Tango Energy Inc.
TSX VENTURE : TEI

Tango Energy Inc.

February 10, 2010 18:47 ET

Tango Updates Provides Upward Revision to Year-End Reserves

CALGARY, ALBERTA--(Marketwire - Feb. 10, 2010) - Tango Energy Inc. ("Tango") (TSX VENTURE:TEI) provides the following upward revision to its petroleum and natural gas reserves as of December 31, 2009 due to a mechanical pricing error in the prior reserves report. The following summary updates the summary contained in a press release dated January 29, 2010.

The following tables provide information on Tango's petroleum oil and gas reserves and the present value of the estimated future net cash flow associated with such reserves as at December 31, 2009. The information set forth below is derived from the Paddock Lindstrom and Associates Ltd. ("PLA") report, which has been prepared in accordance with the standards contained in the COGE Handbook and the reserves definitions contained in NI 51-101. It should not be assumed that the estimated future net cash flow shown below is representative of the fair market value of the Corporation's properties. There is no assurance that such price and cost assumptions will be attained and variances could be material. "Gross" reserve quantities include the Company's share of reserves before royalty plus royalty income volumes. "Net" reserve quantities include the Company's share of reserves after royalty plus royalty income volumes.

 
SUMMARY OF OIL AND GAS RESERVES 
AND NET PRESENT VALUES OF FUTURE NET REVENUE 
 as of December 31, 2009
 
 FORECAST PRICES AND COSTS
 
  RESERVES
  NATURAL GAS NATURAL GAS LIQUIDS BOE's
RESERVES CATEGORY Gross (mmcf) Net (mmcf) Gross (mbbl) Net (mbbl) Gross (mbbl) Net (mbbl)
             
PROVED            
  Developed Producing 3,170 2,094 12 7 540 356
  Developed Non-Producing 4,228 3,170 28 18 732 546
  Undeveloped -- -- -- -- -- --
TOTAL PROVED 7,398 5,264 40 25 1,272 902
PROBABLE 6,488 4,901 73 49 1,155 866
TOTAL PROVED PLUS PROBABLE 13,886 10,165 113 74 2,427 1,768
   
   
  NET PRESENT VALUES OF FUTURE NET REVENUE
   
     
  BEFORE INCOME TAXES DISCOUNTED AT AFTER INCOME TAXES DISCOUNTED AT
     
RESERVES CATEGORY 0% (m$) 5% (m$) 10% (m$) 15% (m$) 20% (m$) 0% (m$) 5% (m$) 10% (m$) 15% (m$) 20% (m$)
                     
PROVED                    
  Developed Producing 10,405 8,860 7,748 6,915 6,270 10,404 8,860 7,748 6,915 6,270
  Developed Non-        Producing 17,647 14,726 12,729 11,254 10,112 14,008 11,859 10,382 9,284 8,426
  Undeveloped -- -- -- -- -- -- -- --   --
TOTAL PROVED 28,052 23,586 20,477 18,169 16,382 24,412 20,719 18,130 16,199 14,696
PROBABLE 27,774 18,930 13,752 10,423 8,138 20,864 14,095 10,126 7,571 5,818
TOTAL PROVED PLUS PROBABLE 55,826 42,516 34,229 28,592 24,520 45,276 34,814 28,256 23,770 20,514
                     
 
SUMMARY OF PRICING AND INFLATION RATE ASSUMPTIONS
as of December 31, 2009
FORECAST PRICES AND COSTS
   
Year NATURAL GAS Condensate INFLATION EXCHANGE
AECO C Edmonton RATES RATE
($Cdn/mmBTU) ($Cdn/bbl) %/Year ($US/Cdn)
Forecast        
2010 5.82 83.25 0.0 0.95
2011 6.29 85.87 2.0 0.95
2012 6.77 88.49 2.0 0.95
2013 7.28 93.77 2.0 0.95
2014 7.80 99.05 2.0 0.95

Forecast product prices and operating costs were escalated at a rate of 2.0% per year beyond 2014. The exchange rate used for the US/Canadian dollar was 0.95. The forecast prices presented above utilize PLA's price forecast as at December 31, 2009.

Additional reserve information will be included in Tango's NI 51-101 report, which will be filed on SEDAR.

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 of such forward-looking statements. 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.

BOE's may be misleading, particularly if used in isolation. In accordance with NI 51-101, a barrel of oil equivalent (boe) conversion ratio of 6 mcf: 1 boe is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Abbreviations used are defined as flows: m$ (thousands of dollars); mcf (thousand standard cubic feet); mmcf (million standard cubic feet); mboe (thousands of barrels of oil equivalent); mmBTU (million British Thermal Units).

The aggregate of the exploration and development costs incurred in the most recent financial year and the change during that year in the estimated future development costs generally will not reflect total finding and development costs related to reserve additions for that year.

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)
    or
    Tango Energy Inc.
    Jeremy Newton
    President & COO
    (403) 266-5688
    (403) 266-8817 (FAX)