TGC Tengasco Inc New

Tengasco, Inc. (Amex: TGC) announced today its financial results for the quarter ended March 31, 2006. The Company realized a net income attributable to common shareholders of $316,347 or $0.01 per share of common stock during the first quarter of 2006, compared to a net loss to common shareholders in the first quarter of 2005 of ($418,351) or ($0.01) per share. The Company recognized $2,076,142 in oil and gas revenues from its Kansas properties and the Swan Creek field in Tennessee during the first quarter of 2006, an increase of 47% above these oil and gas revenues of $1,407,649 in the first quarter of 2005. The increase in revenues was due to both increases in oil prices and a 7,279 barrel increase in net oil production from the Company's Kansas properties. Oil prices in the first quarter of 2006 averaged $58.93 per barrel compared to $47.90 in the first quarter of 2005. During the first quarter of 2006, the Company produced and sold 40,437 gross barrels of oil from its Kansas properties. Of these 40,437 barrels, 36,161 barrels were net to the Company's interest after required payments to all drilling program participants. The Company's 36,161 net barrels of oil in Kansas in the first quarter of 2006 was a 25% increase over the 28,882 net barrels in Kansas produced in the first three months of 2005. The Company's net revenues from the Kansas properties were $1,666,524 in the first three months of 2006, compared to net revenues of $1,125,553 in 2005. Jeffrey R. Bailey, Chief Executive Officer, said "Our first quarter in 2006 was our Company's third successive profitable quarter. Production in the first quarter of 2006 reflects continued record performance of our Kansas oil properties. The first quarter 2006 Kansas oil production volumes and total Company revenues were each record first-quarter highs since Tengasco bought the Kansas properties in 1998. Our higher revenues were not only the result of higher prices, but also resulted from a significant increase in the Company's net produced volumes of Kansas oil over the first quarter of 2005. This increase in oil production resulted primarily from the Company's working interest ownership in 131 producing oil wells in Kansas that have been owned by the Company continuously since 1998, and only slightly from the Company's interests in new drilling program wells drilled since the first quarter of 2005 by the Company. It is significant that the Company's reported 25% net oil production increase of 7,279 barrels from all its Kansas wells in the first quarter of 2006 above the same period in 2005 does not include the 4,276 barrels produced in the first quarter 2006 that are owned by the participants in the drilling program other than the Company. However, when the participants' investment in the eight well drilling program is paid back, the Company's revenue interest steps up and we expect that the Company's revenues from the eight-well drilling program wells will increase substantially. After the participants' investment is paid back, the Company will receive a management fee of 85% of the participants' 81% working interest revenues in all eight wells for the remaining life of the wells. Currently, before payback, the Company is receiving none of those participants' 81% working interest revenues. In addition, the Company will continue to receive all the revenues from the Company's 19% working interest that the Company already owns and has been receiving since the program wells first went into production." 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.