Tengasco, Inc. announced Friday it has completed drilling on the Paul Reed No. 9 well in the Swan Creek field in Hancock County, TN. Completed as a natural gas well, Tengasco said the 4,860-foot well has been connected to the company’s pipeline and is currently producing 400 Mcf/d.

It’s the second gas well of a 20-well drilling program. The first well, the Colson No. 2 well, continues to produce steadily at 400 Mcf/d. Three additional oil wells recently have been drilled.

“The revenue effect from these high-impact properties should be immediate,” said M.E. Ratliff, Tengasco’s chairman. “We have now resolved the operating issues that impeded the company’s development during the first half of the year. We fully expect to monetize our uniquely positioned pipeline and highly attractive mix of oil and gas properties.”

Tengasco said it intends to drill 15 more wells within the Knox formation in the Swan Creek Field. “Because the Knox formation has been better defined by the accumulation of data from the previously drilled wells, these new locations and new wells with best practice completion techniques should contribute significantly to achieving increases in production totals,” said Jeffrey R. Bailey, president of Tengasco.

Earlier in the week, the Knoxville-based company reported a second-quarter loss of $858,197, or 9 cents per diluted share, versus a loss of $336,034, or 4 cents per diluted share, for the same period in 2001 (see Daily GPI, Aug. 15). Among other things, the company attributed the loss to a “substantial decline” in natural gas and oil prices. Revenues declined 30% for the quarter and 23% for the first six months of the year.

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