Tengasco has completed a 60-mile intrastate pipeline from itsgas-rich 50,000-acre Swan Creek gas and oil field beginning inHancock County and ending in Kingsport, TN. Geological studiesindicate that the Swan Creek field may be one of the largestnatural gas and oil discoveries in the Appalachian region of theUnited States.

According to the latest Ryder Scott report, Tengasco said provenreserves in the Swan Creek field are estimated at 54.6 Bcf and600,000 bbl. Probable reserves are estimated at 117.1 Bcf. So far,Tengasco has drilled 35 wells in the field in the EasternOverthrust of the basin, and current deliverability is 25 MMcf/d—- with only 15% of the field developed.

In November 1999, Knoxville-based Tengasco signed a 20-yearagreement to supply a minimum of 80% of the daily natural gasrequirements of Tennessee’s second largest employer, EastmanChemical Co., and it initiated delivery there on Thursday, with aminimum daily sale of 10 MMcf.

“This is a milestone day for our company,” said Tengasco CEO M.E. Ratliff. “It has been a long difficult journey, but our people,our business partners, the state and community partners havesupported Tengasco all the way. After three years of pipelineconstruction through rugged terrain, boring under the Clinch River,crossing over three mountain ranges, securing significant landrights-of-way, Tengasco will now be stepping up natural gas and oilproduction from our Swan Creek field. With the completion of thispipeline delivery system, Tengasco brings natural gas from thewellhead to the burner tip.”

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