OR OTHER DATA

TYPE OF SUBMISSION TYPE OF ACTION

ACIDIZE ALTER CASING CASING REPAIR

NOTICE OF INTENTApproximate date work will start: CHANGE TO PREVIOUS PLANS CHANGE TUBING CHANGE WELL NAME

1/7/2011CHANGE WELL STATUS COMMINGLE PRODUCING FORMATIONS CONVERT WELL TYPE

SUBSEQUENT REPORT DEEPEN FRACTURE TREAT NEW CONSTRUCTIONDate of Work Completion:

OPERATOR CHANGE PLUG AND ABANDON PLUG BACK

PRODUCTION START OR RESUME RECLAMATION OF WELL SITE RECOMPLETE DIFFERENT FORMATION

O SPUD REPORTDate of Spud: REPERFORATE CURRENT FORMATION SIDETRACK TO REPAIR WELL TEMPORARY ABANDON

TUBING REPAIR VENT OR FLARE WATER DISPOSAL

DRILLING REPORT WATER SHUTOFF SI TA STATUS EXTENSION APD EXTENSIONReport Date:

WILDCAT WELL DETERMINATION OTHER OTHER:

12. DESCRIBE PROPOSED OR CC MPLETED OPERATIONS. Clearly show all pertinent details including dates, depths, volumes, etc.

Gasco would like to dispose of water at Integrated Water management, LLCstate approved commercial disposal facility located in Section 30, 2 south Accepted by the

Range 4 west in North Blue Bench UT. This facility would be used in addition Utah Division ofto the currently approved disposal facilities that Gasco uses to dispose of Oil, Gas and Mining

water from this well.Date: 12/30/2010

By:

NAME (PLEASE PRINT) PHONE NUMBER TITLERoger Knight 303 996-1803 EHS Supervisor

SIGNATURE DATEN/A 12/29/2010

RECEIVED December 29,

3 600057) UNITED STATES RECEIV= D FORM APPROVEDDEPARTMENT OF THE INTERIOR mm OMB NO. 1004-0135

BUREAU OF LAND MANAGEMENT Expires: July 31, 2010

DECO8 20106 'ease Serial No.SUNDRY NOTICES AND REPORTS ON WELLS UTU75082

aanndoned he Ur forrm 31p60-

A D rsru hœprenpbr

6. If Indian, Allottee or Tribe Name

SUB&lIT IN TRIPLICATE - Other instructions on reverse side. 7. If Unit or CA/Agreement, Name and/or No.UTU81153X

1. Type of Well 8. Well Name and No.O Oil Well g Gas Well O Other WILKIN RIDGE FEDERAL 32-17-10-17

2. Name of Operator Contact: ROGERkNIGHI 9. API Well No.GASCO PRODUCTION COMPANY E-Mail: rknight@gascoenergy.com 43-013-33079-00-X1

3a. Address 3b. Phone No. (mclude area code) 10. Field and Pool, or Exploratory8 INVERNESSDRIVE EAST, SUITE 100 Ph: 303.483.0044 WILKIN RIDGEENGLEWOOD, CO 80112-5625

4. Locationof Well (Footage, Sec., T, R., M., or Survey bescription) 11. County or Parish, and stateSec 17 T10S R17E SWNE 1978FNL 1972FEL UINTAHCOUNTY, UT

12. CHECK APPROPRIATE BOX(ES) TO INDICATE NATURE OF NOTICE, REPORT, OR OTHER DATA

TYPE OF SUBMISSION TYPE OF ACTION

g Notice of Intent g Acidize, Q Deepen 0 Production (Start/Resume) O Water Shut-Off

0 Alter Casing 0 Fracture Treat 0 Reclamation 0 Well Integrity0 Subsequent Report

0 Casing Repair 0 New Construction 0 Recomplete Other

O Final Abandonment Notice O Change Plans O Plug and Abandon 0 Temporarily Abandon PDange to Original

O Convert to Injection 0 Plug Back O Water Disposal13. DescribeProposed or Completed Op oration (clearly state all pertment details,meludmg estimated startmg dateof any proposed work and approximate durationthereot.If the proposal is to deepen directionally or recomplete horizontally, give subsurface locations and measured and true vertical depths of all pertinent markers and zones.Attach the Bond under which the work will be performed or provide the Bond No. on file with BLM/BIA. Required subsequent reports shall be filed within 30 days

following completion of the involved operations. If the operation results in a multiple completion or recompletion in a new interval, a Form 3160-4 shall be filed oncetesting has been completed. Final Abandonment Notices shall be filed only after all requirements, including reclamation, have been completed, and the operator hasdetermined that the site is ready for final inspection.)

Gasco request a two year extension to the currently approved Wilkin Ridge Federal 32-17-10-17 APDThe extended APD will expire on 12/02/2012. VERNALFIELDOFFICE

RECEIVED ENG. 1 à U

MAR14 2011 i GEOL.

DIV.0FOlL,GAS&MINING

CONDITIONSOFAPPROVALATTACHED14. I herebycertify that the toregomgis true and correct.

Electronic Submission #98779 verifie by the BLM Well Information SystemFor GASCO PRODUCTION C3MPANY, sent to the Vernal

Committed to AFMSS for processing by ROE!N R. HANSEN on 12/08/2010 (11RRHO471SE)Name(Printed/Typed) ROGER KNIGHT Title

Signature (Electronic Submission) Date 12/08/2010

THIS SPACE FOR FEDERAL OR STATE OFFICE USE

Approved By TitleASsistant FieldManager

at

Conditions of attached. Approval of this notice does not warrant orcertify that the egal or equitable title to those rights in the subject leasewhich would entitle e applicant to conduct operations thereon. Office VERNALFIELDOFFICETitle 18 U.S.C. Section 1001 and Title 43 U.S.C. Section 1212, make it a crime for any person knowingly and willfully to make to any department or agency of the United

tates any false, fictitious or fraudulent statements or representations as to any matter within its jurisdiction.

** BLM REVISED ** BLM REVISED ** BLM REVISED ** BLM REVISED ** BLM REVISED

CONDITIONS OF APPROVAL

Gasco Production Company

Notice of IntentAPD Extension

Lease: UTU-75082Well: Wilkin Ridge Fed 32-17-10-17Location: SWNE Sec 17-T10S-R17E

Ânextension for the referenced APD is granted with the following conditions:

1. . The extension and APD shall expire on 12/1/12.

2. No other extension shall be granted.

If you have any other questions concerning this matter, please contact Carey Doyle of this officeat (435)

DEPART T OFTAHEEINTERIOR RECR VED o=NOAWORO

5BUREAU OF LAND MANAGEMENT Expires: July 31, 2010

DECO8 201115. Lease Serial No.SUNDRY NOTICESAND REPORTS ON WELLS UTU75082

Do not use this form for proposals to dri/I or to re-enter anabandoned we/I. Use form 3160-3 (APD) for such proposals. 6. If Indian, AlÍotteeor Tribe Name

SUBNIIT IN TRIPLICATE - Other instructions on reverse side. 7. If Unit or CA/Agreement, Name and/or No.UTU81153X

1. Type of Well 8. WellName and No.

O Oil Wen g Gas Well O Other WILKIN RIDGE FEDERAL 32-17-10-17

2. Name of Operator Contact: Hoel-WkNIGHI 9. Ai'l we11No.GASCO PRODUCTION COMPANY E-Mail: rknight@gascoenergy.com 43-013-33079-00-X1

3a. Address 3b. Phone No. (include area code) 10. Field and l'ool,or Exploratory8 INVERNESS DRIVE EAST, SUITE 100 Ph: 303.483.0044 WILKIN RIDGEENGLEWOOD, CO 80112-5625

4. Locationof Well (Footage, Sec., T., R., M., or Survey Description) I1. County or Parish, and stateSec 17 T10S Ri7E SWNE 1978FNL 1972FEL UINTAHCOUNTY, UT

12. CHECK APPROPRIATE BOX(ES) TO INDICATE NATURE OF NOTICE, REPORT, OR OTHER DATA

TYPE OF SUBMISSION TYPE OF ACTION

g Notice of Intent Q Acidize O Deepen 0 Production (Start/Resume) O Water Shut-Off

O Alter Casing 0 Fracture Treat g Reclamation 0 Well Integrity

0 Subsequent ReportO Casing Repair O New Construction 0 Recomplete Other

0 Final Abandonment Notice O Change Plans O Plug and Abandon 0 Temporarily Abandon PDange to Original

O Convert to Injection a Plug Back O Water Disposal

13.DescribeProposedor Completed Op =ration (clearly state all pertinent details,meludmg estimated starting dateof any proposed work and approximate durationthereof.If the proposal is to deepen directionally or recomplete horizontally, give subsurface locations and measured and true vertical depths of all pertinent markers and zones.Attach the Bond under which the work will be performed or provide the Bond No. on file with BLM/BIA. Required subsequent reports shall be filed within 30 daysfollowing completion of the involved operations. If the operation results in a multiple completion or recompletion in a new interval, a Form 3160-4 shall be filed oncetesting has been completed. Final Abandonment Notices shall be filed only after all requirements, including reclamation, have been completed, and the operator hasdetermined that the site is ready for final inspection.)

Gasco request a two year extension to the currentlyapproved Wilkin Ridge Federal 32-17-10-17 APOThe extended APD will expire on 12/02/2012 VERNALFIELDOFFICE

RECEIVED lENG.Q sen I &

MAR14 2011 1 =GEOL

DIV.OFOlL,GAS&MINING

CONDUONSOFMMOVALATTACHED14. I herebycertify that the foregomg is true and correct.

Electronic Submission #98779 verifie ' by the BLMWell Information SystemFor GASCO PRODUCTION C 3MPANY, sent to the Vernal

Committed to AFMSS for processing by RO N R. HANSEN on 12/08/2010 (11RRHO471SE)Name(Printed/Typed) ROGER KNIGHT Title

Signature (Electronic Submission) Date 12/08/2010

THIS SPACE FOR FEDERAL OR STATE OFFICE USE

Approved By Title.FieldManager

at°"

Conditions of attached. Approval of this notice does not warrant orcertify that the egal or equitable title to those rights in the subject leasewhich would entitle e applicant to conduct operations thereon. Office VERNALFIELDOFFICETitle 18 U.S.C. Section 1001 and Title 43 U.S.C. Section 1212, make it a crime for any person knowingly and willfully to make to any department or agency ofthe United

States any false, fictitious or fraudulent statements or representations as to any matter within its jurisdiction.

** BLM REVISED ** BLM REVISED ** BLM REVISED ** BLM REVISED ** BLM REVISED

g e

CONDITIONS OF APPROVAL

Gasco Production Company

Notice of IntentAPD Extension

Lease: UTU-75082Well: Wilkin Ridge Fed 32-17-10-17Location: SWNE Sec 17-T10S-Rl7E

Änextension for the referenced APD is granted with the following conditions:

1. . The extension and APD shall expire on 12/1/12.

2. No other extension shall be granted.

If you have any other questions concerning this matter, please contact Carey Doyle of this officeat (435)