CALGARY, Jan. 26 /CNW/ - Tango Energy Inc. ("Tango") (TSXV - TEI) is
pleased to report that current production levels are in excess of 490 barrels
of oil equivalent ("boepd"), a 52% increase over third quarter 2008 average
The Quaich 3-3 well is currently producing 2 million cubic feet per day
or approximately 200 boepd net to Tango. A second well has been licensed and
is expected to drill during the third or fourth quarter of 2009. Tango and the
operator have approximately 6,400 acres of contiguous land in the area in
which Tango holds between a 50% and 60% working interest.
During the fourth quarter of 2008, Tango participated in 3 exploration
wells. These wells were drilled in new areas for the company and all have been
cased and tested at economic rates of gas production. It is expected these
wells will be tied in and placed on production at 200-250 boepd net to Tango
prior to the end of the second quarter.
Tango's website 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.
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