GREENWOOD VILLAGE, Colo.,
March 30, 2020 /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, 2019.
The Company reported a net loss from continuing operations of
$(436,000) or $(0.04) per share in 2019 compared to net income
from continuing operations of $442,000 or $0.04
per share in 2018. In addition to the net income from
continuing operations, the Company also reported net income from
discontinued operations of $1,127,000
or $0.11 per share in 2018. The
net income from discontinued operations in 2018 was primarily
related to recording a gain on the sale of the methane facility
assets completed in January 2018.
The Company realized revenues of approximately $4.9 million in 2019 compared to $5.9 million in 2018. During 2019, revenues
decreased approximately $960,000 of
which $689,000 of this decrease
related to a $7.36 per barrel
decrease in the average oil price received from $59.48 per barrel received in 2018 to
$52.12 per barrel received in
2019. Revenues also decreased by $266,000 related to a 4.5 MBbl decrease in oil
sales volumes from 98.2 MBbl in 2018 to 93.7 MBbl in 2019.
The decrease in volumes was primarily related to lower sales
volumes on the Veverka D lease due to declines from increased
volumes associated with the polymer work performed in mid-2018 as
well as natural declines on other properties, partially offset by
sales volumes from the BSU #1-30 well that was completed in Q4
2018.
The Company reported total proved oil reserves at December 31, 2018 of 803,000 barrels, valued at
approximately $8.4 million on a
discounted future net cash flow basis before effect of income
taxes, down from 1,094,000 barrels, valued at $14.0 million at December
31, 2018. The decreases in proved reserve volume and
value result primarily from lower oil prices experienced during
2019 compared to 2018 oil prices.
Michael J. Rugen, CEO, said "Our
year-end 2019 financials and results of operation showed a
reduction in revenues from 2018 levels caused by naturally
decreasing production volumes of crude oil and lower commodity
prices. During the last month or two, the entire oil and gas
industry worldwide has seen a severe decline in oil commodity
pricing from year-end 2019 pricing due to economic conditions
worldwide caused by the novel virus outbreak, combined with an oil
price war between Saudi Arabia and
Russia which is further depressing
crude oil pricing to levels not seen in almost 20 years. This
decline occurred very suddenly, and when conditions stabilize, we
are hopeful that pricing recovery may happen just as quickly.
However, there can be no assurances of the timing of the price
recovery, therefore, the Company will need to closely monitor its
costs and capital spending. The Company has maintained both
cash on hand and no outstanding debt under the credit facility, so
we believe we are in position to weather the current pricing
situation, at least in the short term, until prices recover.
Finally, we continue to consider all opportunities disclosed by our
ongoing process through Roth Capital that may provide additional
shareholder value. However, our advisors expect the recent
market disruptions and oil price declines may extend the duration
of the process. As noted previously, there can be no
assurance that the Company's review process will result in any
successful transaction or other outcome. The Company does not
intend to comment further publicly or publicly discuss the review
process unless and until its Board of Directors has approved a
definitive transaction, or otherwise determined that further
disclosure is appropriate or is required by law."
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.
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SOURCE Tengasco, Inc.