GREENWOOD VILLAGE, Colo.,
Aug. 13, 2019 /PRNewswire/ --
Tengasco, Inc. (NYSE American: TGC) announced today its financial
results for the quarter ended June
30, 2019. The Company reported net income from
continuing operations of $9,000 or
$0.00 per share of common stock
during the second quarter of 2019 compared to a net income from
continuing operations of $99,000 or
$0.01 per share of common stock
during the second quarter of 2018. The $90,000 decrease in net income was primarily due
to an $85,000 decrease in
revenues.
The Company recognized $1.4
million in revenues during the second quarter of 2019
compared to $1.5 million during the
second quarter of 2018. The $85,000
decrease in net revenue was due to a $173,000 reduction resulting from a $6.87 per barrel decrease in the average oil
price from $61.86 per barrel during
the second quarter of 2018 to $54.98
per barrel during the second quarter of 2019, partially offset by
an $88,000 increase related to the
1.4 MBbl increase in sales volumes. The 1.4 MBbl increase was
primarily due to higher sales volumes on the Veverka D lease due to
polymer work performed in June 2018
and higher sales volumes attributed to the BSU #1-30 well that was
completed in October 2018.
The Company reported a net loss from continuing operations of
$87,000 or $0.01 per share of common stock during the first
six months of 2019 compared to a net income from continuing
operations of $232,000 or
$0.02 per share of common stock
during the first six months of 2018. The $319,000 decrease in net income was primarily due
to a $281,000 decrease in revenues,
and a $51,000 increase in production
cost and taxes, partially offset by a $25,000 increase in gain on sale of assets.
The Company recognized $2.56
million in revenues during the first six months of 2019
compared to $2.84 million during the
first six months of 2018. The revenue decrease from 2018 levels was
due to a $344,000 reduction related
to an $7.09 per barrel decrease in
the average oil price from $59.61 per
barrel during the first six months of 2018 to $52.53 per barrel during the first six months of
2019, partially offset by a $67,000
increase related to an 1.1 MBbl increase in sales volumes.
The 1.1 MBbl increase was primarily due to higher sales volumes on
the Veverka D lease due to polymer work performed in June 2018 and higher sales volumes attributed to
the BSU #1-30 well that was completed in October 2018.
Michael J. Rugen, CEO said, "The
Company has agreed to participate in the drilling of two wells in
Kansas on leases owned by third
parties. The Company will operate one of these wells, and be
a nonoperator in the other well. These are expected to be
drilled in the third quarter. These will be funded mostly from cash
flows, without borrowing under its borrowing base with Prosperity
Bank. We have recently seen a sudden drop in oil commodity
pricing, which we expect to have a corresponding effect on our
revenues in the third quarter if pricing does not rebound as
quickly as it dropped. The Company continues to evaluate other
acquisitions, joint ventures, or corporate opportunities that may
add shareholder value."
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.