Tango Energy sells Cecilia assets for $10-million
2008-05-28 15:53 MT - News Release
Mr. John Gunn reports
TANGO ENERGY INC. - OPERATIONAL UPDATE
Tango Energy Inc. has sold its Cecilia area assets, which represent approximately 200 barrels of oil equivalent per day of natural gas production net to Tango. The property consists of two adjoining sections of land containing eight natural gas wells, with an average working interest of 40 per cent. The effective date of the sale is April 1, 2008, and the purchase price is $10-million. The proceeds from the sale will be used to eliminate Tango's debt of approximately $4-million, and the balance will be used together with cash flow to finance Tango's continuing activities.
Subsequent to the sale, Tango will have approximately 360 barrels of oil equivalent per day of remaining production, approximately 400 barrels of oil equivalent per day of additional production behind pipe and waiting to be tied in in Quaich, and a positive working capital position of approximately $6-million.
The operator of Quaich has advised that it expects to commence pipelining at Quaich after spring breakup 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.
