Document:

SUBSIDIARY GUARANTY AGREEMENT

         THIS SUBSIDIARY GUARANTY AGREEMENT (this "Subsidiary Guaranty"),  dated
as of  October  15,  2003,  is made by San  Joaquin  Oil & Gas,  Ltd.,  a Nevada
corporation (the  "Guarantor") to the Lenders (as set forth in Exhibit A hereto)
under the  Debentures  (as  defined  herein)  (collectively  referred  to as the
"Lender")  and to Renn Capital  Group,  Inc.,  as the Agent for the Lenders (the
"Agent"). Capitalized terms used but not otherwise defined herein shall have the
meanings ascribed to them in the Loan Agreement (as hereinafter defined)

                              W I T N E S S E T H:

         WHEREAS, Gasco Energy, Inc., a Nevada corporation (the "Company"),  and
the Lender have entered into that certain Convertible Loan Agreement dated as of
October  15,  2003 (as from  time to time  amended,  supplemented  or  otherwise
modified, the "Loan Agreement"); and

         WHEREAS, the Guarantor is a wholly-owned  subsidiary of the Company and
will benefit from the  availability of credit to the Company under the terms and
conditions of the Loan Agreement and the Debentures.

         NOW,  THEREFORE,  to induce the Lender to execute  and deliver the Loan
Agreement  and  perform  their  obligations  thereunder,  and for other good and
valuable  consideration,  the  receipt  and  sufficiency  of  which  are  hereby
acknowledged, the parties hereto hereby agree as follows:

1. GUARANTY. The Guarantor hereby unconditionally,  absolutely,  continually and
irrevocably  guarantees to the Lender the payment and performance in full of the
Liabilities  (as defined below).  For all purposes of this Subsidiary  Guaranty,
"Liabilities" means:

     (a)  the Company's  prompt payment in full, when due or declared due and at
          all such times, of all Obligations and all other amounts,  heretofore,
          now or at any time or times hereafter owing,  arising, due or payable,
          whether  direct or  contingent,  joint,  several or independent of the
          Company  to  the  Lender,   including  without  limitation  principal,
          interest,  premium or fee (including,  but not limited to,  attorneys'
          fees and expenses); and

     (b)  the Company's prompt,  full and faithful  performance,  observance and
          discharge  of each and  every  agreement,  undertaking,  covenant  and
          provision to be performed, observed or discharged by the Company under
          any  instrument,  agreement or other  document with or in favor of the
          Lender.

         The  Guarantor's  obligations  to  the  Lender  under  this  Subsidiary
Guaranty   are   hereinafter   collectively   referred  to  as  the   "Guarantee
Obligations."  The Guarantor agrees that it is directly and primarily liable for
the Guarantee  Obligations  and that there are no  conditions  whatsoever to the
effectiveness  of this Subsidiary  Guaranty or to its obligations to perform the
Guarantee Obligations.

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2.  PAYMENT.  If the  Company  shall  default in payment or  performance  of any
Liabilities,  whether  principal,  interest,  premium,  fee (including,  but not
limited to,  attorneys' fees and expenses),  or otherwise,  when and as the same
shall become due,  whether  according to the terms of the  Debentures,  the Loan
Agreement  or the Loan  Documents by  acceleration,  or  otherwise,  or upon the
occurrence  of any other  Event of Default  (as  defined in the Loan  Agreement)
under the Loan  Agreement or the  Debentures  that has not been cured or waived,
then the  Guarantor,  upon  demand  thereof by the Lender or its  successors  or
assigns,  will, within three (3) business days of such demand,  fully pay to the
Lender an amount equal to all Guarantor's Obligations then due and owing.

3.  UNCONDITIONAL  OBLIGATIONS.  This  is a  guaranty  of  payment  and  not  of
collection.  The Guarantor's Obligations under this Subsidiary Guaranty shall be
absolute  and   unconditional   irrespective   of  the  validity,   legality  or
enforceability of the Debentures,  and shall not be affected by any action taken
under the Debentures or any other  agreement  between the Lender and the Company
or any other person, in the exercise of any right or power therein conferred, or
by any failure or omission to enforce  any right  conferred  thereby,  or by any
waiver of any covenant or condition therein provided,  or by any acceleration of
the maturity of any of the  Liabilities,  or any transfer or  disposition of any
assets of the Company or by any extension or renewal of the Debentures, in whole
or in part, or by any modification,  alteration,  amendment or addition of or to
the Debentures, or any other agreement between the Lender and the Company or any
other person, or by any other circumstance whatsoever (with or without notice to
or knowledge of the Guarantor) which may or might in any manner or to any extent
vary  the  risks of the  Guarantor,  or might  otherwise  constitute  a legal or
equitable discharge of a surety or guarantor; it being the purpose and intent of
the parties hereto that this Subsidiary Guaranty and the Guarantor's Obligations
hereunder shall be absolute and  unconditional  under any and all  circumstances
and  shall  not be  discharged  except  by  payment  as  herein  provided.  This
Subsidiary  Guaranty  shall  continue  in full  force and  effect and Lender may
continue  to  act  in  reliance  thereon   notwithstanding  the  termination  or
revocation  of  any  other  guaranty  of  Liability,   the  death,   disability,
incompetence or incapacity of the Guarantor, and shall be binding upon Guarantor
and Guarantor's  estate and the personal  representatives,  heirs and successors
and assigns of Guarantor, who shall, nevertheless, remain liable with respect to
Obligations and any renewals or extensions thereof or liabilities arising out of
same, and the Lender shall have all the rights herein provided for as if no such
event has occurred.

4.  CURRENCY AND FUNDS OF PAYMENT.  The  Guarantor  hereby  guarantees  that the
Guarantor's  Obligations will be paid in lawful currency of the United States of
America and in immediately available funds, regardless of any law, regulation or
decree  now or  hereafter  in  effect  that  might  in  any  manner  affect  the
Liabilities,  or the rights of the Lender  with  respect  thereto as against the
Company,  or cause or permit to be invoked any alteration in the time, amount or
manner of payment by the Company of any or all of the Company's Liabilities.

5. EVENTS OF DEFAULT. In the event that

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     (a)  the  Guarantor  shall  file  a  petition  to  take  advantage  of  any
          insolvency statute,

     (b)  the Guarantor  shall  commence or suffer to exist a proceeding for the
          appointment of a receiver,  trustee,  liquidator or conservator of all
          of or substantially all of its property;

     (c)  the Guarantor  shall file a petition or answer seeking  reorganization
          or arrangement or similar relief under the Federal  bankruptcy laws or
          any other applicable law or statute of the United States of America or
          any state or similar law of any other country;

     (d)  a court of competent  jurisdiction  shall enter an order,  judgment or
          decree  appointing  a  custodian,  receiver,  trustee,  liquidator  or
          conservator  of  the  Guarantor  of all  or  substantially  all of its
          properties,  or approve a petition filed against the Guarantor seeking
          reorganization  or  arrangement  or similar  relief  under the Federal
          bankruptcy  laws or any other  applicable law or statute of the United
          States of America or any state or similar law of any other country, or
          if,  under the  provisions  of any other law for the  relief or aid of
          debtors,  a court of competent  jurisdiction  shall assume  custody or
          control of the Guarantor of all or substantially all of its properties
          and such  order,  judgment,  decree,  approval or  assumption  remains
          unstayed or undismissed for a period of thirty (30) days;

     (e)  there is commenced  against the Guarantor  any  proceeding or petition
          seeking  reorganization,  arrangement  or  similar  relief  under  the
          Federal  bankruptcy laws or any other applicable law or statute of the
          United  States of America or any state,  which  proceeding or petition
          remains unstayed or undismissed for a period of thirty (30) days;

     (f)  the  Company or the  Guarantor  shall fail to  perform  any  agreement
          herein or contained in the Loan  Documents,  including but not limited
          to the Mortgages,  and such failure  remains uncured or unwaived for a
          period of thirty (30) days;

     (g)  a default  occurs in the punctual  payment of any sum payable upon any
          of the Guarantee Obligations or the Liabilities;

     (h)  entry of a  judgment  or  issuance  of a warrant of  attachment  or an
          injunction against, or against any of the property of the Guarantor;

     (i)  there shall occur an Event of Default under the  Debentures,  the Loan
          Agreement, or any Loan Document;

     (j)  any default shall occur in the payment of amounts due hereunder; or

     (k)  any other  default  shall occur  hereunder  which  remains  uncured or
          unwaived  for a period of thirty (30) days (each of the  foregoing  an
          "Event of  Default"  hereunder);  then at the  Lender's  election  and
          without  notice thereof or demand  therefor,  so long as such Event of
          Default  shall  be  continuing,   the  Guarantee   Obligations   shall
          immediately become due and payable.

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6. SUITS. The Guarantor from time to time shall pay to Lender,  within three (3)
business  days of  demand  by the  Lender  therefor,  at the  Lender's  place of
business set forth in the Debentures,  the Guarantee  Obligations as they become
or are declared  due,  and in the event such payment is not so made,  the Lender
may proceed to suit against the Guarantor. At the Lender's election, one or more
and  successive or concurrent  suits may be brought hereon by the Lender against
the Guarantor,  whether or not suit has been commenced against the Company,  and
whether  or not the  Lender  has taken or  failed  to take any  other  action to
collect all or any portion of the Liabilities.

7.  SET-OFF AND WAIVER.  The  Guarantor  waives any right to assert  against the
Lender as a defense, counterclaim, set-off or cross claim, any defense (legal or
equitable) or other claim which such  Guarantor may now or at any time hereafter
have  against  the Company or the Lender.  If at any time  hereafter  the Lender
employs  counsel for advice or other  representation  to enforce  the  Guarantee
Obligations that arise out of an Event of Default, then, in any of the foregoing
events, all of the attorneys' fees and disbursements  arising from such services
and all expenses,  costs and charges in any way or respect arising in connection
therewith or relating  thereto shall be paid by the Guarantor to the Lender,  on
demand.

8. WAIVER; SUBROGATION.

          (a) The Guarantor  hereby  waives  notice of the  following  events or
     occurrences:

               (i) the Lender's acceptance of this Subsidiary Guaranty;

               (ii) the Lender  heretofore,  now or from time to time  hereafter
          loaning monies or giving or extending  credit to or for the benefit of
          the Company,  whether  pursuant to the  Debentures or any  amendments,
          modifications,  or supplements  thereto, or replacements or extensions
          thereof;

               (iii) the Lender or the  Company  heretofore,  now or at any time
          hereafter,  obtaining, amending,  substituting for, releasing, waiving
          or modifying the Debentures, the Loan Agreement or the Loan Documents;

               (iv)  presentment,   demand,  notices  of  default,  non-payment,
          partial  payment,  notice of dishonor,  suit,  protest or taking other
          action by the Lender;

               (v) the Lender heretofore,  now or at any time hereafter granting
          to the Company (or any other party  liable to the Lender on account of
          the  Liabilities)  any  indulgence or extensions of time of payment of
          the Liabilities;

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               (vi)  any  agreement  among  any of  holders  of  the  Debentures
          relating to this Subsidiary Guarantee or any other matter; and

               (vi)  the  Lender  heretofore,  now  or  at  any  time  hereafter
          accepting from the Company or any other person, any partial payment or
          payments on account of the Liabilities or any collateral  securing the
          payment thereof or the Lender settling,  subordinating,  compromising,
          discharging or releasing the same.

     The  Guarantor  agrees that the Lender may  heretofore,  now or at any time
     hereafter do any or all of the  foregoing  in such manner,  upon such terms
     and at such times as the Lender, in its sole and absolute discretion, deems
     advisable, without in any way or respect impairing,  affecting, reducing or
     releasing such Guarantor from the Guarantee Obligations,  and the Guarantor
     hereby consents to each and all of the foregoing events or occurrences.

          (b) The Guarantor  hereby agrees that payment or  performance  by such
     Guarantor of the Guarantee  Obligations under this Subsidiary  Guaranty may
     be  enforced  by the Lender  upon  demand by the  Lender to such  Guarantor
     without the Lender being  required,  the  Guarantor  expressly  waiving any
     right it may have to require the Lender, to prosecute collection or seek to
     enforce or resort to any remedies  against the Company,  IT BEING EXPRESSLY
     UNDERSTOOD,  ACKNOWLEDGED  AND AGREED TO BY THE GUARANTOR THAT DEMAND UNDER
     THIS  SUBSIDIARY  GUARANTY  MAY BE MADE BY THE LENDER,  AND THE  PROVISIONS
     HEREOF ENFORCED BY THE LENDER,  EFFECTIVE AS OF THE FIRST DATE ANY EVENT OF
     DEFAULT  OCCURS  AND IS  CONTINUING  UNDER THE  DEBENTURES.  The  Guarantee
     Obligations shall in no way be impaired,  affected, reduced, or released by
     reason of the  Lender's  failure or delay to do, take or enforce any of the
     acts,  actions or things described in this Subsidiary  Guaranty  including,
     without limiting the generality of the foregoing,  those acts,  actions and
     things described in this Section 8.

          (c) The  Guarantor  further  agrees  with  respect to this  Subsidiary
     Guaranty  that  such  Guarantor   shall  have  no  right  of   subrogation,
     reimbursement  or indemnity until such time as all of the Liabilities  have
     been fully, finally and indefeasibly paid in full.

9. EFFECTIVENESS; ENFORCEABILITY. This Subsidiary Guaranty shall be effective as
of the date  hereof,  and shall  continue  in full  force and  effect  until the
Liabilities  have  been  fully,  finally  and  indefeasibly  paid in full.  This
Subsidiary  Guaranty  shall be  binding  upon and  inure to the  benefit  of the
Guarantor  and  the  Lender  and  their   respective   successors  and  assigns.
Notwithstanding  the  foregoing,  Guarantor  may not,  without the prior written
consent  of the  Lender,  assign  any  rights,  powers,  duties  or  obligations
hereunder.  Any claim or claims that the Lender may at any time  hereafter  have
against the  Guarantor  under this  Subsidiary  Guaranty  may be asserted by the
Lender by written  notice  directed to the  Guarantor  at the address  specified
herein.

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10. AGENT FOR LENDER.  Guarantor  recognizes and agrees that pursuant to Section
11.03 of the Loan Agreement,  Lender has designated and appointed Agent as agent
for Lender under the Loan Agreement and under this Subsidiary Guaranty with full
power to act for and on behalf of Lender,  and each of them, and to exercise all
of the rights and privileges of Lender,  and each of them, under this Subsidiary
Guaranty  and under each of the Loan  Agreements.  Guarantor  has  reviewed  the
provisions of the Loan Agreement and each of the Loan Documents,  including, but
not limited to the  provisions of Section 11.03 of the Loan Agreement and agrees
that any notice from or agreement of Agent taken in the capacity as the agent of
Lender,  shall be binding upon and constitute  the act of the Lender,  or any of
them and that in acting as agent of  Lender,  Agent  has not  assumed  nor shall
there be implied any obligation  toward or  relationship of agency or trust with
Guarantor or the Company or any of their  respective  affiliates.  In exercising
any rights or engaging in any transaction  contemplated  hereunder,  Agent shall
not be obligated to provide  Guarantor  with evidence of its authority to act as
the agent of Lender,  or any of them,  unless Lender,  acting on its own behalf,
shall have previously provided Guarantor with evidence that acting in accordance
with its rights,  Lender,  or any of them,  have revoked Agent's agency capacity
with regard to its affairs.

11.  REPRESENTATIONS  AND WARRANTIES.  The Guarantor  hereby makes the following
representations and warranties to the Lender:

     (a)  the Guarantor is duly authorized to execute,  deliver and perform this
          Subsidiary Guaranty;

     (b)  this  Subsidiary  Guaranty is legal,  valid,  binding and  enforceable
          against  such  Guarantor  in  accordance  with  its  terms  except  as
          enforceability    may   be   limited   by   bankruptcy,    insolvency,
          reorganization,  moratorium or similar laws affecting the  enforcement
          of creditors' rights generally and by general equitable principles;

     (c)  such   Guarantor's   execution,   delivery  and  performance  of  this
          Subsidiary  Guaranty  does not violate or  constitute  a breach of any
          agreement to which such Guarantor is a party, or any applicable laws;

     (d)  Guarantor makes each of the representations  and warranties  contained
          in Article III of the Loan Agreement as if set forth in their entirety
          herein with respect and reference to the Guarantor and this Subsidiary
          Guaranty; and

     (e)  no representation or warranty made by the Guarantor in this Subsidiary
          Guaranty,  the Loan Agreement or any  Transaction  Document nor in any
          document,  written  information,   financial  statement,  certificate,
          schedule or exhibit  prepared  and  furnished  or to be  prepared  and
          furnished   by   Guarantor  in   connection   with  the   transactions
          contemplated hereby,  contains or will contain any untrue statement of
          a  material  fact,  or omits or will  omit to  state a  material  fact
          necessary to make the statements or facts contained  herein or therein
          not  misleading  in light of the  circumstances  under which they were
          furnished.

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12. NEGATIVE COVENANTS. The Guarantor agrees that until the Debentures, together
with interest and all other  Obligations  of the Company or the Guarantor to the
Lender (whether under the Loan Agreement,  the Loan Documents, or otherwise) are
paid in full, the Guarantor shall not,  without the prior written consent of the
Lender:

          (a) Create,  incur,  assume or suffer to exist any lien upon or defect
     in title to or restriction upon the use of any of the property or assets of
     the  Guarantor  of any  character,  whether  owned  at the date  hereof  or
     hereafter  acquired,  or hold or  acquire  any  property  or  assets of any
     character under conditional  sales,  finance lease or other title retention
     agreements, except for Permitted Liens and liens in favor of the Lender.

          (b)  Create,  incur,  assume  or  suffer  to  exist,  contingently  or
     otherwise,   any  indebtedness,   except  for  Permitted  Indebtedness  and
     indebtedness to the Lender.

          (c) Make or have any  Investments not permitted by Section 6.03 of the
     Loan Agreement.

          (d) Make any prepayment of indebtedness that is prohibited by the Loan
     Agreement.

          (e) Enter into any agreement  which prohibits or limits the ability of
     the Guarantor to create,  incur,  assume or suffer to exist any lien,  upon
     any of its  property,  assets or  revenues,  whether now owned or hereafter
     acquired.

          (f) Change the  address of its  principal  place of  business  without
     giving 30 days' prior written notice to the Lender.

13. AFFIRMATIVE  COVENANTS.  The Guarantor  covenants and agrees that, until the
Debentures  together with interest and all other  Liabilities of the Company and
the  Obligations  of the Guarantor to the Lender under the Loan  Agreement,  the
Debentures and the Loan Documents are otherwise paid in full:

          (a)  Comply  with  all  statutes  and   governmental   regulations  if
     noncompliance  therewith  would  have  a  Material  Adverse  Effect  on the
     Guarantor and pay all taxes, assessments,  governmental charges, claims for
     labor,  supplies,  rent and any other  obligation  which, if unpaid,  might
     become a lien against any of its  properties,  except any of the  foregoing
     being  contested  in  good  faith  by  appropriate  proceedings  diligently
     conducted and against which adequate reserves have been established;

          (b) It will  allow  any  representative  of the  Lender  to visit  and
     inspect the books of account and other records and files of the  Guarantor,
     to make copies thereof and to discuss the affairs,  business,  finances and
     accounts of the Company and the Guarantor  with its  employees,  all during
     normal business hours and as often as the Lender may reasonably request;

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          (c) It will duly  comply  with all the terms and  covenants  contained
     herein and in each of the  instruments and documents given to the Lender in
     connection  with  or  pursuant  to  this  Subsidiary  Guaranty,   the  Loan
     Agreement,  the Debentures and the other Loan  Documents,  all at the times
     and places and in the manner set forth herein or therein;

          (d) It will  keep  all  properties  of the  Guarantor,  whether  real,
     personal or mixed,  free and clear of all liens,  other than the  Permitted
     Liens and liens created by the Loan Documents.;

          (e)

               (i) It  will  keep  all of its  insurable  properties  adequately
          insured at all times with responsible  insurance carriers against loss
          or damage by fire and other hazards as are customarily insured against
          by similar businesses owning such properties similarly situated and

               (ii) maintain  general  public  liability  insurance at all times
          with responsible  insurance  carriers against  liability on account of
          damage to persons and property such  insurance  policies to be in form
          reasonably satisfactory to the Lender;

          (f) It will keep or cause to be kept, true books of record and account
     in which full, true an correct entries shall be made of all of its dealings
     and transactions in accordance with customary business practices; and

          (f) Upon the Guarantor  obtaining knowledge of any litigation or other
     proceedings being instituted  against the Guarantor,  any of the Company or
     any subsidiary of the Company, or any attachment,  levy, execution or other
     process being instituted against any assets of the Guarantor or the Company
     or  any  subsidiary,  in  an  aggregate  amount  in  respect  of  all  such
     proceedings  and processes  greater than $50,000 not  otherwise  covered by
     insurance,  it will promptly  deliver to the Lender  written notice thereof
     stating  the  nature and status of such  litigation,  dispute,  proceeding,
     levy, execution or other process.

14. EXPENSES.  The Guarantor agrees to be liable for the payment of all fees and
expenses,  including  attorney's  fees and  expenses,  incurred by the Lender in
connection with the enforcement of this Subsidiary Guaranty.

15.  REINSTATEMENT.  The Guarantor  agrees that this  Subsidiary  Guaranty shall
continue  to be  effective  or be  reinstated,  as the case may be,  at any time
payment received by the Lender under the Debentures or this Subsidiary  Guaranty
is  rescinded  or must be restored for any reason.  The  execution  and delivery
hereafter  to Lender by  Guarantor  of a new  instrument  of guaranty  shall not
terminate,  supersede  or cancel  this  instrument,  unless  expressly  provided
therein, and all rights and remedies of Lender hereunder or under any instrument
of guaranty  hereafter  executed and  delivered to Lender by Guarantor  shall be
cumulative and may be exercised singly or concurrently.

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16.  COUNTERPARTS.  This  Subsidiary  Guaranty  may be executed in any number of
counterparts,  each of which  shall be deemed to be an  original  as against any
party whose signature appears thereon, and all of which shall constitute one and
the same instrument.

17. RELIANCE. The Guarantor represents and warrants to Lender that:

     (a)  such  Guarantor  has adequate  means to obtain from the Company,  on a
          continuing  basis,  information  concerning  the  Company's  financial
          condition  and affairs and has full and  complete  access to Company's
          books and records;

     (b)  such  Guarantor  is not  relying  on the  Lender,  its agents or other
          representatives, to provide such information, now or in the future;

     (c)  such  Guarantor  is  executing  this  Subsidiary  Guaranty  freely and
          deliberately,  and  understands  the  obligations  and financial  risk
          undertaken by providing this Subsidiary Guaranty;

     (d)  such Guarantor has relied solely on the  Guarantor's  own  independent
          investigation,  appraisal  and  analysis  of the  Company's  financial
          condition and affairs in deciding to provide this Subsidiary  Guaranty
          and is fully aware of the same; and

     (e)  such Guarantor has not depended or relied on the Lender, its agents or
          other  representatives,  for any information whatsoever concerning the
          Company's financial condition and affairs or other matters material to
          such Guarantor's  decision to provide this Subsidiary  Guaranty or for
          any  counseling,  guidance,  or special  consideration  or any promise
          therefor with respect to such decision.  The Guarantor agrees that the
          Lender has no duty or responsibility whatsoever, now or in the future,
          to provide to the Guarantor any  information  concerning the Company's
          financial  condition  and affairs,  other than as  expressly  provided
          herein, and that, if such Guarantor receives any such information from
          the Lender, its agents or other  representatives,  such Guarantor will
          independently  verify the information and will not rely on the Lender,
          its agents or other representatives, with respect to such information.

18. COMPLETE  AGREEMENT.  This Subsidiary  Guaranty and the other Loan Documents
embody the whole  agreement of the parties with respect to the subject matter in
the Loan  Documents  and may not be  modified  unless in  writing  and signed by
Lender and no course of dealing between  Guarantor and Lender shall be effective
to  change  or  modify  or to  discharge  in  whole or in part  this  Subsidiary
Guaranty.  No Waiver of any right or power of Lender or  consent  by it shall be
valid unless in writing signed by an authorized officer.

19.  TERMINATION.  This Subsidiary Guaranty and all obligations of the Guarantor
hereunder shall terminate  without  delivery of any instrument or performance of
any act by any party on the date when all of the  Liabilities  have been  fully,
finally and indefeasibly paid in full.

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20. GOVERNING LAW. THIS SUBSIDIARY  GUARANTY SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE  WITH,  THE LAWS OF THE STATE OF COLORADO  APPLICABLE TO CONTRACTS
EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

21. NOTICES. Any notice hereunder shall be in writing, and shall be delivered by
overnight courier service or by certified mail, postage prepaid,  return receipt
requested, addressed as follows: If to the Guarantor:
         Pannonian Energy, Inc.14 Inverness Drive
         EastBuilding H, Suite 236
         Englewood, CO 80112
         Attn:    Mark Erickson
         Telephone:        (303) 483-0044
         Telecopier:       (303) 483-0011

with a copy simultaneously transmitted by like means to:
         Vinson & Elkins L.L.P.
         2300First City Tower
         1001 Fannin
         Houston, Texas  77002
         Attn:    Michael Finch
         Telephone:        (713)-758 -2158
         Telecopier:       (713) 615-5282

                  If to the Lender,  to all of the addresses set forth under the
Lenders' names on the execution page to the Loan Agreement,  with a copy,  which
shall not constitute notice, simultaneously transmitted by like means to:
Jackson Walker L.L.P.
901 Main Street
Ste 6000
Dallas, Texas 75202
U.S.A. Facsimile: (214) 953-5822 Attn: Jeffrey M. Sone, Esq.

Notices sent by overnight  courier service shall be deemed delivered on the next
business  day, and notices  sent by  certified  mail,  postage  prepaid,  return
receipt requested, shall be deemed delivered two business days after the date of
mailing thereof.

                                       10
<PAGE>

<PAGE>

         IN WITNESS  WHEREOF,  the parties have duly  executed  this  Subsidiary
Guaranty on the day and year first written above.

GUARANTOR:

SAN JOAQUIN OIL & GAS, LTD.

By:________________________________
Name:
Title:

LENDER:

RENAISSANCE CAPITAL GROWTH & INCOME FUND III, INC.

By:__________________________________________

Name:
Title:

BFSUS SPECIAL OPPORTUNITIES TRUST PLC

By:__________________________________________
Name:
Title:

RENAISSANCE US GROWTH & INCOME TRUST PLC

By: __________________________________________

Name:
Title:

AGENT:

RENN CAPITAL GROUP, INC.

By:__________________________________________

Name:
Title:

                                       11
<PAGE>GASCO ENERGY, INC.

                 SUBSCRIPTION AND REGISTRATION RIGHTS AGREEMENT

         This Subscription and Registration Rights Agreement (this "Agreement"),
dated as of October __, 2003, by and between Gasco Energy,  Inc. (the "Company")
and  ______________  (the  "Subscriber"),  is  intended  to  set  forth  certain
representations,   covenants  and   agreements   between  the  Company  and  the
Subscriber,  with  respect  to the  offering  (the  "Offering")  for sale by the
Company of shares of Common  Stock,  par value  $.0001  per share  (the  "Common
Stock").

1.       Subscription.   Subject  to  the  terms  and  conditions   hereof,  the
         Subscriber  hereby  irrevocably  subscribes  for and agrees to purchase
         from the Company ___________ shares of Common Stock (the "Shares") at a
         purchase  price of $0.58  per share  (the  "Offering  Price"),  and the
         Company  agrees to sell such Shares to the  Subscriber  at the Offering
         Price.

2.       Delivery of Subscription Amount;  Acceptance of Subscription;  Delivery
         of Shares.  Subscriber understands and agrees that this subscription is
         made subject to the following terms and conditions:

          (a)  Contemporaneously   with  the  execution  and  delivery  of  this
               Agreement,  Subscriber  shall execute and deliver the Certificate
               of Accredited  Investor Status,  and shall wire to the Company to
               hold in a separate,  non-interest  bearing  account,  immediately
               available  funds  in  the  amount  equal  to the  Offering  Price
               multiplied by the number of Shares for which the  Subscriber  has
               subscribed  (the  "Subscription  Amount") in accordance  with the
               instructions set forth on Exhibit A hereto.

          (b)  The  subscription  for Shares shall be deemed to be accepted only
               when this  Agreement has been signed by an authorized  officer of
               the  Company,  and the  deposit  of the  Subscription  Amount for
               clearance will not be deemed an acceptance of this Agreement;

          (c)  Certificates  representing the Shares purchased will be issued in
               the name of each Subscriber  within 5 days of the consummation of
               the Offering as set forth under Section 3 hereof; and

          (d)  The  representations and warranties of the Company and Subscriber
               set forth  herein  shall be true and  correct as of the date that
               the Company accepts this subscription.

3.       Terms of Subscription.

          (a)  The  consummation  of the Offering (the  "Closing") will occur on
               October 23, 2003, or such later date as the parties  hereto shall
               mutually agree (the "Closing Date").

          (b)  If the Subscriber is not a United States  person,  the Subscriber
               hereby  represents  that it has  satisfied  itself as to the full
               observance of the laws of its jurisdiction in connection with any
               invitation  to  subscribe  for  the  Shares  or any  use of  this
               Agreement,  including  (i)  the  legal  requirements  within  its
               jurisdiction  for the  purchase of the  Shares,  (ii) any foreign

                                       1
<PAGE>

               exchange  restrictions  applicable  to such  purchase,  (iii) any
               governmental or other consents that may need to be obtained,  and
               (iv) the income tax and other tax consequences,  if any, that may
               be  relevant  to  the  purchase,  holding,  redemption,  sale  or
               transfer of the Shares. The Subscriber's subscription and payment
               for, and his or her continued beneficial ownership of the Shares,
               will not violate any  applicable  securities or other laws of the
               Subscriber's jurisdiction.

4.       Registration Rights.

          (a)  Subscriber  acknowledges  that it is acquiring the Shares for its
               own account and for the purpose of investment and not with a view
               to any  distribution  or resale thereof within the meaning of the
               Securities Act of 1933, as amended,  (the "Securities  Act"). The
               Subscriber  further  agrees  that it will  not  sell,  assign  or
               transfer the Shares at any time in  violation  of the  Securities
               Act and acknowledges that, in taking unregistered securities,  it
               must continue to bear the economic risk of its  investment for an
               indefinite  period of time  because  of the fact that the  Shares
               have not been  registered  under the Securities  Act, and further
               realizes  that the  Shares  can not be sold  unless  subsequently
               registered  under the  Securities  Act or an exemption  from such
               registration is available. The Subscriber further recognizes that
               the Company is not assuming any obligation to register the Shares
               except  as  expressly  set  forth  herein.  The  Subscriber  also
               acknowledges  that appropriate  legends  reflecting the status of
               the Shares under the  Securities Act may be placed on the face of
               the  certificates  for such shares at the time of their  transfer
               and delivery to the holder thereof.

          (b)  The Shares may not be transferred  except in a transaction  which
               is in  compliance  with the  Securities  Act.  Except as provided
               hereafter with respect to registration of the Shares, it shall be
               a  condition  to any  such  transfer  that the  Company  shall be
               furnished  with an  opinion  of  counsel  to the  holder  of such
               shares,  reasonably  satisfactory  to the Company,  to the effect
               that  the  proposed  transfer  would  be in  compliance  with the
               Securities Act.

          (c)  Within 60 days after the Closing  Date (the "Filing  Date"),  the
               Company shall use its commercially  reasonable efforts to prepare
               and file with the Securities and Exchange Commission (the "SEC"),
               a  registration  statement  and such  other  documents  as may be
               necessary in the opinion of counsel for the Company,  and use its
               commercially   reasonable   efforts  to  have  such  registration
               statement declared effective within 75 days after the Filing Date
               in order to comply with the  provisions of the  Securities Act so
               as to permit the registered  resale of the Shares for a period of
               two (2) years  following  the  Closing  Date by  Subscriber.  The
               Shares that are  registered  for resale  under such  registration
               statement  are referred to herein as the  "Offering  Shares," and
               the  Subscriber,  together  with its  affiliates,  are  hereafter
               referred to as  "Offering  Holders."  The Company will include in
               such  registration  statement (i) the information  required under
               the  Securities  Act to be so included  concerning  the  Offering
               Holders,  as provided by the  Offering  Holders on the  signature
               page hereto,  including any changes in such  information that may
               be  provided  by the  Offering  Holders in writing to the Company
               from  time  to  time,  and  (ii)  a  section  entitled  "Plan  of
               Distribution,"  substantially  in the form of  Exhibit  C hereto,
               that  describes  the various  procedures  that may be used by the
               Offering Holders in the sale of Shares.  Notwithstanding anything
               to the  contrary  in this  Section  4, the  Company  may,  at its
               option, terminate such registration statement at any time after a
               period of one year following the Closing Date, if at such time no
               Offering  Holder  beneficially  owns more than  1,000,000  of the
               Shares that such Offering Holder purchased in the Offering.

                                       2
<PAGE>

          (d)  If the registration  statement  referred to in Section 4(c) above
               has not been  declared  effective by the SEC within 75 days after
               the  Filing  Date and the  cause of the delay is not  related  to
               circumstances  beyond the  Company's  control (such as failure of
               the  SEC to  review  and  act on the  registration  statement  or
               amendments to the registration statement in a timely manner), the
               Company shall pay liquidated  damages of 2% of the Offering Price
               per  share  for  every  Share  for  each 30 day  period  of delay
               following such initial 75 day period ("Liquidated Damages").  The
               foregoing  payment  shall  constitute  the sole  monetary  remedy
               available  to the  Subscriber  in the event that the Company does
               not comply  with the  deadlines  set forth in  Section  4(c) with
               respect  to the  filing  and  effectiveness  of the  registration
               statement referred to therein.

          (e)  Notwithstanding  the foregoing  provisions of this Section 4, the
               Company may  voluntarily  suspend the  effectiveness  of any such
               registration  statement  for a  limited  time,  which in no event
               shall be longer  than 30 days in any  three-month  period  and no
               longer than 120 days in any twelve month  period,  if the Company
               has been  advised in writing  by counsel or  underwriters  to the
               Company that the offering of any Offering  Shares pursuant to the
               registration  statement would  materially  adversely  affect,  or
               would be improper in view of (or improper without disclosure in a
               prospectus),    a   proposed    financing,    a   reorganization,
               recapitalization,  merger, consolidation,  or similar transaction
               involving  the  Company.   If  the   effectiveness  of  any  such
               registration  statement  is  suspended  for a  period  of time in
               violation of the preceding sentence and the cause of the delay is
               not related to circumstances  beyond the Company's  control (such
               as the  failure of the SEC to review and act on a  post-effective
               amendment to the registration  statement in a timely manner), the
               Company  shall pay  Liquidated  Damages for each such  violation,
               subject  to the  limitation  set  forth in the last  sentence  of
               Section  4(d).  If any event  occurs  that  would  cause any such
               registration  statement  to  contain a material  misstatement  or
               omission or not to be effective and usable during the period that
               such  registration  statement  is  required to be  effective  and
               usable,  the Company  shall  promptly  file an  amendment  to the
               registration  statement  and  use  its  commercially   reasonable
               efforts to cause such amendment to be declared  effective as soon
               as   practicable   thereafter.   Notwithstanding   any  provision
               contained  herein to the contrary,  the  Company's  obligation to
               include,  or  continue to  include,  Offering  Shares in any such
               registration  statement  under this Section 4 shall  terminate to
               the extent such shares are  eligible for resale under Rule 144(k)
               promulgated under the Securities Act.

          (f)  If and whenever the Company is required by the provisions of this
               Agreement to use its  commercially  reasonable  efforts to effect
               the  registration of the Offering Shares under the Securities Act
               for the  account of an Offering  Holder,  the  Company  will,  as
               promptly as possible:

               (i)  prepare and file with the SEC a registration  statement with
                    respect  to  such   securities  and  use  its   commercially
                    reasonable  efforts to cause such registration  statement to
                    become and remain effective;

               (ii) prepare   and  file  with  the  SEC  such   amendments   and
                    supplements   to  such   registration   statement   and  the
                    prospectus used in connection  therewith as may be necessary
                    to keep such registration  statement effective and to comply
                    with the  requirements  of the  Securities Act and the rules
                    and regulations  promulgated by the SEC thereunder  relating
                    to the sale or other  disposition of the securities  covered
                    by such registration statement; and

                                       3
<PAGE>

               (iii)furnish to each Offering  Holder such numbers of copies of a
                    prospectus,  including a preliminary  prospectus,  complying
                    with the  requirements of the Securities Act, and such other
                    documents as such Offering Holder may reasonably  request in
                    order to facilitate the public sale or other  disposition of
                    the Offering Shares owned by such Offering Holder,  but such
                    Offering  Holder  shall not be  entitled  to use any selling
                    materials  other than a prospectus and such other  materials
                    as may be approved by the Company,  which  approval will not
                    be unreasonably withheld.

          (g)  Except as provided below in this Section 4, the expenses incurred
               by the Company in connection  with action taken by the Company to
               comply with this Section 4, including,  without  limitation,  all
               registration  and filing fees,  printing  and delivery  expenses,
               accounting  fees,  fees  and  disbursements  of  counsel  to  the
               Company,  consultant  and expert  fees,  premiums  for  liability
               insurance,  if the  Company  chooses  to obtain  such  insurance,
               obtained in connection  with a  registration  statement  filed to
               effect such compliance and all expenses,  including counsel fees,
               of complying with any state securities laws ("State Acts"), shall
               be  paid  by the  Company.  All  fees  and  disbursements  of any
               counsel,  experts, or consultants employed by any Offering Holder
               shall be borne by such Offering Holder.  The Company shall not be
               obligated in any way in connection with any registration pursuant
               to  this  Section  4 for any  selling  commissions  or  discounts
               payable by any Offering  Holder to any  underwriter  or broker of
               securities to be sold by such Offering Holder.  Subscriber agrees
               to pay all expenses required to be borne by such Offering Holder.

          (h)  In the  event of any  registration  of  Shares  pursuant  to this
               Section 4, the Company  will  indemnify  and hold  harmless  each
               Offering Holder, its officers, directors, investment advisors and
               each underwriter of such securities,  and any person who controls
               such Offering Holder or underwriter within the meaning of Section
               15 of the Securities Act,  against all claims,  actions,  losses,
               damages, liabilities and expenses, joint or several, to which any
               of such persons may become  subject under the  Securities  Act or
               otherwise,  insofar as such losses, claims, damages,  liabilities
               or actions arise out of or are based upon any untrue statement of
               any material fact contained in any  registration  statement under
               which such securities  were registered  under the Securities Act,
               any preliminary prospectus or final prospectus contained therein,
               or any  amendment or supplement  thereof,  or arise out of or are
               based upon the omission to state therein a material fact required
               to be stated therein or necessary to make the statements  therein
               not  misleading,  and will  reimburse such Offering  Holder,  its
               officers,  directors and each underwriter of such securities, and
               each such  controlling  person  or  entity  for any legal and any
               other expenses  reasonably incurred by such Offering Holder, such
               underwriter,  or such controlling  person or entity in connection
               with  investigating  or defending any such loss,  action,  claim,
               damage, liability, or action; provided, however, that the Company
               will not be liable in any such case to the  extent  that any such
               loss, claim,  damage,  liability or action arises directly out of
               or is based  primarily upon an untrue  statement or omission made
               in said registration  statement,  said preliminary  prospectus or
               said prospectus, or said amendment or supplement in reliance upon
               and in  conformity  with  written  information  furnished  to the
               Company by such Offering Holder or such underwriter  specifically
               for use in the preparation thereof, and provided further however,
               that the  Company  will  not be  liable  in any such  case to the
               extent that any such loss,  claim,  damage or liability or action
               arises  directly  out of or is  based  primarily  upon an  untrue
               statement or omission made in any preliminary prospectus or final
               prospectus if (i) such Offering  Holder failed to send or deliver
               a copy of the final  prospectus or prospectus  supplement with or
               prior to the delivery of written  confirmation of the sale of the

                                       4
<PAGE>

               Offering  Shares,  and (ii) the final  prospectus  or  prospectus
               supplement   would  have  corrected  such  untrue   statement  or
               omission.

               (i)  At any time when a  prospectus  relating to the  Offering is
                    required  to be  delivered  under the  Securities  Act,  the
                    Company will notify the Offering  Holder of the happening of
                    any event,  upon the notification or awareness of such event
                    by an executive officer of the Company, as a result of which
                    the prospectus included in such registration  statement,  as
                    then in effect,  includes  an untrue  statement  of material
                    fact or omits to state a material fact required to be stated
                    therein or  necessary  to make the  statements  therein  not
                    misleading in light of the circumstances then existing.

               (j)  In the event of any  registration  of any  Shares  under the
                    Securities Act pursuant to this Section 4, Subscriber agrees
                    to indemnify  and hold  harmless the Company,  its officers,
                    directors and any person who controls the Company within the
                    meaning of Section 15 of the  Securities  Act,  against  any
                    losses, claims, damages,  liabilities,  or actions, joint or
                    several, to which the Company, its officers,  directors,  or
                    such  controlling  person or entity may become subject under
                    the  Securities  Act or  otherwise,  insofar as such losses,
                    claims, damages, liabilities, or actions arise out of or are
                    based  upon  any  untrue  statement  of  any  material  fact
                    contained  in any  registration  statement  under which such
                    Shares  were  registered   under  the  Securities  Act,  any
                    preliminary   prospectus  or  final   prospectus   contained
                    therein,  or any amendment or supplement  thereto,  or arise
                    out of or are based  upon the  omission  to state  therein a
                    material fact required to be stated  therein or necessary to
                    make the statements therein not misleading,  in each case to
                    the extent and only to the extent that any such loss, claim,
                    damage,  liability, or action arises out of or is based upon
                    an untrue  statement or omission  made in said  registration
                    statement, said preliminary prospectus or said prospectus or
                    said  amendment  or  supplement  in  reliance  upon  and  in
                    conformity with written information furnished to the Company
                    by Subscriber or any affiliate (as defined in the Securities
                    Act) of Subscriber  specifically  for use in the preparation
                    thereof.

               (k)  Any party  entitled to  indemnification  hereunder  will (i)
                    give prompt written notice to the indemnifying  party of any
                    claim  with  respect to which it seeks  indemnification  and
                    (ii) unless in such indemnified  party's reasonable judgment
                    a  conflict  of  interest   between  such   indemnified  and
                    indemnifying  parties may exist with  respect to such claim,
                    permit such indemnifying party to assume the defense of such
                    claim   with   counsel   reasonably   satisfactory   to  the
                    indemnified   party.   If  such  defense  is  assumed,   the
                    indemnifying  party will not be subject to any liability for
                    any  settlement  made by the  indemnified  party without its
                    consent (which consent may not be unreasonably withheld). An
                    indemnifying party who is not entitled to, or elects not to,
                    assume the defense of a claim will not be  obligated  to pay
                    the fees and  expenses  of more  than  one  counsel  for all
                    parties  indemnified by such indemnifying party with respect
                    to such  claim,  unless in the  reasonable  judgment  of any
                    indemnified  party a conflict of interest may exist  between
                    such  indemnified  party and any  other of such  indemnified
                    parties with respect to such claim.

               (l)  With a view to making  available to the Offering  Holder the
                    benefits of Rule 144  promulgated  under the Securities Act,
                    the  Company  agrees  that  it  will  use  its  commercially
                    reasonable  efforts to maintain  registration  of its Common
                    Stock under Section 12 or 15 of the  Securities and Exchange
                    Act of 1934, as amended,  (the  "Exchange  Act") and to file
                    with  the SEC in a  timely  manner  all  reports  and  other
                    documents  required  to be filed by an issuer of  securities
                    registered  under the  Exchange  Act so as to  maintain  the
                    availability  of Rule 144.  Upon the  request  of any record
                    owner,  the  Company  will  deliver  to such owner a written
                    statement as to whether it has complied  with the  reporting
                    requirements of Rule 144.

                                       5
<PAGE>

5.       Representations  and Warranties of the  Subscriber.  Subscriber  hereby
         represents and warrants to the Company as follows:

          (a)  Subscriber  is  acquiring  the  Shares for its own  account,  for
               investment  and not with a view to, or for  resale in  connection
               with,  any  distribution  or public  offering  thereof within the
               meaning of the Securities  Act, and applicable  state  securities
               laws.

          (b)  The Subscriber  understands that (A) the Shares (1) have not been
               registered under the Securities Act or any state securities laws,
               (2)  will be  issued  in  reliance  upon an  exemption  from  the
               registration   and  prospectus   delivery   requirements  of  the
               Securities  Act  pursuant  to Section  4(2) and/or  Regulation  D
               thereof and (3) will be issued in reliance upon  exemptions  from
               the  registration and prospectus  delivery  requirements of state
               securities  laws which relate to private  offerings,  and (B) the
               Subscriber   must  therefore  bear  the  economic  risk  of  such
               investment  indefinitely unless a subsequent  disposition thereof
               is  registered  under the  Securities  Act and  applicable  state
               securities  laws  or  is  exempt  therefrom.  Subscriber  further
               understands that such exemptions depend upon, among other things,
               the bona fide nature of the  investment  intent of the Subscriber
               expressed  herein.  Pursuant  to the  foregoing,  the  Subscriber
               acknowledges that the certificates  representing the Shares shall
               bear a restrictive legend substantially as follows:

               "THE  SHARES  REPRESENTED  BY THIS  CERTIFICATE  ARE  SUBJECT  TO
               RESTRICTIONS  ON TRANSFER  UNDER THE  SECURITIES  ACT OF 1933, AS
               AMENDED,  AND STATE  SECURITIES  LAWS, AND MAY NOT BE OFFERED FOR
               SALE, SOLD, ASSIGNED, TRANSFERRED,  PLEDGED OR OTHERWISE DISPOSED
               OF UNLESS (I) REGISTERED UNDER THE APPLICABLE  SECURITIES LAWS OR
               (II) AN OPINION OF  COUNSEL,  WHICH  OPINION AND COUNSEL ARE BOTH
               REASONABLY SATISFACTORY TO THE COMPANY, HAS BEEN DELIVERED TO THE
               COMPANY  AND  SUCH   OPINION   STATES  THAT  THE  SHARES  MAY  BE
               TRANSFERRED WITHOUT SUCH REGISTRATION."

          (c)  The Subscriber has knowledge,  skill and experience in financial,
               business and investment matters relating to an investment of this
               type and is  capable of  evaluating  the merits and risks of such
               investment and protecting the Subscriber's interest in connection
               with the  acquisition of the Shares.  The Subscriber  understands
               that the  acquisition  of the Shares is a speculative  investment
               and involves substantial risks and that the Subscriber could lose
               the Subscriber's  entire  investment in the Shares. To the extent
               deemed necessary by the Subscriber,  the Subscriber has retained,
               at its own  expense,  and relied upon,  appropriate  professional
               advice  regarding  the  investment,  tax  and  legal  merits  and
               consequences of purchasing and owning the Shares.  The Subscriber
               has the ability to bear the  economic  risks of the  Subscriber's
               investment  in the  Company,  including  a  complete  loss of the
               investment,  and the Subscriber has no need for liquidity in such
               investment.

                                       6
<PAGE>

          (d)  The Subscriber has been furnished by the Company all  information
               (or provided  access to all  information)  regarding the business
               and financial  condition of the Company,  its expected  plans for
               future business activities,  the attributes of the Shares and the
               merits  and  risks  of an  investment  in the  Shares  which  the
               Subscriber  has  requested  or  otherwise  need to  evaluate  the
               investment in the Company.

          (e)  Subscriber  is  in  receipt  of  and  has   carefully   read  and
               understands the following items:

               (i)  Annual  Report on Form 10-K for the period  ending  December
                    31,  2002,  filed by the  Company  with the  Securities  and
                    Exchange Commission on March 31, 2003

               (ii) Quarterly  Reports  on Form  10-Q  for  each of the  periods
                    ending  March  31,  2003  and June  30,  2003,  filed by the
                    Company with the Securities  and Exchange  Commission on May
                    15, 2003 and August 13, 2003, respectively

               (iii)Definitive  Proxy  Statement  on  Form  14A,  filed  by  the
                    Company  with the  Securities  and  Exchange  Commission  on
                    August 25, 2003;

               (iv) Current  Reports on Form 8-K filed by the  Company  with the
                    Securities and Exchange Commission on April 9, 2003, June 6,
                    2003, October 15, 2003 and October 16, 2003; and

               (v)  Term sheet  with  respect  to a  proposed  transaction  with
                    Schlumberger.

          (f)  In making the proposed  investment  decision,  the  Subscriber is
               relying solely on  investigations  made by the Subscriber and the
               Subscriber's  representatives.  The offer to sell the  Shares was
               communicated  to  the  Subscriber  in  such  a  manner  that  the
               Subscriber was able to ask questions of and receive  answers from
               the management of the Company concerning the terms and conditions
               of  the  proposed  transaction  and  that  at  no  time  was  the
               Subscriber presented with or solicited by or through any leaflet,
               public promotional meeting, television advertisement or any other
               form of general or public advertising or solicitation.

          (g)  The Subscriber  acknowledges that the Subscriber has been advised
               that:

               (i)  The  Shares   offered  hereby  have  not  been  approved  or
                    disapproved  by the SEC or any state  securities  commission
                    nor has the SEC or any state  securities  commission  passed
                    upon the accuracy or adequacy of any  representations by the
                    Company.  Any  representation  to the contrary is a criminal
                    offense.

               (ii) In making an investment  decision,  the Subscriber must rely
                    on its own  examination  of the Company and the terms of the
                    Offering,  including  the  merits  and risks  involved.  The
                    Shares  have not been  recommended  by any  federal or state
                    securities commission or regulatory authority.  Furthermore,
                    the foregoing authorities have not confirmed the accuracy or
                    determined   the   adequacy  of  any   representation.   Any
                    representation to the contrary is a criminal offense.

                                       7
<PAGE>

               (iii)The Shares are "Restricted Securities" within the meaning of
                    Rule  144  under  the   Securities   Act,   are  subject  to
                    restrictions  on  transferability  and resale and may not be
                    transferred   or  resold  except  as  permitted   under  the
                    Securities  Act  and  applicable   state   securities  laws,
                    pursuant  to  registration  or  exemption   therefrom.   The
                    Subscriber is aware that the  Subscriber  may be required to
                    bear  the  financial   risks  of  this   investment  for  an
                    indefinite period of time.

          (h)  The  Subscriber  acknowledges  and is aware  that there has never
               been  any  representation,  guarantee  or  warranty  made  by the
               Company  or  any   officer,   director,   employee  or  agent  or
               representative of the Company, expressly or by implication, as to
               (i) the  approximate  or exact length of time that the Subscriber
               will be  required  to  remain  an owner of the  Shares;  (ii) the
               percentage of profit  and/or amount of or type of  consideration,
               profit  or  loss to be  realized,  if any,  as a  result  of this
               investment;  or  (iii)  that  the  limited  past  performance  or
               experience on the part of the Company, or any future expectations
               will in any way indicate the predictable results of the ownership
               of the  Shares or of the  overall  financial  performance  of the
               Company.

          (i)  The   Subscriber   agrees  to  furnish  the  Company  such  other
               information  as the  Company may  reasonably  request in order to
               verify  the  accuracy  of the  information  contained  herein and
               agrees to notify the Company  immediately of any material  change
               in the  information  provided  herein  that  occurs  prior to the
               Company's acceptance of this Agreement.

          (j)  The   Subscriber   further   represents  and  warrants  that  the
               Subscriber is an "accredited investor" within the meaning of Rule
               501 of Regulation D under the Securities  Act, and Subscriber has
               executed the Certificate of Accredited Investor Status,  attached
               hereto as Exhibit B.

          (k)  As  of  the  date  of  this  Agreement  the  Subscriber  and  its
               affiliates do not have, and during the 30 day period prior to the
               date of this Agreement the Subscriber and its affiliates have not
               entered  into,  any "put  equivalent  position"  as such  term is
               defined  in Rule  16a-1 of under the  Exchange  Act or short sale
               positions with respect to the Common Stock of the Company.  Until
               the  registration  statement  referred  to  in  Section  4(c)  is
               declared effective, the Subscriber hereby agrees not to, and will
               cause its affiliates not to, enter into any such "put  equivalent
               position" or short sale position.

     The foregoing  representations  and warranties and undertakings are made by
the  Subscriber  with the intent  that they be relied  upon in  determining  its
suitability  as  an  investor  and  the  Subscriber   hereby  agrees  that  such
representations and warranties shall survive its purchase of the Shares.

     6.   Representations  and  Warranties  of the Company.  The Company  hereby
          represents and warrants to the Subscriber as follows:

          (a)  The Company is duly  incorporated,  validly  existing and in good
               standing  under  the laws of its state of  incorporation,  and is
               duly  qualified  to do business as a foreign  corporation  in all
               jurisdictions  in which  the  failure  to be so  qualified  would

                                       8
<PAGE>

               materially  and  adversely   affect  the  business  or  financial
               condition,  properties or operations of the Company.  The Company
               has all  requisite  corporate  power and authority (i) to own and
               lease the  properties and assets it currently owns and leases (if
               any) and it  contemplates  owning and leasing and (ii) to conduct
               its  activities  as  such   activities  (if  any)  are  currently
               conducted and as currently contemplated to be conducted.

          (b)  The authorized  capital of the Company  immediately  prior to the
               Closing will consist of: (i) 5,000,000 shares of Preferred Stock,
               of which 1,000 shares are designated as Series A Preferred Stock,
               none of which are issued  and  outstanding,  and of which  20,000
               shares are  designated  as Series B  Preferred  Stock,  11,339 of
               which are issued and outstanding,  and (ii) 100,000,000 shares of
               Common Stock,  40,813,800 of which were issued and outstanding as
               of September 30, 2003.

          (c)  The  Company has duly  authorized  the  issuance  and sale of the
               Shares  in  accordance  with  the  terms  of this  Agreement  (as
               described herein) by all requisite  corporate  action,  including
               the  authorization  of the  Company's  Board of  Directors of the
               issuance  and sale of the Shares in  accordance  herewith and the
               execution,  delivery and performance of any other  agreements and
               instruments  executed  in  connection  herewith.  This  Agreement
               constitutes  a  valid  and  legally  binding  obligation  of  the
               Company,  enforceable in accordance with its terms, except (i) as
               limited by  applicable  bankruptcy,  insolvency,  reorganization,
               moratorium,  and  other  laws of  general  application  affecting
               enforcement of creditors'  rights  generally,  (ii) as limited by
               laws  relating  to  the  availability  of  specific  performance,
               injunctive relief, or other equitable remedies,  and (iii) to the
               extent the  indemnification  provisions  contained  herein may be
               limited by applicable federal or state securities laws.

          (d)  The  Shares,  when  issued and paid for in  accordance  with this
               Agreement,  will represent  validly  authorized,  duly issued and
               fully  paid  and  nonassessable  shares  of  Common  Stock of the
               Company,  and the issuance  thereof  will not  conflict  with the
               certificate of incorporation or bylaws of the Company and will be
               in full  compliance  with all federal and state  securities  laws
               applicable to such issuance and sale.

          (e)  The execution and delivery of this Agreement,  the fulfillment of
               the  terms  set  forth  herein  and  the   consummation   of  the
               transactions  contemplated  hereby  will not  conflict  with,  or
               constitute a breach of or default under, any agreement, indenture
               or  instrument  by  which  the  Company  is  bound  or  any  law,
               administrative  rule,  regulation  or  decree of any court or any
               governmental  body or  administrative  agency  applicable  to the
               Company.

          (f)  As of the date of this Agreement, the Disclosure Documents do not
               contain any untrue  statement of a material fact or omit to state
               any material fact  required to be stated  therein or necessary in
               order  to  make  the  statements  therein,  in the  light  of the
               circumstances under which they were made, not misleading.

          (g)  The  Disclosure  Documents  that have been filed with the SEC, at
               the time they were filed with the SEC,  complied in all  material
               respects  with the  requirements  of the Exchange  Act, and, when
               read together and with the other  information  in the  Disclosure
               Documents,  do not contain an untrue statement of a material fact

                                       9
<PAGE>

               or omit to state a material fact required to be stated therein or
               necessary in order to make the statements  therein,  in the light
               of the circumstances under which they were made, not misleading.

          (h)  Subsequent to the dates as of which  information  is given in the
               Disclosure Documents,  except as described therein, there has not
               been any  material  adverse  change  with regard to the assets or
               properties,  results of operations or financial  condition of the
               Company.

7.   Survival;  Indemnification.  All representations,  warranties and covenants
     contained  in this  Agreement  and the  indemnification  contained  in this
     Section  7 shall  survive  (i) the  acceptance  of  this  Agreement  by the
     Company,  (ii)  changes  in the  transactions,  documents  and  instruments
     described  herein  which are not  material  or which are to the  benefit of
     Subscriber,  and (iii) the death or  disability of  Subscriber.  Subscriber
     acknowledges  the meaning and legal  consequences  of the  representations,
     warranties  and  covenants  in  Section 5 hereof and that the  Company  has
     relied upon such  representations,  warranties and covenants in determining
     Subscriber's   qualification   and  suitability  to  purchase  the  Shares.
     Subscriber  hereby  agrees  to  indemnify,  defend  and hold  harmless  the
     Company,  its  officers,  directors,   employees,  agents  and  controlling
     persons, from and against any and all losses, claims, damages, liabilities,
     expenses  (including  attorneys'  fees  and  disbursements),  judgments  or
     amounts paid in settlement of actions  arising out of or resulting from the
     untruth of any  representation  of  Subscriber  herein or the breach of any
     warranty or covenant herein by Subscriber.  Notwithstanding  the foregoing,
     however,  no  representation,  warranty,  covenant or  acknowledgment  made
     herein by  Subscriber  shall in any manner be deemed to constitute a waiver
     of any rights granted to it under the  Securities  Act or state  securities
     laws.

     8.   Notices.  All notices  and other  communications  provided  for herein
          shall be in  writing  and shall be  deemed to have been duly  given if
          delivered  personally or sent by registered or certified mail,  return
          receipt requested, postage prepaid:

          (a)  if to the Company, to the following address:

                  Gasco Energy, Inc.
                  14 Inverness Drive East
                  Building H, Suite 236
                  Englewood, CO 80112
                  Attn: Peggy Herald
                  Telephone: (303) 483-0044

          (b)  if to Subscriber,  to the address set forth on the signature page
               hereto.

          (c)  or at such other  address as any party  shall have  specified  by
               notice in writing to the others.

9.   Notification  of Changes.  Subscriber  agrees and  covenants  to notify the
     Company  immediately  upon  the  occurrence  of  any  event  prior  to  the
     consummation  of  this  Offering  that  would  cause  any   representation,
     warranty,  covenant or other  statement  contained in this  Agreement to be
     false or incorrect or of any change in any statement made herein  occurring
     prior to the consummation of this Offering.

                                       10
<PAGE>

10.  Assignability.  This Agreement is not assignable by the Subscriber, and may
     not be modified,  waived or  terminated  except by an instrument in writing
     signed by the party against whom enforcement of such  modification,  waiver
     or termination is sought.

11.  Binding Effect.  Except as otherwise provided herein,  this Agreement shall
     be binding  upon and inure to the benefit of the  parties and their  heirs,
     executors,  administrators,  successors, legal representatives and assigns,
     and  the  agreements,   representations,   warranties  and  acknowledgments
     contained  herein  shall be deemed to be made by and be  binding  upon such
     heirs,  executors,  administrators,  successors,  legal representatives and
     assigns.

12.  Obligations  Irrevocable.  The  obligations  of  the  Subscriber  shall  be
     irrevocable, except with the consent of the Company, until the consummation
     or termination of the Offering.

13.  Entire  Agreement.  This Agreement  constitutes the entire agreement of the
     Subscriber  and the  Company  relating  to the  matters  contained  herein,
     superseding all prior contracts or agreements, whether oral or written.

14.  Governing  Law.  This  Agreement  shall be  governed  by and  construed  in
     accordance  with the laws of the State of Colorado,  without  regard to the
     principles of conflicts of law thereof that would  require the  application
     of the laws of any jurisdiction other than Colorado.

15.  Severability. If any provision of this Agreement or the application thereof
     to Subscriber or any circumstance shall be held invalid or unenforceable to
     any extent,  the remainder of this  Agreement and the  application  of such
     provision to other  subscriptions  or  circumstances  shall not be affected
     thereby and shall be enforced to the greatest extent permitted by law.

16.  Headings.  The headings in this Agreement are inserted for  convenience and
     identification only and are not intended to describe, interpret, define, or
     limit  the  scope,  extent or intent  of this  Agreement  or any  provision
     hereof.

17.  Counterparts. This Agreement may be executed in any number of counterparts,
     each of which  when so  executed  and  delivered  shall be  deemed to be an
     original and all of which  together  shall be deemed to be one and the same
     agreement.

18.  Counsel.  Subscriber hereby  acknowledges that the Company and its counsel,
     Vinson & Elkins  L.L.P.,  represent  the  interests  of the Company and not
     those of the  Subscriber in any  agreement  (including  this  Agreement) to
     which the Company is a party.

                           [Signature Page to follow]

                                       11
<PAGE>

     IN  WITNESS  WHEREOF,   Subscriber  has  executed  this   Subscription  and
Registration Rights Agreement as of ___________________, 2003.

                                SUBSCRIBER

                                Number of Shares: ____________________
                                Offering Price per Share: $_____________________
                                Subscription Amount:  $_________________________

                                By:  ___________________________________________
                                Name:___________________________________________
                                Title:__________________________________________
                                Address:  ______________________________________

     The Company hereby accepts the foregoing  subscription subject to the terms
and conditions hereof as of ______________, 2003.

                                Gasco Energy, Inc.
                                a Nevada corporation

                                By:____________________________________________
                                       Mark A. Erickson, President and
                                       Chief Executive Officer

                                       12
<PAGE>

                                                                      Exhibit A

                                HOW TO SUBSCRIBE

         (1) If you are subscribing for the purchase of Shares,  please date and
sign the signature page to this  Subscription and Registration  Rights Agreement
in the applicable spaces. Please signify the amount of Shares you are purchasing
by inserting  such amount in the space provided for on the signature page to the
Agreement.

         (2) Complete and sign the accompanying Accredited Investor Certificate.

         (3) Send all completed documents to:

         Gasco Energy, Inc.
         14 Inverness Drive East
         Building H, Suite 236
         Englewood, CO 80112
         Attn: Peggy Herald
         Telephone: (303) 483-0044

         (4)  Transmit  funds in an amount equal to the number of shares you are
purchasing multiplied by the Offering Price via wire to the following account:

Domestic

         Usbank
         601 2nd Ave. South
         Minneapolis, MN  55402-7020
         ABA 091-000-022
         Piper Jaffray Inc.
         Acct # 1731-0311-4547
For Further Credit To:_____         Gasco Energy Offering Proceeds
                  _________         3595-9612 EH08

Foreign

         Us Bank MNPLS
         Swift USBKUS441MT
         Acct # 1731-0311-4547 Piper Jaffray
For Further Credit To:  ___Gasco Energy Offering Proceeds
                  _________         3595-9612 EH08

ATTENTION SUBSCRIBERS: NO SUBSCRIPTION WILL BE ACCEPTED UNLESS ALL DOCUMENTATION
PRESCRIBED HEREIN IS FULLY COMPLETED AND EXECUTED.  ANY MATERIALS  RECEIVED THAT
ARE INCOMPLETE IN ANY RESPECT WILL BE RETURNED BY THE COMPANY.

                                       13
<PAGE>

                                                                      Exhibit B

                    CERTIFICATE OF ACCREDITED INVESTOR STATUS

         Except as may be indicated by the undersigned below, the undersigned is
an  individual  "accredited  investor,"  as that term is defined in Regulation D
under the  Securities  Act of 1933,  as  amended  (the  "Securities  Act").  The
undersigned  has  checked  the box  below  indicating  the  basis on which he is
representing his status as an "accredited investor":

_    a bank as defined in Section  3(a)(2) of the Securities Act, or any savings
     and loan association or other institution as defined in Section  3(a)(5)(A)
     of the  Securities  Act  whether  acting  in its  individual  or  fiduciary
     capacity;  a broker or dealer  registered  pursuant  to  Section  15 of the
     Securities  Exchange  Act of 1934,  as amended  (the  "Securities  Exchange
     Act");  an insurance  company as defined in Section 2(13) of the Securities
     Act; an investment  company  registered under the Investment Company Act of
     1940 or a business  development  company as defined in Section  2(a)(48) of
     that Act; a small business  investment  company  licensed by the U.S. Small
     Business  Administration  under Section 301(c) or (d) of the Small Business
     Investment Act of 1958; a plan  established and maintained by a state,  its
     political subdivisions,  or any agency or instrumentality of a state or its
     political subdivisions, for the benefit of its employees, and such plan has
     total assets in excess of $5,000,000;  an employee  benefit plan within the
     meaning of the Employee  Retirement  Income  Security  Act of 1974,  if the
     investment  decision  is made by a plan  fiduciary,  as  defined in Section
     3(21) of such Act,  which is either a bank,  savings and loan  association,
     insurance company,  or registered  investment  adviser,  or if the employee
     benefit  plan  has  total  assets  in  excess  of   $5,000,000   or,  if  a
     self-directed  plan, with investment  decisions made solely by persons that
     are "accredited investors";

_    a private business  development company as defined in Section 202(a)(22) of
     the Investment Advisers Act of 1940;

_    an  organization  described in Section  501(c)(3)  of the Internal  Revenue
     Code, corporation, Massachusetts or similar business trust, or partnership,
     not formed for the specific  purpose of acquiring the  securities  offered,
     with total assets in excess of $5,000,000;

_    a natural person whose  individual  net worth,  or joint net worth with the
     undersigned's spouse, at the time of this purchase exceeds $1,000,000;

_    a natural person who had an individual income in excess of $200,000 in each
     of the two most recent years or joint income with the undersigned's  spouse
     in  excess  of  $300,000  in  each of  those  years  and  has a  reasonable
     expectation of reaching the same income level in the current year;

_    a trust  with  total  assets in excess of  $5,000,000,  not  formed for the
     specific  purpose of acquiring the  securities  offered,  whose purchase is
     directed by a person who has such knowledge and experience in financial and
     business  matters that he is capable of evaluating  the merits and risks of
     the prospective investment; or

                                       14
<PAGE>

_    an entity in which all of the equity holders are "accredited  investors" by
     virtue of their meeting one or more of the above standards.

_    an individual who is a director or executive officer of Gasco Energy, Inc.

     IN WITNESS  WHEREOF,  the  undersigned  has executed  this  Certificate  of
Accredited Investor Status effective as of __________________, 2003.

                                               --------------------------------
                                                Name of Subscriber

                                                By: ________________________
                                                Name: ______________________
                                                Title: _______________________

                                       15
<PAGE>

                                                                      Exhibit C

                              PLAN OF DISTRIBUTION

         As of the date of this  prospectus,  we have not  been  advised  by the
selling stockholders as to any plan of distribution. Distributions of the shares
by the selling stockholders,  or by their partners,  pledgees, donees (including
charitable organizations), transferees or other successors in interest, may from
time to time be offered for sale either directly by such individual,  or through
underwriters,  dealers or agents or on any exchange on which the shares may from
time to time be traded,  in the  over-the-counter  market,  or in  independently
negotiated  transactions  or  otherwise.  The methods by which the shares may be
sold include:

     o    a block  trade  (which  may  involve  crosses)  in which the broker or
          dealer so engaged will attempt to sell the securities as agent but may
          position and resell a portion of the block as principal to  facilitate
          the transaction;

     o    purchases by a broker or dealer as principal and resale by such broker
          or dealer for its own account pursuant to this prospectus;

     o    exchange distributions and/or secondary distributions;

     o    sales in the over-the-counter market;

     o    underwritten transactions;

     o    ordinary  brokerage  transactions and transactions in which the broker
          solicits purchasers; and

     o    privately negotiated transactions.

         Such transactions may be effected by the selling stockholders at market
prices  prevailing  at the time of sale or at  negotiated  prices.  The  selling
stockholders  may  effect  such  transactions  by selling  the  Common  Stock to
underwriters  or  to  or  through  broker-dealers,   and  such  underwriters  or
broker-dealers may receive compensations in the form of discounts or commissions
from the selling stockholders and may receive commissions from the purchasers of
the Common Stock for whom they may act as agent.  The selling  stockholders  may
agree to indemnify any underwriter,  broker-dealer or agent that participates in
transactions   involving  sales  of  the  shares  against  certain  liabilities,
including  liabilities  arising  under the  Securities  Act.  We have  agreed to
register  the shares  for sale under the  Securities  Act and to  indemnify  the
selling  stockholders  and each person who participates as an underwriter in the
offering of the shares  against  certain civil  liabilities,  including  certain
liabilities under the Securities Act.

         In connection with sales of the Common Stock under this prospectus, the
selling  stockholders may enter into hedging  transactions with  broker-dealers,
who may in turn  engage  in short  sales of the  Common  Stock in the  course of
hedging the positions they assume. The selling stockholders also may sell shares
of Common Stock short and deliver them to close our the short positions, or loan
or pledge the  shares of Common  Stock to  broker-dealers  that in turn may sell
them.

         The selling  stockholders and any underwriters,  dealers or agents that
participate in distribution of the shares may be deemed to be underwriters,  and
any  profit on sale of the  shares  by them and any  discounts,  commissions  or
concessions  received  by any  underwriter,  dealer or agent may be deemed to be
underwriting discounts and commissions under the Securities Act.

         There can be no assurances that the selling  stockholders will sell any
or all of the shares offered under this prospectus.

                                       16
<PAGE>

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