CALGARY, Dec. 12 /CNW/ - Tango Energy Inc. ("Tango" : TSXV - TEI)
announced today initial test results from a well in Southern Alberta in which
Tango has a 60% working interest. The material change report with respect to
these test results dated November 15, 2007 (the "Material Change Report") was
previously filed on a confidential basis with the Alberta Securities
Commission and the British Columbia Securities Commission, being the
securities commissions of the jurisdictions in which Tango is a reporting
issuer. Tango filed the Material Change Report on a confidential basis because
of a public land sale held today (the "Sale") at which it anticipated making a
bid to acquire additional lands in the area of the test well. Tango is pleased
to announce that it was successful at the Sale, having acquired a 50% working
interest in two additional sections of land that it considers prospective in
this play. Additional seismic work, as well as production from the recently
completed well, will help to determine the overall magnitude of this
With respect to the initial test results from the above-noted well, the
well was flow tested for five days at approximately 4 million cubic feet per
day ("mmcf/d") at 710 psi flowing pressure. An independent reserves evaluation
will be undertaken, and additional testing will be conducted as soon as it is
practical. The results of this evaluation will assist to provide estimates as
to the reserves and production capacity associated with this well and its
ultimate economic impact on Tango.
Tango expects that this well will be tied-in and placed on production
during the second quarter of 2008. Tango and its partner own interests in
1,920 acres of lands considered prospective for additional development
offsetting this discovery.
Tango is listed on the TSX Venture Exchange under the symbol "TEI".
The TSX Venture Exchange 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