Tengasco Announces First Quarter 2012 Financial Results and Results of Operations
KNOXVILLE, Tenn., May 15, 2012 /PRNewswire/ -- Tengasco, Inc. (NYSE Amex: TGC) announced today its financial results for the quarter ended March 31, 2012. The Company realized net income attributable to common shareholders of $0.9 million or $0.01 per share of common stock during the first quarter of 2012, compared to a net income in the first quarter of 2011 to common shareholders of $0.4 million or $0.01 per share of common stock. In the first quarter of 2012, the Company had income from operations of $1.7 million compared to income from operations of $1.0 million in the first quarter of 2011. The increase in net income attributable to common shareholders and the increase in income from operations were primarily due to the increase in Kansas oil prices and sales volumes. The increase in sales volumes resulted from increased drilling activities funded from cash flows and additional bank borrowings. Kansas oil prices in the first quarter of 2012 averaged $96.08 per barrel compared to $86.93 per barrel in the first quarter of 2011.
Commenting on the Company's operations, Jeffrey R. Bailey, Chief Executive Officer, said, "Due to our increased drilling beginning in late 2011, we continue to increase both our daily produced volumes and our proved reserves of oil in Kansas. Through today's date, this year we have drilled 19 wells with 14 producers and 5 dry holes. Four of the successful wells were proven PUD locations and 8 were successful step outs. One was an exploration well. Production in April 2012 was over 21,000 gross barrels of oil in Kansas, which is an average of 710 barrels per day. We plan to continue to work in Kansas with an active polymer and workover schedule in the second quarter. We are pleased to report that at our methane plant, the combined methane sales and electric generation revenues for the first quarter of 2012 exceeded total plant revenues for the first quarter of last year by over six times. As a result of these successful activities, compared to the first quarter of 2011, we increased our income from operations by 70%, and more than doubled our net income attributable to shareholders for the first quarter."
The Company will hold a telephone conference call on Tuesday, May 15, 2012 at 4:15 PM Eastern Daylight Time to discuss the Company's Report on Form 10-Q for the quarter ended March 31, 2012 as follows:
AUDIO: Shareholders and other interested parties may call Toll-Free (US & Canada): (888) 669-0687 and International Dial-In (Toll): (201) 604-0475 to participate in the conference call. Participants in the call will be required to register in order to participate in the conference call. In addition, the audio presentation may also be heard by going to http://www.visualwebcaster.com/event.asp?id=87307. Participants will be required to register at the above address to listen to the presentation. Registration may be completed at any time prior to the beginning of the call.
VIDEO: A slideshow corresponding with the subjects of the conference call presentation will be accessible only on Tengasco (TGC)'s website in PDF and PowerPoint formats at the time of the call.
A transcript of the conference call will be prepared 24 hours following the conference and will be available on the Company's website, which can be accessed at http://www.tengasco.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 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.
SOURCE Tengasco, Inc.