Tengasco Reports 2003 Results of Operations and Results of Rights Offering
March 31 2004 - 10:01AM
PR Newswire (US)
Tengasco Reports 2003 Results of Operations and Results of Rights
Offering KNOXVILLE, Tenn., March 31 /PRNewswire-FirstCall/ --
Tengasco, Inc. announced that it has filed its Annual Report on
Form 10-K for the year ending December 31, 2003. The Company
realized oil and gas revenues of $6,040,872 in 2003 compared to
$5,437,723 in 2002 and $6,656,758 in 2001. The increase in revenues
in 2003 from 2002 was due to an increase in gas and oil prices in
2003. Prices for gas produced from the Swan Creek Field averaged
$5.38 per MCF in 2003 compared to $3.22 in 2002. Prices for oil
produced from the Swan Creek Field averaged $26.87 per barrel in
2003 compared to $21.85 in 2002. Prices for gas produced from the
Kansas Properties averaged $4.73 per MCF in 2003 compared to $2.96
in 2002. Prices for oil produced from the Kansas Properties
averaged $29.00 per barrel in 2003 compared to $23.89 in 2002. The
increase in prices was partially offset by a reduction in volumes
produced.The Company sold 1,004,899 MCF of natural gas from Swan
Creek and Kansas in 2002 compared to 620,873 MCF in 2003. The
Company also sold 147,243 barrels of oil from Swan Creek and Kansas
in 2003, compared to 157,973 barrels in 2002. The reason for the
decrease in volumes produced in 2003 was the Company's dispute with
its primary lender Bank One N.A. which significantly limited the
Company's ability to drill new wells and to work over
under-producing wells in Kansas. The Company incurred a net loss to
holders of common stock of $2,815,119 ($0.24 per share) in 2003
compared to a net loss of $3,661,344 ($0.33 per share) in 2002 and
a net loss of $2,653,970 ($0.26 per share) in 2001. The Report
stated the results of the Company's recently concluded rights
offering. The rights offering was a distribution to the holders of
the Company's common stock on the record date, February 27, 2004,
of a non- transferable subscription right to purchase three shares
of the Company's common stock for each share of common stock owned
at a price of $0.25 per each share purchased. Each subscription
right carried with it an over-subscription privilege to seek to
purchase a portion of the offered shares that were not purchased by
other stockholders through the exercise of their basic subscription
privilege at the same subscription price per share. The offering
expired on March 18, 2004. All 36.3 million shares available in the
rights offering were subscribed for and, as a result the Company
raised approximately $9.1 million. The number of shares subscribed
for exceeded the 36.3 million shares available for issuance under
the offering by 20,790,806 shares. All shares subscribed for under
the basic privilege were issued and the number shares issued under
the oversubscription privilege was proportionately reduced to equal
the number of remaining shares. The allocation and issuance of the
shares under the oversubscription privilege was made by Mellon
Investor Services, the Company's subscription agent. MellonInvestor
Services will return the payments received for the additional
shares that were subscribed for under the oversubscription
privilege but were ultimately not available in the offering.
Pursuant to the rights offering, 7,029,604 rights were exercised
under the basic subscription privilege, resulting in the issuance
of 21,088,812 shares at $0.25 per share for gross proceeds to the
Company of $5,272,203 from the basic subscription privilege. A
total of 15,211,188 shares were issued under to the
oversubscription privilege, resulting in additional gross proceeds
to the Company of $3,802,797. 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 2003 and thereafter; the Company's going
concern qualification; 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 resultscould
differ materially from the forward-looking statements. DATASOURCE:
Tengasco, Inc. CONTACT: Dr. Richard T. Williams, +1-865-523-1124,
for Tengasco, Inc. Web site: http://www.tengasco.com/
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