Tango Reports 2009 Financial and Operating Results
May 27 2010 - 4:05PM
Marketwired Canada
Tango Energy Inc. (TSX VENTURE:TEI) ("Tango") is pleased to report on its
unaudited financial and operating results for the three months ended March 31,
2010.
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Three Months Ended March 31,
2010 2009
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Financial Results ($000s, except per share
amounts)
Gross revenues 1,948 1,304
Loss before taxes (928) (1,555)
Net loss (699) (1,126)
Per share - basic $ (0.01) $ (0.02)
Per share - diluted $ (0.01) $ (0.02)
Additions to property and
equipment (net of proceeds) 526 1,144
Total assets 32,630 35,662
Working capital (deficiency) (1,305) 572
Asset retirement obligation 654 700
Future income taxes 4,407 5,523
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Share Data (000s)
Equity outstanding
Common shares 65,775 65,775
Stock options 4,390 5,375
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Fully diluted 70,165 71,150
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Sales Volumes (average)
Natural gas (mcf/d) 3,997 2,673
Crude oil, liquids and sulphur (bbls/d) 17 14
Average boe/d 683 459
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Product Prices (average)
Natural gas ($/mcf) 5.08 5.13
Crude oil and liquids ($/bbl) 68.99 42.99
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Netback Analysis ($/boe)
Oil and gas revenue 31.45 31.18
Gathering income 0.23 0.39
Royalty expense 4.88 9.17
Operating costs 9.24 10.19
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Netback 17.56 11.37
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Sales volumes averaged 683 barrels of oil equivalent per day ("boepd") during
the three months ended March 31, 2010, a 36% increase over the 504 boepd over
the last quarter of 2009. Tango's production is currently approximately 750
boepd.
During the three months ended March 31, 2010, Tango optimized operated
production, and completed, equipped and placed the Quaich 12-34-09-03W5 well on
production. Tango has a 60% working interest in the 12-34-09-03W5 well.
As of March 31, 2010 Tango had 53,922 gross, 31,485 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 24,671 net acres of
land were undeveloped at March 31, 2010.
On January 18, 2010 Tango announced that it had hired Peters & Co. Ltd. as its
financial Advisor to assist in a Strategic review process. On April 16, 2010
Tango announced that it has entered into an amalgamation agreement with Tamarack
Valley Energy Ltd. ("Tamarack"), a private company, which will result in the
issue of approximately 55.1 million common shares.
The Amalgamation will result in the acquisition of all of the outstanding common
shares of Tamarack by Tango with Tamarack shareholders receiving 11.538462 Tango
common shares for each Tamarack common share. The Agreement also provides for
the appointment of a new management team, a reconstitution of the board of
directors, approval of a "10% rolling" stock option plan and a name change.
Completion of the transaction is subject to a number of conditions and approvals
including, but not limited to, the final approval of the TSXV and completion of
the private company acquisition. The transaction also requires the approval of
the shareholders of Tango and Tamarack. The required approval of the
shareholders of Tango will be obtained at its annual and special meeting of
shareholders to be held on June 17, 2010.
For a copy of Tango's March 31, 2010 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.
The TSX Venture Exchange has not reviewed and does not accept responsibility for
the adequacy or accuracy of this release. 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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