Tango Energy Inc.
TSX VENTURE : TEI

Tango Energy Inc.

May 28, 2008 23:59 ET

Tango Energy Inc.-Operational Update

CALGARY, ALBERTA--(Marketwire - May 28, 2008) - Tango Energy Inc. ("Tango") (TSX VENTURE:TEI) announces the sale of its Cecilia area assets which represent approximately 200 boepd of natural gas production net to Tango. The property consists of two adjoining sections of land containing 8 natural gas wells, with an average working interest of 40 percent. The effective date of the sale is April 1st, 2008 and the purchase price is $10,000,000. The proceeds from the sale will be used to eliminate Tango's debt of approximately $4,000,000 and the balance will be used together with cash flow to finance Tango's ongoing activities.

Subsequent to the sale, Tango will have approximately 360 boepd of remaining production, approximately 400 boepd of additional production behind pipe and waiting to be tied-in in Quaich, and a positive working capital position of approximately $6,000,000.

The Operator of Quaich has advised that it expects to commence pipelining at Quaich after spring break-up and after surface access restrictions have been removed in June. It is then anticipated that production from the Quaich well will commence in early August 2008. A seismic program and an additional well are expected to be a part of the capital program for this property prior to the end of 2008.

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

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. 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.
    Jeremy P. Newton
    P.Land, VP Land & Exploration,
    (403) 266-5688
    Fax: (403) 266-8817