KNOXVILLE, Tenn., May 15, 2014 /PRNewswire/ -- Tengasco, Inc. (NYSE MKT: TGC) announced today its financial results for the quarter ended March 31, 2014. The Company reported net income from continuing operations of $424,000 or $0.01 per share of common stock during the first quarter of 2014 compared to net income from continuing operations of $978,000 or $0.02 per share of common stock during the first quarter of 2013.
The Company recognized $3.5 million in revenues during the first quarter of 2014, down from $4.3 million during the first quarter of 2013 primarily due to a 9 MBbl decrease in Kansas oil sales volumes, a $142,000 decrease in Swan Creek revenues as these properties were sold in August 2013, $70,000 decrease in MMC revenue due to increase downtime during the first three months of 2014 as compared to the first three months of 2013, partially offset by $173,000 increase in revenues related to a $4.68 increase in the average oil price. Kansas oil prices during the first quarter of 2014 averaged $92.21 per barrel compared to an average price of $87.53 per barrel during the first quarter of 2013.
The 9 MBbl decrease in Kansas oil sales was due primarily to decreased sales volumes from the Albers, Coddington, Liebenau, McElhaney A, Veverka A, Veverka C, and Zerger A leases as drilling and polymers performed during 2012 and 2011 are showing natural declines. These sales volume declines were partially offset by 2.1 MBbl of sales volumes during the first three months of 2014 that resulted from the Zerger A #2, Veverka B #6, Veverka D #3, and Albers C #1 which were completed in late 2013 and early 2014.
Michael J. Rugen, CEO said, "We continue the drilling program that we re-started in September 2013. Since that time, the Company has drilled 8 wells. Of the 8 wells drilled, 5 were completed as producers, 1 is in the process of being completed, and 2 wells have been dry. Subject to rig availability, we expect to drill 2 more wells in the 2nd quarter of 2014. In addition, we will re-start the polymer program and expect to perform at least 3 polymers during the 2nd quarter. Finally, relocation of the corporate office to Denver is progressing and we expect to complete this move by June 30, 2014."
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.