Tengasco Announces Profit for Third Quarter and Nine Months ending September 30, 2005
November 10 2005 - 12:16PM
Business Wire
Tengasco, Inc. (AMEX: TGC) announced today its financial results
for the third quarter ended September 30, 2005. The Company
recognized $1,853,885 in oil and gas revenues from its Kansas
Properties and the Swan Creek Field in Tennessee during the third
quarter of 2005 compared to $1,536,739 in the third quarter of
2004. The increase in revenues was due to an increase in oil prices
and increases in production from completion and drilling activities
in 2005. The Company realized a net income attributable to common
shareholders of $661,781 or $0.01 per share of common stock during
the third quarter of 2005 compared to a net loss in the third
quarter of 2004 to common shareholders of ($735,819) or ($0.02) per
share of common stock. The Company realized a net income
attributable to common shareholders of $100,890 or $0.00 per share
of common stock during the first nine months of 2005 compared to a
net loss to common shareholders in the first nine months of 2004 of
($2,233,752) or ($0.06) per share of common stock. The Company's
President Jeffrey R. Bailey said, "We are pleased to report these
dramatic financial and significant balance sheet improvements
showing positive results for shareholders not only for the third
quarter of 2005 but the first nine months of 2005 as well. Our net
income from operations excluding loss/gains on debt and equipment
in the third quarter increased $712,434 over the same quarter last
year, and in the first nine months of 2005 net income increased
$1.9 million over the same period last year. Our cash flow from
operations for the nine months ending September 30, 2005 increased
about $1.6 million from the same period in 2004. These outstanding
results are due to the significant reduction of debt and increased
production volumes of oil in Kansas combined with favorable pricing
of oil and gas. We are extremely proud of the Company's ability in
the past year to virtually eliminate the Company's debt. In the
third quarter of this year we concluded the exchange of the
Company's remaining two series of preferred stock, and then in
October 2005 transformed almost all of the Company's remaining debt
into a second drilling program on the Company's properties in
Kansas. As a result, the Company has reduced its liabilities in
notes or preferred stock from about $10.2 million as of September
30, 2004 to only $370,000 as of November 11, 2005. This 96%
reduction of these liabilities was accomplished in about one year
with no additional borrowings. We have now drilled six wells of our
eight well drilling program in Kansas with five of them being
successful oil producers, and will drill the final two wells in the
first quarter of 2006. We have already drilled two of the twelve
wells in the second Kansas drilling program signed in October 2005.
All of these wells were drilled with funds from cash flow. We
anticipate that the remaining wells in the drilling program will
also be drilled with our own funds from operations. Our gross
production of oil in Kansas has increased to 348 barrels per day as
of September 30, 2005. We have engaged a new geologist based in
Kansas, and plan additional drilling of development wells on leases
we currently own as well as newly acquired leases located near our
current properties in Kansas. We eagerly look forward to the future
development of our Company and continuing these positive results
for our shareholders. We intend to move ahead vigorously to explore
and develop oil production in Kansas and to maximize the value of
our Tennessee producing and pipeline assets as well."
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.
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