March 29, 2013
/PRNewswire/ -- Tengasco, Inc. (NYSE MKT: TGC) announced today that it has filed with the Securities and Exchange Commission its Annual Report on Form 10-K for the year ended
The Company reported a net income from continuing operations of
per share in 2012 compared to a net income from continuing operations of
per share in 2011. The Company reported a net loss from discontinued operations of
per share in 2012 compared to a net loss from discontinued operations of
per share in 2011. The net loss from discontinued operations in 2012 consisted primarily of the impairments of the Company's pipeline assets in the amounts of approximately
, net of tax.
The Company realized net revenues of
in 2012 compared to
in 2011 and
in 2010. During 2012, revenues increased
related to increases in oil sales volumes net to the Company's interest from 189,500 barrels in 2011 to 226,600 barrels in 2012. In addition, Methane Project revenues increased
primarily from electricity sales which commenced in January 2012. These increases were partially offset by a
decrease related to a
per barrel decrease in the average oil price received from
per barrel in 2011 to
per barrel received in 2012.
The Company reported total proven reserves at
December 31, 2012
of 2.2 million barrels, valued at
on a discounted future net cash flow basis before effect of income taxes, down from 2.6 million barrels valued at
at the end of 2011. The Company also set a gross production record for the second consecutive year of 284,000 barrels, compared to 246,000 barrels of oil for 2011, also a record.
Jeffrey R. Bailey
, CEO, said, "We are pleased with the successful year of 2012 as revealed in our earnings, financial results, and record oil production levels for the second consecutive year. We set records for the most oil produced in a day, a week, a month, and any year, even drilling only in the first half of last year. This increase in production at low cost, as a result of early drilling did not go unnoticed: Tengasco was listed in the
, 2012 issue of
Oil and Gas Journal
as the ninth best oil and gas company of any size based on the metric of return on assets. The drilling performance is even more remarkable when of the 20 wells drilled, 15 were completed as producers, and 12 of those 15 were drilled on locations not contained in our proved undeveloped ("PUD") reserves locations at year end 2011. So in 20 attempts we drilled 5 dry holes, 3 producers on PUD locations, and 12 successful wells on non-proven locations. Overall from a production and operations point of view 2012 was an outstanding year for Tengasco. Tengasco exceeded all expectations not only for a small company but also excelled when compared to much larger producers in at least this one key metric of return on assets.
"As a result of this success, we have reduced the debt under our senior credit facility with F&M Bank from
at year end 2011 to
at year end 2012 and
as of the date of this release. We have also reported that we have placed our
pipeline assets into the accounting classification of assets being held for sale. This classification is a result the natural decline in production of our Swan Creek wells that first came into production in 2001 together with the high level of carrying costs, taxes, maintenance, and operation of a sixty-five mile pipeline system for the current and anticipated production levels. We intend to sell those pipeline assets in order to sharpen the focus on our
assets and other midcontinent assets as the targets for future Company growth."
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 2012 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.