Gasco Energy Inc. will submit a plan of compliance next month to NYSE MKT to address how it intends to right its financial ship and avoid being delisted by the exchange, the Denver-based company said Wednesday.

Gasco was notified by the exchange Jan. 11 that it does not satisfy NYSE listing standards that apply “if a listed company has sustained losses which are so substantial in relation to its overall operations or its existing financial resources, or its financial condition has become so impaired that it appears questionable, in the opinion of the exchange, as to whether such company will be able to continue operations and/or meet its obligations as they mature,” the company said.

NYSE required Gasco to submit a plan by Feb. 10 to address how it will regain compliance by June 30. If the plan is not submitted, if NYSE does not accept the submitted plan, or if the company does not make progress consistent with the plan, Gasco would be subject to delisting proceedings.

Gasco said it intends to submit a plan to NYSE, but “there can be no assurance that the plan will be accepted by the exchange or that the company will be able to achieve compliance with the exchange’s continued listing standards within the required time frame.”

Last month NYSE notified Gasco that it did not satisfy the exchange’s listing standards because Gasco common stock had traded “at a low price per share for a substantial period of time.”

Gasco shares, which peaked at more than $4.00/share in 2008, have been valued at less than 30 cents/share over the past year and were trading at about 9 cents/share Wednesday afternoon.

In an operations update also issued Wednesday, Gasco said its estimated cumulative net production for 2012 was 2,537 MMcfe, a 34.6% decline compared with 3,881 MMcfe in 2011. The decrease resulted primarily from a 50% conveyance in some of its Uinta Basin properties to a joint venture partner last March, Gasco said. Fewer completions of up-hole zones, curtailed new drilling activity last year and normal production decline from existing wells also contributed to the fall-off in output, the company said.

Gasco’s 4Q2012 operational results “were in line with our expectations,” said CEO King Grant. “Our continued efforts in enhancing Uinta Basin oil production are exemplified by the 45% oil production growth, when compared to the third quarter 2012. Oil prices remain strong in the Uinta, where we are currently netting between $80-85/bbl at the wellhead.”

The company’s six-well Green River oil well program is fully permitted, but newly issued permits that include environmental stipulations will delay spudding the wells until 3Q2013. Five other Green River oil well locations are in the process of being permitted, as is Gasco’s Uinta Basin natural gas pad-well drilling program. Gasco plans to participate this year in a horizontal well to test the productive potential of the oil-prone Uteland Butte in the Green River Formation; an industry partner plans to spud the well in 2Q2013.

Last year the Bureau of Land Management approved a Gasco proposal to develop nearly 1,300 natural gas wells over 15 years in Utah’s Uinta Basin (see Shale Daily, June 20, 2012). The company holds almost 42,000 net acres in the basin, according to company reports.