Tengasco Successfully Drills New Oil Well in Kansas.
Tengasco (Amex: TGC) announced today that it has successfully completed its first oil well in a new 20-well accelerated drilling program at its existing 33,000-acre field in the heart of the Mid-Continent area, near Hays, Kansas. The new well, the Dick Number 7, was drilled to a depth of 3,880 feet, producing an average of 135 barrels per day in the Arbuckle Dolomite formation. This is the first well drilled by Tengasco in Kansas since it acquired the field in 1998 from AFG Industries. This is also the first well drilled in the field in the last 10 years. The new drilling program utilizes 3-D seismic technology to determine depths and locations, and Tengasco geologists expect that this drilling program will significantly increase production from the field. This Kansas operation includes 273 oil and natural gas wells that have currently been producing about 28 million cubic feet of natural gas and 12,000 barrels of oil per month. Tengasco also owns and operates an 80-mile gathering pipeline system in Kansas. Company geologists confirm that with a total of 273 oil and natural gas wells drilled and completed in Kansas, Tengasco still has developed only about 40 percent of the field.
"With the addition of this new producing well, the Kansas field will now produce about 15,750 barrels of crude oil per month," states Tengasco chairman and CEO M. E. Ratliff. "We are accelerating our drilling program in Kansas, and we feel that this will substantially increase our proven reserves and net profits."
Earlier in this month Ratliff also announced stepped-up drilling operations in its Tennessee property called Swan Creek, a 50,000-acre natural gas and oil field located in Hancock County, Tennessee. Six additional oil wells were placed on the drilling schedule.
"The accelerating drilling programs in Kansas and Tennessee will significantly increase Tengasco's oil production and reserves," states Ratliff. "Four rigs are in place at this time, and we should see significant results in a few weeks."
Tengasco, Inc., headquartered in Knoxville, Tennessee, is a fully diversified energy company involved in oil and natural gas exploration and production, pipeline construction and other energy services.
Forward-looking statements made in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward looking statements involve risk and uncertainties which may cause actual results to differ from anticipated results, including risks associated with the timing and development of the company's reserves and projects as well as risks of downturns in economic conditions generally, and other risks detailed from time to time in the company's filings with the Securities and Exchange Commission.
For more information contact:
M. E. Ratliff, Chairman & CEO
603 Main Avenue, Suite 500
Knoxville, TN 37902
Bud Brooks or Lisa Bingham
The Bingham Group
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