CALGARY, April 15 /CNW/ - Tango Energy Inc. ("Tango": TSX Venture: TEI) is pleased to report on its audited financial and operating results for the year ended December 31, 2007.
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Three Months Ended Years Ended
December 31, December 31,
2007 2006 2007 2006 2005
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Financial Results
($000s, except per
share amounts)
Gross revenues 2,400 1,549 10,973 5,478 4,027
Income (loss) before taxes (931) (124) (2,928) (442) 582
Net income (loss) 7 (438) (1,427) 97 366
Per share - basic 0.00 (0.01) (0.03) 0.00 0.01
Per share - diluted 0.00 (0.01) (0.03) 0.00 0.01
Funds flow from operations 996 608 5,351 2,934 2,555
Per share - basic 0.02 0.01 0.10 0.07 0.08
Per share - diluted 0.02 0.01 0.10 0.07 0.08
Additions to property and
equipment, net of proceeds 5,737 6,854 11,332 19,402 11,487
Total assets 43,854 44,231 43,854 44,231 37,495
Working capital (5,035) (5,669) (5,035) (5,669) 7,234
Asset retirement obligations 656 596 656 596 486
Future income taxes 4,963 5,349 4,963 5,349 1,727
Flow-through share
obligations 2,000 3,000 2,000 3,000 6,800
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Share Data (000s)
Equity outstanding
Common shares 65,725 49,430 65,725 49,430 42,157
Stock options and warrants 3,405 4,150 3,405 4,150 2,485
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Fully diluted 69,130 53,580 69,130 53,580 44,642
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Sales Volumes (average)
Natural gas (mcf/d) 3,681 2,004 4,121 1,820 1,020
Crude oil and liquids (bbls/d) 25 35 28 29 19
Average boe/d 638 369 716 332 189
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Product Prices (average)
Natural gas ($/mcf) 6.41 7.37 6.75 6.99 9.10
Crude oil and liquids ($/bbl) 81.73 52.68 69.09 64.66 68.75
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Netback Analysis ($/boe)
Oil and gas revenue 40.14 45.02 41.56 43.89 56.03
Gathering income 0.56 0.38 0.36 0.11 -
Royalty expense 11.08 6.62 8.43 5.52 6.95
Operating costs 9.38 7.03 8.54 6.93 7.12
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Netback 20.24 31.75 24.95 31.55 41.96
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Sales volumes averaged 716 barrels of oil equivalent per day ("boepd") during the year ended December 31, 2007, a 116% increase over the 332 boepd over 2006. This increase in production was primarily from Tango's new production at Cecilia, Hanlan and Ricinus, offset by normal production declines.
During the twelve months ended December 31, 2007 Tango conducted additional testing operations at Quaich and continued to obtain approvals to have the pipeline construction approved and licensed. Tango drilled a well at Cecilia and a further well at Deanne. The Cecilia well was completed and placed on production in 2007, whereas the Deanne well was completed and tested in 2007 and remains suspended at this time.
Tango has 29,920 gross (17,417 net) acres of undeveloped land located west of the fifth and sixth meridians within the foothills and deep basin portion of the Western Canadian Sedimentary Basin. Tango continues to post and acquire crown land on new plays, as well as crown land offsetting existing opportunities.
During the first half of 2008 Tango expects to equip and tie-in Quaich and commence plans to drill a follow up well on this play.
Tango will run further completion operations on some existing wells and review the tie-in of the Deanne well after spring break-up.
Tango also announces it has filed its detailed reserves information required by National Instrument 51-101 of the Canadian Securities Administrators, including the Statements and Reports required by Forms 51-101F1, 51-1-1F2 and 51-101F3. A copy of the N51-101 reports can be viewed on SEDAR at www.sedar.com.
For a copy of Tango's December 31, 2007 Financial Statements and Management Discussion and Analysis please visit www.sedar.com.
Tango Energy Inc. is listed on the TSX-Venture Exchange under the Symbol TEI.
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 such forward-looking statements except as required by law. 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.
Natural gas volumes have been converted to a barrel of oil equivalent ("boe") using six thousand cubic feet equal to one barrel unless otherwise stated. A boe conversion ratio of 6:1 is based upon an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. This conversion conforms with Canadian Securities Regulators National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). Boe's may be misleading, particularly if used in isolation.
Funds flow from operations and funds flow from operations per share and netback are not recognized measures under Canadian generally accepted accounting principles. Management believes that these items are a useful measure of financial performance. Funds flow from operations is defined as net income plus non-cash charges including, depletion, depreciation and accretion, future taxes and stock-based compensation, after asset retirement costs. Funds flow from operations per share is calculated by dividing the weighted average number of shares outstanding during the year into funds flow from operations. Netback is the average per unit of volume for oil and gas revenues less royalties and production costs incurred. Netback is expressed in terms of dollars per boe.