TGC Tengasco Inc New

Tengasco, Inc. (AMEX: TGC) announced today its financial results for the quarter ended June 30, 2007. The Company realized a net income attributable to common shareholders of $330,756 or $0.01 per share of common stock during the second quarter of 2007, compared to a net income in the second quarter of 2006 to common shareholders of $720,769 or $0.01 per share of common stock. The Company recognized $2,220,439 in total revenues from its Kansas and Tennessee properties during the second quarter of 2007 compared to $2,354,736 in the second quarter of 2006. The decrease in revenues was due to a decrease in oil prices in 2007 and a 16,679 mcf net decrease in gas sales, partially offset by Kansas oil sales increase during this period of 1,889 barrels. Oil prices in the second quarter of 2007 averaged $59.08 per barrel as compared to $64.92 per barrel in the second quarter of 2006. Gross production of oil for the second quarter was a record 47,463 barrels in 2007 compared to the previous record in the second quarter 2006 of 46,819 barrels. The Company recognized $3,992,839 in total revenues from its Kansas and Tennessee properties during the first six months of 2007 compared to $4,453,705 in the first six months of 2006. The decrease in revenues was due to an decrease in oil prices in 2007, partially offset by Kansas oil sales increase during this period of 3,985 barrels, attributable to well workovers, polymer completion workovers and the Company�s portion of an eight-well drilling program. Oil prices in the first six months of 2007 averaged $55.85 per barrel as compared to $61.92 per barrel in the first six months of 2006. Jeffrey R. Bailey, Chief Executive Officer, said, �Our second quarter 2007 results show the rebound in production revenues we expected following the first quarter when revenues were slowed due to weather related problems in our Kansas oil producing properties. We continue to grow production in Kansas through the drill bit, and early third quarter results have benefited from a spike in the market price for our crude oil that began in July 2007. Gross production in July 2007 was approximately 17,100 barrels. We drilled four wells since the end of the first quarter, and completed two of them in July with production just beginning in August. We have two more wells permitted to be drilled in August 2007 and should begin drilling, weather permitting, by the end of the month. These are all being drilled out of the Company�s cash flow, with no borrowing and no transfer of working interest in the wells required. We continue to look for sources of capital to accelerate the pace of our drilling to take advantage of these higher prices and to grow the Company�s reserves.� 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.