KNOXVILLE, Tenn., Aug. 13, 2013 /PRNewswire/ -- Tengasco, Inc. (NYSE MKT: TGC) announced today its financial results for the quarter ended June 30, 2013. The Company reported net income from continuing operations of $805,000 or $0.01 per share of common stock during the second quarter of 2013 compared to net income from continuing operations of $1,152,000 or $0.02 per share of common stock during the second quarter of 2012.
The Company recognized $3.9 million in revenues during the second quarter of 2013 and $5.2 million during the second quarter of 2012. The revenue decrease from 2012 levels was primarily due to a $1.4 million decrease related to a 16 MBbl decrease in Kansas oil sales volumes that was offset in part by an increase in average Kansas oil prices during the second quarter of 2013 to $87.32 per barrel compared to an average price of $85.90 per barrel during the second quarter of 2012. Although revenues decreased $1.3 million, this decrease was partially offset by a $743,000 decrease in operating cost, a $134,000 decrease in general and administrative cost, and a $118,000 decrease in depreciation, depletion, and amortization.
The Company recognized $8.2 million in revenues during the first six months of 2013 compared to $10.2 million during the first six months of 2012. The revenue decrease from 2012 levels was primarily due to a $1.7 million decrease related to a 19 MBbl decrease in Kansas oil sales volumes, and a $273,000 decrease related to a $3.14 per barrel decrease in average Kansas oil prices. Kansas oil prices during the first six months of 2013 averaged $87.43 per barrel compared to an average price of $90.57 per barrel during the first six months of 2012. The Company reported net income from continuing operations of $1.8 million or $0.03 per share of common stock during the first six months of 2013 compared to net income from continuing operations of $2.1 million or $0.03 per share of common stock during the first three months of 2012. Although revenues decreased $2.0 million, this decrease was offset by a $1.0 million decrease in operating cost, a $380,000 decrease in general and administrative cost, a $154,000 decrease in interest expense, and a $105,000 decrease in loss on derivatives.
Mike Rugen, the Company's interim CEO and CFO, said, "The Company is currently seeking new leadership in the office of the chief executive, and we have recently added geological expertise with Rod Tremblay's return as Exploration Manager. We are now beginning drilling of two wells targeting oil in Kansas that we expect to be completed by the end of the third quarter, with two additional wells to follow in the fourth quarter. We are also continuing to pay down debt and to explore other opportunities for Company growth in Kansas and in other producing areas."
As previously announced, the Company noted that the date and time of the Annual Meeting of the Company's holders of common stock has been fixed as Thursday, October 17, 2013 at 1:00 P.M. at the Homewood Suites by Hilton in Knoxville, Tennessee. The record date for the determination of the stockholders entitled to receive notice and to vote at the Annual Meeting or any adjournments thereof has been set as the close of business on August 20, 2013. It is anticipated that the Notice of Annual Meeting and Proxy Statement will be available to the Company's stockholders on or before September 6, 2013. The list of stockholders entitled to vote at the Annual Meeting will be available for examination by any stockholder at the Company's offices at 11121 Kingston Pike, Suite E, Knoxville TN 37934 ten days before October 17, 2013.
Forward-looking statements made in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risk and uncertainties which may cause actual results to differ from anticipated results, including risks associated with the timing and development of the Company's reserves and projects as well as risks of downturns in economic conditions generally, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.
SOURCE Tengasco, Inc.