GREENWOOD VILLAGE, Colo.,
March 28, 2019 /PRNewswire/
-- Tengasco, Inc. (NYSE American: TGC) announced today that it
has filed with the Securities and Exchange Commission its Annual
Report on Form 10-K for the year ended December 31, 2018.
The Company reported net income from continuing operations of
$442,000 or $0.04 per share in 2018 compared to a net loss
from continuing operations of $(603,000) or $(0.06) per share in 2017. In addition to
the net income from continuing operations, the Company also
reported net income from discontinued operations of $1,127,000 or $0.11
per share in 2018 compared to $29,000
or $0.00 per share in 2017. The
increase in net income from discontinued operations was primarily
related to recording a gain on the sale of the methane facility
assets completed in January 2018.
The Company realized revenues of approximately $5.9 million in 2018 compared to $4.7 million in 2017. During 2018, revenues
increased approximately $1.2 million
of which $1.4 million of this
increase related to a $14.05 per
barrel increase in the average oil price received from $45.43 per barrel received in 2017 to
$59.48 per barrel received in
2018. This was partially offset by a $192,000 decrease related to a decrease in oil
sales volumes from 102.4 MBbl in 2017 to 98.2 MBbl in 2018.
The more significant production declines were experienced in the
Albers, Albers B, Coddington, Croffoot B, McElhaney, McElhaney A,
Veverka B, and Veverka C leases. These decreases were
primarily due to natural declines. These production declines
were partially offset by certain production increases as a result
of polymers performed in late Q2 and early Q3 of 2018 and
completion of the BSU #1-30 well in Q4 2018.
The Company reported total proved oil reserves at December 31, 2018 of 1,094,000 barrels, valued at
approximately $14.0 million on a
discounted future net cash flow basis before effect of income
taxes, up from 870,000 barrels, valued at $8.2 million at December
31, 2017. The increases in proved reserve volume and
value result primarily from higher pricing that enabled us to
consider certain properties as becoming economic or remaining
economic longer and to consequently be placed into or remain longer
within a category of proved reserves included in the Company's
proved reserves.
Michael J. Rugen, CEO, said
"Increases in oil prices during 2018 allowed the Company to return
to profitability in 2018. The increase in oil pricing also resulted
in an increase in volume and value of the Company's proved reserves
year over year. Using the funds received from the sale of our
methane facility assets, the Company was able to perform polymer
work on its own wells in the second and third quarters of 2018
as well as drilling two wells in Kansas on an operated basis. One of
those wells was completed as a producing well in October
2018. The Company realized approximately 7,100 barrels of net
production from the polymers and completed well during 2018.
In addition, the Company is continuing to evaluate other
acquisitions, joint ventures, or corporate opportunities."
The statements contained in this release that are not purely
historical are forward-looking statements within the meaning of
applicable securities laws. The Company's actual results
could differ materially from the forward-looking statements.
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SOURCE Tengasco, Inc.