Tango Energy Inc.

Tango Energy Inc.

January 26, 2009 23:59 ET

Tango Energy Inc.: Operations Update

CALGARY, ALBERTA--(Marketwire - Jan. 26, 2009) - Tango Energy Inc. ("Tango") (TSX VENTURE:TEI) is pleased to report that current production levels are in excess of 490 barrels of oil equivalent ("boepd"), a 52% increase over third quarter 2008 average production levels.

The Quaich 3-3 well is currently producing 2 million cubic feet per day or approximately 200 boepd net to Tango. A second well has been licensed and is expected to drill during the third or fourth quarter of 2009. Tango and the operator have approximately 6,400 acres of contiguous land in the area in which Tango holds between a 50% and 60% working interest.

During the fourth quarter of 2008, Tango participated in 3 exploration wells. These wells were drilled in new areas for the company and all have been cased and tested at economic rates of gas production. It is expected these wells will be tied in and placed on production at 200-250 boepd net to Tango prior to the end of the second quarter.

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

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


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