Document:

EXHIBIT 4.10

                          REGISTRATION RIGHTS AGREEMENT

                                 BY AND BETWEEN

                               GASCO ENERGY, INC.

                                   AS ISSUER,

                                       AND

                           J.P. MORGAN SECURITIES INC.
                                       AND
                            FIRST ALBANY CAPITAL INC.

                              AS INITIAL PURCHASERS

                          DATED AS OF OCTOBER 20, 2004

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     THIS  REGISTRATION  RIGHTS AGREEMENT (the  "Agreement") is made and entered
into as of  October  20,  2004,  by and  among  Gasco  Energy,  Inc.,  a  Nevada
corporation  (the "Company"),  and J.P. Morgan  Securities Inc. and First Albany
Capital Inc.  (collectively,  the "Initial Purchasers") pursuant to that certain
Purchase  Agreement,  dated October 14, 2004 (the "Purchase  Agreement") between
the Company and the Initial Purchasers.

     In order to  induce  the  Initial  Purchasers  to enter  into the  Purchase
Agreement,  the Company has agreed to provide the registration  rights set forth
in this Agreement. The execution of this Agreement is a condition to the closing
under the Purchase Agreement.

     The Company  agrees with the Initial  Purchasers  (i) for their  benefit as
Initial  Purchasers and (ii) for the benefit of the beneficial owners (including
the Initial  Purchasers)  from time to time of the Notes (as defined herein) and
the  beneficial  owners  from time to time of the  Underlying  Common  Stock (as
defined  herein)  issued upon  conversion  of the Notes (each of the foregoing a
"Holder" and together the "Holders"), as follows:

     Section 1 . Definitions.  Capitalized terms used herein without  definition
shall have their  respective  meanings set forth in the Purchase  Agreement.  As
used in this Agreement, the following terms shall have the following meanings:

         "Affiliate" means with respect to any specified person, an "affiliate,"
as defined in Rule 144, of such person.

         "Amendment  Effectiveness  Deadline  Date" has the meaning set forth in
Section 2(d) hereof.

         "Applicable Conversion Price" as of any date of determination means the
Conversion Price in effect as of such date of determination  or, if no Notes are
then  outstanding,  the Conversion Price that would be in effect were Notes then
outstanding.

         "Business  Day" means each  Monday,  Tuesday,  Wednesday,  Thursday and
Friday that is not a day on which banking  institutions  in The City of New York
are authorized or obligated by law or executive order to close.

         "Common Stock" means the shares of common stock,  par value $0.0001 per
share,  of the Company and any other  shares of common  stock as may  constitute
"Common  Stock" for purposes of the Indenture,  including the Underlying  Common
Stock.

         "Conversion  Price"  has  the  meaning  assigned  to  such  term in the
Indenture.

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         "Damages  Accrual  Period" has the  meaning  set forth in Section  2(e)
hereof.

         "Damages  Payment  Date"  means each  interest  payment  date under the
Indenture in the case of Notes  (provided  that  October 10, 2011,  the maturity
date of the Notes,  shall also be a Damages Payment Date),  and each April 5 and
October 5 in the case of the Underlying Common Stock.

         "Deferral Notice" has the meaning set forth in Section 3(i) hereof.

         "Deferral Period" has the meaning set forth in Section 3(i) hereof.

         "Effectiveness Deadline Date" has the meaning set forth in Section 2(a)
hereof.

         "Effectiveness  Period" means the period commencing on the last date of
original  issuance  of the  Notes  and  terminating  upon  the  earliest  of the
following:  (A) when all the Notes covered by the Shelf  Registration  Statement
have been sold pursuant to the Shelf  Registration  Statement or when all shares
of Common Stock issued upon  conversion of any such Notes that had not been sold
pursuant  to the Shelf  Registration  Statement  have been sold  pursuant to the
Shelf Registration  Statement and (B) when, in the written opinion of counsel to
the Company, all outstanding  Registrable  Securities (as defined below) held by
persons  that  are  not   Affiliates  of  the  Company  may  be  resold  without
registration  under  the  Securities  Act  pursuant  to Rule  144(k)  under  the
Securities Act or any successor provision thereto.

         "Event" has the meaning set forth in Section 2(e) hereof.

         "Event Date" has the meaning set forth in Section 2(e) hereof.

         "Exchange Act" means the  Securities  Exchange Act of 1934, as amended,
and the rules and regulations of the SEC promulgated thereunder.

         "Filing  Deadline  Date"  has the  meaning  set forth in  Section  2(a)
hereof.

         "Holder"  has the  meaning  set  forth in the third  paragraph  of this
Agreement.

         "Indenture" means the Indenture,  dated as of October 20, 2004, between
the Company and Wells Fargo Bank, National Association,  as trustee, pursuant to
which the Notes are being issued.

         "Initial Purchasers" has the meaning set forth in the preamble hereof.

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         "Initial  Shelf  Registration  Statement"  has the meaning set forth in
Section 2(a) hereof.

         "Issue Date" means the first date of original issuance of the Notes.

         "Liquidated  Damages  Amount" has the meaning set forth in Section 2(e)
hereof.

         "Material Event" has the meaning set forth in Section 3(i) hereof.

         "Notes"  means  the  5.50%  Convertible  Senior  Notes  due 2011 of the
Company to be purchased pursuant to the Purchase Agreement.

         "Notice and  Questionnaire"  means a written  notice  delivered  to the
Company  containing  substantially  the  information  called for by the  Selling
Securityholder  Notice and  Questionnaire  attached  as Annex A to the  Offering
Memorandum of the Company dated October 14, 2004 relating to the Notes.

         "Notice  Holder"  means,  on any date,  any Holder that has delivered a
Notice and Questionnaire to the Company on or prior to such date, so long as all
of their Registrable Securities that have been registered for resale pursuant to
a Notice and Questionnaire  have not been sold in accordance with a Registration
Statement (as defined below).

         "Purchase Agreement" has the meaning set forth in the preamble hereof.

         "Prospectus"   means  the  prospectus   included  in  any  Registration
Statement   (including,   without   limitation,   a  prospectus  that  discloses
information  previously  omitted from a prospectus filed as part of an effective
registration   statement  in  reliance  upon  Rule  415  promulgated  under  the
Securities  Act),  as amended or  supplemented  by any  amendment or  prospectus
supplement,  including post-effective amendments, and all materials incorporated
by  reference  or  explicitly  deemed to be  incorporated  by  reference in such
Prospectus.

         "Record  Holder"  means (i) with  respect to any Damages  Payment  Date
relating  to any  Notes  as to which  any such  Liquidated  Damages  Amount  has
accrued,  the holder of record of such Note on the record  date with  respect to
the interest payment date under the Indenture on which such Damages Payment Date
shall occur and (ii) with respect to any Damages  Payment  Date  relating to the
Underlying  Common  Stock as to which any such  Liquidated  Damages  Amount  has
accrued, the registered holder of such Underlying Common Stock fifteen (15) days
prior to such Damages Payment Date.

         "Registrable  Securities"  means the Notes  until  such Notes have been
converted  into or exchanged for the  Underlying  Common Stock and, at all times
the Underlying Common Stock and any securities into or for which such Underlying
Common Stock has been  converted  or  exchanged,  and any  security  issued with

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respect  thereto upon any stock  dividend,  split or similar event until, in the
case of any such  security,  (A) the earliest of (i) its effective  registration
under  the  Securities  Act and  resale  in  accordance  with  the  Registration
Statement  covering it, (ii) except with respect to Registrable  Securities held
by an affiliate of the Company,  expiration of the holding  period that would be
applicable thereto under Rule 144(k) or (iii) its sale to the public pursuant to
Rule 144 (or any similar  provision then in force,  but not Rule 144A) under the
Securities  Act, and (B) as a result of the event or  circumstance  described in
any of the  foregoing  clauses (i)  through  (iii),  the legend with  respect to
transfer  restrictions  required  under the Indenture is removed or removable in
accordance with the terms of the Indenture or such legend, as the case may be.

         "Registration Expenses" has the meaning set forth in Section 5 hereof.

         "Registration  Statement"  means  any  registration  statement  of  the
Company that covers any of the Registrable Securities pursuant to the provisions
of this Agreement  including the Prospectus,  amendments and supplements to such
registration statement,  including post-effective  amendments, all exhibits, and
all materials  incorporated by reference or explicitly deemed to be incorporated
by reference in such registration statement.

         "Restricted Securities" has the meaning given such term in Rule 144.

         "Rule 144" means Rule 144 under the Securities Act, as such Rule may be
amended from time to time, or any similar rule or regulation  hereafter  adopted
by the SEC.

          "Rule 144A" means Rule 144A under the Securities Act, as such Rule may
be  amended  from time to time,  or any  similar  rule or  regulation  hereafter
adopted by the SEC.

         "SEC" means the Securities and Exchange Commission.

         "Securities Act" means the Securities Act of 1933, as amended,  and the
rules and regulations promulgated by the SEC thereunder.

         "Shelf  Registration  Statement"  has the  meaning set forth in Section
2(a) hereof.

         "Subsequent Shelf Registration  Statement" has the meaning set forth in
Section 2(b) hereof.

         "TIA" means the Trust Indenture Act of 1939, as amended.

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         "Trustee"  means Wells Fargo Bank,  National  Association,  the Trustee
under the Indenture.

         "Underlying  Common  Stock" means the Common Stock into which the Notes
are convertible or issued upon any such conversion.

     Section 2 . Shelf  Registration.  (a) The Company shall prepare and file or
cause to be prepared and filed with the SEC, as soon as  practicable  but in any
event by the date (the  "Filing  Deadline  Date") that is ninety (90) days after
the Issue Date, a Registration Statement for an offering to be made on a delayed
or  continuous  basis  pursuant  to Rule  415 of the  Securities  Act (a  "Shelf
Registration  Statement")  registering  the resale  from time to time by Holders
thereof of all of the Registrable  Securities  (the "Initial Shelf  Registration
Statement").  The Initial Shelf  Registration  Statement shall be on Form S-3 or
another appropriate form permitting  registration of such Registrable Securities
for  resale  by such  Holders  in  accordance  with the  reasonable  methods  of
distribution  elected by the Holders,  approved by the Company, and set forth in
the Initial Shelf Registration Statement. The Company shall use its best efforts
to cause the Initial Shelf Registration Statement to be declared effective under
the Securities  Act as promptly as is  practicable  but in any event by the date
(the "Effectiveness Deadline Date") that is two hundred seventy (270) days after
the Issue Date,  and to keep the Initial  Shelf  Registration  Statement (or any
Subsequent  Shelf  Registration  Statement)  continuously  effective  under  the
Securities Act until the expiration of the Effectiveness Period. At the time the
Initial Shelf  Registration  Statement is declared  effective,  each Holder that
became a Notice  Holder on or prior to the date that is ten (10)  Business  Days
prior to such time of effectiveness  shall be named as a selling  securityholder
in the Initial Shelf Registration Statement and the related Prospectus in such a
manner as to permit such Holder to deliver  such  Prospectus  to  purchasers  of
Registrable Securities in accordance with applicable law.

     (b) If the Initial Shelf  Registration  Statement or any  Subsequent  Shelf
Registration  Statement ceases to be effective for any reason at any time during
the Effectiveness  Period,  the Company shall use its best efforts to obtain the
prompt withdrawal of any order suspending the effectiveness  thereof, and in any
event shall within ten (10)  Business  Days of such  cessation of  effectiveness
amend the Shelf Registration Statement in a manner reasonably expected to obtain
the withdrawal of the order  suspending the  effectiveness  thereof,  or file an
additional Shelf  Registration  Statement covering all of the securities that as
of the date of such  filing are  Registrable  Securities  (a  "Subsequent  Shelf
Registration Statement"). If a Subsequent Shelf Registration Statement is filed,
the  Company  shall  use  its  best  efforts  to  cause  the  Subsequent   Shelf
Registration  Statement to become effective as promptly as is practicable  after
such  filing  and to keep  such  Registration  Statement  (or  subsequent  Shelf
Registration   Statement)   continuously   effective   until   the  end  of  the
Effectiveness Period.

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     (c) The Company shall supplement and amend the Shelf Registration Statement
if  required  by  the  rules,  regulations  or  instructions  applicable  to the
registration form used by the Company for such Shelf Registration  Statement, if
required  by  the  Securities  Act or as  reasonably  requested  by the  Initial
Purchasers  or by the  Trustee  on  behalf  of the  Holders  of the  Registrable
Securities covered by such Shelf Registration Statement.

     (d) Each Holder of Registrable Securities agrees that if such Holder wishes
to sell Registrable  Securities  pursuant to a Shelf Registration  Statement and
related Prospectus,  it will do so only in accordance with this Section 2(d) and
Section 3(i). Each Holder of Registrable  Securities wishing to sell Registrable
Securities  pursuant to a Shelf  Registration  Statement and related  Prospectus
agrees to deliver a Notice and  Questionnaire  to the Company at least three (3)
Business Days prior to the filing of the Initial Shelf  Registration  Statement;
provided that Holders of Registrable  Securities shall have at least twenty (20)
Business  Days  from the date on which the  Notice  and  Questionnaire  is first
received  by  such  Holders  to  return  a  completed   and  signed  Notice  and
Questionnaire  to the  Company.  From  and  after  the date  the  Initial  Shelf
Registration  Statement is declared  effective,  the Company shall,  (i) upon at
least five (5) Business  Days prior  written  notice by delivery of a Notice and
Questionnaire  by a Holder,  file with the SEC pursuant to Rule 424(b) under the
Securities  Act  a  supplement  to  the   prospectus   contained  in  the  Shelf
Registration  Statement or, if required by applicable law, file a post-effective
amendment to the Shelf Registration  Statement, in each case, so that the Holder
delivering such Notice and Questionnaire is named as a selling securityholder in
the Shelf Registration  Statement and the related Prospectus in such a manner as
to  permit  such  Holder  to  deliver  such  Prospectus  to  purchasers  of  the
Registrable  Securities in accordance with applicable  law;  provided,  however,
that (A) in no event  shall the  Company be  required  to file  pursuant to Rule
424(b) under the Securities Act a supplement to the prospectus  contained in the
Shelf Registration Statement to cover new Holders of Securities on any day other
than on the last  business day of the first full  calendar  month  following the
calendar month in which the Initial Shelf Registration is declared effective and
the last business day of each subsequent  calendar month  thereafter and (B), in
the case where a  post-effective  amendment is  required,  in no event shall the
Company be required to file a post-effective amendment to the Shelf Registration
Statement  to cover new  Holders  of  Securities  on any day other than the last
business day of the third full calendar  month  following the calendar  month in
which the Initial Shelf Registration is declared effective and the last business
day of each subsequent third calendar month thereafter;  provided further,  that
if a Deferral  Period is in effect on a filing date required by subclause (A) or
(B) above,  such filing will be made  within  five (5)  Business  Days after the
expiration  of such  Deferral  Period;  (ii) provide  such Holder  copies of any
documents  filed  pursuant to Section  2(d)(i);  and (iii) notify such Holder as
promptly as practicable after the effectiveness  under the Securities Act of any

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post-effective  amendment  filed pursuant to Section  2(d)(i);  provided that if
such  Notice and  Questionnaire  is  delivered  during a Deferral  Period,  or a
Deferral  Period is put into  effect  within five (5)  Business  Days after such
delivery date, and such Deferral Period remains in effect at the required filing
date,  the  Company  shall so inform  the  Holder  delivering  such  Notice  and
Questionnaire  and shall take the  actions  set forth in clauses  (i),  (ii) and
(iii) above  within five (5)  Business  Days after  expiration  of the  Deferral
Period in  accordance  with Section  3(i).  If the Company is required to file a
post-effective amendment to the Shelf Registration Statement pursuant to Section
2(d)(i), it shall use its best efforts to cause such post-effective amendment to
be declared  effective  under the Securities Act as promptly as is  practicable,
but in any event by the date (the "Amendment  Effectiveness Deadline Date") that
is forty five (45) days after the date such  post-effective  amendment is filed.
Notwithstanding  anything contained herein to the contrary, the Company shall be
under no  obligation to name any Holder that is not a Notice Holder as a selling
securityholder in any Registration  Statement or related  Prospectus;  provided,
however, that any Holder that becomes a Notice Holder pursuant to the provisions
of this Section 2(d) (whether or not such Holder was a Notice Holder at the time
the Registration  Statement was declared  effective) shall be named as a selling
securityholder in the Registration Statement or related Prospectus in accordance
with the requirements of this Section 2(d).

     (e) The parties  hereto  agree that the Holders of  Registrable  Securities
will suffer  damages,  and that it would not be feasible to ascertain the extent
of such damages with precision,  if (i) the Initial Shelf Registration Statement
has not been filed on or prior to the Filing  Deadline  Date,  (ii) the  Initial
Shelf  Registration   Statement  has  not  been  declared  effective  under  the
Securities Act on or prior to the Effectiveness Deadline Date, (iii) the Company
has failed to perform its  obligations set forth in Section 2(b) within the time
period required therein,  (iv) the Company has failed to perform its obligations
set forth in Section  2(d) within the time periods  required  therein or (v) the
aggregate  duration of Deferral Periods in any period exceeds the number of days
permitted in respect of such period pursuant to Section 3(i) hereof (each of the
events of a type  described in any of the foregoing  clauses (i) through (v) are
individually  referred to herein as an "Event," and the Filing  Deadline Date in
the case of clause (i), the  Effectiveness  Deadline  Date in the case of clause
(ii), the date by which the Company is required to perform its  obligations  set
forth in Section 2(b) in the case of clause (iii), the date by which the Company
is required to perform its  obligations set forth in Section 2(d) in the case of
clause (iv) (including the filing of any  post-effective  amendment prior to the
Amendment  Effectiveness  Deadline  Date),  and the date on which the  aggregate
duration of Deferral  Periods in any period exceeds the number of days permitted
by Section 3(i) hereof in the case of clause (v), being referred to herein as an
"Event Date"). Events shall be deemed to continue until the following dates with
respect  to  the  respective  types  of  Events:  the  date  the  Initial  Shelf
Registration Statement is filed in the case of an Event of the type described in

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clause  (i),  the date the  Initial  Shelf  Registration  Statement  is declared
effective under the Securities Act in the case of an Event of the type described
in clause  (ii),  the date the Company  performs  its  obligations  set forth in
Section 2(b) in the case of an Event of the type described in clause (iii),  the
date the Company  performs its obligations set forth in Section 2(d) in the case
of an Event of the type described in clause (iv) (including, without limitation,
the  date  the  relevant  post-effective  amendment  to the  Shelf  Registration
Statement is declared  effective  under the Securities  Act), and termination of
the Deferral Period that caused the limit on the aggregate  duration of Deferral
Periods in a period set forth in Section  3(i) to be exceeded in the case of the
commencement of an Event of the type described in clause (v).

         Accordingly, commencing on (and including) any Event Date and ending on
(but  excluding)  the next date on which there are no Events that have  occurred
and are continuing (a "Damages Accrual  Period"),  the Company agrees to pay, as
liquidated  damages  and not as a penalty,  an amount (the  "Liquidated  Damages
Amount"),  payable on the Damages  Payment Dates to Record Holders of Notes that
are Registrable  Securities and of shares of Underlying Common Stock issued upon
conversion  of  Notes  that  are  Registrable  Securities,  as the  case may be,
accruing,  for each  portion of such  Damages  Accrual  Period  beginning on and
including a Damages  Payment Date (or, if the first date of any Damages  Accrual
Period  for which the  Liquidated  Damages  Amount is to be paid to Holders as a
result of the occurrence of any particular Event is other than a Damages Payment
Date, then the Event Date) and ending on but excluding the first to occur of (A)
the  date of the end of the  Damages  Accrual  Period  or (B) the  next  Damages
Payment Date, at a rate per annum equal to  one-quarter  of one percent  (0.25%)
for the first 90-day  period from the Event Date,  and  thereafter at a rate per
annum equal to one-half of one  percent  (0.5%) of (i) the  aggregate  principal
amount of such  Notes or,  without  duplication,  (ii) in the case of Notes that
have  been  converted  into  or  exchanged  for  Underlying  Common  Stock,  the
Applicable  Conversion  Price of such shares of  Underlying  Common Stock on the
date of  conversion,  as the  case may be,  in each  case  determined  as of the
Business Day immediately  preceding the next Damages Payment Date; provided that
in the case of a Damages  Accrual Period that is in effect solely as a result of
an Event of the type  described  in  clause  (iv) of the  immediately  preceding
paragraph, such Liquidated Damages Amount shall be paid only to the Holders that
have delivered  Notice and  Questionnaires  that caused the Company to incur the
obligations set forth in Section 2(d), the non-performance of which is the basis
of such Event:  provided further that any Liquidated Damages Amount accrued with
respect to any Note or portion thereof converted into Underlying Common Stock on
a conversion date prior to the Damages  Payment Date,  shall, in any such event,
be paid  instead to the Holder who  submitted  such Note or portion  thereof for
conversion on the applicable conversion date.  Notwithstanding the foregoing, no
Liquidated Damages Amounts shall accrue as to any Registrable  Security from and

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after the  earlier  of (x) the date  such  security  is no longer a  Registrable
Security and (y) expiration of the Effectiveness  Period. The rate of accrual of
the  Liquidated  Damages  Amount with respect to any period shall not exceed the
rate provided for in this paragraph  notwithstanding  the occurrence of multiple
concurrent Events. Following the cure of all Events requiring the payment by the
Company of Liquidated  Damages Amounts to the Holders of Registrable  Securities
pursuant to this Section,  the accrual of Liquidated  Damages Amounts will cease
(without in any way limiting the effect of any  subsequent  Event  requiring the
payment of Liquidated Damages Amount by the Company).

         The Trustee shall be entitled,  on behalf of Holders of Notes,  to seek
any available  remedy for the enforcement of this  Agreement,  including for the
payment of any Liquidated  Damages Amount.  Notwithstanding  the foregoing,  the
parties agree that the sole damages payable for a violation of the terms of this
Agreement with respect to which liquidated  damages are expressly provided shall
be such liquidated damages.

         All of the  Company's  obligations  set forth in this Section 2(e) that
are  outstanding  with  respect  to any  Registrable  Security  at the time such
security  ceases to be a Registrable  Security  shall survive until such time as
all such  obligations  with respect to such security have been satisfied in full
(notwithstanding termination of this Agreement pursuant to Section 8(k)).

         The parties  hereto agree that the liquidated  damages  provided for in
this  Section 2(e)  constitute a reasonable  estimate of the damages that may be
incurred by Holders of  Registrable  Securities  by reason of the failure of the
Shelf Registration  Statement to be filed or declared effective or available for
effecting  resales of Registrable  Securities in accordance  with the provisions
hereof.

     Section 3 . Registration  Procedures.  In connection with the  registration
obligations of the Company under Section 2 hereof, the Company shall:

     (a) Prepare and file with the SEC a Registration  Statement or Registration
Statements on any  appropriate  form under the  Securities Act available for the
sale of the Registrable Securities by the Holders thereof in accordance with the
intended method or methods of distribution  thereof, and use its best efforts to
cause each such Registration  Statement to become effective and remain effective
as provided herein;  provided that before filing any  Registration  Statement or
Prospectus or any  amendments or  supplements  thereto with the SEC, the Company
shall furnish to the Initial  Purchasers and counsel for the Holders and for the
Initial Purchasers (or, if applicable,  separate counsel for any Notice Holders)
copies of all such  documents  proposed to be filed and use its best  efforts to
reflect in each such  document  when so filed with the SEC such comments as such
counsel  reasonably shall propose within three (3) Business Days of the delivery
of such copies to the Initial Purchasers and such counsel.

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     (b)  Prepare  and  file  with the SEC such  amendments  and  post-effective
amendments  to each  Registration  Statement  as may be  necessary  to keep such
Registration  Statement  continuously  effective,  subject to the  provisions of
Section 2(d) and except for any Deferral Period described in Section 3(i), until
the expiration of the Effectiveness  Period;  cause the related Prospectus to be
supplemented by any required Prospectus supplement, and as so supplemented to be
filed pursuant to Rule 424 (or any similar  provisions  then in force) under the
Securities  Act; and use its best efforts to comply with the  provisions  of the
Securities  Act  applicable  to them  with  respect  to the  disposition  of all
securities  covered by such  Registration  Statement  during  the  Effectiveness
Period in accordance  with the intended  methods of  disposition  by the sellers
thereof  set  forth  in  such  Registration  Statement  as so  amended  or  such
Prospectus as so supplemented.

     (c) As  promptly as  practicable  give  notice to the Notice  Holders,  the
Initial  Purchasers  and counsel for the Holders and for the Initial  Purchasers
(or,  if  applicable,  separate  counsel  for the Notice  Holders)  (i) when any
Prospectus,  Prospectus  supplement,  Registration  Statement or  post-effective
amendment  to a  Registration  Statement  has been filed with the SEC and,  with
respect to a Registration  Statement or any post-effective  amendment,  when the
same  has  been  declared  effective,   (ii)  of  any  request,   following  the
effectiveness of the Initial Shelf  Registration  Statement under the Securities
Act,  by the SEC or any  other  federal  or  state  governmental  authority  for
amendments or supplements to any Registration Statement or related Prospectus or
for  additional  information,  (iii)  of the  issuance  by the SEC or any  other
federal  or state  governmental  authority  of any  stop  order  suspending  the
effectiveness of any Registration  Statement or the initiation or threatening of
any  proceedings  for that  purpose,  (iv) of the  receipt by the Company of any
notification  with respect to the suspension of the  qualification  or exemption
from  qualification  of  any of  the  Registrable  Securities  for  sale  in any
jurisdiction  or the  initiation  or  threatening  of any  proceeding  for  such
purpose,  (v) after  the  effective  date of any  Registration  Statement  filed
pursuant  to this  Agreement  of the  occurrence  of (but not the  nature  of or
details  concerning)  a  Material  Event  and (vi) of the  determination  by the
Company that a  post-effective  amendment to a  Registration  Statement  will be
filed with the SEC,  which notice may, at the  discretion  of the Company (or as
required pursuant to Section 3(i)), state that it constitutes a Deferral Notice,
in which event the provisions of Section 3(i) shall apply.

     (d) Use its best  efforts to prevent the  issuance  of, and, if issued,  to
obtain  the  withdrawal  of  any  order   suspending  the   effectiveness  of  a
Registration Statement or the lifting of any suspension of the qualification (or
exemption from  qualification) of any of the Registrable  Securities for sale in
any  jurisdiction  in which they have been qualified for sale, in either case as
soon as  practicable,  and provide  prompt  notice to each Notice Holder and the
Initial Purchasers of the withdrawal of any such order.

                                       11
<PAGE>

     (e) If reasonably requested by the Initial Purchasers or any Notice Holder,
as  promptly  as  practicable   incorporate   in  a  Prospectus   supplement  or
post-effective  amendment to a Registration  Statement  such  information as the
Initial  Purchasers,  such Notice  Holder or counsel for the Holders and for the
Initial Purchasers (or, if applicable,  separate counsel for the Holders) shall,
on the basis of a written opinion of  nationally-recognized  counsel experienced
in such matters,  determine to be required to be included  therein by applicable
law and  make  any  required  filings  of  such  Prospectus  supplement  or such
post-effective amendment provided that the Company shall not be required to take
any actions under this Section 3(e) that, in the written  opinion of counsel for
the Company, are not in compliance with appliance law.

     (f) As promptly as practicable  furnish to each Notice Holder,  counsel for
the Holders and for the Initial Purchasers (or, if applicable,  separate counsel
for any Notice Holder) and the Initial Purchasers,  without charge, at least one
(1) conformed  copy of the  Registration  Statement  and any amendment  thereto,
including   financial   statements  but  excluding   schedules,   all  documents
incorporated or deemed to be incorporated  therein by reference and all exhibits
(unless requested in writing to the Company by such Notice Holder,  such counsel
or the Initial Purchasers).

     (g) During the Effectiveness Period, deliver to each Notice Holder, counsel
for the Holders  and for the Initial  Purchasers  (or, if  applicable,  separate
counsel for any Notice Holder) and the Initial  Purchasers,  in connection  with
any sale of Registrable Securities pursuant to a Registration Statement, without
charge,  as many  copies of the  Prospectus  or  Prospectuses  relating  to such
Registrable Securities (including each preliminary prospectus) and any amendment
or supplement  thereto as such Notice  Holder may  reasonably  request;  and the
Company hereby  consents  (except during such periods that a Deferral  Notice is
outstanding  and has not been  revoked)  to the use of such  Prospectus  or each
amendment or supplement  thereto by each Notice Holder,  in connection  with any
offering and sale of the  Registrable  Securities  covered by such Prospectus or
any amendment or supplement thereto in the manner set forth therein.

     (h) Prior to any public offering of the Registrable  Securities pursuant to
the Shelf Registration Statement, use its best efforts to register or qualify or
cooperate  with the  Notice  Holders  in  connection  with the  registration  or
qualification  (or exemption from such  registration or  qualification)  of such
Registrable  Securities for offer and sale under the securities or Blue Sky laws
of such  jurisdictions  within the United States as any Notice Holder reasonably
requests  in  writing   (which  request  may  be  included  in  the  Notice  and
Questionnaire);  prior to any  public  offering  of the  Registrable  Securities
pursuant to the Shelf Registration Statement,  use its best efforts to keep each
such registration or qualification (or exemption therefrom) effective during the
Effectiveness  Period in connection  with such Notice Holder's offer and sale of

                                       12
<PAGE>

Registrable  Securities  pursuant  to such  registration  or  qualification  (or
exemption  therefrom)  and do any  and  all  other  acts  or  things  reasonably
necessary or advisable to enable the disposition in such  jurisdictions  of such
Registrable  Securities  in the  manner set forth in the  relevant  Registration
Statement  and the related  Prospectus;  provided  that the Company  will not be
required to (i) qualify as a foreign corporation or as a dealer in securities in
any  jurisdiction  where they would not otherwise be required to qualify but for
this  Agreement  or (ii) take any  action  that  would  subject  them to general
service of process in suits or to taxation in any such  jurisdiction  where they
are not then so subject.

     (i)  Upon  (A) the  issuance  by the  SEC of a stop  order  suspending  the
effectiveness  of  the  Shelf  Registration   Statement  or  the  initiation  of
proceedings with respect to the Shelf Registration  Statement under Section 8(d)
or 8(e) of the Securities  Act, (B) the occurrence of any event or the existence
of any fact as a result of which any  Registration  Statement  shall contain any
untrue  statement of a material fact or omit to state any material fact required
to be stated therein or necessary to make the statements therein not misleading,
or any Prospectus  shall contain any untrue statement of a material fact or omit
to state any material fact necessary in order to make the statements therein, in
the light of the  circumstances  under which they were made, not misleading,  or
(C)  the  occurrence  or  existence  of any  pending  corporate  development  (a
"Material  Event") that, in the reasonable  discretion of the Company,  makes it
appropriate to suspend the availability of the Shelf Registration  Statement and
the related Prospectus, (i) in the case of clause (B) above, subject to the next
sentence,  as promptly as practicable prepare and file, if necessary pursuant to
applicable law, a post-effective  amendment to such Registration  Statement or a
supplement  to the related  Prospectus or any document  incorporated  therein by
reference or file any other  required  document  that would be  incorporated  by
reference  into  such  Registration   Statement  and  Prospectus  so  that  such
Registration  Statement does not contain any untrue statement of a material fact
or omit to state any material fact required to be stated therein or necessary to
make the statements therein not misleading, and such Prospectus does not contain
any untrue  statement  of a  material  fact or omit to state any  material  fact
necessary  in  order  to  make  the  statements  therein,  in the  light  of the
circumstances  under which they were made, not  misleading (it being  understood
that the Company  may rely on  information  provided by each Notice  Holder with
respect to such Notice Holder), as thereafter delivered to the purchasers of the
Registrable   Securities  being  sold   thereunder,   and,  in  the  case  of  a
post-effective  amendment  to a  Registration  Statement,  subject  to the  next
sentence,  use its best efforts to cause it to be declared effective as promptly
as is  practicable,  and (ii) give notice to the Notice  Holders and counsel for
the Holders and for the Initial Purchasers (or, if applicable,  separate counsel
for the Holders) that the  availability of the Shelf  Registration  Statement is
suspended (a "Deferral  Notice") and, upon receipt of any Deferral Notice,  each
Notice  Holder  agrees not to sell any  Registrable  Securities  pursuant to the

                                       13
<PAGE>

Registration  Statement  until  such  Notice  Holder's  receipt of copies of the
supplemented or amended Prospectus provided for in clause (i) above, or until it
is advised in writing by the Company that the  Prospectus  may be used,  and has
received copies of any additional or supplemental  filings that are incorporated
or deemed incorporated by reference in such Prospectus. The Company will use its
best efforts to ensure that the use of the  Prospectus may be resumed (x) in the
case of clause (A) above,  as  promptly  as is  practicable,  (y) in the case of
clause (B) above,  as soon as, in the  reasonable  judgment of the Company,  the
Registration  Statement does not contain any untrue statement of a material fact
or omits to state any material fact  required to be stated  therein or necessary
to make the  statements  therein  not  misleading  and the  Prospectus  does not
contain any untrue  statement of a material  fact or omits to state any material
fact  necessary  in order to make the  statements  therein,  in the light of the
circumstances under which they were made, not misleading, and (z) in the case of
clause (C) above, as soon as, in the reasonable  discretion of the Company, such
suspension is no longer appropriate. The period during which the availability of
the  Registration  Statement  and any  Prospectus  is suspended  (the  "Deferral
Period") without the Company incurring any obligation to pay liquidated  damages
pursuant to Section  2(e),  shall not exceed forty five (45) days in any ninety-
(90-) day period and ninety (90) days in any twelve- (12-) month period.

     (j)  Make  available  for  inspection  during  normal  business  hours by a
representative  for the Notice Holders of such Registrable  Securities,  and any
broker-dealers,  attorneys and accountants  retained by such Notice Holders, all
relevant  financial  and other  records and  pertinent  corporate  documents and
properties  of the  Company  and its  subsidiaries,  and cause  the  appropriate
officers,  directors and employees of the Company and its  subsidiaries  to make
available for inspection  during normal business hours all relevant  information
(other  than  proprietary  information  relating  to the  Company's  oil and gas
exploration   and   production   properties)   reasonably   requested   by  such
representative for the Notice Holders, or any such broker-dealers,  attorneys or
accountants in connection  with such  disposition,  in each case as is customary
for similar "due diligence" examinations;  provided,  however, that such persons
shall  first  agree in writing  with the Company  that any  information  that is
reasonably  and  in  good  faith   designated  by  the  Company  in  writing  as
confidential  at the  time  of  delivery  of  such  information  shall  be  kept
confidential  by such  persons  and shall be used  solely  for the  purposes  of
exercising   rights  under  this  Agreement,   unless  (i)  disclosure  of  such
information is required by court or administrative order or is necessary, in the
opinion of counsel,  to respond to inquiries  of  regulatory  authorities,  (ii)
disclosure of such  information  is required by law  (including  any  disclosure
requirements  pursuant to federal  securities laws in connection with the filing
of any Registration  Statement or the use of any Prospectus  referred to in this
Agreement),  (iii) such information  becomes  generally  available to the public
other  than as a result of a  disclosure  or failure  to  safeguard  by any such
person or (iv) such  information  becomes  available  to any such  person from a

                                       14
<PAGE>

source other than the Company and such source is not bound by a  confidentiality
agreement or is not otherwise under a duty of trust to the Company, and provided
that the foregoing  inspection and information  gathering shall, to the greatest
extent  possible,  be  coordinated  on behalf of all the Notice  Holders and the
other parties entitled thereto by the counsel referred to in Section 5.

     (k) Comply with all  applicable  rules and  regulations of the SEC and make
generally available to its securityholders earning statements (which need not be
audited)  satisfying  the  provisions of Section 11(a) of the Securities Act and
Rule 158 thereunder (or any similar rule  promulgated  under the Securities Act)
no later than 45 days after the end of any 12-month period (or 90 days after the
end of any 12-month  period if such period is a fiscal year)  commencing  on the
first  day of the first  fiscal  quarter  of the  Company  commencing  after the
effective date of a Registration  Statement,  which  statements shall cover said
12-month periods.

     (l) Cooperate with each Notice Holder to facilitate the timely  preparation
and delivery of certificates  representing  Registrable Securities sold pursuant
to a Registration  Statement,  which certificates shall not bear any restrictive
legends,  and cause such Registrable  Securities to be in such  denominations as
are  permitted  by the  Indenture  and  registered  in such names as such Notice
Holder may  request in writing at least (2)  Business  Days prior to any sale of
such Registrable Securities.

     (m) Provide a CUSIP number for all Registrable  Securities  covered by each
Registration  Statement not later than the effective  date of such  Registration
Statement  and provide the Trustee and the  transfer  agent for the Common Stock
with printed  certificates  for the  Registrable  Securities  that are in a form
eligible for deposit with The Depository Trust Company.

     (n)  Cooperate  and  assist  in any  filings  required  to be made with the
National Association of Securities Dealers, Inc.

     (o) Upon (i) the filing of the Initial Registration  Statement and (ii) the
effectiveness of the Initial Registration Statement,  announce the same, in each
case by release to business wire.

     (p) Enter into such customary  agreements and take all such other necessary
actions in connection  therewith  (including those requested by the holders of a
majority  of the  Registrable  Securities  being  sold) in order to  expedite or
facilitate disposition of such Registrable Securities.

     (q) Cause the  Indenture to be  qualified  under the TIA not later than the
effective  date of any  Registration  Statement;  and in  connection  therewith,
cooperate  with the Trustee to effect such  changes to the  Indenture  as may be

                                       15
<PAGE>

required for the  Indenture to be so qualified in  accordance  with the terms of
the TIA and  execute,  and use its best efforts to cause the Trustee to execute,
all documents as may be required to effect such changes, and all other forms and
documents  required  to be filed with the SEC to enable the  Indenture  to be so
qualified in a timely manner.

     Section 4 . Holder's Obligations. Each Holder agrees, by acquisition of the
Registrable  Securities,  that no  Holder  of  Registrable  Securities  shall be
entitled to sell any of such Registrable  Securities  pursuant to a Registration
Statement or to receive a Prospectus  relating  thereto,  unless such Holder has
furnished the Company with a Notice and  Questionnaire  as required  pursuant to
Section 2(d) hereof  (including the information  required to be included in such
Notice and  Questionnaire)  and the  information set forth in the next sentence.
Each Notice  Holder  agrees  promptly to furnish to the Company all  information
required to be disclosed in order to make the information  previously  furnished
to the Company by such Notice Holder not  misleading  and any other  information
regarding such Notice Holder and the distribution of such Registrable Securities
as the  Company  may  from  time to time  reasonably  request.  Any  sale of any
Registrable  Securities  by any Holder  shall  constitute a  representation  and
warranty  by such Holder  that the  information  relating to such Holder and its
plan of distribution is as set forth in the Prospectus  delivered by such Holder
in connection  with such  disposition,  that such  Prospectus does not as of the
time of such sale contain any untrue statement of a material fact relating to or
provided by such  Holder or its plan of  distribution  and that such  Prospectus
does not as of the time of such sale omit to state any material fact relating to
or  provided by such Holder or its plan of  distribution  necessary  in order to
make the statements in such Prospectus,  in the light of the circumstances under
which they were made, not misleading.

     Section 5 .  Registration  Expenses.  The  Company  shall bear all fees and
expenses  incurred  in  connection  with the  performance  by the Company of its
obligations  under Sections 2 and 3 of this Agreement  whether or not any of the
Registration   Statements  are  declared  effective.   Such  fees  and  expenses
("Registration   Expenses")   shall  include,   without   limitation,   (i)  all
registration and filing fees (including,  without limitation,  fees and expenses
(x) with respect to filings required to be made with the National Association of
Securities Dealers, Inc. and (y) of compliance with federal and state securities
or Blue  Sky  laws,  (ii)  printing  expenses  (including,  without  limitation,
expenses of printing certificates for Registrable  Securities in a form eligible
for deposit with The  Depository  Trust  Company),  (iii)  duplication  expenses
relating to copies of any Registration  Statement or Prospectus delivered to any
Holders hereunder,  (iv) fees and disbursements of counsel for the Company,  (v)
fees and  disbursements  of the Trustee and its counsel and of the registrar and
transfer agent for the Common Stock and (vi) Securities Act liability  insurance
obtained by the Company in its sole discretion.  In addition,  the Company shall
pay the internal expenses of the Company  (including,  without  limitation,  all

                                       16
<PAGE>

salaries and expenses of officers and employees  performing  legal or accounting
duties),  the expense of any annual  audit,  the fees and  expenses  incurred in
connection with the listing by the Company of the Registrable  Securities on any
securities  exchange on which  similar  securities of the Company is then listed
and the fees and expenses of any person, including special experts,  retained by
the Company.

     Section 6 . Indemnification; Contribution.

     (a)  The  Company  agrees  to  indemnify  and  hold  harmless  the  Initial
Purchasers,  each  Holder and each  person,  if any,  who  controls  any Initial
Purchaser  or any  Holder  within  the  meaning of Section 15 of the 1933 Act or
Section 20 of the 1934 Act as follows:

          (i) against  any and all loss,  liability,  claim,  damage and expense
     whatsoever,  as  incurred,  arising out of any untrue  statement or alleged
     untrue statement of a material fact contained in any Registration Statement
     (or any  amendment or  supplement  thereto)  pursuant to which  Registrable
     Securities  were  registered  under the 1933 Act,  including  all documents
     incorporated  therein by  reference,  or the  omission or alleged  omission
     therefrom of a material fact required to be stated  therein or necessary to
     make the statements  therein not  misleading,  or arising out of any untrue
     statement or alleged  untrue  statement of a material fact contained in any
     Prospectus  (or any  amendment  or  supplement  thereto) or the omission or
     alleged  omission  therefrom of a material fact  necessary in order to make
     the statements  therein, in the light of the circumstances under which they
     were made, not misleading;

          (ii) against any and all loss,  liability,  claim,  damage and expense
     whatsoever,  as  incurred,  to the extent of the  aggregate  amount paid in
     settlement of any  litigation,  or any  investigation  or proceeding by any
     governmental  agency  or body,  commenced  or  threatened,  or of any claim
     whatsoever  based upon any such untrue  statement or omission,  or any such
     alleged  untrue  statement or omission;  provided  that (subject to Section
     6(d) below) any such settlement is effected with the written consent of the
     Company; and

          (iii) against any and all expense  whatsoever,  as incurred (including
     the reasonable fees and  disbursements of one firm of counsel chosen by the
     indemnified  parties),  reasonably incurred in investigating,  preparing or
     defending against any litigation, or any investigation or proceeding by any
     governmental  agency  or  body,  commenced  or  threatened,  or  any  claim
     whatsoever  based upon any such untrue  statement or omission,  or any such

                                       17
<PAGE>

     alleged untrue  statement or omission,  to the extent that any such expense
     is not paid under subparagraph (i) or (ii) above;

provided,  however,  that this indemnity  agreement shall not apply to any loss,
liability,  claim,  damage or expense to the  extent  arising  out of any untrue
statement or omission or alleged  untrue  statement or omission made in reliance
upon and in conformity with written information  furnished to the Company by the
Initial Purchasers or such Holder expressly for use in a Registration  Statement
(or any  amendment  thereto) or any  Prospectus  (or any amendment or supplement
thereto).

     (b) Each Holder  severally,  but not jointly,  agrees to indemnify and hold
harmless the Company,  the Initial  Purchasers,  the other selling Holders,  and
each of their respective  directors and officers,  and each person,  if any, who
controls the Company,  any Initial  Purchaser or any other selling Holder within
the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act, against
any  and all  loss,  liability,  claim,  damage  and  expense  described  in the
indemnity  contained in Section 6(a) hereof, as incurred,  but only with respect
to untrue  statements or omissions,  or alleged untrue  statements or omissions,
made in the Shelf  Registration  Statement  (or any  amendment  thereto)  or any
Prospectus included therein (or any amendment or supplement thereto) in reliance
upon and in  conformity  with  written  information  with respect to such Holder
furnished  to the  Company  by  such  Holder  expressly  for  use  in the  Shelf
Registration  Statement (or any amendment  thereto) or such  Prospectus  (or any
amendment or supplement thereto);  provided,  however, that no such Holder shall
be liable  for any  claims  hereunder  in excess of the  amount of net  proceeds
received by such Holder from the sale of Registrable Securities pursuant to such
Shelf Registration Statement.

     (c) Each  indemnified  party shall give  notice as  promptly as  reasonably
practicable  to each  indemnifying  party of any action or proceeding  commenced
against it in respect of which indemnity may be sought hereunder, but failure so
to notify an indemnifying  party shall not relieve such indemnifying  party from
any  liability  hereunder  to the extent it is not  materially  prejudiced  as a
result thereof and in any event shall not relieve it from any liability which it
may have otherwise than on account of this indemnity agreement.  An indemnifying
party  may  participate  at its own  expense  in the  defense  of  such  action;
provided, however, that counsel to the indemnifying party shall not (except with
the consent of the indemnified  party) also be counsel to the indemnified party.
In no event shall the  indemnifying  party or parties be liable for the fees and
expenses of more than one counsel (in  addition to any local  counsel)  separate
from their own counsel for all  indemnified  parties in connection  with any one
action or  separate  but  similar  or related  actions in the same  jurisdiction
arising out of the same general  allegations or  circumstances.  No indemnifying
party  shall,  without the prior  written  consent of the  indemnified  parties,
settle or compromise or consent to the entry of any judgment with respect to any
litigation,  or any  investigation or proceeding by any  governmental  agency or

                                       18
<PAGE>

body,  commenced  or  threatened,  or any claim  whatsoever  in respect of which
indemnification or contribution could be sought under this Section 6 (whether or
not the indemnified  parties are actual or potential  parties  thereto),  unless
such settlement,  compromise or consent (i) includes an unconditional release of
each  indemnified  party  from all  liability  arising  out of such  litigation,
investigation,  proceeding  or claim and (ii) does not include a statement as to
or an admission of fault, culpability or a failure to act by or on behalf of any
indemnified party.

     (d)  If  at  any  time  an  indemnified   party  shall  have  requested  an
indemnifying  party to reimburse the indemnified  party for fees and expenses of
counsel,  such  indemnifying  party  agrees  that it  shall  be  liable  for any
settlement of the nature  contemplated by Section 6(a)(ii)  effected without its
written  consent if (i) such  settlement is entered into more than 45 days after
receipt  by  such  indemnifying  party  of  the  aforesaid  request,  (ii)  such
indemnifying party shall have received notice of the terms of such settlement at
least 30 days  prior to such  settlement  being  entered  into  and  (iii)  such
indemnifying   party  shall  not  have  reimbursed  such  indemnified  party  in
accordance with such request prior to the date of such settlement.

     (e) If the indemnification provided for in this Section 6 is for any reason
unavailable to or insufficient to hold harmless an indemnified  party in respect
of any losses,  liabilities,  claims,  damages or expenses  referred to therein,
then each  indemnifying  party shall  contribute to the aggregate amount of such
losses,  liabilities,  claims, damages and expenses incurred by such indemnified
party, as incurred, in such proportion as is appropriate to reflect the relative
fault of the  indemnifying  party or parties on the one hand and the indemnified
party on the other hand in  connection  with the  statements  or omissions  that
resulted in such losses,  liabilities,  claims,  damages or expenses, as well as
any other relevant equitable considerations.

         The  relative  fault of the Company on the one hand and the Holders and
the Initial  Purchasers  on the other hand shall be  determined by reference to,
among other  things,  whether any such untrue or alleged  untrue  statement of a
material  fact or omission or alleged  omission to state a material fact relates
to information  supplied by the Company,  the Holders or the Initial  Purchasers
and  the  parties'  relative  intent,  knowledge,   access  to  information  and
opportunity to correct or prevent such statement or omission.

         The Company, the Holders and the Initial Purchasers agree that it would
not be just and  equitable  if  contribution  pursuant to this Section 6(e) were
determined by pro rata allocation or by any other method of allocation that does
not take  account  of the  equitable  considerations  referred  to above in this
Section 6(e). The aggregate amount of losses,  liabilities,  claims, damages and
expenses  incurred by an indemnified party and referred to above in this Section
6(e) shall be deemed to include any legal or other expenses  reasonably incurred

                                       19
<PAGE>

by such indemnified party in  investigating,  preparing or defending against any
litigation,  or any  investigation or proceeding by any  governmental  agency or
body,  commenced  or  threatened,  or any claim  whatsoever  based upon any such
untrue or alleged untrue statement or omission or alleged omission.

         Notwithstanding  the  provisions of this Section 6, neither the Initial
Purchasers  nor any Holder  shall be required to  indemnify  or  contribute  any
amount in excess of the amount by which the total price at which the Registrable
Securities sold by Holder or underwritten by the Initial Purchasers, as the case
may be, and  distributed  to the public were  offered to the public  exceeds the
amount of any damages that such Holder or the Initial  Purchasers have otherwise
been  required to pay by reason of such untrue or alleged  untrue  statement  or
omission or alleged omission.

         No person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the 1933 Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation.

         For purposes of this  Section 6, each person,  if any, who controls any
Initial  Purchaser  or any  Holder  within  the  meaning  of  Section  15 of the
Securities  Act or Section 20 of the  Exchange Act shall have the same rights to
contribution as such Initial Purchaser or Holder,  and each director of the, and
each person,  if any, who controls the Company  within the meaning of Section 15
of the  Securities  Act or  Section 20 of the  Exchange  Act shall have the same
rights to contribution as the Company.

     Section 7 . Information Requirements. (a) The Company covenants that, if at
any time  before the end of the  Effectiveness  Period it is not  subject to the
reporting requirements of the Exchange Act, it will cooperate with any Holder of
Registrable  Securities and take such further reasonable action as any Holder of
Registrable  Securities may reasonably  request in writing  (including,  without
limitation,  making  such  reasonable  representations  as any such  Holder  may
reasonably request), all to the extent required from time to time to enable such
Holder to sell Registrable  Securities without registration under the Securities
Act within the limitation of the  exemptions  provided by Rule 144 and Rule 144A
under the Securities Act and customarily taken in connection with sales pursuant
to such  exemptions.  Upon the  written  request  of any  Holder of  Registrable
Securities,  the Company shall deliver to such Holder a written  statement as to
whether it has complied with such filing  requirements,  unless such a statement
has been  included in its most  recent  report  filed  pursuant to Section 13 or
Section 15(d) of Exchange Act.  Notwithstanding  the foregoing,  nothing in this
Section  7 shall be  deemed  to  require  the  Company  to  register  any of its
securities (other than the Common Stock) under any section of the Exchange Act.

                                       20
<PAGE>

(b) The  Company  shall file the  reports  required  to be filed by it under the
Exchange  Act and  shall  comply  with all other  requirements  set forth in the
instructions  to  Form  S-3  in  order  to  allow  it to  be  eligible  to  file
registration statements on Form S-3.

     Section 8 . Miscellaneous.

     (a) No Conflicting Agreements. The Company is not, as of the date hereof, a
party to, nor shall it, on or after the date of this Agreement,  enter into, any
agreement with respect to its securities  that conflicts with the rights granted
to the  Holders  of  Registrable  Securities  in  this  Agreement.  The  Company
represents  and warrants that the rights  granted to the Holders of  Registrable
Securities  hereunder do not in any way conflict with the rights  granted to the
holders of the Company's securities under any other agreements.  Notwithstanding
the foregoing, the Initial Purchasers acknowledge that the Company is obligated,
and may  obligate  itself  from  time to time in the  future,  to  register  its
securities for other holders pursuant to separate registration statements.

     (b) Amendments and Waivers. The provisions of this Agreement, including the
provisions of this sentence, may not be amended,  modified or supplemented,  and
waivers or consents to departures  from the provisions  hereof may not be given,
unless the Company has obtained the written  consent of Holders of a majority of
the then outstanding Underlying Common Stock constituting Registrable Securities
(with  Holders of Notes deemed to be the Holders,  for purposes of this Section,
of the number of outstanding  shares of Underlying  Common Stock into which such
Notes are or would be convertible or  exchangeable  as of the date on which such
consent is requested).  Notwithstanding  the  foregoing,  a waiver or consent to
depart  from  the  provisions  hereof  with  respect  to a matter  that  relates
exclusively to the rights of Holders of Registrable  Securities whose securities
are being sold pursuant to a  Registration  Statement and that does not directly
or indirectly  affect the rights of other Holders of Registrable  Securities may
be given by Holders of at least a majority of the Registrable  Securities  being
sold by such Holders pursuant to such Registration Statement;  provided that the
provisions of this sentence may not be amended, modified, or supplemented except
in accordance with the provisions of the immediately  preceding  sentence.  Each
Holder of Registrable  Securities outstanding at the time of any such amendment,
modification,  supplement, waiver or consent or thereafter shall be bound by any
such amendment, modification, supplement, waiver or consent effected pursuant to
this Section 8(b), whether or not any notice, writing or marking indicating such
amendment,   modification,   supplement,   waiver  or  consent  appears  on  the
Registrable Securities or is delivered to such Holder.

     (c) Notices. All notices and other communications provided for or permitted
hereunder shall be made in writing by hand delivery,  by telecopier,  by courier

                                       21
<PAGE>

guaranteeing   overnight   delivery  or  by  first-class  mail,  return  receipt
requested,  and shall be deemed given (i) when made,  if made by hand  delivery,
(ii) upon confirmation,  if made by telecopier, (iii) one (1) Business Day after
being deposited with such courier,  if made by overnight  courier or (iv) on the
date  indicated on the notice of receipt,  if made by  first-class  mail, to the
parties as follows:

         (x) if to a Holder  of  Registrable  Securities,  at the  most  current
address given by such Holder to the Company in a Notice and Questionnaire or any
amendment thereto;

         (y) if to the Company, to:

                Gasco Energy, Inc.
                Suite 236, Building H
                14 Inverness Drive
                Englewood, CO 80112
                Attention: Chief Financial Officer
                Telecopy No.: (303) 483-0011

         (z) if to the Initial Purchasers, to:

                J.P.  Morgan  Securities Inc.
                270 Park Avenue
                New York, NY 10017
                Attention: Syndicate Department
                Telecopy No.: (212) 622-2071

or to such other address as such person may have  furnished to the other persons
identified in this Section 8(c) in writing in accordance herewith.

     (d)  Approval of Holders.  Whenever the consent or approval of Holders of a
specified   percentage  of   Registrable   Securities  is  required   hereunder,
Registrable  Securities  held by the Company or its  affiliates (as such term is
defined in Rule 405 under the Securities Act) (other than the Initial Purchasers
or subsequent  Holders of Registrable  Securities if such subsequent Holders are
deemed  to be such  affiliates  solely  by  reason  of  their  holdings  of such
Registrable Securities) shall not be counted in determining whether such consent
or approval was given by the Holders of such required percentage.

     (e)  Successors  and  Assigns.  Any person who  purchases  any  Registrable
Securities  from the Initial  Purchasers  shall be deemed,  for purposes of this
Agreement,  to be an assignee of the Initial  Purchasers.  This Agreement  shall
inure to the benefit of and be binding upon the  successors  and assigns of each

                                       22
<PAGE>

of the parties and shall inure to the benefit of and be binding upon each Holder
of any Registrable Securities.

     (f)  Counterparts.  This  Agreement  may  be  executed  in  any  number  of
counterparts and by the parties hereto in separate  counterparts,  each of which
when so executed  shall be deemed to be original and all of which taken together
shall constitute one and the same agreement.

     (g)  Headings.  The  headings  in this  Agreement  are for  convenience  of
reference only and shall not limit or otherwise affect the meaning hereof.

     (h)  Governing  Law. THIS  AGREEMENT  SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE  WITH THE LAWS OF THE STATE OF NEW YORK,  WITHOUT REGARD TO CONFLICTS
OF LAWS PRINCIPLES THEREOF.

     (i) Severability.  If any term, provision,  covenant or restriction of this
Agreement is held to be invalid,  illegal, void or unenforceable,  the remainder
of the terms,  provisions,  covenants  and  restrictions  set forth herein shall
remain in full  force and effect and shall in no way be  affected,  impaired  or
invalidated thereby, and the parties hereto shall use their best efforts to find
and employ an alternative  means to achieve the same or  substantially  the same
result as that contemplated by such term, provision, covenant or restriction, it
being  intended  that all of the rights and  privileges  of the parties shall be
enforceable to the fullest extent permitted by law.

     (j) Entire Agreement.  This Agreement is intended by the parties as a final
expression  of their  agreement  and is intended to be a complete and  exclusive
statement of the agreement and understanding of the parties hereto in respect of
the subject matter contained  herein and the registration  rights granted by the
Company with respect to the  Registrable  Securities.  Except as provided in the
Purchase  Agreement,  there  are  no  restrictions,   promises,   warranties  or
undertakings,  other than those set forth or referred to herein, with respect to
the  registration  rights granted by the Company with respect to the Registrable
Securities.  This  Agreement  supersedes all prior  agreements and  undertakings
among the parties  with  respect to such  registration  rights.  No party hereto
shall have any rights,  duties or obligations other than those  specifically set
forth in this Agreement.  In no event will such methods of distribution take the
form of an underwritten offering of the Registrable Securities without the prior
agreement of the Company.

     (k)  Termination.  This  Agreement  and  the  obligations  of  the  parties
hereunder shall terminate upon the end of the Effectiveness  Period,  except for
any  liabilities  or  obligations  under  Section  4,  5 or  6  hereof  and  the
obligations to make payments of and provide for liquidated damages under Section
2(e)  hereof  to  the  extent  such  damages  accrue  prior  to  the  end of the

                                       23
<PAGE>

Effectiveness  Period,  each of which shall remain in effect in accordance  with
its terms.

                                       24
<PAGE>

         IN WITNESS WHEREOF,  the parties have executed this Agreement as of the
date first written above.

                              GASCO ENERGY, INC.

                              By: /s/ W. King Grant
                                  ------------------------------
                                  Name:    W. King Grant
                                  Title: Executive Vice President
                                         Chief Financial Officer and
                                         Corporate Treasury

Confirmed and accepted as of the date first above written:

J.P. MORGAN SECURITIES INC. FIRST ALBANY CAPITAL INC.

By: J.P. MORGAN SECURITIES INC.

    /s/ Paul A. O'Hern
   ----------------------------
   Name: Paul A. O'Hern
   Title: Vice President

                                       25
<PAGE>Exhibit 10.19

             CONFIDENTIAL INFORMATION OF Q Comm International, Inc.

[*Confidential  treatment  has been  requested  as to certain  portions  of this
document.  Each such portion, which has been omitted herein and replaced with an
asterisk  [***],  has been filed  separately  with the  Securities  and Exchange
Commission.]

                                 August 23, 2004

Doug Pfeiffer
POSA TECH, Inc.
2745 East Oakland Park Blvd.
Suite 100
Ft. Lauderdale, FL  33306

     Re: Letter Agreement for Purchase of Merchant Accounts

Dear Doug:

     This letter  describes  the terms of our agreement to acquire the servicing
rights of 347 Q Comm merchant accounts that are serviced by POSA Tech under that
certain Memorandum of Agreement,  dated August 23, 2002 (the "Memorandum").  The
347 merchant accounts (the "Acquired  Accounts") are listed on Exhibit A to this
letter agreement.

     The terms of the  purchase of the  Acquired  Accounts are set forth in that
certain  Term Sheet for  Purchase of POSA Tech Broker  Accounts,  dated July 23,
2004 (the "Term  Sheet"),  which is  attached  as  Exhibit B hereto.  Q Comm has
completed the closing contingencies described in the Term Sheet, and is prepared
to complete the transaction.

     In addition to the items described in the Term Sheet,  the parties agree as
follows:

     1.   The broker  relationship  described in the Memorandum will continue to
be in full  force and  effect,  and POSA  Tech  agrees to  continue  to  develop
merchant  accounts  thereunder  on  behalf of Q Comm,  but will no  longer  have
servicing obligations, or receive any compensation, for the Acquired Accounts.

     2.   As contemplated  in the Memorandum,  the parties will proceed to enter
into a definitive  agreement that will replace and supercede the  Memorandum.  Q
Comm intends to propose a form of Broker and  Servicing  Agreement to you in the
next couple of weeks, and you agree to negotiate in good faith with Q Comm in an
effort to complete and sign the agreement.

     3.   The initial  payment of $200,000  under the Term Sheet will be paid by
wire  transfer upon your  execution and return of this letter  agreement and our
receipt of your desired wiring instructions. The four quarterly earnout payments
will be also be paid by wire  transfer on or about  December  5, 2004,  March 5,
2005,  June 5,  2005 and  September  5,  2005.  These  payments  will  cover the
three-month  periods  immediately  prior to the  month of  payment,  and will be
supported by a written Notice of Earnout Amount sent to you on about the time of
the payment that  calculates  the average  weekly net revenues  during each such
three-month  period,  as well as any  reductions  in the payment due to revenues
from the Acquired Accounts falling below the earnout targets.

     4.   Similarly,  on or about  September  5, 2005,  Q Comm will provide POSA
Tech with a written Notice of Earnout Shares, accompanied by a stock certificate
for the number of shares of Q Comm common stock earned by POSA Tech  pursuant to
the  terms of the Term  Sheet.  This  notice  will  calculate  the basis for any
reduction in the number of share due to failure to achieve the

<PAGE>

             CONFIDENTIAL INFORMATION OF Q Comm International, Inc.

[*Confidential  treatment  has been  requested  as to certain  portions  of this
document.  Each such portion, which has been omitted herein and replaced with an
asterisk  [***],  has been filed  separately  with the  Securities  and Exchange
Commission.]

earnout targets, or any increase in the shares due to Q Comm's stock price being
less than $4 per share. The price per share  determination  will be based on the
average  closing  price of Q Comm's  stock  during the last five trading days of
August 2005.

     5.   Q Comm will terminate  payments to POSA Tech for the Acquired Accounts
on the day following wire transfer of the initial payment.

     6.   POSA Tech  shall  notify Q Comm in  writing if it desires to amend the
list of Acquired Accounts in Exhibit A to include additional  merchant accounts,
and Q Comm  agrees to  approve or  disapprove  of any such  requested  additions
within a reasonable  time  thereafter.  Any such accounts  added to the Acquired
Accounts for this purpose fall under the same terms as the Acquired Accounts and
Q Comm will  terminate  payments to POSA Tech for the added  accounts on the day
following the date of transfer.

     7.   POSA Tech agrees to cooperate fully with Q Comm in the transfer of the
servicing of the Acquired Accounts to Q Comm or its designee, and to not solicit
the business of the Acquired Accounts for prepaid wireless,  phone,  credit card
or other  products or  point-of-sale  terminals for a period of three years from
the date of your acceptance  hereof, and that POSA Tech will speak favorably and
not  disparage Q Comm in any of its  communications  and  interactions  with the
Acquired Accounts.

     8.   This letter  agreement  is not  assignable  without the prior  written
consent of the other party.  This letter and the attached  exhibits embodies the
entire  agreement and  understanding  of the parties  hereto and  supersedes all
prior agreements and  understandings,  written or oral,  relating to the subject
matter  hereof,  and may not be  modified  or amended  or any term or  provision
hereof waived or discharged, except in writing, signed by the party against whom
such  modification,  waiver or discharge  is sought to be  enforced.  Failure to
enforce any  provision of this letter shall not  constitute a waiver of any term
hereof. All rights and obligations in connection  herewith shall be interpreted,
construed and enforced in accordance with and governed by the applicable laws of
the State of Utah.

     If the terms set forth above are acceptable, please countersign this letter
agreement below and return a signed copy to the undersigned.

                                Very truly yours,

                                Q COMM INTERNATIONAL, INC.

                                By:
                                   --------------------------------------
                                      Terry Kramer, CEO
Acknowledged and Agreed:

POSA TECH, INC.

By:
   -------------------------------------
Its:
    ------------------------------------
Date:
     -----------------------------------

<PAGE>

             CONFIDENTIAL INFORMATION OF Q Comm International, Inc.

[*Confidential  treatment  has been  requested  as to certain  portions  of this
document.  Each such portion, which has been omitted herein and replaced with an
asterisk  [***],  has been filed  separately  with the  Securities  and Exchange
Commission.]

                                    Exhibit A
                                    ---------
                                Acquired Accounts

                                      [***]

<PAGE>

             CONFIDENTIAL INFORMATION OF Q Comm International, Inc.

[*Confidential  treatment  has been  requested  as to certain  portions  of this
document.  Each such portion, which has been omitted herein and replaced with an
asterisk  [***],  has been filed  separately  with the  Securities  and Exchange
Commission.]

                                    Exhibit B
                                   -----------
                                   Term Sheet

                           Q Comm International, Inc.
              Term Sheet for Purchase of POSA Tech Broker Accounts
                                  July 23, 2004

POSA Tech will sell their  broker  accounts  currently  serviced  through Q Comm
International,  Inc. (Q Comm). The following  represents the primary elements of
the transaction:

Number of Accounts:         347

Purchase Price:             $300,000  to  be  paid  by  $200,000   cash  payment
                            immediately upon closing;  $50,000 in quarterly cash
                            payments  of  $12,500  each  provided  the  earn-out
                            criteria are met; and $50,000 in Q Comm common stock
                            transferred  one-year  after  closing  based  on the
                            share price at the time of closing.  The shares will
                            be held in escrow until the time of disbursement. If
                            the  price  per  share of stock  falls  below $4 per
                            share at the time the  shares are  released,  Q Comm
                            will  increase the number of shares to equal $50,000
                            in value at $4 per share.

Earn out Criteria:          The  accounts  currently  provide  to POSA  Tech net
                            revenues  of  approximately  [***] per week.  If the
                            average weekly net revenues for the four-week period
                            immediately preceding a quarterly payment fall below
                            [***], which is 90% of the current net revenue,  the
                            earn out for that  quarter is reduced by 25%. If the
                            average weekly net revenues for the four-week period
                            immediately preceding a quarterly payment fall below
                            [***], which is 85% of the current net revenues, the
                            earn out for that  quarter is reduced by 50%. If the
                            average weekly net revenues for the four-week period
                            immediately preceding a quarterly payment fall below
                            [***] which is 80% of the current net revenues,  the
                            earn out for that quarter is  eliminated.  POSA Tech
                            has the right to add new accounts  that they service
                            as  the  broker  to  the   account   base  used  for
                            calculating net revenues in order to ensure that the
                            desired performance is met. If any such accounts are
                            transferred,  POSA  Tech  agrees to  relinquish  any
                            rights to their future cash flows from the accounts.

                            The  annual  earn out for the  value of the stock is
                            similarly  indexed.  If the  annual  average  weekly
                            revenues  fall below 90%,  the value of the stock is
                            reduced  by  25%.  If  the  annual   average  weekly
                            revenues  fall below 85%,  the value of the stock is
                            reduced  by  50%.  If  the  annual   average  weekly
                            revenues   fall  below  80%,  no  stock  payment  is
                            required.

<PAGE>

             CONFIDENTIAL INFORMATION OF Q Comm International, Inc.

[*Confidential  treatment  has been  requested  as to certain  portions  of this
document.  Each such portion, which has been omitted herein and replaced with an
asterisk  [***],  has been filed  separately  with the  Securities  and Exchange
Commission.]

Freedom to Speak:           POSA Tech agrees that whenever a merchant desires to
                            sell the  Freedom to Speak  product,  or any similar
                            product  POSA Tech  develops,  and if that  merchant
                            does not at that time have a point of sale  terminal
                            device  installed,  that Freedom to Speak or similar
                            product  will  only  be sold  by  installation  of a
                            terminal provided by Q Comm.

Items Contingent
to Close:                   This  transaction  is dependent on Q Comm  receiving
                            approval  from  its  Board  of  Directors.   Q  Comm
                            management  cannot  offer  any  assurance  of  Board
                            approval.  Q Comm  has the  right  to  complete  due
                            diligence procedures that it deems necessary and may
                            contact  any of the  accounts  directly  in order to
                            complete  such  due   diligence.   Closing  of  this
                            transaction  is dependent on the  completion  of due
                            diligence   procedures  and  the  results  of  those
                            procedures.

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