Tango enters into exploration joint venture agreement

CALGARY, June 3 /CNW/ - Tango Energy Inc. ("Tango") (TSX Venture: TEI) is
pleased to announce that it has entered into a Master Participation Agreement
with a third party pursuant to which the parties have agreed to participate in
a joint venture drilling program on prospects currently owned by Tango in the
Ansell, Hanlan, Karr, Blackstone, Deanne, and Coleman areas of Alberta.
The farmout period under the joint venture agreement expires on
December 31, 2006 unless the agreement is terminated in accordance with its
provisions prior to such date. The agreement provides for the obligation by
the farmee to participate in the drilling of up to seven wells over the
eighteen-month period, with the farmee being obligated to bear 50% of Tango's
costs in connection with the drilling and completion of each test well. The
farmee will also have the option to participate in all subsequent wells
drilled on each of the seven prospects as well as all new prospects generated
by Tango during the farmout period. Tango will retain a gross overriding
royalty on the farmee's before payout working interest as well as the option
to convert its' overriding royalty to a working interest after payout.
Operations are currently underway on the first well in Blackstone, where
Tango will have a 20% before payout working interest in a multi zone reentry
targeting gas potential. As well, preparations have been finalized to proceed
with the balance of Tango's high impact exploration program now that a partner
has been finalized.

The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release. This release
contains forward-looking information. By their nature, forward-looking
statements involve assumptions and known and unknown risks and uncertainties
that may cause actual future results to differ materially from those
contemplated. These risks include such things as volatility of oil and gas
prices, commodity supply and demand, fluctuations in currency and interest
rates, ultimate recoverability of reserves, timing and costs of drilling
activities and pipeline construction, new regulations and legislation and
availability of capital. Tango does not undertake to update any of such
forward-looking statements. Please refer to Tango's Annual Report for more
detail as to the nature of these risks and uncertainties. Although Tango
believes that the expectations represented by these forward-looking statements
are reasonable, there can be no assurance that such expectations will prove to
be correct.

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