Tango Updates Provides Upward Revision to Year-End Reserves
February 10 2010 - 5:47PM
Marketwired Canada
Tango Energy Inc. ("Tango") (TSX VENTURE:TEI) provides the following upward
revision to its petroleum and natural gas reserves as of December 31, 2009 due
to a mechanical pricing error in the prior reserves report. The following
summary updates the summary contained in a press release dated January 29, 2010.
The following tables provide information on Tango's petroleum oil and gas
reserves and the present value of the estimated future net cash flow associated
with such reserves as at December 31, 2009. The information set forth below is
derived from the Paddock Lindstrom and Associates Ltd. ("PLA") report, which has
been prepared in accordance with the standards contained in the COGE Handbook
and the reserves definitions contained in NI 51-101. It should not be assumed
that the estimated future net cash flow shown below is representative of the
fair market value of the Corporation's properties. There is no assurance that
such price and cost assumptions will be attained and variances could be
material. "Gross" reserve quantities include the Company's share of reserves
before royalty plus royalty income volumes. "Net" reserve quantities include the
Company's share of reserves after royalty plus royalty income volumes.
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SUMMARY OF OIL AND GAS RESERVES
AND NET PRESENT VALUES OF FUTURE NET REVENUE
as of December 31, 2009
FORECAST PRICES AND COSTS
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RESERVES
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NATURAL GAS NATURAL GAS BOE's
LIQUIDS
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Gross Net Gross Net Gross Net
RESERVES CATEGORY (mmcf) (mmcf) (mbbl) (mbbl) (mbbl) (mbbl)
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PROVED
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Developed Producing 3,170 2,094 12 7 540 356
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Developed Non-Producing 4,228 3,170 28 18 732 546
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Undeveloped - - - - - -
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TOTAL PROVED 7,398 5,264 40 25 1,272 902
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PROBABLE 6,488 4,901 73 49 1,155 866
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TOTAL PROVED PLUS PROBABLE 13,886 10,165 113 74 2,427 1,768
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NET PRESENT VALUES OF FUTURE NET REVENUE
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BEFORE INCOME TAXES DISCOUNTED AT
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RESERVES CATEGORY 0% (m$) 5% (m$) 10% (m$) 15% (m$) 20% (m$)
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PROVED
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Developed Producing 10,405 8,860 7,748 6,915 6,270
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Developed Non-Producing 17,647 14,726 12,729 11,254 10,112
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Undeveloped - - - - -
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TOTAL PROVED 28,052 23,586 20,477 18,169 16,382
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PROBABLE 27,774 18,930 13,752 10,423 8,138
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TOTAL PROVED PLUS PROBABLE 55,826 42,516 34,229 28,592 24,520
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NET PRESENT VALUES OF FUTURE NET REVENUE
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AFTER INCOME TAXES DISCOUNTED AT
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RESERVES CATEGORY 0% (m$) 5% (m$) 10% (m$) 15% (m$) 20% (m$)
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PROVED
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Developed Producing 10,404 8,860 7,748 6,915 6,270
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Developed Non-Producing 14,008 11,859 10,382 9,284 8,426
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Undeveloped - - - -
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TOTAL PROVED 24,412 20,719 18,130 16,199 14,696
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PROBABLE 20,864 14,095 10,126 7,571 5,818
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TOTAL PROVED PLUS PROBABLE 45,276 34,814 28,256 23,770 20,514
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SUMMARY OF PRICING AND INFLATION RATE ASSUMPTIONS
as of December 31, 2009
FORECAST PRICES AND COSTS
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NATURAL GAS Condensate INFLATION EXCHANGE
AECO C Edmonton RATES RATE
Year ($Cdn/mmBTU) ($Cdn/bbl) %/Year ($US/Cdn)
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Forecast
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2010 5.82 83.25 0.0 0.95
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2011 6.29 85.87 2.0 0.95
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2012 6.77 88.49 2.0 0.95
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2013 7.28 93.77 2.0 0.95
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2014 7.80 99.05 2.0 0.95
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Forecast product prices and operating costs were escalated at a rate of 2.0% per
year beyond 2014. The exchange rate used for the US/Canadian dollar was 0.95.
The forecast prices presented above utilize PLA's price forecast as at December
31, 2009.
Additional reserve information will be included in Tango's NI 51-101 report,
which will be filed on SEDAR.
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 of such
forward-looking statements. 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.
BOE's may be misleading, particularly if used in isolation. In accordance with
NI 51-101, a barrel of oil equivalent (boe) conversion ratio of 6 mcf: 1 boe is
based on an energy equivalency conversion method primarily applicable at the
burner tip and does not represent a value equivalency at the wellhead.
Abbreviations used are defined as flows: m$ (thousands of dollars); mcf
(thousand standard cubic feet); mmcf (million standard cubic feet); mboe
(thousands of barrels of oil equivalent); mmBTU (million British Thermal Units).
The aggregate of the exploration and development costs incurred in the most
recent financial year and the change during that year in the estimated future
development costs generally will not reflect total finding and development costs
related to reserve additions for that year.
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