Tango releases year-end reserves and operations update



    CALGARY, March 21 /CNW/ -

    Oil and Gas Reserves
    --------------------
    Tango's proved plus probable petroleum and natural gas reserves (net
before royalty) increased 44%, after production, to 2,511 mboes as at
December 31, 2006. Net reserve additions, after production, were 770 mboe,
which replaced approximately 735% of Tango's production volumes during 2006.
Finding and development costs, on a proven only basis, including future
capital and net of revisions were $29.57 per boe. Finding and development
costs, on a proven and probable basis, including future capital and net of
revisions, were $19.51 per boe.
    Tango's reserves for the year ended December 31, 2006 were evaluated by
Paddock Lindstrom & Associates Ltd. ("Paddock Lindstrom"), and were calculated
in accordance with National Instrument 51-101 ("NI 51-101").
    The following tables provide information on Tango's petroleum oil and gas
reserves and the present value of the estimated future net cash flow
associated with such reserves as at December 31, 2006. The information set
forth below is derived from the Paddock Lindstrom report, which has been
prepared in accordance with the standards contained in the COGE Handbook and
the reserves definitions contained in NI 51-101 and the COGE Handbook. It
should not be assumed that the estimated future net cash flow shown below is
representative of the fair market value of the Corporation's properties. There
is no assurance that such price and cost assumptions will be attained and
variances could be material. "Gross" reserve quantities include the Company's
share of reserves before royalty plus royalty income volumes. "Net" reserve
quantities include the Company's share of reserves after royalty plus royalty
income volumes.

    
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                       SUMMARY OF OIL AND GAS RESERVES
                 AND NET PRESENT VALUES OF FUTURE NET REVENUE
                           as of December 31, 2006

                          FORECAST PRICES AND COSTS

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                                                 RESERVES

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                                 LIGHT AND       NATURAL       NATURAL GAS
                                MEDIUM OIL         GAS           LIQUIDS
    -------------------------------------------------------------------------
    RESERVES CATEGORY          Gross    Net    Gross    Net    Gross    Net
                               (mbbl)  (mbbl)  (mmcf)  (mmcf)  (mbbl)  (mbbl)
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    PROVED
    -------------------------------------------------------------------------
      Developed Producing          -       -   3,970   3,215      47      32
    -------------------------------------------------------------------------
      Developed Non-Producing      -       -   3,609   2,367      25      16
    -------------------------------------------------------------------------
      Undeveloped                  -       -       -       -       -       -
    -------------------------------------------------------------------------
    TOTAL PROVED                   -       -   7,579   5,582      72      48
    -------------------------------------------------------------------------
    PROBABLE                       -       -   6,510   4,965      88      59
    -------------------------------------------------------------------------
    TOTAL PROVED PLUS PROBABLE     -       -  14,089  10,547     160     107
    -------------------------------------------------------------------------



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                                    NET PRESENT VALUES OF FUTURE NET REVENUE

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                                         BEFORE INCOME TAXES DISCOUNTED AT
                                                     (%/year)
    -------------------------------------------------------------------------
                                         0       5      10      15      20
    RESERVES CATEGORY                  (m$)    (m$)    (m$)    (m$)    (m$)
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    PROVED
    -------------------------------------------------------------------------
      Developed Producing             24,904  18,817  15,331  13,082  11,507
    -------------------------------------------------------------------------
      Developed Non-Producing         13,537  11,369   9,841   8,687   7,776
    -------------------------------------------------------------------------
      Undeveloped                          -       -       -       -       -
    -------------------------------------------------------------------------
    TOTAL PROVED                      38,441  30,186  25,172  21,769  19,283
    -------------------------------------------------------------------------
    PROBABLE                          33,629  20,553  14,220  10,460   7,975
    -------------------------------------------------------------------------
    TOTAL PROVED PLUS PROBABLE        72,070  50,739  39,392  32,229  27,258
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                     NET PRESENT VALUES OF FUTURE NET REVENUE

    -------------------------------------------------------------------------

                                         AFTER INCOME TAXES DISCOUNTED AT
                                                     (%/year)
    -------------------------------------------------------------------------
                                         0       5      10      15      20
    RESERVES CATEGORY                  (m$)    (m$)    (m$)    (m$)    (m$)
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    PROVED
    -------------------------------------------------------------------------
      Developed Producing             23,326  18,019  14,887  12,817  11,341
    -------------------------------------------------------------------------
      Developed Non-Producing          9,461   7,895   6,794   5,964   5,308
    -------------------------------------------------------------------------
      Undeveloped                          -       -       -       -       -
    -------------------------------------------------------------------------
    TOTAL PROVED                      32,787  25,914  21,681  18,781  16,649
    -------------------------------------------------------------------------
    PROBABLE                          23,831  14,380   9,775   7,033   5,218
    -------------------------------------------------------------------------
    TOTAL PROVED PLUS PROBABLE        56,618  40,294  31,456  25,814  21,867
    -------------------------------------------------------------------------



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              SUMMARY OF PRICING AND INFLATION RATE ASSUMPTIONS
                           as of December 31, 2006

                          FORECAST PRICES AND COSTS

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                                                    OIL
    -------------------------------------------------------------------------
                                                                      Cromer
                                            Edmonton    Hardisty      Medium
                                     WTI   Par Price       Heavy        29.0
                                 Cushing  40 degrees  12 degrees     degrees
                                Oklahoma         API         API         API
    Year                        ($US/bbl)  ($Cdn/bbl)  ($Cdn/bbl)  ($Cdn/bbl)
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Forecast
    -------------------------------------------------------------------------
    2007                           61.00       68.58       37.58       63.78
    -------------------------------------------------------------------------
    2008                           60.00       67.40       38.40       62.69
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    2009                           60.00       67.37       41.37       62.66
    -------------------------------------------------------------------------
    2010                           58.00       65.04       40.54       60.49
    -------------------------------------------------------------------------
    2011                           56.00       62.71       37.88       58.32
    -------------------------------------------------------------------------


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    -------------------------------------------------------------------------
                                 NATURAL    Edmonton
                                   GAS(1)    Cond. &   INFLATION    EXCHANGE
                                AECO Gas     Natural       RATES        RATE
                                   Price   Gasolines
    Year                     ($Cdn/MMBTU)  ($Cdn/bbl)     %/Year    ($US/Cdn)
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Forecast
    -------------------------------------------------------------------------
    2007                            7.33       68.58         2.0        0.87
    -------------------------------------------------------------------------
    2008                            7.91       67.40         2.0        0.87
    -------------------------------------------------------------------------
    2009                            7.89       67.37         2.0        0.87
    -------------------------------------------------------------------------
    2010                            7.87       65.04         2.0        0.87
    -------------------------------------------------------------------------
    2011                            8.02       62.71         2.0        0.87
    -------------------------------------------------------------------------
    

    Forecast product prices and operating costs were escalated at a rate of
2.0% per year beyond 2011. The exchange rate used for the US/Canadian dollar
was 0.87. The forecast prices presented above utilize Paddock Lindstrom's
price forecast as at December 31, 2006.
    Additional reserve information as required under NI 51-101 will be
included in Tango's 51-101F1, 51-101F2 and 51-101F3 which will be filed on
SEDAR.

    Operations Update
    -----------------
    Tango is pleased to announce that current production levels have
increased by more than 50% from previously announced exit rates of 500 boepd
to current levels which are in excess of 750 boepd. Additional production
volumes are expected from the tie in of the Ricinus 6-9 well prior to the end
of March, 2007 as well as from optimization initiatives which are currently
underway.
    At Hanlan, the 14-35 well has been placed on production and is currently
producing in excess of 10 million cubic feet per day of raw gas. Tango has a
28% working interest (WI) in this well, subject to a 12.5% non-convertible
overriding royalty.
    At Kakwa, the 13-1 Swan Hills well has been drilled to total depth. The
well was acidized during the first week of March, and testing operations were
not completed due to wildlife constraints which required all of the equipment
to be removed from the lease prior to March 15. As a result, the well has been
suspended pending further evaluation of the pressure data. Tango has a 30% WI
in this well.
    At Ricinus, the 6-9 well has been tied in and is expected to come on
production prior to the end of March, 2007. Tango has a 67.5% WI in this well.
Additionally, Tango acquired an additional 6 sections offsetting this
discovery at the March 7 land sale at an average 67.5% WI.
    At Quaich, the 3-3 well has been successfully tested and evaluated. The
operator is in the process of constructing a new pipeline into the area during
2007, which is expected to result in additional opportunities on Company owned
lands.

    Outlook
    -------
    Tango continues its strategy of pursuing re-entry candidates in west
central Alberta where it has identified gas potential in previously drilled
wellbores. As well, it will follow up on previous discoveries with additional
drilling, tie in, and land acquisition activities. Crown land sales will
continue to be an integral part of Tangos' strategy in the future. Access to
quality services and field personnel and reasonable prices will likely
continue to be a challenge for Tango, as well the oil and gas industry in
general.

    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.

    BOE's may be misleading, particularly if used in isolation. In accordance
with NI 51-101, a barrel of oil equivalent (boe) conversion ratio of 6 mcf: 1
boe is based on an energy equivalency conversion method primarily applicable
at the burner tip and does not represent a value equivalency at the wellhead.
Abbreviations used are defined as flows: m$ (thousands of dollars); mcf
(thousand standard cubic feet); mmcf (million standard cubic feet); mboe
(thousands of barrels of oil equivalent); mmBTU (million British Thermal
Units).
    %SEDAR: 00017586E




For further information:

For further information: John M. Gunn, Chief Executive Officer; John E.
Bell, President: Phone: (403) 266-5688, Fax: (403) 266-8817

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TANGO ENERGY INC.

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