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February 04, 2000 14:25
Tengasco Sparking Oil and Gas Boom in Tennessee, Says Industry Spokesman
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WASHINGTON, Feb. 4 /PRNewswire/ -- There is an oil and gas boom in the making in Tennessee, sparked by Tengasco's (Amex: TGC) continued success in its Swan Greek Gas Field in Hancock County, Tennessee, an industry spokesman said here today.
Speaking at a Regional Investment Banking Association Capital Conference at the Four Seasons Hotel in Washington, Bill Goodwin, Director, Tennessee oil and Gas Association, said, "The company is drilling Texas-sized wells at Appalachian Basin prices and depth."
"They are 19 for 19 successful wells, bringing in wells capable of producing up to five million cubic feet of gas a day. Some wells, tested by Schlumberger, have estimated reserves of 9 billion cubic feet," he noted.
"Tengasco has acquired more than 50,000 acres of leases in and around the Swan Creek gas field. They have drilled only about 15% of the field, have proven reserves of more than 104 billion cubic feet of gas, deliverability of 25 million cubic feet of gas a day and they are still drilling," he added.
Goodwin said the potential of Tengasco's effort was proven when, after studying well data, Eastman Chemical signed an agreement with Tengasco to provide natural gas for Eastman's gigantic industrial complex near Kingsport, Tennessee.
The Eastman contract is a 20-year contract with a $200 million value in today's metro gas prices.
"Tengasco has built 28 miles of pipeline and is now ready to build the final 28 miles of pipeline to the Eastman plant and beyond. When the line is completed in 2000, Tengasco will be providing 40% and up to the possibility of 80% of Eastman's gas requirements.
"In addition, Tengasco has discovered oil in many of its wells, much of which is not being produced as the company focuses on natural gas. Nevertheless, the company is providing several hundreds of barrels of oil a day and expects to be producing more than 1,000 barrels of oil a day in the near future.
"Another reason we believe this is the beginning of a boom is that seismic data indicate the Tennessee oil and gas field may extend several miles beyond the 50,000 acres that Tengasco has leased."
Other firms are already coming into the area, acquiring leases and drilling. Miller Petroleum (OTC Bulletin Board: MILL) is currently drilling a well in adjoining Hancock County.
"We believe when the weather breaks, we will see dozens of companies coming into Tennessee to search for oil and gas," Goodwin told the Investment Bankers.
The Tennessee Oil and Gas Association is a trade association of independent oil and gas operators that explore and produce crude oil and natural gas in Tennessee.
SOURCE Tennessee Oil and Gas Association
/CONTACT: Bill Goodwin Of Target Market Development, 615-263-1291, for
Tennessee Oil and Gas Association/
(TGC MILL)
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