Tango reports 2006 financial and operating results

    CALGARY, April 2 /CNW/ - Tango Energy Inc. ("Tango": TSX Venture: TEI) is
pleased to report on its audited financial and operating results for the year
ended December 31, 2006. Tango is also pleased to announce that current
production levels are in excess of 800 boepd as a result of recent production
additions at Hanlan and Ricinus which have been tied in and placed on
production during the first quarter of 2007.

                                 Three Months Ended        Years Ended
                                     December 31,          December 31,
                                    2006     2005     2006     2005     2004
    Financial Results ($000s, except per share amounts)
    Gross revenues                 1,549    1,317    5,478    4,027    1,258
    Income (loss) before taxes      (124)     514     (442)     582     (197)
    Net income (loss)               (438)     361       97      366       (9)
      Per share - basic             (.01)     .01      .00      .01      .00
      Per share - diluted           (.01)     .01      .00      .01      .00
    Funds flow from
     operations                      608    1,062    2,934    2,555      335
      Per share - basic              .01      .03      .07      .08      .02
      Per share - diluted            .01      .03      .07      .08      .02
    Additions to property and
     equipment, net of proceeds    6,854    5,556   19,402   11,487    8,555
    Total assets                  44,231   37,495   44,231   37,495   15,544
    Working capital               (5,669)   7,234   (5,669)   7,234      (36)
    Asset retirement obligation      596      486      596      486      211
    Flow-through share
     obligations                   3,000    6,800    3,000    6,800        -
    Share Data (000s)
    Equity outstanding
      Common shares               49,430   42,157   49,430   42,157   23,896
      Stock options and warrants   4,150    2,485    4,150    2,485    1,905
      Fully diluted               53,580   44,642   53,580   44,642   25,801
    Sales Volumes (average)
    Natural gas (mcf/d)            2,004      999    1,820    1,020      524
    Crude oil and liquids (bbls/d)    35       26       29       19        8
    Average boe/d                    369      192      332      189       96
    Product Prices (average)
    Natural gas ($/mcf)             7.37    11.67     6.99     9.10     7.11
    Crude oil and liquids ($/bbl)  52.68    66.43    64.66    68.75    47.21
    Netback Analysis ($/boe)
    Oil and gas revenue            45.40    69.54    43.89    56.03    42.93
    Royalty expense                 6.62     0.06     5.52     6.95     6.82
    Operating costs                 7.03     6.96     6.93     7.12    15.34
    Netback                        31.75    62.52    31.54    41.96    20.77

    Production averaged 332 barrels of oil equivalent per day ("boepd")
during the year ended December 31, 2006, a 76% increase over the 189 boepd
over the previous years production. Current production levels are in excess of
800 boepd.
    During 2006, Tango participated in the drilling of six wells (2.3 net),
five of which were cased for production with one dry hole. Of the five cased
wells, two (0.8 net) have been placed on production, two (0.5 net) are
suspended pending further evaluation, and one (0.6 net) is in the process of
being tied in. As well, three wells which were drilled during 2005 were
completed during 2006 resulting in two (0.8 net) producers and one (0.3 net)
suspended well.
    Also, three (1.7 net) wells which were completed during 2005 were tied in
and placed on production in 2006. One (0.5 net) existing well was successfully
recompleted, and an additional well (0.5 net) in Ricinus was successfully
reentered, tied in, and placed on production during March 2007.
    At Hanlan, the 14-35 well was placed on production during February, 2007
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 Ricinus, the 6-9 well has been placed on production with initial rates
in the 100 boepd range. Tango has a 67.5% WI in this well and will monitor the
wells' production performance over the coming months in order to evaluate
additional opportunities on Company owned acreage adjacent to this discovery.
Tango acquired 6 sections at the March 7 land sale at an average 67.5% WI.
    At Kakwa, the 13-1 Swan Hills well has been drilled and completed.
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. Further operations on the well will not be conducted prior to
December, 2007. Tango has a 30% WI in this well.
    At Quaich, the 3-3 well was successfully drilled, tested and evaluated,
and it is expected that the well will be tied into existing facilities once a
pipeline can be constructed.
    At Cecilia, two (0.8 net) wells were successfully drilled and placed on
production, and one (0.5 net) well was recompleted during 2006.
    Two wells (1.2 net) were tied in and placed on production at Ansell, and
one (0.5 net) at Blackstone.
    Tango has 30,240 gross (18,405 net) acres of undeveloped land located
west of the fifth and sixth meridian within the foothills and deep basin
portion of the Western Canadian Sedimentary Basin. Tango continues to post and
acquire crown land on new plays, as well as crown land offsetting existing
    For a copy of Tango's December 31, 2006 Financial Statements and
Management Discussion and Analysis please visit www.sedar.com.
    Tango Energy Inc. is listed on the TSX-Venture Exchange under the Symbol

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

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