Tengasco Announces Record Setting Second Quarter 2008 Financial Results
August 11 2008 - 9:31AM
Marketwired
Tengasco, Inc. (AMEX: TGC) announced today its financial results
for the quarter ended June 30, 2008. The Company realized a net
income attributable to common shareholders of $1,421,707 or $0.02
per share of common stock during the second quarter of 2008,
compared to a net income in the second quarter of 2007 to common
shareholders of $330,756 or $0.01 per share of common stock.
The Company recognized $4,633,588 in revenues during the second
quarter of 2008 compared to $2,220,439 in the second quarter of
2007. The increase in revenues was due to a 2,394 net barrel
increase in oil sales and an increase in oil prices averaging
$117.37 per barrel in the second quarter of 2008 as compared to
$59.08 per barrel in the second quarter of 2007. The Company's
operating income was $2,161,707 or $0.04 per share in 2008 compared
to operating income in 2007 of $330,756 or $0.01 per share. The
Company recorded all of its remaining net operating loss carry
forwards of $5,227,000 in the first quarter of 2008, and recorded
non-cash income tax expense of $740,000 for the second quarter net
income.
The Company realized a net income attributable to common
shareholders of $7,233,718 or $0.12 per share of common stock
during the first six months of 2008, compared to a net income in
the first six months of 2007 to common shareholders of $121,591 or
$0.00 per share of common stock. The Company recognized $7,939,308
in revenues from its Kansas Properties and the Swan Creek field
during the first six months of 2008 compared to $3,992,839 in the
first six months of 2007. The increase in revenues was due to a
7,153 net barrel increase in oil sales and an increase in oil
prices in the first six months of 2008 of an average of $104.37 per
barrel as compared to $55.85 per barrel in the first six months of
2007. The Company's operating income for the first six months of
2008 was $3,046,718 or $0.05 per share in 2008 compared to
operating income in the same period in 2007 of $121,591. The
Company recorded the remaining net operating loss carry forwards of
$5,227,000 in the first quarter of 2008 and recorded non-cash
income tax expense of $1,040,000 for the first six months net
income.
Jeffrey R. Bailey, Chief Executive Officer, said, "Our second
quarter 2008 results are not just the result of record high
commodity prices but increased production volumes from Company
properties. The Company's income from operations in the second
quarter of 2008 exceeded the Company's income from operations for
the entire calendar year 2007. The Company set records in the first
six months of 2008 for all performance measures of revenues,
income, earnings, and production. In July 2008, with the addition
of the Riffe Field properties purchased from Black Diamond Oil, we
have also set a new monthly oil production record by the Company of
more than 21,000 gross barrels. Our second quarter results do not
include any volumes from the Black Diamond acquisition that was
effective July 1, the beginning of the third quarter. Early third
quarter results from the Black Diamond properties indicate that our
daily produced volumes have increased by about 82 barrels per day
from this new property. We have drilled 6 wells since the beginning
of 2008 resulting in 5 producing wells and 1 dry hole. Two of these
wells were completed in July 2008 with production beginning in late
July. All of these six wells were drilled using the Company's cash
flow, with no transfer of working interest in the wells required
and we expect this to continue with future drilling in this period
of high commodity prices. One of our new oil wells, the Albers #1
well in Trego County, Kansas appears to be an excellent well, with
initial production in the range of 50 barrels per day. We believe
this demonstrates that this area of Trego County is one in which
our investment in technology has produced favorable results. The
Albers #1 is our fourth well in this area, with the first three
being dry holes that nevertheless provided the reservoir
information we needed to best use our 3D seismic analysis. We
believe the Company is well positioned to continue to benefit from
current high oil prices and to continue to expand production
volumes by additional Kansas drilling."
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: Jeffrey R. Bailey CEO 865-675-1554
Tengasco (AMEX:TGC)
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