GREENWOOD VILLAGE, Colo.,
March 28, 2018 /PRNewswire/
-- Tengasco, Inc. (NYSE American: TGC) announced today that it
has filed with the Securities and Exchange Commission its Annual
Report on Form 10-K for the year ended December 31, 2017.
The Company reported net loss from continuing operations of
$(574,000) or $(0.06) per share in 2017 compared to
$(4.2) million or $(0.69) per share in 2016. Included in the
2016 net loss was a $2.8 million
non-cash impairment of the Company's oil and gas properties and
equipment inventory. Net loss before effect of the impairment
was $(1.4) million or $(0.23) per share in 2016 (a non-GAAP financial
measure – see GAAP to Non-GAAP Reconciliation at the end of this
press release).
The non-cash impairment of oil and gas properties resulted from
ceiling test failures during the quarters ended March 31, 2016, June 30,
2016, and September 30,
2016. However, there was no additional oil and gas property
impairment taken during the quarter ended December 31, 2016 nor during the year ended
December 31, 2017. These
ceiling test failures were primarily a result of low oil prices
experienced since late 2014.
The Company realized revenues of approximately $5.3 million in 2017 compared to $4.7 million in 2016. During 2017, revenues
increased approximately $591,000 of
which $809,000 of this increase
related to a $7.90 per barrel
increase in the average oil price received from $37.53 per barrel received in 2016 to
$45.43 per barrel received in
2017. This was partially offset by a $223,000 decrease related to decreases in oil
sales volumes from 108.3 MBbl in 2016 to 102.4 MBbl in 2017.
The more significant production declines were experienced in the
Albers, Albers A, Howard A, Lewis, Liebenau, McElhaney A,
Schneller, and Veverka B leases. These decreases were
primarily due to natural declines.
The Company reported total proved oil reserves at December 31, 2017 of approximately 870,000
barrels, valued at $8.2 million on a
discounted future net cash flows basis before effect of income
taxes, up from approximately 730,000 barrels valued at $5.8 million at December
31, 2016. The increases in proved reserves volume and
value result primarily from increased pricing that enabled us to
consider certain properties as being economic, or remaining
economic longer, and to thereby be placed into, or remain longer
in, a category of proved reserves eligible for inclusion in the
Company's proved reserves.
Michael J. Rugen, CEO, said,
"Calendar year 2017 provided some modest improvement in oil prices,
and ushered in what we hope to be the conclusion of noncash
reserves writedowns caused by the extended periods of low prices.
We also experienced about an $8 per
barrel increase in our average oil price received in 2017 over the
prior year's average price. As a result, the results of operations
in 2017 show marked improvement over those in 2016, although not
yet enough to offset the effects of naturally decreasing production
volumes from existing wells and return us to profitability. The
increase in oil pricing also resulted in an increase in volume and
value of the Company's proved reserves year over year. We
continue to await oil pricing improvement sufficient to justify
increased drilling activity. Higher oil prices helped support
an increase in our borrowing base with our senior lender,
Prosperity Bank. Our borrowing base now stands at
$2.0 million and our current
borrowings still remain at zero. With our available borrowing
capability and the $2.65 million
received from the sale of our Tennessee methane facility assets completed in
January 2018 the Company plans to
drill additional wells during 2018. In addition, the Company
will continue to evaluate other corporate opportunities,
acquisitions, or joint ventures that may add value to the Company
going forward."
The statements contained in this release that are not purely
historical are forward-looking statements within the meaning of
applicable securities laws. The Company's actual results
could differ materially from the forward-looking statements.
GAAP to Non-GAAP
Reconciliation ($ millions, except per share data)
|
|
|
Year Ended
|
Year Ended
|
|
December 31,
2017
|
December 31,
2016
|
|
|
|
Net loss (US
GAAP)
|
$
|
(0.6)
|
$
|
(4.2)
|
Impairment
|
|
$
|
2.8
|
Net income from
continuing operations before effect
of impairment
|
$
|
(0.6)
|
$
|
(1.4)
|
|
|
|
Net loss per share –
basic and diluted (US GAAP)
|
$
|
(0.06)
|
$
|
(0.69)
|
Impairment – basic
and diluted
|
|
$
|
0.46
|
Net income per share
before effect of impairment –
basic and diluted
|
$
|
(0.06)
|
$
|
(0.23)
|
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SOURCE Tengasco, Inc.