Tango Energy Inc.
TSX VENTURE : TEI

Tango Energy Inc.

December 12, 2007 23:59 ET

Tango Energy Inc. Announces Well Test Results and Acquisition of Additional Lands

CALGARY, ALBERTA--(Marketwire - Dec. 12, 2007) - Tango Energy Inc. ("Tango" : TSX VENTURE:TEI) announced today initial test results from a well in Southern Alberta in which Tango has a 60% working interest. The material change report with respect to these test results dated November 15, 2007 (the "Material Change Report") was previously filed on a confidential basis with the Alberta Securities Commission and the British Columbia Securities Commission, being the securities commissions of the jurisdictions in which Tango is a reporting issuer. Tango filed the Material Change Report on a confidential basis because of a public land sale held today (the "Sale") at which it anticipated making a bid to acquire additional lands in the area of the test well. Tango is pleased to announce that it was successful at the Sale, having acquired a 50% working interest in two additional sections of land that it considers prospective in this play. Additional seismic work, as well as production from the recently completed well, will help to determine the overall magnitude of this discovery.

With respect to the initial test results from the above-noted well, the well was flow tested for five days at approximately 4 million cubic feet per day ("mmcf/d") at 710 psi flowing pressure. An independent reserves evaluation will be undertaken, and additional testing will be conducted as soon as it is practical. The results of this evaluation will assist to provide estimates as to the reserves and production capacity associated with this well and its ultimate economic impact on Tango.

Tango expects that this well will be tied-in and placed on production during the second quarter of 2008. Tango and its partner own interests in 1,920 acres of lands considered prospective for additional development offsetting this discovery. Tango 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.

Contact Information

  • Tango Energy Inc.
    John M. Gunn
    President and CEO
    (403) 266-5688

    OR

    Tango Energy Inc.
    David E. Blain
    VP Finance and CFO
    (403) 266-5688
    Fax: (403) 266-8817