Tango Energy Inc. - 2007 & 2008 Drilling Program Update

    CALGARY, Jan. 23 /CNW/ - Tango Energy Inc. ("Tango") (TSXV - TEI) is
pleased to provide this update to shareholders. Tango's 2007 average
production rate is expected to be about 700 barrels of oil equivalent per day
("boepd") compared with approximately 330 boepd for 2006. The 16-14 well at
Cecilia was drilled in the fourth quarter of 2007 and placed on stream in mid
December at a production rate of approximately 60 boepd net to the company.
Tango also drilled a well at Deanne during the fourth quarter of 2007 which is
anticipated to be tied-in by the end of the June, 2008. Tango's recent new
pool discovery in Quaich was flow tested at just over 4 million cubic feet of
gas per day (400 boepd net to Tango) and is expected to be tied in by Compton
Petroleum Ltd., the operator, before the end of June, 2008. Tango and it's
partner have also recently acquired additional crown petroleum and natural gas
rights on this play and anticipates that this play shall attract a significant
amount of Tango's 2008 capital budget.
    Funds flow from operations for 2007 will be approximately $5.2 million
and net debt at December 31, 2007 will be approximately $5.3 million. Tango
currently has available a $9.5 million operating line of credit and a
$2.75 million acquisition/development line of credit.
    Tango plans to spend approximately $6.5 million on its 2008 capital
program which contemplates a number of development and exploratory drilling
opportunities in its core areas that could allow Tango to exit 2008 at
approximately 1100 boepd. This capital program will be financed substantially
from funds flow from operations but Tango expects to incur some additional
debt to complete its planned programs with the result that it's debt to cash
flow ratio is expected to increase to 1.4 at year end 2008. In it's forecast
models Tango has used an average natural gas price forecast of $6.32/mcf for
2008. Tango will update shareholders quarterly or as results from operations
    Tango has recently revised and updated its website which can be found at
www.tangoenergy.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

For further information:

For further information: John M. Gunn, President and CEO, David E.
Blain, VP Finance and CFO, Phone: (403) 266-5688, Fax: (403) 266-8817

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