Tengasco Completes 36th and 37th Wells in Swan Creek

Tengasco announced that it has completed its 36th and 37th successful wells in the Swan Creek natural gas and oil field located in the Eastern Overthrust Belt of the Appalachian Basin in Hancock County, Tennessee. The new gas wells are the Hazel Sutton #2, which encountered 44 feet of gas pay in the Knox formation, and the Paul Reed #7, which encountered 69 feet of gas pay in the Knox formation. Both gas wells were drilled to a total depth of 5,000 feet. According to Tengasco chief geologist Michael McCown, results from the Schlumberger four-point BHP test performed on both wells indicate a flow rate of 1.78 MMCF per day on the Hazel Sutton #2 and 2 MMCF per day on Paul Reed#7. Recoverable combined reserves for both wells are 3.4 BCF. Tengasco is accelerating its drilling schedule in the 50,500-acre Swan Creek field, and the company currently has four drilling rigs in operation. To date only 15% of the field is developed.

"Our 100% success rate continues in Swan Creek," states M.E. Ratliff, chairman and CEO of Tengasco. "With the addition of these two new gas wells, our daily deliverability of natural gas is more than 30 million cubic feet." Swan Creek field feeds the 65-mile intra-state natural gas pipeline that was completed by Tengasco on March 8, 2001.