TGC Tengasco Inc New

Tengasco, Inc. (AMEX: TGC) announced today its financial results for the quarter ended March 31, 2005. The Company realized a net loss attributable to common shareholders of $418,351 ($0.01) per share of common stock during the first quarter of 2005, compared to a net loss in the first quarter of 2004 to common shareholders of $1,216,305 ($0.07) per share. The Company recognized $1,407,649 in oil and gas revenues from its Kansas properties and the Swan Creek Field in Tennessee during the first quarter of 2005 compared to $1,332,350 in the first quarter of 2004. The increase was due to an increase in oil prices in 2005 that was in part offset by decreases in Kansas gas production which reflected only the one month of production in 2005 due to the sale of the gas field in Kansas effective February 1, 2005. Kansas gas sales in 2005 were $72,471 (one month) as compared to $214,203 (three months) in 2004. Oil prices in the first quarter of 2005 averaged $47.90 per barrel compared to $33.15 per barrel in the first quarter of 2004. Production costs and taxes in the first quarter of 2005 of $785,122 decreased from $871,581 in the first quarter of 2004 due to management's cost-controlling efforts and the sale of the Kansas gas field. Depreciation, depletion, and amortization expense for the first quarter of 2005 was $479,308 compared to $589,822 in the first quarter of 2004 due to a reduction in depletion and depreciation taken due to the sale of the Kansas gas field and equipment becoming fully depreciated in late 2004. During the first quarter of 2005, general and administrative costs remained at 2004 levels. Professional fees in the first quarter of 2005 were $137,122 compared to $297,875 in the same period in 2004, substantially decreasing as a result of the settlement of the Bank One and Paul Miller lawsuits in 2004. Interest expense for the first quarter of 2005 decreased to $156,072 from $522,727 during the first quarter of 2004. The substantial decrease is the result of the payoff of the Bank One loan, other secured notes, and the cash payoff or exchange of preferred stock subject to mandatory redemption into a drilling program in 2004. 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.