$3.4 million developmental lease and well awarded to Tengasco by Tennessee Circuit Court; Landmark declaratory judgment completes production plans for Swan Creek prospect.KNOXVILLE, Tenn.--(BUSINESS WIRE)--Sept. 24, 1996--Tengasco Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). :TNGO) has asked for and won a summary judgment against Eastern American Energy Corp. for drilling lease rights to a 647-acre tract of land in Hancock County, Tenn. Court documents showed that the defendants had filed affidavits declaring the cost of drilling and completing the well on the property to be $3.4 million. Eastern American had held a drilling lease on the property, but Tennessee Code Annotated 66-7-103 requires leaseholders to show production from the lease in order to extend their lease rights beyond a maximum of ten years. In its summary judgment, the Court held that the Defendant's lease was no longer valid because they had not met this requirement. Lease rights reverted to landowners Paul and Lucille Reed, who have leased the 647-acre tract and well to Tengasco. The lease is an important component in Tengasco's ongoing development of its Swan Creek Prospect, where they are constructing a 23-mile pipeline scheduled for completion by the end of this year. "This case is a landmark decision for landowners who've signed lease agreements years ago and don't know Don't know (DK, DKed) "Don't know the trade." A Street expression used whenever one party lacks knowledge of a trade or receives conflicting instructions from the other party. that they have a right to expect either production from their land or the right to give another exploration company a try," said Ted Scallan, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Tengasco. "It's good news for the little guys." Tengasco is one of East Tennessee's newest publicly traded companies publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. and was formed in early 1995 to explore for and produce major oil and gas accumulations in the Appalachian Region. The company is currently in the process of applying to be listed on the national NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on system. Current daily OTC trading volume Trading volume The number of shares transacted every day. As there is a seller for every buyer, one can think of the trading volume as half of the number of shares transacted. That is, if A sells 100 shares to B, the volume is 100 shares. is approximately 10,000 shares. CONTACT: Media: Ackermann Public Relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most Cindy McConkey or Robert Cathey, 423/584-0550 or Financial: Tengasco Inc. Ted P. Scallan, 423/523-1124 or 423/688-0582 |
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