Tango Reports 2009 Financial and Operating Results
March 29 2010 - 4:16PM
Marketwired Canada
Tango Energy Inc. ("Tango") (TSX VENTURE:TEI) is pleased to report on its
audited financial and operating results for the year ended December 31, 2009.
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Three Months Ended Years Ended
December 31, December 31,
2009 2008 2009 2008 2007
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Financial Results ($000s, except
per share amounts)
Gross revenues 1,367 1,131 4,455 8,528 10,973
Loss before taxes (864) (1,069) (4,771) (2,260) (2,928)
Net loss (584) (608) (3,423) (1,603) (1,427)
Per share - basic (0.01) (0.01) (0.05) (0.02) (0.03)
Per share - diluted (0.01) (0.01) (0.05) (0.02 (0.03)
Additions to property and
equipment (net of proceeds) 1,049 4,532 3,946 (3,370) 11,332
Total assets 33,865 38,557 33,865 38,557 43,854
Working capital (deficiency) (1,479) 1,362 (1,479) 1,362 (5,035)
Asset retirement obligations 669 519 669 519 656
Future income taxes 4,631 5,948 4,631 5,948 4,963
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Share Data (000s)
Equity outstanding
Common shares 65,775 65,775 65,775 65,775 65,725
Stock options and warrants 4,390 3,515 4,390 3,515 3,405
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Fully diluted 70,165 69,290 70,165 69,290 69,130
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Sales Volumes (average)
Natural gas (mcf/d) 2,911 1,717 2,687 2,371 4,121
Crude oil and liquids (bbls/d) 19 19 17 30 28
Average boe/d 504 305 465 425 716
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Product Prices (average)
Natural gas ($/mcf) 4.68 6.60 4.14 8.54 6.75
Crude oil and liquids ($/bbl) 60.44 34.87 54.36 89.55 69.09
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Netback Analysis ($/boe)
Oil and gas revenue 29.26 39.34 25.92 53.95 41.56
Gathering income 0.24 0.39 0.27 0.35 0.36
Royalty expense 4.92 12.14 2.98 15.86 8.43
Operating costs 10.06 11.04 11.19 9.81 8.54
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Netback 14.52 16.55 12.02 28.63 24.95
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Sales volumes averaged 465 barrels of oil equivalent per day ("boepd") during
the year ended December 31, 2009, a 9% increase over the 425 boepd over 2008.
Tango's production is currently approximately 750 boepd.
During the three months ended December 31, 2009, Tango focused on optimizing
operated production and completing the Quaich 12-34 well. In early January the
12-34 well was tied in and placed on production. Tango has a 60% working
interest in the two producing wells at Quaich.
As of December 31st, 2009 Tango had 44,322 gross (25,854 net) acres of land
located west of the fifth and sixth meridian within the foothills and deep basin
portion of the Western Canadian Sedimentary Basin. Of this amount 19,039 net
acres of land were undeveloped at year end, and subsequent to year end Tango
acquired an additional interest in 9,600 gross and 5,440 net acres of land all
in the Quaich Area of Alberta.
Tango recently participated in the drilling and completion of a second well in
Quaich at 12-34. The well was completed prior to December 31st, 2009 and then
brought on production on January 8th, 2010. Tango's 60% share of the 12-34 well
at Quaich started production at a restricted rate of 1.6 million cubic feet per
day (45 e3m3) at a flowing pressure of 1000 psi (6.900 kpa), or 445 boepd gross
(267 boepd net).
All capital spending by Tango in 2010 will be funded by funds flow from
operations and draws upon our existing line of credit. Tango's 2010 capital
spending program is primarily targeted towards the further delineation of the
Quaich prospect, and optimizing existing production in Tango's current
properties. The majority of expenditures are scheduled for the second half of
2010. Tango currently has available bank lines of $5 million which are scheduled
for review in May 2010 of which $1.5 million was used at December 31, 2009.
On January 18, 2010 Tango announced that it had hired Peters & Co. Ltd. as its
financial Advisor to assist in a Strategic review process. In that regard, 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
that these efforts will be successful.
Tango also announces it has filed its detailed reserves information required by
National Instrument 51-101 of the Canadian Securities Administrators, including
the Statements and Reports required by Forms 51-101F1, 51-101F2 and 51-101F3. A
copy of the N51-101 reports can be viewed on SEDAR at www.sedar.com.
For a copy of Tango's December 31, 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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