TGC Tengasco Inc New

Tengasco Announces Second Quarter 2004 Financial Results and Drilling Results KNOXVILLE, Tenn., Aug. 23 /PRNewswire-FirstCall/ -- Tengasco, Inc. (AMEX:TGC) reported today its financial results for the quarter ended June 30, 2004 in its Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission. The Company realized a net loss attributable to common shareholders of $281,628 ($0.01) per share of common stock, during the second quarter of 2004 compared to a net loss in the second quarter of 2003 to common shareholders of $812,786 ($0.07) per share of common stock. The Company recognized $1,380,289 in oil and gas revenues from its Kansas Properties and the Swan Creek Field during the second quarter of 2004 compared to $1,436,848 in the second quarter of 2003. The decrease in revenues was due to a decrease in production from Kansas and Swan Creek oil sales and from gas sales in Swan Creek, although revenues from Kansas oil sales increased in the second quarter of 2004 from the second quarter in 2003 due to higher oil prices. The decrease in pipeline transportation revenues of $20,543 was directly related to the decrease of gas volumes in Swan Creek. Production costs and taxes in the second quarter of 2004 of $667,851 decreased from $857,970 in the second quarter of 2003 due to management's cost-controlling efforts. Depreciation, depletion, and amortization expense for the second quarter of 2004 was $564,984 compared to $628,196 in the second quarter of 2003. The Company reduced its general and administrative costs during the second quarter by $16,892 from the same quarter in 2003. The Company also reported results to date of two wells drilled to the Knox formation in the Swan Creek field in May 2004. The Hazel Sutton #3 encountered lower than expected gas volumes. The well was plugged back to the Trenton formation and completion in the Trenton has resulted in both gas and oil production while testing. The well is not currently being produced while management evaluates the effect on future possible nearby oil wells. The Stephen Lawson #8 well is producing at a rate of approximately 45,000 cubic feet of natural gas per day from the Knox formation. The Stephen Lawson #8 also had evidence of oil and gas in the shallower Trenton and Stones River formations during 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. DATASOURCE: Tengasco, Inc. CONTACT: Dr. Richard T. Williams, Tengasco, Inc., +1-865-523-1124 Web site: http://www.tengasco.com/

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