U. S. Securities and Exchange Commission
                            Washington, D. C. 20549

                                 Form 10-QSB/A

                 QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
                      THE SECURITIES EXCHANGE ACT OF 1934

                 For the Quarterly period ended March 31, 1998

                          Commission File No. 0-20975

                                Tengasco, Inc.
                                --------------
       (Exact name of small business issuer as specified in its charter)

          Tennessee                                       87-0267438
          ---------                                       ----------
(State or other jurisdiction of                (IRS Employer Identification No.)
incorporation or organization)

                603 Main Avenue, Suite 500, Knoxville, TN 37902
                -----------------------------------------------
                   (Address of principal executive offices)

                                (423) 523-1124
                                --------------
               (Issuer's telephone number, including area code)

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days.  Yes [X]  No [ ]

State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date: 7,284,801 common shares at
March 31, 1998.

Transitional Small Business Disclosure Format (check one):  Yes [ ]   No [X]



                                TENGASCO, INC.

                  Notes to Consolidated Financial Statements

1.   The accompanying unaudited consolidated financial statements have been
     prepared in accordance with generally accepted accounting principles for
     interim financial information and with the instructions to Form 10-QSB
     and Item 310 (b) of Regulation S-B. Accordingly, they do not include all
     of the information and footnotes required by generally accepted
     accounting principles for complete financial statements. In the opinion
     of management, all adjustments (consisting of only normal recurring
     accruals) considered necessary for a fair presentation have been
     included. Operating results for the three months ended March 31, 1998 are
     not necessarily indicative of the results that may be expected for the
     year ended December 31, 1998. For further information, refer to the
     company's consolidated financial statements and footnotes thereto for the
     year ended December 31, 1997, included in Form 10-KSB.

2.   The Company has issued fully paid 25% working interests in four wells in
     the Swan Creek Field to a Director which were paid for in part by
     crediting the Director $235,000 for placement fees in connection with
     private placements of the Company's common stock which occurred during
     the fourth quarter of 1997 and the first quarter of 1998. If, however, it
     is determined that a well(s) at the time of completion of the drilling is
     not economically feasible and as such is subsequently plugged and
     abandoned, the Director has 30 days, after written notice from the
     Company, to convert amounts paid for that well(s) to restricted shares of
     the Company's common stock at 70% of its then current market value. To
     date, two of the four wells in which the Director has a participation
     interest are producing, therefore his options for these wells are not
     exercisable. If the options to convert the remaining well interests to
     the Company's common stock should become exercisable, the Company will
     recognize a charge to compensation expense for the difference between the
     market value of the stock on the date the option is exercisable and the
     amount paid by the Director for the working interest in these wells.

3.   On December 18, 1997, the Company entered into an asset purchase
     agreement in which certain producing oil and gas properties located in
     the state of Kansas were acquired from A.F.G. Energy, Inc.("AFG"). The
     agreement, which was effective as of December 31, 1997, closed on March
     5, 1998. The Company paid $2,990,253 in cash and entered into a note
     payable agreement with AFG in the amount of $2,500,000. The note will
     accrue interest at 9% per annum and is due in 23 monthly installments of
     principal and interest of $79,500 with a balloon payment of $983,773 due
     in February, 2000. The total note balance due at March 31, 1998 is
     $2,430,500 with a current portion payable of $763,375 and a long term
     amount of $1,667,125.

4.   In accordance with ("SFAS") No. 128, "Earnings Per Share", basic and
     diluted loss per share are based on 7,071,506 weighted average shares
     outstanding for the quarter ended March 31, 1998 and 5,712,287 weighted
     average shares outstanding for the quarter ended March 31, 1997. There
     were 517,502 and 948,670 potential weighted common shares outstanding at
     March 31, 1998 and March 31, 1997 respectively related to common stock
     options and warrants. These shares were not included in the computation
     of the diluted loss per share amount because the Company was in a net
     loss position and, thus, any potential common shares were anti-dilutive.

                                       7



SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereto duly authorized.

Dated: August 27, 1998                 TENGASCO, INC.

                                       By:  /s/ Robert M. Carter
                                            ---------------------------
                                            Robert M. Carter, President

                                       By:  /s/ William F. Stenken
                                            ---------------------------
                                            William F. Stenken,
                                            Chief Accounting Officer