Tango reports second quarter 2008 financial and operating results

    CALGARY, Aug. 28 /CNW/ - Tango Energy Inc. ("Tango": TSX Venture: TEI) is
pleased to report on its unaudited financial and operating results for the six
months ended June 30, 2008.

                                        Three Months Ended   Six Months Ended
                                              June 30,            June 30,
                                          2008      2007      2008      2007
    Financial Results
    ($000s, except per share amounts)

    Gross revenues                       2,942     3,399     5,727     6,302
    Income (loss) before taxes            (162)      (85)     (644)     (427)
    Net income (loss)                     (206)     (144)     (577)     (360)
      Per share - basic                   0.00      0.00     (0.01)    (0.01)
      Per share - diluted                 0.00      0.00     (0.01)    (0.01)
    Funds flow from
     operations                          1,295     2,303     2,477     3,657
      Per share - basic                   0.02      0.05      0.04      0.07
      Per share - diluted                 0.02      0.05      0.04      0.07
    Additions to property and
     equipment, net of proceeds         (8,987)      506    (8,797)    4,652
    Total assets                        38,759    40,709    38,759    40,709
    Working capital (deficiency)         6,217    (6,599)    6,217    (6,599)
    Asset retirement obligation            504       663       504       663
    Flow-through share obligations       1,750     1,300     1,750     1,300
    Share Data (000s)
    Equity outstanding
      Common shares                     65,775    49,530    65,775    49,530
      Stock options and warrants         4,710     4,050     4,710     4,050
      Fully diluted                     70,485    53,580    70,485    53,580
    Sales Volumes (average)
    Natural gas (mcf/d)                  2,751     4,810     3,042     4,310
    Crude oil, liquids
     and sulphur (bbls/d)                   34        30        31        31
    Average boe/d                          493       831       538       749
    Product Prices (average)
    Natural gas ($/mcf)                  10.24      7.34      9.24      7.59
    Crude oil and liquids ($/bbl)       149.11     62.19    124.40     60.43
    Netback Analysis ($/boe)
    Oil and gas revenue                  64.84     44.68     57.96     46.16
    Gathering income                      0.27      0.19      0.31      0.26
    Royalty expense                     (18.21)    (1.63)   (16.43)    (7.09)
    Operating costs                     (10.05)    (8.58)    (8.61)    (8.19)
    Netback                              36.85     34.66     33.23     31.14

    Production averaged 493 barrels of oil equivalent per day ("boepd")
during the three months ended June 30, 2008, a 15% decrease over the 583 boepd
over the three months ended March 31, 2008. This decline in production was
attributable to a combination of the sale of the Cecilia property as well as
natural declines at Hanlan.
    During the three months ended June 30, 2008, Tango focused on optimizing
operated production. The construction of the pipeline at Quaich to tie in the
3-3 discovery well, which Tango has a 60% working interest, was delayed by the
operator due to delays in obtaining government approval. At the time of
writing, the operator is still awaiting the final approval from the government
to construct this line and the operator currently expects that once the
pipeline license is approved that construction should last 6 weeks. In
addition, Tango and the operator of Quaich have surveyed a second well on the
property and will be proceeding with community open houses for this well
location as well as for the operators other operations in the area commencing
in September. It is an important and standard procedure in this and other
areas of Alberta to involve both the local residents and other interested
parties for all planned industry activities.
    Tango has 36,162 gross (19,270 net) acres of land located west of the
fifth and sixth meridian within the foothills and deep basin portion of the
Western Canadian Sedimentary Basin. Of this amount 15,267 net acres of land
are currently undeveloped. Tango continues to post and acquire crown land on
new plays, as well as crown land offsetting existing opportunities.

    For a copy of Tango's June 30, 2008 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.

    %SEDAR: 00017586E

For further information:

For further information: John M. Gunn, President & CEO, Jeremy P.
Newton, V.P. Land & Exploration, Phone: (403) 266-5688, Fax: (403) 266-8817

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