Tango reports second quarter 2007 financial and operating results

    CALGARY, Aug. 17 /CNW/ - Tango Energy Inc. ("Tango": TSX Venture: TEI) is
pleased to report on its unaudited interim financial and operating results for
the three and six months ended June 30, 2007.

                                        Three Months Ended   Six Months Ended
                                             June 30,            June 30,
                                          2007      2006      2007      2006
    Financial Results
     ($000s, except per share amounts)
    Gross revenues                       3,399     1,457     6,302     2,716
    Income (loss) before taxes             (85)     (322)     (427)     (295)
    Net income (loss)                     (144)      130      (360)      137
      Per share - basic                   0.00      0.00     (0.01)     0.00
      Per share - diluted                 0.00      0.00     (0.01)     0.00
    Funds flow from operations           2,303       660     3,657     1,363
      Per share - basic                   0.05      0.02      0.07      0.03
      Per share - diluted                 0.05      0.02      0.07      0.03
    Additions to property and
     equipment, net of proceeds            506     1,893     4,652     6,561
    Total assets                        40,709    33,261    40,709    33,261
    Working capital (deficiency)        (6,599)    2,036    (6,599)    2,036
    Asset retirement obligation            663       572       663       572
    Flow-through share obligations       1,300     3,300     1,300     3,300
    Share Data (000s)
    Equity outstanding
      Common shares                     49,530    42,157    49,530    42,157
      Stock options and warrants         4,050     2,840     4,050     2,840
      Fully diluted                     53,580    44,997    53,580    44,997
    Sales Volumes (average)
    Natural gas (mcf/d)                  4,810     2,063     4,310     1,735
    Crude oil and liquids (bbls/d)          30        30        31        25
    Average boe/d                          831       374       749       315
    Product Prices (average)
    Natural gas ($/mcf)                   7.34      6.53      7.59      7.29
    Crude oil and liquids ($/bbl)        62.19     71.11     60.43     67.87
    Netback Analysis ($/boe)
    Oil and gas revenue                  44.68     41.70     46.16     45.66
    Gathering income                      0.19         -      0.26         -
    Royalty expense                      (1.63)    (8.71)    (7.09)    (9.55)
    Operating costs                      (8.58)    (8.68)    (8.19)    (8.04)
    Netback                              34.65     24.32     31.14     28.07

    Sales volumes averaged 831 barrels of oil equivalent per day ("boepd")
during the three months ended June 30, 2007, a 25% increase over the 666 boepd
over the prior quarter ended March 31, 2007. Production for the six months
ended June 30, 2007 averaged 749 boepd, a 138% increase over the 315 boepd for
the first six months of 2006.
    During the three months ended June 30, 2007 Tango completed a production
optimization project in the Ricinus area, conducted additional production
testing at Quaich, and commenced ground work for it's late summer, fall and
winter operations.
    At Ricinus, Tango established that our new well had a condensate loading
issue which has been resolved by commingling multiple zones and installing a
plunger lift.
    At Quaich additional production testing has been completed. The pipeline
has been surveyed, and a pipeline application has been filed. Tango is working
to get this well tied-in as soon as possible.
    Tango has 27,520 gross (16,150 net) acres of undeveloped land located
west of the fifth and sixth meridians 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
    During the second quarter, Tango commenced ground work for a busy late
summer and fall drilling and re-entry program. At Hanlan, Tango expects to
re-enter an existing well and commence drilling an exploratory well. At
Ansell, Tango expects to commence drilling operations during the third quarter
on an exploratory location on our existing pipeline.
    The proceeds of the recently announced equity issue together with funds
flow from operations and existing bank lines provides Tango the financial
ability to proceed with its exploration and development plans. In addition,
Tango's low cost structure provides attractive netbacks at modest natural gas

    For a copy of Tango's June 30, 2007 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 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 & CEO; David E. Blain,
Vice President, Finance & CFO, Phone: (403) 266-5688, Fax: (403) 266-8817

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