TGC Tengasco Inc New

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 ending December 31, 2006. For 2006, the Company reported a net income to holders of common stock of $2,141,364 or $0.04 per share. This compares to a net income of $1,088,028 or $0.02 per share in 2005 and a net loss of $(1,994,025) or ($0.05 per share) in 2004. The Company realized revenues of $9,001,681 in 2006 compared to $7,172,876 in 2005 and $6,109,474 in 2004. Revenues increased by $1,828,805 from 2005 due primarily to an increase in oil production in Kansas of approximately 29,000 net barrels over 2005 levels. This increase in production volumes accounted for 64% of the increased revenues with the balance of the increase due to higher oil prices. In the fourth quarter of 2006, Tengasco produced net income of $585,154 on quarterly revenues of $2,296,702. This reflects a 13% increase in net income from the third quarter of 2006 and is the sixth consecutive profitable quarter for the Company. The Company�s total oil production in 2006 was 189,189 barrels compared to 139,583 barrels in 2005 and 129,216 in 2004. The Company�s oil production in 2006 was the highest annual oil production in the history of the Company. Jeffrey R. Bailey, Chief Executive Officer stated: �We are excited about our results for 2006, which reflect a 36% increase in oil production over 2005�primarily from our Kansas properties. Our increased production, coupled with higher oil prices, produced very favorable results for the Company. Going forward, we plan to advance our exploration efforts for oil in Kansas with more developmental drilling, together with drilling a limited number of exploratory or wildcat wells based on a technically detailed selection of drilling locations based on seismic analysis.� Mr. Bailey continued: �Historically, the first quarter of any year has been our most modest quarter for oil production in Kansas. This year, 2007, has proved no different, as Kansas experienced one of its worst ice storms in memory. Many counties in Kansas, including some counties where the Company has wells, lost power for the entire month of January. Our producing wells in those counties were unable to produce without electricity to run the well pumps during the power outage. Consequently, in January 2007, we saw production and revenue decline from monthly levels in late 2006. Fortunately, none of our producing wells were physically damaged by the ice storm or by non-production during the absence of power, but the storm did substantially adversely impact our production levels in the first two months of 2007. Eventually, new poles and lines were rebuilt on a locally massive scale and electrical power was restored, and we have had a good rebound of production in March 2007. �Almost 40% of the Company�s gross production in 2006 came from drilling new wells and interventions in older wells over the last two years in Kansas at a cost of about $3.4 million. That will continue to be our primary focus and the directed target of our cash flow development in 2007. Interestingly, we are also seeing an increased focus by other operators in Tennessee and Kentucky in areas that could have an impact on revenues related to our pipeline. Our own Tennessee efforts have focused on the production of methane from non-conventional reserves near our pipeline. The Company�s manufactured methane project in Church Hill, Tennessee contracted with Allied Waste is in the financing stage with financial closing expected to occur early in the second quarter 2007 and with expected production to begin in the fourth quarter of 2007.� Mr. Bailey concluded: �We have good generic growth planned and we continue to look for acquisitions that would make sense for our shareholders. We know that while we cannot control the price of our product, we can continue the efforts that made 2006 the record year on all measures of performance at Tengasco.� 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.