TGC Tengasco Inc New

Tengasco, Inc. (Amex:�TGC) announced today its financial results for the quarter ended March 31, 2007. The Company realized a net loss attributable to common shareholders of $(209,165) or $(0.00) per share of common stock during the first quarter of 2007, compared to a net income in the first quarter of 2006 to common shareholders of $316,347 or $0.01 per share of common stock. Total revenues in the first quarter 2007 were $1,772,400 compared to $2,098,969 in the same period in 2006. During the first three months of 2007, the Company sold 42,415 gross barrels of oil from its Kansas Properties, comprised of 143 producing oil wells. Of the 42,415 gross barrels, 29,418 barrels were net to the Company after required payments to all participants and royalty owners. The Company�s first three months sales of 29,418 net barrels of oil from its Kansas properties compares to 28,326 barrels sold to the Company�s interest in the first three months of 2006. The Company�s net revenues from the Kansas properties were $1,544,147 in the first three months of 2007 compared to $1,666,524 in 2006. This decrease was due to a decrease in prices for oil from an average of $58.93 in 2006 to an average of $52.61 in 2007. Despite the effects of an ice storm, which adversely affected production levels and sales, the Company posted record production volumes of Kansas oil in the first quarter of 2007 compared to prior years. The Company produced 40,503 barrels in the first quarter 2007 compared to 38,502 barrels in the first quarter of 2006 which had been the previous high for first quarter production. The Company reported that it drilled one wildcat well in Kansas in the first quarter of 2007, at a location based on seismic analysis similar to the 15 successful wells the Company has drilled out of its last 18 wells. That well encountered noncommercial quantities of oil and was plugged. The Company also reported that, as a result of having reached the payback of their program investment as called for by the terms of their drilling program in April 2007, the former Series �A� drilling program participants will now begin to pay an 85% management fee to the Company. This will have the effect of increasing the Company�s net working interest in those program wells from approximately 19% to an effective 88% working interest in the six producing Kansas oil wells in that program. Jeffrey R. Bailey, the Company�s Chief Executive Officer, said, �It is unfortunate that we experienced such a severe ice storm in Kansas at the beginning of the year which resulted in some of our Kansas oil wells being out of production for a few weeks. The upside is that despite the storm, the Company still managed to produce a record first quarter volume of oil compared to all previous first quarters. However, the erosion in pricing from 2006 to 2007 levels, together with the lost production opportunity while the wells were down from the ice storm and associated repair costs combined to reduce our total Kansas results in the first quarter 2007 compared to the same period in 2006. Monthly production of oil in Kansas rebounded to normal levels in March. April also had production in excess of 15,000 gross barrels and begins the second quarter on a positive note. We continue to develop and explore our Kansas oil properties. We have permitted 3 wells to begin drilling when rigs are available; the first well should spud in late May or early June. We are currently finished with the design of the Vincent-Winterset seismic exploration program which is our largest to date, covering 8,280 acres of Company-leased acreage. We have been joined by other Kansas operators in this area adding their acreage to the seismic program, making this project an estimated combined �group shoot� in excess of 100,000 acres. This project should begin with collection of seismic data in the next thirty days. On completion of the shoot, the acquired data will then be prepared and analyzed for determination of potential productive drilling targets.� 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.