Tango Energy Inc.
TSX VENTURE : TEI

Tango Energy Inc.

May 26, 2008 23:59 ET

Tango Reports First Quarter 2008 Financial and Operating Results

CALGARY, ALBERTA--(Marketwire - May 26, 2008) -

THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES
OR THROUGH UNITED STATES NEWSWIRE SERVICES

Tango Energy Inc. ("Tango") (TSX VENTURE:TEI) is pleased to report on its audited financial and operating results for the year ended March 31, 2008.



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Three Months Ended

March 31,

2008 2007

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Financial Results ($000s, except per share amounts)

Gross revenues 2,786 2,904

Income (loss) before taxes (482) (342)

Net income (loss) (371) (216)

Per share - basic $ (0.01) $ 0.00

Per share - diluted $ (0.01) $ 0.00

Funds flow from operations 1,182 1,354

Per share - basic $ 0.02 $ 0.03

Per share - diluted $ 0.02 $ 0.03

Additions to property and equipment,

net of proceeds 190 4,146

Total assets 42,579 43,397

Working capital (deficiency) (4,014) (8,463)

Asset retirement obligation 537 603

Flow-through share obligations 2,000 1,300

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Share Data (000s)

Equity outstanding

Common shares 65,725 49,505

Stock options and warrants 5,160 4,075

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Fully diluted 70,885 53,580

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Sales Volumes (average)

Natural gas (mcf/d) 3,333 3,805

Crude oil and liquids (bbls/d) 24 32

Average boe/d 583 666

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Product Prices (average)

Natural gas ($/mcf) 8.41 7.92

Crude oil and liquids ($/bbl) 98.44 58.80

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Netback Analysis ($/boe)

Oil and gas revenue 52.16 48.04

Gathering income 0.32 0.34

Royalty expense 14.93 13.97

Operating costs 7.39 7.69

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Netback 30.16 26.72

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Production averaged 583 barrels of oil equivalent per day ("boepd") during the three months ended March 31, 2008, an 8.6% decrease over the 638 boepd over the three months ended December 31, 2007. This decline in production was attributable to a combination of natural declines in both Cecilia and Hanlan.

During the three months ended March 31, 2007 one well was abandoned, a second well was completed in multiple zones and additional lands surrounding a new pool discovery were acquired.

In Kakwa the 13-01 Swan Hills well was abandoned. Tango has a 30% WI in this well.

In Deanne the 1-20 well was completed and tested gas in multiple cretaceous horizons. Tango has an 88% WI in this well, which is still under evaluation.

At Quaich, an additional 6.75 gross, 3.37 net, sections of petroleum and natural gas rights were acquired adjacent to Tango's new pool discovery and, the operator has advised that our 3-03 well will be placed on production in August.

Tango has 34,240 gross (19,666 net) acres of undeveloped land located west of the fifth and sixth meridian within the foothills and deep basin portion of the Western Canadian Sedimentary Basin. Tango continues to post and acquire crown land on new plays, as well as crown land offsetting existing opportunities.

For a copy of Tango's March 31, 2008 Financial Statements and Management Discussion and Analysis please visit www.sedar.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 & CEO
    (403) 266-5688

    or

    Tango Energy Inc.
    Jeremy P. Newton
    V.P. Land & Exploration
    (403) 266-5688
    Fax: (403) 266-8817