Tengasco Signs 20-Year Natural Gas Sales Contract With British Aerospace at Holston Ammunition Arsenal

Apr 03, 2001, 01:00 ET from Tengasco, Inc.

    KNOXVILLE, Tenn., April 3 /PRNewswire/ -- Tengasco (Amex:   TGC) announced
 today that it has signed a 20-year natural gas sales contract to supply
 natural gas to BAE SYSTEMS Ordnance Systems Inc., operator of Holston Army
 Ammunition Plant in Kingsport, Tennessee.  Natural gas is used at the U. S.
 Army ammunition facility to fire boilers and furnaces for steam production and
 process operations utilized in the manufacture of explosives by BAE SYSTEMS
 for the United States military.  Delivery of natural gas will begin at 8:00 AM
 on Wednesday, April 4, 2001 utilizing Tengasco's 60-mile intrastate pipeline
 that was completed on March 8, 2001.  Under the agreement, Holston's daily
 purchases of natural gas will be between 1.8 million and 5 million cubic feet,
 and volume could increase significantly over the life of the agreement as BAE
 SYSTEMS conducts additional operations at its facilities.  Tengasco will be
 the sole supplier of natural gas to BAE SYSTEMS under this agreement.
     Tengasco's pipeline connects the company's 50,000-acre Swan Creek gas and
 oil field located in Hancock County, Tennessee to Upper East Tennessee.
 Tengasco is the only gas pipeline located on the grounds of the 6,000-acre
 federal facility at Holston Army Ammunition Plant.  BAE SYSTEMS is developing
 a portion of the facility as the new Holston Business and Technology Park as a
 location for additional commercial and industrial customers.
     "Tengasco is the only company in Tennessee that can deliver natural gas
 from the wellhead to the burner tip," comments Tengasco chairman and CEO M.E.
 Ratliff.  "Tengasco has received all regulatory permits and approvals from the
 Tennessee Regulatory Authority to begin delivering gas over our intrastate
 pipeline.  We are pleased that BAE SYSTEMS at the Holston Army Ammunition
 Plant has joined Tengasco's expanding list of industrial customers.  At the
 maximum volumes and with current market price of gas, this contract represents
 an annual gross revenue of about $9.54 million and over $190.8 million over
 the life of the agreement."
     "We are pleased to begin our gas purchases from Tengasco," states Tony
 Hewitt, commercial development director for BAE SYSTEMS, "and to begin to
 enjoy the benefits of this gas in our own manufacturing operations, which
 brings an uninterruptible supply source.  We are also pleased that Tengasco's
 presence at Holston Business and Technology Park provides the availability of
 gas service to other industrial and commercial customers which is an important
 factor in our development of the Holston Business and Technology Park."
     Tengasco, Inc., headquartered in Knoxville, Tennessee, is a fully
 diversified energy company involved in oil and natural gas exploration and
 production, pipeline construction and other energy services.
     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.
 
 

SOURCE Tengasco, Inc.
    KNOXVILLE, Tenn., April 3 /PRNewswire/ -- Tengasco (Amex:   TGC) announced
 today that it has signed a 20-year natural gas sales contract to supply
 natural gas to BAE SYSTEMS Ordnance Systems Inc., operator of Holston Army
 Ammunition Plant in Kingsport, Tennessee.  Natural gas is used at the U. S.
 Army ammunition facility to fire boilers and furnaces for steam production and
 process operations utilized in the manufacture of explosives by BAE SYSTEMS
 for the United States military.  Delivery of natural gas will begin at 8:00 AM
 on Wednesday, April 4, 2001 utilizing Tengasco's 60-mile intrastate pipeline
 that was completed on March 8, 2001.  Under the agreement, Holston's daily
 purchases of natural gas will be between 1.8 million and 5 million cubic feet,
 and volume could increase significantly over the life of the agreement as BAE
 SYSTEMS conducts additional operations at its facilities.  Tengasco will be
 the sole supplier of natural gas to BAE SYSTEMS under this agreement.
     Tengasco's pipeline connects the company's 50,000-acre Swan Creek gas and
 oil field located in Hancock County, Tennessee to Upper East Tennessee.
 Tengasco is the only gas pipeline located on the grounds of the 6,000-acre
 federal facility at Holston Army Ammunition Plant.  BAE SYSTEMS is developing
 a portion of the facility as the new Holston Business and Technology Park as a
 location for additional commercial and industrial customers.
     "Tengasco is the only company in Tennessee that can deliver natural gas
 from the wellhead to the burner tip," comments Tengasco chairman and CEO M.E.
 Ratliff.  "Tengasco has received all regulatory permits and approvals from the
 Tennessee Regulatory Authority to begin delivering gas over our intrastate
 pipeline.  We are pleased that BAE SYSTEMS at the Holston Army Ammunition
 Plant has joined Tengasco's expanding list of industrial customers.  At the
 maximum volumes and with current market price of gas, this contract represents
 an annual gross revenue of about $9.54 million and over $190.8 million over
 the life of the agreement."
     "We are pleased to begin our gas purchases from Tengasco," states Tony
 Hewitt, commercial development director for BAE SYSTEMS, "and to begin to
 enjoy the benefits of this gas in our own manufacturing operations, which
 brings an uninterruptible supply source.  We are also pleased that Tengasco's
 presence at Holston Business and Technology Park provides the availability of
 gas service to other industrial and commercial customers which is an important
 factor in our development of the Holston Business and Technology Park."
     Tengasco, Inc., headquartered in Knoxville, Tennessee, is a fully
 diversified energy company involved in oil and natural gas exploration and
 production, pipeline construction and other energy services.
     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.
 
 SOURCE  Tengasco, Inc.