KNOXVILLE, Tenn., Jan. 31, 2011 /PRNewswire/ -- Tengasco, Inc. (NYSE Amex: TGC) announced that it has begun drilling a series of ten wells planned for the first quarter of 2011 on its properties in Kansas targeting oil. A drilling contractor has agreed to drill the ten additional wells in succession for the Company. The ten wells planned are in addition to the two wells that the Company began drilling in Kansas in late 2010.
Jeffrey R. Bailey, Chief Executive Officer of the Company, said, "Of the 12 wells to be drilled, we have drilled six wells to date, resulting in two dry holes, and four wells currently in some phase of completion as producers. The first completed well was the Albers A # 2 which has averaged about 10 barrels of oil per day in the SW Trego discovery area. The Verveka D#2 is being completed now, and appears to be a likely producer and future polymer candidate in one of our core areas near Webster, an area where several more wells are planned. The last well drilled is the Coddington #5, with completion of the well expected during the next few days, weather permitting. American Eagle, our drilling contractor, just finished drilling the sixth of these wells, the Nutsch A#1 which tested oil from the Arbuckle and will be completed in the next few weeks. We are currently formulating additional specific drilling plans beyond the first quarter of 2011. We are expecting a busy year in 2011 for our drilling in Kansas, but this will largely depend on oil price levels and resulting cash flows during the course of the year. We are pleased to be drilling all of these wells in the first quarter primarily from Company cash flows and without involvement of any drilling partners or participants."
The Company also announced that it recently filed amendments to its Form 10-K for the year ended December 31, 2009 to provide additional disclosure to a small number of specific items, primarily related to the reserve information included in the original filing. The Company has not yet filed its Form 10-K for the year ended December 31, 2010. The Company intends to file its Form 10-K for 2010 and to simultaneously issue an earnings press release, on or before March 31, 2011.
The statements contained in this release that are not purely historical are forward-looking statements within the meaning of applicable securities laws. Forward-looking statements include statements regarding "expectations," "anticipations," "intentions," "beliefs," or "strategies" regarding the future. Forward-looking statements also include statements regarding revenue, margins, expenses, and earnings analysis for 2011 and thereafter; oil and gas prices; reserve calculation and valuation; exploration activities; development expenditures; costs of regulatory compliance; environmental matters; technological developments; future products or product development; the Company's products and distribution development strategies; potential acquisitions or strategic alliances; and liquidity and anticipated cash needs and availability. The Company's actual results could differ materially from the forward-looking statements.SOURCE Tengasco, Inc.