Tengasco completes 36th and 37th oil and natural gas well in Swan Creek

Continues 100% successful drilling record for field

Tengasco (Knoxville, TN) announced today that it has completed its 36th and 37th successful well 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. Tengaso is selling natural gas to Eastman Chemical Company and British Aerospace at Holston Army Ammunition Plant under separate 20-year contracts. Both facilities are located in Kingsport, Tennessee.

Company officials state that in a few weeks Tengasco will be publishing the mid-year proven producing report from Ryder Scott, which is expected to show significant increases in natural gas reserves for the Swan Creek field, compared to the 2000-year end report.

Tengasco, Inc., headquartered in Knoxville, Tennessee, is a fully diversified energy company involved in oil and natural gas exploration and production, pipeline construction and other energy services.

Source: Tengasco, Inc.