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Attention Business Editors
Tango Energy Inc. - Operations Update
CALGARY, March 23 /CNW/ - Tango Energy Inc. ("Tango": TSX Venture: TEI)
is pleased to report that drilling and completion activity increased
dramatically during 2005 and throughout the first quarter of 2006. During this
period, Tango participated in 8 new wells, 5 of which were new drills and 3
were re-entries. A number of new discoveries have been made and Tango's
production continues to increase. The following is an operation update for
Tango's core lands.
Cecilia, AB
Tango's core development project in Cecilia continues to deliver positive
results. Two wells at 04-14 (net 50%WI) and 03-10 (net 30%WI) were drilled in
the fourth quarter of 2005. Both wells were cased and contain a combined 11
separate zones of pay. 04-14 has a current stabilized flow rate of 120 BOEPD
net to Tango. 03-10 has now been completed and tied in producing at a current
stabilized flow rate of 100 BOEPD net to Tango. These high production rates
are due, in part, to the presence of a thick, porous Dunvegan Fm. channel
sandstone found over most of these lands. Tango plans on re-entering the well
located at 07-14 (net 50% WI) and re-complete 6 meters of potential Dunvegan
pay sometime later this year. Additionally, two other highly prospective
drillable Cretaceous locations exist on Tango lands in Cecilia.
Ansell, AB
In December 2005, Tango completed drilling a new well located at 12-13 in
the Ansell area of Alberta. This well not only extended the pool size of
Tango's Q1 2005 Viking gas discovery a mile away at 16-14, but also discovered
two new gas zones in the Gething Fm. Net production from these two wells is
expected to be 100BOEPD. These wells are planned to be tied in sometime in the
3rd quarter of 2006. Tango is the operator and has a 60% average working
interest in these lands. Geological mapping suggests at least 3 additional
drillable locations exist in Ansell.
Blackstone North
Earlier this year, Tango successfully re-entered an abandoned, cased well
located at 11-13. This well has now been completed, flow tested and put on
production. Currently this well is producing at flush production rates but
once it stabilizes, it is expected to add at least 50 BOEPD to Tango. As a
result of new activity in the area by Tango and others, Tango plans on
re-completing the Cardium Fm. in this well where there is at least 3.0 meters
of net porous sandstone is situated behind casing. Tango is the operator in
Blackstone North and has an average working interest of 50% before payout
increasing to 75% after payout. At least two new drilling locations exist on
these lands.
Blackstone South
Tango's first well in Blackstone South at 12-25, resulted in a two-zone
exploration discovery in both the Glauconite and Cardium Formations. Tango's
next operation in Blackstone South was the successful drilling and completion
of the Cardium Fm. in a well located at 09-17. With the drilling of this
second well, Tango has now established a potentially large gas charged Cardium
trend. A third well, located at 03-31 and also targeting the Cardium is
expected to commence drilling this month. Tango's average working interest in
Blackstone South is approximately 25%.
Deanne, AB
Tango eagerly awaits spring break-up in order to test its Deanne
Prospect. Deanne is a multi-zone, sweet gas prospect west of Rocky Mountain
House, where Tango holds a 100% working interest in 7 sections of land. Tango
plans to twin a well located at 07-20, and drill to 3100 meters. Based on
technical information, there are expected to be at least three zones of
potential gas pay. Tango continues to pursue high quality re-entry candidates
and drilling opportunities throughout the deep basin and foothills regions of
the Western Canadian Sedimentary Basin. It is within these multi-zone, deeper
parts of the basin that Tango sees the greatest potential for continuing to
discover large, long-life oil and gas reserves.
Karr, AB
Tango's highly anticipated deep Devonian Swan Hills well was spudded on
Jan 27, 2006. The Karr 13-01 well, where Tango holds a 30% working interest,
will be drilled in two stages. This drilling season, intermediate casing has
been successfully set to a depth of 3000 meters. Plans for next winter will be
to complete the drilling and evaluation of 13-01 to a total depth of 4355
meters. Tango is poised to be able to take advantage of any successes in this
well by having an interest in up to 10 offset sections of land.
Hanlan, AB
Tango plans on conducting a new re-entry operation on its' Hanlan lands.
Tango has now acquired a significant working interest in a cased wellbore
located at 10-07 and has a working interest in more than 20 sections of land
offsetting this well. Plans are underway to complete this well later this
summer.
Quaich, AB
Tango currently owns 2 sections of land with a 100% working interest in
the Quaich area near Coleman, Alberta. On these lands, a 1976 well at 03-03
stands cased containing up to 5 separate gas zones. Tango plans on
participating in the re-entry and re-completion of this well during 2006.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release. This release
contains forward-looking information. By their nature, forward-looking
statements involve assumptions and known and unknown risks and uncertainties
that may cause actual future results to differ materially from those
contemplated. These risks include such things as volatility of oil and gas
prices, commodity supply and demand, fluctuations in currency and interest
rates, ultimate recoverability of reserves, timing and costs of drilling
activities and pipeline construction, new regulations and legislation and
availability of capital. Tango does not undertake to update any of such
forward-looking statements. Please refer to Tango's Annual Report for more
detail as to the nature of these risks and uncertainties. Although Tango
believes that the expectations represented by these forward looking statements
are reasonable, there can be no assurance that such expectations will prove to
be correct.
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/For further information: PLEASE CONTACT: John M. Gunn, Chief Executive
Officer & Chief Financial Officer, John E. Bell, President & Secretary, Phone:
(403) 266-5688, Fax: (403) 266-8817/
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