KNOXVILLE, Tenn., Jan. 31, 2011 /PRNewswire/ -- Tengasco, Inc.
(NYSE Amex: TGC) announced that it has begun drilling a series of
ten wells planned for the first quarter of 2011 on its properties
in Kansas targeting oil. A
drilling contractor has agreed to drill the ten additional wells in
succession for the Company. The ten wells planned are in
addition to the two wells that the Company began drilling in
Kansas in late 2010.
Jeffrey R. Bailey, Chief
Executive Officer of the Company, said, "Of the 12 wells to be
drilled, we have drilled six wells to date, resulting in two dry
holes, and four wells currently in some phase of completion as
producers. The first completed well was the Albers A # 2 which has
averaged about 10 barrels of oil per day in the SW Trego discovery area. The Verveka D#2 is
being completed now, and appears to be a likely producer and future
polymer candidate in one of our core areas near Webster, an area
where several more wells are planned. The last well drilled is the
Coddington #5, with completion of the well expected during the next
few days, weather permitting. American Eagle, our drilling
contractor, just finished drilling the sixth of these wells, the
Nutsch A#1 which tested oil from the Arbuckle and will be completed
in the next few weeks. We are currently formulating
additional specific drilling plans beyond the first quarter of
2011. We are expecting a busy year in 2011 for our drilling
in Kansas, but this will largely
depend on oil price levels and resulting cash flows during the
course of the year. We are pleased to be drilling all of
these wells in the first quarter primarily from Company cash flows
and without involvement of any drilling partners or participants."
The Company also announced that it recently filed amendments to
its Form 10-K for the year ended December
31, 2009 to provide additional disclosure to a small number
of specific items, primarily related to the reserve information
included in the original filing. The Company has not yet
filed its Form 10-K for the year ended December 31, 2010. The Company intends to
file its Form 10-K for 2010 and to simultaneously issue an earnings
press release, on or before March 31,
2011.
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 2011 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.
SOURCE Tengasco, Inc.