KNOXVILLE, Tenn., Nov. 14, 2011 /PRNewswire/ -- Tengasco, Inc.
(NYSE Amex: TGC) announced today its financial results for the
quarter ended September 30, 2011.
The Company also filed today with the SEC its report on Form
10-Q for the quarter ended September 30,
2011. The Company realized net income attributable to common
shareholders of $1.2 million or
$0.02 per share of common stock
during the third quarter of 2011, compared to a net income to
common shareholders of $0.2 million
or $0.00 per share of common stock in
the third quarter of 2010.
The Company recognized $4.4
million in revenues during the third quarter of 2011
compared to $3.3 million in the third
quarter of 2010. The increase in 2011 revenues was primarily due to
a 5 MBbl increase in sales volumes as well as a $13.85 increase in Kansas oil prices. Kansas oil prices in the third quarter of 2011
averaged $82.49 per barrel compared
to $68.64 per barrel in the third
quarter of 2010. In the third quarter of 2011, the Company
had income from operations of $1.6
million compared to income from operations of $0.5 million in the third quarter of 2010.
The increase in net income attributable to common
shareholders and the increase in income from operations were
primarily due to the increase in Kansas sales volumes and oil prices as well as
$0.5 increase in gain on derivatives.
The Company recognized $12.8
million in revenues during the first nine months of 2011
compared to $9.4 million in the first
nine months of 2010. The increase in revenues was primarily
due to an increase in oil prices in 2011, as well as a 16 MBbl
increase in sales volumes. Oil prices in the first nine
months of 2011 averaged $88.22 per
barrel compared to $70.22 per barrel
in the first nine months of 2010. The Company realized net
income attributable to common shareholders of $2.5 million or $0.04 per share of common stock during the first
nine months of 2011 compared to a net income in the first nine
months of 2010 to common shareholders of $1.2 million or $0.02 per share of common stock. During the
first nine months of 2011, the Company had income from operations
of $4.4 million compared to income
from operations of $1.5 million
during the first nine months of 2010. The increase in net
income attributable to common shareholders and the increase in
income from operations were primarily due to the increase in
Kansas sales volumes and oil
prices, partially offset by increases in costs and expenses of
$0.5 million. This increase in
net income was also partially offset by a $0.7 million decrease in gain on derivatives.
Jeffrey R. Bailey, CEO, said, "We
are continuing to grow by the drill bit. Our net income from
operations essentially tripled over the prior year period in both
the third quarter and first nine months of 2011, resulting in an
increase in earnings to $0.02 per
share for the third quarter, increasing from $0.00 in the third quarter of 2010. Over
the first nine months, earnings per share doubled to $0.04 in 2011 from $0.02 per common share in the same period in
2010."
Mr. Bailey continued, "We have drilled seven wells -- 4
producers and 3 dry holes -- since our last report, including those
drilled early in the fourth quarter. We have been targeting the
area of Trego County where we have
had seismic success in the past and have found some of our best
Kansas producers. Of the seven
recent wells, one producer and two dry holes were drilled in
Trego County. We are
currently drilling a fourth well in Trego
County. The Mississippian formation in the area south and
east of our current drilling has been a target for some extensive
competitive leasing and horizontal drilling by other larger oil
companies also looking at this same formation. We have focused in
this area to secure our lease positions by moving them into the
held-by-production category. We have also been drilling on other
areas in Kansas where we want to
hold newer leases by establishing production. Overall we believe we
have built a strong inventory of leases that have additional
drilling locations, but are currently held by production and
therefore do not require additional drilling to hold the lease.
We will return to additional developmental drilling on those
leases, when we have finished this exploration phase."
The Company will hold a telephone conference call on
Monday, November 14, 2011 at
4:15 PM Eastern Standard Time
to discuss the Company's Report on Form 10-Q for the quarter year
ended September 30, 2011 as follows:
AUDIO: Shareholders and other interested parties may call
Toll-Free (US & Canada): (888)
669-0687 and International Dial-In (Toll): (201) 604-0475 to
participate in the conference call. Participants in the call will
be required to register in order to participate in the conference
call. In addition, the audio presentation may also be heard
by going to http://www.visualwebcaster.com/event.asp?id=83696.
Participants will be required to register at the above
address to listen the presentation. Registration may be completed
at any time prior to the beginning of the call.
VIDEO: A slideshow corresponding with the subjects of the
conference call presentation will be accessible on Tengasco's
website in PDF and PowerPoint formats at the time of the call.
A transcript of the conference call will be prepared 24 hours
following the conference and will be available on the Company's
website, which can be accessed at http://www.tengasco.com.
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.
SOURCE Tengasco, Inc.