Tengasco Announces of Closing of Kansas Oil Purchase From Black Diamond Oil
July 02 2008 - 12:35PM
Marketwired
KNOXVILLE, TN today closed the previously announced purchase by
the Company from Black Diamond Oil, Inc. of an expected 80 barrels
per day of oil producing properties and related leases and
equipment in Rooks County, Kansas for $5.35 million effective as of
July 1, 2008. The Company has acquired producing oil wells and
saltwater disposal wells, equipment, and the underlying working
interests in leases comprising what is known as the Riffe field
that had been owned by Black Diamond for many years. The purchase
price was paid primarily from borrowings under its credit facility
with Sovereign Bank and from company cash on hand. Following the
purchase, the Company has borrowed a total of $10.0 million under
the facility.
"We are pleased to complete our acquisition of Black Diamond's
Riffe field properties effective with July 2008 production which
fit well with our existing Kansas operations. This purchase is
expected to increase our daily production of crude oil by about
eighty barrels to a daily total of about 680 barrels," said Jeffrey
R. Bailey, CEO of Tengasco.
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.
Contact: Tengasco, Inc. Jeffrey R. Bailey CEO 865-675-1554
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