SOURCE: Tengasco, Inc.

August 11, 2008 09:32 ET

Tengasco Announces Record Setting Second Quarter 2008 Financial Results

KNOXVILLE, TN--(Marketwire - August 11, 2008) - Tengasco, Inc. (AMEX: TGC) announced today its financial results for the quarter ended June 30, 2008. The Company realized a net income attributable to common shareholders of $1,421,707 or $0.02 per share of common stock during the second quarter of 2008, compared to a net income in the second quarter of 2007 to common shareholders of $330,756 or $0.01 per share of common stock.

The Company recognized $4,633,588 in revenues during the second quarter of 2008 compared to $2,220,439 in the second quarter of 2007. The increase in revenues was due to a 2,394 net barrel increase in oil sales and an increase in oil prices averaging $117.37 per barrel in the second quarter of 2008 as compared to $59.08 per barrel in the second quarter of 2007. The Company's operating income was $2,161,707 or $0.04 per share in 2008 compared to operating income in 2007 of $330,756 or $0.01 per share. The Company recorded all of its remaining net operating loss carry forwards of $5,227,000 in the first quarter of 2008, and recorded non-cash income tax expense of $740,000 for the second quarter net income.

The Company realized a net income attributable to common shareholders of $7,233,718 or $0.12 per share of common stock during the first six months of 2008, compared to a net income in the first six months of 2007 to common shareholders of $121,591 or $0.00 per share of common stock. The Company recognized $7,939,308 in revenues from its Kansas Properties and the Swan Creek field during the first six months of 2008 compared to $3,992,839 in the first six months of 2007. The increase in revenues was due to a 7,153 net barrel increase in oil sales and an increase in oil prices in the first six months of 2008 of an average of $104.37 per barrel as compared to $55.85 per barrel in the first six months of 2007. The Company's operating income for the first six months of 2008 was $3,046,718 or $0.05 per share in 2008 compared to operating income in the same period in 2007 of $121,591. The Company recorded the remaining net operating loss carry forwards of $5,227,000 in the first quarter of 2008 and recorded non-cash income tax expense of $1,040,000 for the first six months net income.

Jeffrey R. Bailey, Chief Executive Officer, said, "Our second quarter 2008 results are not just the result of record high commodity prices but increased production volumes from Company properties. The Company's income from operations in the second quarter of 2008 exceeded the Company's income from operations for the entire calendar year 2007. The Company set records in the first six months of 2008 for all performance measures of revenues, income, earnings, and production. In July 2008, with the addition of the Riffe Field properties purchased from Black Diamond Oil, we have also set a new monthly oil production record by the Company of more than 21,000 gross barrels. Our second quarter results do not include any volumes from the Black Diamond acquisition that was effective July 1, the beginning of the third quarter. Early third quarter results from the Black Diamond properties indicate that our daily produced volumes have increased by about 82 barrels per day from this new property. We have drilled 6 wells since the beginning of 2008 resulting in 5 producing wells and 1 dry hole. Two of these wells were completed in July 2008 with production beginning in late July. All of these six wells were drilled using the Company's cash flow, with no transfer of working interest in the wells required and we expect this to continue with future drilling in this period of high commodity prices. One of our new oil wells, the Albers #1 well in Trego County, Kansas appears to be an excellent well, with initial production in the range of 50 barrels per day. We believe this demonstrates that this area of Trego County is one in which our investment in technology has produced favorable results. The Albers #1 is our fourth well in this area, with the first three being dry holes that nevertheless provided the reservoir information we needed to best use our 3D seismic analysis. We believe the Company is well positioned to continue to benefit from current high oil prices and to continue to expand production volumes by additional Kansas drilling."

Forward-looking statements made in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risk and uncertainties which may cause actual results to differ from anticipated results, including risks associated with the timing and development of the Company's reserves and projects as well as risks of downturns in economic conditions generally, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.

Contact Information

  • Contact:
    Jeffrey R. Bailey
    CEO
    865-675-1554