TGC... AMEX
Tengasco Announces Year-End 2007 Financials and Record Results of Operations.....
KNOXVILLE, Tenn., March 31, 2008 -- Tengasco, Inc. (AMEX:TGC) announced today that it has filed with the Securities and Exchange Commission its Annual Report on Form 10-K for the year ended December 31, 2007.
For 2007, the Company reported a net income to holders of common stock of $3,510,322 or $0.06 per share. This compares to a net income of $2,141,364 or $0.04 per share in 2006 and a net income of $1,088,028 or $0.02 per share in 2005. The Company realized a tax benefit for net operating loss carry forwards in the amount of $2.1 million in 2007.
The Company realized revenues of $9,368,624 in 2007 compared to $9,001,681 in 2006 and $7,172,876 in 2005. Revenues increased by $366,943 from 2006 due to higher oil prices on production. Production volumes in 2007 did not increase from 2006 levels due primarily to reduced production in Kansas in the first quarter of 2007 as a result of an ice storm.
In the fourth quarter of 2007, Tengasco produced net income of $1,808,069 on quarterly revenues of $3,000,556. This reflects a 14% increase in net income from the third quarter of 2007. The Company recorded deferred tax asset of $1.1 million in the third quarter of 2007 and $1.0 million in the fourth quarter 2007.
The Company’s total oil production in 2007 was 185,188 barrels compared to 189,189 barrels in 2006 and 139,583 barrels in 2005.
Jeffrey R. Bailey, Chief Executive Officer stated: “2007 was a volatile year for anything ‘energy’, and especially for oil prices. However the public perception of oil prices is viewed mostly in the light of the most recent news events and price headlines. In actuality, through the first 9 months of 2007 our average monthly oil price was lower than what we received for the same period in 2006. But in the last quarter in 2007 prices surged to nearly $100 per barrel, pushing our average for 2007 up to $66 per barrel, up from the average of $61 in 2006. The first quarter of 2008 has seen even higher oil prices both on peak and average.”
Mr. Bailey continued: “Tengasco’s oil production for 2007 of 185,188 gross barrels was more than quadrupled by increases in the Company’s proven oil reserves. This is a good measure of any oil company’s future -- how well they replace what they have produced. We are pleased that our gross oil reserves have increased by 910,687 barrels as of December 31, 2007 or an increase in reserves of 492% of our 2007 production, to a gross total of 2,870,689 barrels of proven reserves. Although some of this increase is attributable to price, most of the increase is due to new wells, and to workovers and future locations in Kansas to be developed as a result of acreage acquisition and subsequent seismic data interpretation. Our strategy of developing those assets is having beneficial results. We will continue to drill new wells and have already begun additional drilling in 2008. We are targeting a mixture of development and exploration wells with approximately 10 to 15 new wells drilled by the end of 2008. We intend that with current high prices and cash flow, the entire working interest in all these wells will be for the Company and not shared with participants in any drilling program.”
Mr. Bailey also stated: “In 2007, Tengasco achieved several record annual financial and operating results:
-- Average daily production was 565 barrels of oil equivalent per day.
-- Reserve replacement ratio was 492% in 2007;
-- Year-end 2007 total proved reserves was a 35% increase over 2006 year-
end proved reserves;
-- Standardized measure of the Company’s future net cash flow from proved reserves was $53.6 million as of December 31, 2007, an increase of 103% over $26.4 million at December 31, 2006;
-- Total net revenue in 2007 was $9.3 million, the highest ever for the Company.
I am proud of these results as we continue to demonstrate record accomplishments that speak volumes about the value of our fundamental approaches to increasing the value of the Company for our shareholders.”
The statements contained in this release that are not purely historical are forward-looking statements within the meaning of applicable securities laws. Forward-looking statements include statements regarding “expectations,” “anticipations,” “intentions,” “beliefs,” or “strategies” regarding the future. Forward-looking statements also include statements regarding revenue, margins, expenses, and earnings analysis for 2007 and thereafter; oil and gas prices; reserve calculation and valuation; exploration activities; development expenditures; costs of regulatory compliance; environmental matters; technological developments; future products or product development; the Company’s products and distribution development strategies; potential acquisitions or strategic alliances; and liquidity and anticipated cash needs and availability. The Company’s actual results could differ materially from the forward-looking statements.
Contact:
Tengasco, Inc.
Jeffrey R. Bailey CEO, 865-675-1554
