Tengasco Closes Sale Of Tennessee Assets For $1.5 Million
Purchased assets of the Swan Creek field in Hancock County, including a 67-mile natural gas pipeline and extended related properties.
Tengasco Inc. (NYSE: TGC) closed the sale of its Swan Creek field in Hancock County, Tenn., to Swan Creek Partners LLC and its affiliate General Gas Pipeline LLC for US $1.5 million, the company announced on Aug. 22.
The sale included all of its other Tennessee oil and natural gas leases and related properties together with its 67-mile natural gas pipeline system and related properties extending from the Swan Creek field to Kingsport, Tenn. The sale did not include the assets of Manufactured Methane Corp., including the methane facility and electric generator at Carter Valley landfill in Hawkins County, Tenn.
The sale closed on Aug. 16. Closing of the sale had been contingent upon the Tennessee Regulatory Authority granting regulatory approval to General Gas Pipeline LLC for the transfer of utility status of the pipeline, and the company receiving certain landowner approvals of assignment of pipeline easements. The Tennessee Regulatory Authority granted transfer approval in July and the remaining conditions to closing were completed the first week of August.
Upon closing, the company now has no remaining oil or natural gas producing properties or lease position for oil or gas exploration in Tennessee, and no natural gas pipeline assets. The company has used all of the proceeds of this sale to pay down its borrowings, reducing the current balance owed under its existing credit facility with F&M Bank in Dallas, from $5.2 million to $3.8 million. As a result of the company's impairment of its pipeline asset in 2012 to a reduced value of $1.4 million, it is anticipated that this sale will have no effect upon the company's earnings in the current reporting period.
Tengasco Inc. is an independent energy company engaged in the E&P of oil and natural gas in the U.S. The company is based in Knoxville, Tenn.