Tango Reports Third Quarter 2009 Financial and Operating Results
November 24 2009 - 3:14PM
Marketwired Canada
Tango Energy Inc. ("Tango") (TSX VENTURE:TEI) is pleased to report on its
unaudited financial and operating results for the nine months ended September
30, 2009.
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Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
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Financial Results ($000s,
except per share amounts)
Gross revenues 842 1,670 3,088 7,397
Loss before taxes (1,014) (547) (3,907) (1,192)
Net loss (731) (418) (2,839) (995)
Per share - basic (0.01) (0.01) (0.04) (0.02)
Per share - diluted (0.01) (0.01) (0.04) (0.02)
Additions to property and
equipment, net of proceeds 1,399 895 2,896 (7,902)
Total assets 34,196 38,599 34,196 38,599
Working capital (deficiency) (832) 5,763 (832) 5,763
Asset retirement obligation 695 542 695 542
Flow-through share obligations - 1,600 - 1,600
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Share Data (000s)
Equity outstanding
Common shares 65,775 65,775 65,775 65,775
Stock options and warrants 4,910 4,835 4,910 4,835
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Fully diluted 70,685 70,610 70,685 70,610
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Sales Volumes (average)
Natural gas (mcf/d) 2,482 1,697 2,612 2,590
Crude oil, liquids and sulphur
(bbls/d) 19 38 17 33
Average boe/d 433 321 452 465
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Product Prices (average)
Natural gas ($/mcf) 3.21 8.04 3.94 8.97
Crude oil and liquids ($/bbl) 51.62 101.28 52.08 100.10
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Netback Analysis ($/boe)
Oil and gas revenue 20.73 54.51 24.68 57.16
Gathering income 0.28 0.44 0.28 0.33
Royalty expense (0.45) (17.48) (2.24) (16.67)
Operating costs (10.49) (12.64) (11.61) (9.54)
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Netback 10.07 24.83 11.11 31.28
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Sales volumes averaged 433 barrels of oil equivalent per day ("boepd") during
the three months ended September 30, 2009 compared with 321 boepd for the three
months ended September 30, 2008. This increase in volumes was attributable to
the 03-03 well at Quaich.
Tango and the operator drilled and cased the Quaich 11-34 well and is currently
in the process of completing it for potential production. Tango and the operator
have more than 6,880 acres of contiguous land in the immediate area in which
Tango holds between 50% and 60% working interest. In addition to this land
position, the 11-34 well will validate an additional 3,840 acres of contiguous
land in which Tango will earn an undivided 30% working interest.
Tango has 44,322 gross (25,757 net) acres of land located west of the fifth and
sixth meridians within the foothills and deep basin portion of the Western
Canadian Sedimentary Basin. Of this amount 18,943 net acres of land were
undeveloped at the end of September 2009.
During the balance of 2009, Tango will continue to prudently deploy available
capital towards drilling, completion and tie-in operations where immediate
increases in production, cash flow, and reserves are achievable and economic.
Tango recently participated in the drilling of a second well in Quaich at 11-34.
Tango's share of the 11-34 well at Quaich is expected to cost approximately $1.8
million including drilling, completion, equipping and tie-in. The operator
expects the completion of this well to be finalized in the fourth quarter.
Capital spending will be funded by cash flow and draws upon our existing line of
credit. Tango has available bank lines in excess of $4 million. Tango bank lines
are scheduled for review in December 2009.
The Company continues to evaluate and seek merger candidates in order to grow
cash flow, improve efficiencies, and broaden our asset base. There are no
assurances these efforts will be successful.
For a copy of Tango's September 30, 2009 Financial Statements and Management
Discussion and Analysis please visit www.sedar.com.
Tango Energy Inc. is listed on the TSX-Venture Exchange under the Symbol TEI.
This release contains forward-looking information. By their nature,
forward-looking statements involve assumptions and known and unknown risks and
uncertainties that may cause actual future results to differ materially from
those contemplated. These risks include such things as volatility of oil and gas
prices, commodity supply and demand, fluctuations in currency and interest
rates, ultimate recoverability of reserves, timing and costs of drilling
activities and pipeline construction, new regulations and legislation and
availability of capital. Tango does not undertake to update any such
forward-looking statements except as required by law. Please refer to Tango's
Annual Report for more detail as to the nature of these risks and uncertainties.
Although Tango believes that the expectations represented by these forward
looking statements are reasonable, there can be no assurance that such
expectations will prove to be correct.
Natural gas volumes have been converted to a barrel of oil equivalent ("boe")
using six thousand cubic feet equal to one barrel unless otherwise stated. A boe
conversion ratio of 6:1 is based upon an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead. This conversion conforms with Canadian Securities
Regulators National Instrument 51-101 Standards of Disclosure for Oil and Gas
Activities ("NI 51-101"). Boe's may be misleading, particularly if used in
isolation.
Funds flow from operations and funds flow from operations per share and netback
are not recognized measures under Canadian generally accepted accounting
principles. Management believes that these items are a useful measure of
financial performance. Funds flow from operations is defined as net income plus
non-cash charges including, depletion, depreciation and accretion, future taxes
and stock-based compensation, after asset retirement costs. Funds flow from
operations per share is calculated by dividing the weighted average number of
shares outstanding during the year into funds flow from operations. Netback is
the average per unit of volume for oil and gas revenues less royalties and
production costs incurred. Netback is expressed in terms of dollars per boe.
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