GREENWOOD VILLAGE, Colo.,
Nov. 13, 2019 /PRNewswire/
-- Tengasco, Inc. (NYSE American: TGC) announced today its
financial results for the quarter ended September 30, 2019. The Company reported a
net loss from continuing operations of $182,000 or $0.02
per share of common stock during the third quarter of 2019 compared
to a net income from continuing operations of $298,000 or $0.03
per share of common stock during the third quarter of 2018.
The $480,000 decrease in net income
was primarily due to a $439,000
decrease in revenues and a $51,000
increase in production costs and taxes.
The Company recognized $1.2
million in revenues during the third quarter of 2019
compared to $1.65 million during the
third quarter of 2018. The $439,000
decrease in net revenue was due to a $311,000 reduction resulting from a $13.16 per barrel decrease in the average oil
price from $64.34 per barrel during
the third quarter of 2018 to $51.18
per barrel during the third quarter of 2019, and a $128,000 reduction related to the 2.0 MBbl
decrease in sales volumes. The 2.0 MBbl decrease was
primarily due to lower sales volumes on the Veverka D lease as a
result of expected declines from the higher volumes realized
immediately after the polymer work performed in June 2018 and natural declines on other
properties, partially offset by higher sales volumes attributed to
the BSU #1-30 well that was completed in October 2018.
The Company reported a net loss from continuing operations of
$269,000 or $0.03 per share of common stock during the first
nine months of 2019 compared to a net income from continuing
operations of $530,000 or
$0.05 per share of common stock
during the first nine months of 2018. The $799,000 decrease in net income was primarily due
to a $720,000 decrease in revenues,
and a $102,000 increase in production
cost and taxes.
The Company recognized $3.8
million in revenues during the first nine months of 2019
compared to $4.5 million during the
first nine months of 2018. The revenue decrease from 2018 levels
was due to a $662,000 reduction
related to an $9.18 per barrel
decrease in the average oil price from $61.27 per barrel during the first nine months of
2018 to $52.09 per barrel during the
first nine months of 2019, and a $53,000 reduction related to an 860 Bbl decrease
in sales volumes. The 860 Bbl decrease was primarily due to
lower sales volumes on the Veverka D lease as a result of expected
declines from the higher volumes realized immediately after the
polymer work performed in June 2018
and natural declines on other properties, partially offset by
higher sales volumes attributed to the BSU #1-30 well that was
completed in October 2018.
Michael J. Rugen, CEO said "The
Company in in the process of completing two wells in Kansas on leases owned by third parties.
The Company will operate one of these wells and be a nonoperator in
the other well. These have been funded mostly from cash
flows, without borrowing under the Company's credit facility with
Prosperity Bank. The Company continues to evaluate other
acquisitions, joint ventures, or corporate opportunities that may
add shareholder value."
The statements contained in this release that are not purely
historical are forward-looking statements within the meaning of
applicable securities laws. The Company's actual results
could differ materially from the forward-looking statements.
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SOURCE Tengasco, Inc.