Tengasco Announces Purchase of Kansas Oil Production and Increase of Borrowing Base Under Sovereign Bank Credit Facility to $11 Million 8:35a ET June 2, 2008 (Market Wire) Tengasco, Inc. (AMEX: TGC) announced today that on May 30, 2008, the Company signed a letter agreement with Black Diamond Oil, Inc. to purchase approximately 80 barrels per day of oil producing properties and related leases and equipment in Rooks County, Kansas for $5.35 million effective on closing. Closing of the purchase is expected to occur on or before July 1, 2008. The sale includes the purchase of producing oil wells and saltwater disposal wells, equipment, and the underlying working interests in leases that have been owned and operated by Black Diamond for many years.
The Company also announced that on June 2, 2008 the Company has entered into an amendment to its credit facility with Sovereign Bank of Dallas, Texas whereby the Company's borrowing base is being increased by the Bank as a result of its review of the Company's currently owned producing properties. The Company's borrowing base is being increased from $7 million to $11 million effective June 2, 2008. The Company has previously utilized approximately $4.2 million of the facility, leaving approximately $6.8 million available for use by the Company upon this borrowing base increase. The Company will use $5.35 million of the available $6.8 million for the purchase of the Black Diamond Oil properties discussed above.
Tengasco's President Jeffrey R. Bailey said, "We are very pleased to acquire these producing properties from Black Diamond which are a good fit with our existing properties in Kansas. This will immediately add about 80 barrels per day of production to the approximately 600 barrels per day that we currently produce in Kansas. Our view of the underlying geology and engineering suggests we may be able to produce increased volumes from these wells. We can operate these additional properties with little additional personnel or equipment needs which will enable us to maximize the results of our Kansas production staff for the benefit of our shareholders. We are also pleased that Sovereign Bank has increased our borrowing base to $11 million, which will allow us to purchase these properties entirely for the Company's interest and without involvement of third party participants. In addition, these new properties have not been considered by the Bank in its borrowing base review and may support additional borrowing base increases in the future."
Forward-looking statements made in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risk and uncertainties which may cause actual results to differ from anticipated results, including risks associated with the timing and development of the Company's reserves and projects as well as risks of downturns in economic conditions generally, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.
Contact: Tengasco, Inc. Jeffrey R. Bailey CEO 865-675-1554
SOURCE: Tengasco, Inc.
Assets Q2 2007 06/30/07, Q3 2007 09/30/07, Q4 2007 12/31/07, Q1 2008 03/31/08 Cash and Short Term Inv 444 214 2,227 905 Trade Accts Recvble, Net 973 957 1,057 1,420 Other Receivables 17 96 50 17 Total Receivables, Net 990 1,053 1,107 1,437 Total Inventory 581 433 460 457 Other Curr. Assets, Total 11 11 11 11 Total Current Assets 2,026 1,711 3,805 2,810 Prop./Plant/Equip. - Gross 22,058 22,456 21,967 23,377 Accumulated Depreciation (8,473) (8,748) (8,758) (9,033) Prop./Plant/Equip. - Net 27,055 27,793 28,032 30,460 Def. Inc. Tax - LT Asset -- 1,100 2,100 7,027 Restricted Cash - LT 121 121 121 121 Other Long Term Assets 194 170 224 221 Total Assets 29,396 30,895 34,282 40,639 Liabilities Accounts Payable 578 446 903 1,437 Accrued Expenses 115 154 371 315 Notes Payable/ST Debt 0 0 0 0 Curr. Port. LT Dbt/Cap Ls. 72 64 58 54 Total Current Liabilities 765 664 1,332 1,806 Total Long Term Debt 3,446 3,432 4,316 4,321 Total Debt 3,518 3,496 4,374 4,375 Other Liabilities, Total 542 550 531 565 Total Liabilities 4,753 4,646 6,179 6,692 Shareholder Equity Common Stock 59 59 59 59 Additional Paid-In Capital 54,618 54,643 54,690 54,724 Ret. Earn.(Accum. Deficit) (30,035) (28,454) (26,646) (20,834) Total Equity 24,642 26,248 28,103 33,949 Total Liabilities & Shareholders’ Equity 29,395 30,894 34,282 40,641 Ttl Comm. Shares Outs. 59,139 59,139 59,156 59,159
Operating Income 331 482 806 885 Non-Operating Income & Expenses Other, Net -- -- -- 5,227 Income Before Tax 331 482 806 6,112 Income Taxes Income Tax - Total 0 (1,100) (1,000) 300 Income After Tax 331 1,582 1,806 5,812 Minority Interest and Equity in Affiliates Net Inc Before Extra Items 331 1,582 1,806 5,812
Net Income 331 1,582 1,806 5,812 Adjustments to Net Income Income Available to Common Excl. Extra. Items 331 1,582 1,806 5,812 Income Available to Common Incl. Extra. Items 331 1,582 1,806 5,812 EPS Reconciliation Basic/Primary Weighted Average Shares 59,129 59,139 59,153 59,157 Basic/Primary EPS Excl. Extra. Items 0.01 0.03 0.03 0.10 Basic/Primary EPS Incl. Extra. Items 0.01 0.03 0.03 0.10 Dilution Adjustment -- -- -- 0 Diluted Weighted Average Shares 60,950 60,960 62,350 60,944 Diluted EPS Excl. Extra. Items 0.01 0.03 0.03 0.10 Diluted EPS Incl. Extra. Items 0.01 0.03 0.03 0.10 Common Stock Dividends Div/Share-ComStockPrimIssue 0.00 0.00 0.00 0.00 Gross Divid - Common Stock 0 0 0 0 Pro Forma Income Pro Forma Net Income -- -- -- -- Supplemental Items Interest Expense, Suppl 81 94 87 108 Depreciat/Amort, Suppl 467 479 209 465 Normalized Income Total Special Items -- -- 0 -- Normalzd Income Before Tax 331 482 806 6,112 Efct/SpecItemsIncTxs (STEC) -- -- 0 -- IncTxsExcl ImpctofSpec Itms 0 (1,100) (1,000) 300 Normalized Income After Tax 331 1,582 1,806 5,812 Normalzd Inc Avail to Common 331 1,582 1,806 5,812 Basic Normalized EPS 0.01 0.03 0.03 0.10 Diluted Normalized EPS 0.01 0.03 0.03 0.10
IP: Logged |
posted
Tengasco is expected to close on Black Diamond oil purchase tomorrow. Details are in the first post. If that deal goes through, I expect this one to go in to the $10.00 price range by the end of October. Here's why: The fundamentals are sound, Volume is up, Oil is up, Adding approximately 80 barrels per day of production will only add to the value, Earnings growth over past 3 years is approx 61% according to last 10K, without the price of oil being what it is now, therefore this year should outperform last year. And finally, all other companies with similar P/E, Earnings growth, Market Cap are trading at an average of approximately $10 per share. That tells me about how much the market is paying for the kind of growth TGC is experiencing.
IP: Logged |
posted
Well they have, according to last report, 6,692 Million in debt as of 3/31/08, and 40,639 Million in assets as of the same date. So I don't think much of the debt at all... Also, they have been profitable for the past 3 years.
IP: Logged |
posted
This was a post on Yahoo, thought that it was some good info.. " oil price's climbed 38 percent between April and June, the biggest quarterly increase in nine years. That's our 2nd qtr "
IP: Logged |
posted
Tried to get in but scottrade did the whole unsettled funds/deposit with the stock under 4$/share thing...really like what I see here...wish I could've got in today...
IP: Logged |
posted
Nice plays. nice plays. Can't believe that rally yesterday. I had a trade trigger set up to sell half if it broke 3.2 and another one set up to sell the rest if it fell to 2.5. I didn't think that when I logged on today that both would have triggered!!
IP: Logged |
posted
All right... Time for an update. Sold at 2.90 on Friday, back in today, Monday at 2.65. Holding from here unless it shoots past 3.15 again. Volatility follows crude futures, long term projections look excellent.
IP: Logged |
posted
Tengasco Announces of Closing of Kansas Oil Purchase From Black Diamond Oil 12:38p ET July 2, 2008 (Market Wire) Tengasco, Inc. (AMEX: TGC) today closed the previously announced purchase by the Company from Black Diamond Oil, Inc. of an expected 80 barrels per day of oil producing properties and related leases and equipment in Rooks County, Kansas for $5.35 million effective as of July 1, 2008. The Company has acquired producing oil wells and saltwater disposal wells, equipment, and the underlying working interests in leases comprising what is known as the Riffe field that had been owned by Black Diamond for many years. The purchase price was paid primarily from borrowings under its credit facility with Sovereign Bank and from company cash on hand. Following the purchase, the Company has borrowed a total of $10.0 million under the facility.
"We are pleased to complete our acquisition of Black Diamond's Riffe field properties effective with July 2008 production which fit well with our existing Kansas operations. This purchase is expected to increase our daily production of crude oil by about eighty barrels to a daily total of about 680 barrels," said Jeffrey R. Bailey, CEO of Tengasco.
Forward-looking statements made in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risk and uncertainties which may cause actual results to differ from anticipated results, including risks associated with the timing and development of the Company's reserves and projects as well as risks of downturns in economic conditions generally, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.
Contact: Tengasco, Inc. Jeffrey R. Bailey CEO 865-675-1554
posted
Once again here are some numbers from their 10Q MRQ : numbers in thousands Assets Q1 2008 03/31/08 Cash and Short Term Inv 905 Total Assets 40,639 Liabilities Total Current Liabilities 1,806 Total Debt 4,375 Total Liabilities 6,692
Revenue Total Revenue 3,306 Operating Expenses Total Operating Expense 2,421 Operating Income 885
So prior to their acquisition of Black Diamond's Riffe field properties they had about half their total current debt (debt owed this year) in cash on hand. While making close to the other half per quarter from operations. They used their credit facility to purchase the properties effectively adding $10 million in new debt, while adding 13.3% more future production. $10 million is $4.65 million more than the purchase price of $5.35 million. You could say that they now have enough cash on hand to satisfy nearly all debt prior to July 2, 2008 which was $6,692,000 if they needed to. In the second quarter of 2008 the price of oil rose 38% in effect increasing revenues while not affecting operating expenses at all which would equate to raising operating income to $1,221,000 if all things remained the same. In summary, they currently have more assets with more production. More debt, but the ability to pay off most old debt with new cash. Financially that is low-risk.
The price of oil is driving their revenues up temporarily which will be reflected in at least their 3 next quarterly reports. Tengasco's EPS for the past 4 quarters is .17 with .10 being the MRQ earnings. If they beat the prior 3 quarters like I believe (.03, .03, and .01) then that figure will go up. In my experience when people see good earnings in a hot sector the price they pay for that security tends to go up significantly. These are just my opinions and I do own this stock. I say it is a strong buy currently and depending on what oil futures do could be a nice short in the near term as well.
IP: Logged |
UBBFriend: Email this page to someone!
Printer-friendly view of this topic
![[Smile]](smile.gif)
