CALGARY, Aug. 28 /CNW/ - Tango Energy Inc. ("Tango": TSX Venture: TEI) is pleased to report on its unaudited financial and operating results for the six months ended June 30, 2008.
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Three Months Ended Six Months Ended
June 30, June 30,
2008 2007 2008 2007
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Financial Results
($000s, except per share amounts)
Gross revenues 2,942 3,399 5,727 6,302
Income (loss) before taxes (162) (85) (644) (427)
Net income (loss) (206) (144) (577) (360)
Per share - basic 0.00 0.00 (0.01) (0.01)
Per share - diluted 0.00 0.00 (0.01) (0.01)
Funds flow from
operations 1,295 2,303 2,477 3,657
Per share - basic 0.02 0.05 0.04 0.07
Per share - diluted 0.02 0.05 0.04 0.07
Additions to property and
equipment, net of proceeds (8,987) 506 (8,797) 4,652
Total assets 38,759 40,709 38,759 40,709
Working capital (deficiency) 6,217 (6,599) 6,217 (6,599)
Asset retirement obligation 504 663 504 663
Flow-through share obligations 1,750 1,300 1,750 1,300
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Share Data (000s)
Equity outstanding
Common shares 65,775 49,530 65,775 49,530
Stock options and warrants 4,710 4,050 4,710 4,050
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Fully diluted 70,485 53,580 70,485 53,580
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Sales Volumes (average)
Natural gas (mcf/d) 2,751 4,810 3,042 4,310
Crude oil, liquids
and sulphur (bbls/d) 34 30 31 31
Average boe/d 493 831 538 749
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Product Prices (average)
Natural gas ($/mcf) 10.24 7.34 9.24 7.59
Crude oil and liquids ($/bbl) 149.11 62.19 124.40 60.43
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Netback Analysis ($/boe)
Oil and gas revenue 64.84 44.68 57.96 46.16
Gathering income 0.27 0.19 0.31 0.26
Royalty expense (18.21) (1.63) (16.43) (7.09)
Operating costs (10.05) (8.58) (8.61) (8.19)
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Netback 36.85 34.66 33.23 31.14
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Production averaged 493 barrels of oil equivalent per day ("boepd") during the three months ended June 30, 2008, a 15% decrease over the 583 boepd over the three months ended March 31, 2008. This decline in production was attributable to a combination of the sale of the Cecilia property as well as natural declines at Hanlan.
During the three months ended June 30, 2008, Tango focused on optimizing operated production. The construction of the pipeline at Quaich to tie in the 3-3 discovery well, which Tango has a 60% working interest, was delayed by the operator due to delays in obtaining government approval. At the time of writing, the operator is still awaiting the final approval from the government to construct this line and the operator currently expects that once the pipeline license is approved that construction should last 6 weeks. In addition, Tango and the operator of Quaich have surveyed a second well on the property and will be proceeding with community open houses for this well location as well as for the operators other operations in the area commencing in September. It is an important and standard procedure in this and other areas of Alberta to involve both the local residents and other interested parties for all planned industry activities.
Tango has 36,162 gross (19,270 net) acres of land located west of the fifth and sixth meridian within the foothills and deep basin portion of the Western Canadian Sedimentary Basin. Of this amount 15,267 net acres of land are currently undeveloped. Tango continues to post and acquire crown land on new plays, as well as crown land offsetting existing opportunities.
For a copy of Tango's June 30, 2008 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.
%SEDAR: 00017586E