Tango Energy Inc.

Tango Energy Inc.

January 18, 2010 20:35 ET

Tango Energy Inc. Announces Review of Strategic Alternatives

CALGARY, ALBERTA--(Marketwire - Jan. 18, 2010) - Tango Energy Inc. ("Tango" or the "Company") (TSX VENTURE:TEI) announces that its Board of Directors has determined to undertake a process to evaluate and review the various strategic alternatives available to the Company. In this regard, the Company has retained Peters & Co. Limited ("Peters & Co.") as its financial advisor to assist in the process.

John Gunn, the Chief Executive Officer of Tango, commented: "Tango believes that, in the current market and commodity price environment, small oil and natural gas companies have an obligation to their shareholders to consider all alternatives that may maximize value for shareholders. The Company's recent success at Quaich should provide a strong platform for future growth, and we are undertaking this review process so that we can thoroughly examine all options. The process will be carried out over a period of time, and has no predetermined or preconceived outcome."

Tango does not intend to disclose developments with respect to the strategic alternatives review process unless and until the Board of Directors has approved a definitive transaction or strategic option, unless otherwise required by law. The Company cautions that there is no certainty that this strategic alternatives review process will result in a transaction or if a transaction is undertaken, as to its terms or timing.

Tango's website can be found at www.tangoenergy.com. Tango Energy Inc. is listed on the TSX-Venture Exchange under the Symbol TEI.

This release contains forward-looking information. By their nature, forward-looking statements involve assumptions and known and unknown risks and uncertainties that may cause actual future results to differ materially from those contemplated. These risks include such things as volatility of oil and gas prices, commodity supply and demand, fluctuations in currency and interest rates, ultimate recoverability of reserves, timing and costs of drilling activities and pipeline construction, new regulations and legislation and availability of capital. Tango does not undertake to update any such forward-looking statements except as required by law. Please refer to Tango's Annual Report for more detail as to the nature of these risks and uncertainties. Although Tango believes that the expectations represented by these forward looking statements are reasonable, there can be no assurance that such expectations will prove to be correct.

Natural gas volumes have been converted to a barrel of oil equivalent ("boe") using six thousand cubic feet equal to one barrel unless otherwise stated. A boe conversion ratio of 6:1 is based upon an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. This conversion conforms with Canadian Securities Regulators National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). Boe's may be misleading, particularly if used in isolation.

Funds flow from operations and funds flow from operations per share and netback are not recognized measures under Canadian generally accepted accounting principles. Management believes that these items are a useful measure of financial performance. Funds flow from operations is defined as net income plus non-cash charges including, depletion, depreciation and accretion, future taxes and stock-based compensation, after asset retirement costs. Funds flow from operations per share is calculated by dividing the weighted average number of shares outstanding during the year into funds flow from operations. Netback is the average per unit of volume for oil and gas revenues less royalties and production costs incurred. Netback is expressed in terms of dollars per boe.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Tango Energy Inc.
    John M. Gunn
    Chief Executive Officer
    (403) 266-5688
    (403) 266-8817 (FAX)
    Tango Energy Inc.
    Jeremy Newton
    President and Chief Operating Officer
    (403) 266-5688
    (403) 266-8817 (FAX)