GREENWOOD VILLAGE, Colo.,
Jan. 14, 2020 /PRNewswire/
-- Tengasco, Inc. (NYSE American: TGC) today announced that
its Board of Directors has commenced a process to explore potential
transactions or combinations in order to maximize shareholder
value. These alternatives may include continuing as a standalone
public company, going private, acquiring businesses within or
outside of the energy industry, and other business combinations.
The Board has retained Roth Capital Partners, LLC as its financial
advisor in connection with the process of reviewing potential
transactions.
Tengasco is an oil and gas exploration and production company
with conventional oil producing assets primarily located in the
Central Kansas Uplift, Kansas. In
2018, the Company sold non-core methane facility assets in Carter
Valley, Tennessee to focus on its
existing oil properties. Currently Tengasco, has no
outstanding bank debt, maintains a positive working capital
position, and has a neutral to positive monthly EBITDA.
"Despite navigating challenging oil markets, Tengasco has
carefully maintained its national exchange listing and a clean
balance sheet. These characteristics make Tengasco a prime
candidate for businesses seeking to go public that may not have a
traditional IPO route available to them," stated Michael J. Rugen, Tengasco's Chief Executive
Officer. "While there appear to be larger public vehicles (for
example, special purpose acquisition companies [SPACs]) with larger
transaction thresholds, we continue to believe there is a gap in
access for small and medium-sized businesses that have a desire to
go public. We believe Tengasco should explore options to possibly
meet this need."
Alexander M. Montano, Managing
Director of the Energy Investment Banking Team at Roth Capital
Partners said "Tengasco has set itself apart from its peers by
being a good steward of capital in a period of highly-levered
balance sheets, but most importantly, maintaining its value as a
solid, listed, publicly reporting issuer. Tengasco has a platform
that should be able to raise institutional capital with the right
identified acquisition."
There can be no assurance that the Company's review process will
result in any successful transaction or other outcome. The Company
does not intend to comment further publicly or publicly discuss the
review process unless and until its Board of Directors has approved
a definitive transaction, or otherwise determined that further
disclosure is appropriate or is required by law.
To inquire more about this process please contact Roth Capital
Partners at energy@roth.com
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, risks of downturns in economic conditions
generally, risks associated with the review of business combination
alternatives, and other risks detailed from time to time in the
Company's filings with the Securities and Exchange Commission.
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SOURCE Tengasco, Inc.