Tango Energy Inc.

Tango Energy Inc.

January 14, 2010 16:57 ET

Tango Energy Inc.: Operations Update

CALGARY, ALBERTA--(Marketwire - Jan. 14, 2010) - Tango Energy Inc. ("Tango") (TSX VENTURE:TEI) Tango is pleased to report the results of its Quaich 12-34-9-3W5 well which was placed on stream on January 8th, 2010.

The 12-34 well is currently producing at a restricted rate of 1.8 million cubic feet per day (51 e3m3/day) at a flowing pressure of 1,000 psi (6,900 kpa), or 300 boepd gross (180 boepd net). 

During testing, the 12-34 well was flowed from two separate intervals at 3.3 million cubic feet per day and 1.6 million cubic feet per day. Three additional zones in the 12-34 well were also tested and 2 of those 3 zones were completed, fracture stimulated and flow tested. The 12-34 well is currently configured for production from multiple zones and will be evaluated zone by zone at a later date.

The Quaich 3-3-10-3W5 well is currently shut in to undergo interference testing with the producing 12-34 well. The 3-3 well is expected to return to production at a restricted rate of 3.0 million cubic feet per day during the week of January 25th. The 12-34 well was directionally drilled from the same surface lease as the 3-3 well, and is tied into the pipeline at 3-3 which flows to a gas processing facility at 13-34-08-2W5. Both the pipeline and the plant have capacity to accommodate the expected production from these wells.

Tango has a 60% interest in both the Quaich 3-3 and the 12-34 wells. Additional lands offsetting these wells were purchased at yesterday's land sale. As a result, Tango has 20,320 gross and 10,256 net acres of contiguous land in the immediate area in which Tango holds between a 32.5% and 100% working interest.

With both the Quaich 3-3 and 12-34 wells on production, Tango expects that its total daily sales volumes will be approximately 650 boepd.

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

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. This release contains forward-looking information.

Contact Information

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