-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, U8VyJaDgPW+2qryHPDWSyMjwtcfUcRxlRwEqFDa8un4NzAmKvbanK2encQiAxRUn 1KCw0yglXRo4z+gC0rig0g== 0000930413-01-500290.txt : 20010418 0000930413-01-500290.hdr.sgml : 20010418 ACCESSION NUMBER: 0000930413-01-500290 CONFORMED SUBMISSION TYPE: 10KSB PUBLIC DOCUMENT COUNT: 6 CONFORMED PERIOD OF REPORT: 20001231 FILED AS OF DATE: 20010417 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TENGASCO INC CENTRAL INDEX KEY: 0001001614 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 870267438 STATE OF INCORPORATION: TN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10KSB SEC ACT: SEC FILE NUMBER: 001-15555 FILM NUMBER: 1603928 BUSINESS ADDRESS: STREET 1: 603 MAIN AVE STREET 2: SUITE 500 CITY: KNOXVILLE STATE: TN ZIP: 37902 BUSINESS PHONE: 4235231124 MAIL ADDRESS: STREET 1: 630 MAIN AVENUE STREET 2: SUITE 500 CITY: KNOXVILLE STATE: TN ZIP: 37902 10KSB 1 c20582_10ksb.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 REPORT ON FORM 10-KSB (Mark one) /X/ Annual Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended DECEMBER 31, 2000 or / / Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from _____________________ to _____________________. Commission File No. 0-20975 TENGASCO, INC. (NAME OF SMALL BUSINESS ISSUER IN ITS CHARTER) TENNESSEE 87-0267438 (STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.) 603 MAIN AVENUE, KNOXVILLE, TENNESSEE 37902 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE) ISSUER'S TELEPHONE NUMBER, INCLUDING AREA CODE: (865) 523-1124. SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT: NONE. SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT: COMMON STOCK, $.001 PAR VALUE PER SHARE. CHECK WHETHER THE REGISTRANT (1) FILED ALL REPORTS REQUIRED TO BE FILED BY SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 DURING THE PRECEDING 12 MONTHS (OR 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 / / CHECK IF DISCLOSURE OF DELINQUENT FILERS IN RESPONSE TO ITEM 405 OF REGULATION S-B IS NOT CONTAINED IN THIS FORM AND NO DISCLOSURE WILL BE CONTAINED, TO THE BEST OF THE REGISTRANT'S KNOWLEDGE, IN DEFINITIVE PROXY OR INFORMATION STATEMENTS INCORPORATED BY REFERENCE IN PART III OF THIS FORM 10-KSB OR ANY AMENDMENT TO THIS FORM 10-KSB. [ ] STATE ISSUER'S REVENUES FOR ITS MOST RECENT FISCAL YEAR: $5,241,076 STATE THE AGGREGATE MARKET VALUE OF THE VOTING STOCK HELD BY NONAFFILIATES (BASED ON THE CLOSING PRICE ON MARCH 16, 2001 OF $11.05): $74,876,258. STATE THE NUMBER OF SHARES OUTSTANDING OF THE REGISTRANT'S $.001 PAR VALUE COMMON STOCK AS OF THE CLOSE OF BUSINESS ON THE LATEST PRACTICABLE DATE (MARCH 16, 2001): 9,663,610 DOCUMENTS INCORPORATED BY REFERENCE: NONE. TRANSITIONAL SMALL BUSINESS DISCLOSURE FORMAT (CHECK ONE): YES [ ] NO [X] FORWARD LOOKING STATEMENTS The information contained in this Report, in certain instances, includes certain forward-looking statements. When used in this document, the words budget, budgeted, anticipate, expects, estimates, believes, goals or projects and similar expressions are intended to identify forward-looking statements. It is important to note that the Company's actual results could differ materially from those projected by such forward-looking statements. Important factors that could cause actual results to differ materially from those projected in the forward-looking statements include, but are not limited to, the following: production variances from expectations, volatility of oil and gas prices, the need to develop and replace reserves, the substantial capital expenditures required for construction of pipelines and the drilling of wells and the related need to fund such capital requirements through commercial banks and/or public securities markets, environmental risks, drilling and operating risks, risks related to exploration and development drilling, the uncertainty inherent in estimating future oil and gas production or reserves, uncertainty inherent in litigation, competition, government regulation, and the ability of the Company to implement its business strategy, including risks inherent in integrating acquisition operations into the Company's operations. PART I ITEM 1. BUSINESS. BUSINESS DEVELOPMENT. The Company is in the business of exploring for, producing and transporting oil and natural gas in Tennessee and Kansas. The Company leases producing and non-producing properties with a view toward exploration and development. Emphasis is also placed on pipeline and other infrastructure facilities to provide transportation, processing and tieback services. The Company utilizes state-of-the-art seismic technology to maximize the recovery of reserves. The Company's activities in the oil and gas business did not commence until May 1995 with the acquisition of oil and gas leases in Tennessee. Since 1995 the Company has acquired oil and gas leases on a total of approximately 49,000 acres, located in Hancock, Claiborne, Knox, Jefferson and Union Counties in Tennessee (collectively, the "Swan Creek Leases or Field"). Effective December 31, 1997, the Company acquired from AFG Energy, Inc. ("AFG"), a private company, approximately 30,000 acres of leases in the vicinity of Hays, Kansas (the "Kansas Properties"). Included in the acquisition which closed on March 5, 1998 were 273 wells, including 208 working wells, of which 149 are producing oil wells and 59 are producing gas wells, a related 50 mile pipeline and gathering system, 3 compressors and 11 vehicles. The 1 total purchase price of these assets was approximately $5.5 million, which consisted of $3 million in cash and seller financing of $2.5 million. The seller financing portion of the purchase price has been refinanced by Arvest United Bank of Oklahoma City, Oklahoma as evidenced by a note dated November 23, 1999 in the amount of $1,883,650 to be paid in monthly installments of principal and interest over a three year period. The Company is current in its obligations under this transaction. The Kansas Properties are currently producing approximately one million cubic feet of natural gas and 400 barrels of oil per day. Income from the Kansas Properties at the present time is approximately $400,000 per month. The Company has drilled or has an interest in thirty wells in the Swan Creek field in Tennessee and presently has twenty four productive natural gas wells and six producing oil wells in this field. In July 1998 the Company completed the first phase ("Phase I") of its pipeline in the Swan Creek Field, a 23 mile pipeline made of 6 and 8 inch steel pipe running from the Swan Creek Field into the main city gate of Rogersville, Tennessee. With the assistance of the Tennessee Valley Authority ("TVA"), the Company was successful in utilizing TVA's right-of- way along its main power line grid from the Swan Creek Field to the Hawkins County Utility District located in Rogersville. The cost of constructing Phase I of the pipeline was approximately $4,200,000. The Company has now completed construction of the second phase ("Phase II") of its pipeline, an additional 28 miles of 8 and 12 inch pipeline extending from the terminus of the Company's existing Phase I pipeline to Eastman Chemical Company in Kingsport, Tennessee. Construction of Phase II of the pipeline cost approximately $6,800,000. Ceremonies marking the completion of construction were held in Kingsport, Tennessee on March 8, 2001 and were attended by over two hundred people, including the Hon. Don Sundquist, Governor of the State of Tennessee, the president of Eastman Chemical Company, and many state and local government officials. Deliveries of gas to the Holston Army Ammunition Plant at Kingsport, Tennessee began on April 4, 2001 and deliveries to Eastman Chemical Company are expected to commence on or before April 30, 2001. Currently the Company is producing and selling approximately 4,000 barrels of oil per month from the Swan Creek Field. Income from oil sales from the Swan Creek Field is approximately $ 80,000 per month. The Company will continue to conduct exploration and production activities to produce increased quantities of crude oil and natural gas. The principal markets for these commodities are local refining companies, major natural gas transmission pipeline companies, local utilities and private industry end-users. 2 HISTORY OF THE COMPANY The Company was initially organized under the laws of the State of Utah on April 18, 1916, under the name "Gold Deposit Mining & Milling Company." The Company subsequently changed its name to Onasco Companies, Inc. The Company was formed for the purpose of mining, reducing and smelting mineral ores. On November 10, 1972, the Company conveyed to an unaffiliated entity substantially all of the Company's assets and the Company ceased all business operations. From approximately 1983 to 1991, the operations of the Company were limited to seeking out the acquisition of assets, property or businesses. At a special meeting of stockholders held on April 28, 1995, the Company's stockholders voted: (i) to approve the execution of an agreement (the "Purchase Agreement") pursuant to which the Company would acquire certain oil and gas leases, equipment, securities and vehicles owned by Industrial Resources Corporation ("IRC"), a Kentucky corporation, in consideration of the issuance of 4,000,000 post-split (as described below) "unregistered" and "restricted" shares of the Company's common stock and a $450,000 8% promissory note payable to IRC. The promissory note was converted into 83,799 shares of the Company's common stock in December 1995; (ii) to amend the Articles of Incorporation of the Company to effect a reverse split of the Company's outstanding $0.001 par value common stock on a basis of one share for two, retaining the par value at $0.001 per share, with appropriate adjustments being made in the additional paid-in capital and stated capital accounts of the Company; (iii) to change the name of the Company from "Onasco Companies, Inc." to "Tengasco, Inc."; and (iv) to change the domicile of the Company from the State of Utah to the State of Tennessee by merging the Company into Tengasco, Inc., a Tennessee corporation, formed by the Company solely for this purpose. The Purchase Agreement was duly executed by the Company and IRC, effective May 2, 1995. The reverse split, name change and change of domicile became effective on May 4, 1995, the date on which duly executed Articles of Merger effecting these changes were filed with the Secretary of State of the State of Tennessee; a certified copy of the Articles of Merger from the State of Tennessee was filed with the Department of Commerce of the State of Utah on May 5, 1995. Unless otherwise noted, all subsequent computations herein retroactively reflect this one for two reverse split. 3 During 1996, the Company formed Tengasco Pipeline Corporation, a wholly-owned subsidiary, to manage the construction and operation of its pipeline, as well as other pipelines planned for the future. GENERAL 1. THE SWAN CREEK FIELD Amoco Production Company ("AMOCO") during the late 1970's and early 1980's, after extensive geological and seismic studies, leased approximately 49,000 acres of oil and gas leases in the Eastern Overthrust in the Appalachian Basin, an area now referred to as the Swan Creek Field. In 1982 AMOCO successfully drilled two significant natural gas discovery wells in the Swan Creek Field to the Knox Formation at approximately 5,000 feet of total depth. These wells, once completed, had a high pressure and volume of deliverability of natural gas; however, in the mid-1980's a substantial decline in worldwide oil and gas prices occurred and the high cost of constructing a 23 mile pipeline across three rugged mountain ranges and crossing the environmentally protected Clinch River from Sneedville to the closest market in Rogersville, Tennessee was cost prohibitive. In 1987, AMOCO farmed out its leases to Eastern American Energy Company which held the leases until July 1995. The Company became aware of a law adopted by the Tennessee legislature which enabled the Company to lease all of AMOCO's prior acreage. The Company filed for a declaratory judgment as to its right to lease AMOCO's prior acreage. The Company was ultimately successful in winning all right, title and interest in all of AMOCO's prior leases in a precedent setting Supreme Court case. In July 1995 after completion of the Purchase Agreement with IRC, the Company acquired the Swan Creek Leases. These leases provide for a landowner royalty of 12.5%. The first well drilled by the Company in the Swan Creek Field, the Gary Patton #1 tested at 6.8 Mmcf of deliverable gas per day, making it the largest known tested well in the states of Tennessee, Kentucky and Virginia. The Company now has twenty four productive gas wells and six oil wells for a total of thirty wells. See, Item 2 "Description of Property." Having completed Phase I of its pipeline, in July 1998 the Company began selling gas to Hawkins County Utility District which services residential, municipal and industrial customers in the Hawkins County area, pursuant to a written contract entered into on September 26, 1996. During the period from August 1998 through December 31, 1998 the Company delivered 46,776 Mcf of gas to Hawkins County Utility District. 4 During the period from January 1, 1999 through March 23, 1999 Hawkins County Utility District took only 477 Mcf of gas from the Company. Although Hawkins County Utility District could take gas in greater quantities, it declined to do so. Pursuant to its original contract, it was not obligated to purchase any specific amount of gas. The contract with the Hawkins County Utility District was renegotiated and an Amendment Agreement was entered into on October 19, 1999 whereby the Hawkins County Utility District committed to take a minimum of 500 MCF and a maximum of 4,000 MCF of gas per day with an option to purchase up to an additional 3,000 MCF per day. Pursuant to this Agreement, the Hawkins County Utility District began purchasing gas from the Company as of November 2, 1999. Hawkins County has purchased relatively small quantities of gas the Company has blended from certain wells when such blended gas contains less than 4% nitrogen. Hawkins County's position is that it is not required to purchase contract volumes unless the nitrogen content is less than 4%, although the Company has demonstrated that its gas, with a nitrogen content of approximately 4.5% is interchangeable with 4% gas. Since November 2, 1999, Hawkins County Utility District has purchased 3,910 Mcf of gas (Mcf are units of one thousand cubic feet of gas). The Company stands ready to deliver additional quantities of gas, but there can be no assurances that Hawkins County will purchase additional quantities of gas. On November 18, 1999, the Company entered into an agreement with Eastman Chemical Company ("Eastman") which provides that the Company will deliver daily to Eastman's plant in Kingsport a minimum of the lesser of (i) 5,000 MMBtu's (MMBtu means one million British thermal units) or (ii) forty percent (40%) of the natural gas requirements of Eastman s plant and a maximum of 15,000 MMBtu's per day. Under the terms of the agreement, the Company has the option to install facilities to treat the delivered gas so that the total nonhydrocarbon content of the delivered gas is not greater than two percent (2%). This will allow the gas to be used in certain processes in the Eastman plant requiring low levels of nonhydrocarbons. If the Company elects to perform this option by installing additional facilities, the minimum daily amount of gas to be purchased by Eastman from the Company will increase to the lesser of (i)10,000 MMBtu's or (ii) eighty percent (80%) of the natural gas requirements of Eastman's chemical plant. On March 27, 2000 the Company and Eastman signed an amendment to the agreement permitting the Company a further option with respect to the allowable level of nonhydrocarbons in the delivered gas. This amendment gives the Company the further option to tender gas without treatment, at a minimum volume of 10,000 MMBTU s per day, in consideration of which the Company agrees to accept a price reduction of five cents per MMBTU for the volumes per day between 5,000 and 10,000 MMBTU's per day under the pricing structure in place under the original agreement. The reduction of five cents on the second 5,000 MMBTU's per day price is more favorable to the Company than the options existing under the contract prior to this amendment. This price adjustment, while resulting in a decrease in revenues from the Eastman contract of approximately $90,000 per year, would also result in substantially less cost to the Company in meeting the requirements of the existing contract and allowing the Company to double Eastman's minimum daily purchase to 10,000 MMBTU's per day. The option provided under the amendment would have the immediate effect of increasing the minimum quantity under 5 the original agreement to the higher quantity stated above without the need for the Company to elect to install some or all of the treatment facilities as was required under the original agreement. The March 27, 2000 amendment also provides that in the event Eastman determines that the processes requiring low nitrogen gas fail to operate satisfactorily with the gas provided to them by the Company pursuant to the amendment, then Eastman may give written notice to the Company to begin installation of facilities under the agreement as it existed prior to the amendment and complete same within eighteen (18) months of such written notice. Under the agreement as amended March 27, 2000, Eastman will pay the Company the index price plus $0.10 for all natural gas quantities up to 5,000 MMBtus delivered per day, the index price plus $0.05 for all quantities in excess of 5,000 MMBtus per day and the index price for all quantities in excess of 15,000 MMBtu's per day. The index price means the price per MMBtu published in McGraw-Hills Inside F.E.R.C's Gas Market Report equal to the Henry Hub price index as shown in the table labeled Market Center Spot Gas Prices. This index price ranged from $9.91 per MMBtu in January, 2001 to $5.35 per MMBtu in April, 2001. The agreement with Eastman is for a term of twenty years and will be automatically extended, if the parties agree, for successive terms of one year. The initial term of the agreement commences upon the Company's completion of construction of Phase II of its pipeline and connection to Eastman's facilities and once commercial operation of that facility is approved. Pursuant to its agreement with Eastman, completion of construction of Phase II of the pipeline was originally to be made by December 31, 2000. However, Eastman subsequently agreed to extend the completion date of construction to March 31, 2001. In April 2000, the Company commenced construction of Phase II of the pipeline. When the pipeline was completed on March 8, 2001, the Company had laid an additional 28 miles of 5 inch and 12 inch pipeline at a cost of approximately $6,800,000 extending its pipeline from a point near the terminus of Phase I and connecting to an existing pipeline and meter station at Eastman's chemical plant. The completed pipeline extends 60 miles from the Company's Swan Creek Field to Kingsport, Tennessee. The Company is ready to commence deliveries of gas to Eastman. The Company has been advised by Eastman that although the Company's gas has been tested and the quality of gas is acceptable for initial deliveries under the agreement, Eastman encountered technical problems in adjusting its metering equipment for initial deliveries and that final adjustments and additions to Eastman's meters are being concluded and that Eastman expects to take initial deliveries as soon as such adjustments and additions to its equipment are concluded. Based on these representations from Eastman, the Company expects deliveries to Eastman to begin on or before April 30, 2001. On January 25, 2000, the Company's wholly owned subsidiary, Tengasco Pipeline Corporation ("Tengasco Pipeline"), signed a franchise agreement to install and operate new natural gas utility service to residential, commercial and industrial users in Hancock County, Tennessee for the Powell Valley Utility District. The Powell Valley District has no existing natural gas facilities and the system to be installed by Tengasco Pipeline will initially extend to schools and small customers, and will be gradually expanded over time to serve as many of the 6 6,900 residents of the County as is economically possible. Tengasco Pipeline will purchase gas from the Company on behalf of the District and it will be resold at an average retail price of about $8.00 per thousand cubic feet. Under the franchise agreement, which has an initial term of ten years and may be renewed for an additional ten years, Tengasco Pipeline will receive 95% of the gross proceeds of the sale of gas for its services under the agreement. In June, 2000, Tengasco Pipeline began installation of the necessary facilities to begin to serve up to 1,500 residential and industrial consumers in the City of Sneedville, county seat of Hancock County. The Company's existing eight inch main line from its Swan Creek Field passes through the city limits of Sneedville. A one-half mile of interconnecting pipeline from the Company's existing pipeline was installed, as well as an additional four miles of pipeline as the initial phase of the distribution system. The construction was completed and initial volumes of gas into the system from the Swan Creek field occurred on December 27, 2000. The cost of construction of these facilities was approximately $133,000. Upon enactment of initial rate schedules by the Powell Valley Utility District, initial sales began in January, 2001 to a small number of residential and small commercial customers. Tengasco Pipeline has contracted with the City of Sneedville to conduct billing and installation activities in connection with the day to day operation of this system. At this time, no gas sales agreements for large volume or base load sales have been signed and there can be no assurances that such agreements will be signed and if signed, it is not possible to predict when such sales may begin or what the overall volumes of gas sold may be. On March 17, 2000 the Company announced that it had entered into an agreement with the University of Tennessee-Knoxville ("UTK") related to its hydrocarbon exploration activities in eastern Tennessee. Two UTK geological scientists, Professor Robert D. Hatcher, Jr., a University of Tennessee/Oak Ridge National Laboratory Distinguished Scientist in structural and Appalachian geology, and Dr. Richard T. Williams, Ph. D., Associate Professor in geophysics, will provide the Company with assistance in interpreting the structure of the Swan Creek Field and geophysical data from that field. New seismic data will permit better subsurface imaging and more exact determination of the size of the Swan Creek Field. A major outgrowth of the Company's relationship with UTK is a new graduate fellowship, called the Tengasco Fellowship, to be awarded in UTK's Department of Geological Sciences to an outstanding graduate student interested in pursuing a career in the petroleum industry. The fellowship will provide a living allowance and tuition for the student. Two UTK PH. D. students receiving financial support from the Company have already provided computer generated 3-D images of the Swan Creek Field. These images have helped outline the subsurface shape of the hydrocarbon producing zone to allow the Company to better understand where additional production might be located. On February 13, 2001 the Company and The University of Tennessee signed a Memorandum of Agreement concerning cooperation between them in the use of vibreosis seismic equipment, primarily a large vibrator truck, owned by the University that is to be used in the Company's exploration program. Under the agreement, the Company is entitled to use the equipment in exchange for performing required routine expert maintenance and upkeep on the University's equipment, the cost of which exceeds the University's available resources. The 7 University-owned truck is identical to two trucks owned by the Company and used in its seismic exploration program. On March 30, 2001, the Company signed a contract to supply natural gas to BAE SYSTEMS Ordnance Systems Inc.("BAE SYSTEMS"), operator of the Holston Army Ammunition Plant in Kingsport, Tennessee for a period of twenty years. Natural gas is used at the Holston 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 by the Company to the Holston facility utilizing the Company's recently completed intrastate pipeline began at 8:00 AM on Wednesday, April 4, 2001. Under the agreement, BAE SYSTEMS' 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 the Holston facility. The contract calls for a price based on the monthly published index price for spot sales of gas at the Henry Hub plus five cents per MMBTU in the same manner as the price is calculated in the contract between the Company and Eastman. At the maximum volumes and with the current market price of gas, the contract with BAE SYSTEMS represents an annual gross revenue to the Company of about $9.54 million and over $190.8 million over the life of the agreement The contract with BAE SYSTEMS provides that the minimum and maximum volumes are subject to availability of gas after sales are made by the Company to Eastman at the maximum volume stated in the existing contract with Eastman on March 30, 2001 which is 15,000 MMBtu's per day or about 15 million cubic feet. The Company anticipates that this provision of the agreement will not be invoked because the deliverability of gas from its wells in the Swan Creek Field is sufficient to provide the volumes necessary to fulfill both the Eastman and BAE SYSTEMS agreements. The Company will be the sole supplier of natural gas to BAE SYSTEMS under this agreement and the Company has the only gas pipeline located on the grounds of the 6,000- acre Holston facility. A portion of the Holston facility is being developed by BAE SYSTEMS as the new Holston Business and Technology Park which will serve as a location for additional commercial and industrial customers. The Company's presence at the Holston Business and Technology Park will provide the availability of gas service to other customers and is considered by BAE SYSTEMS to be an important factor in the development of the Park, as well as the source of potential new customers for the Company. 2. THE KANSAS PROPERTIES The Company, as of December 31, 1997 acquired the Kansas Properties which presently includes 134 producing oil wells and 51 producing gas wells in the vicinity of Hays, Kansas and a gathering system including 50 miles of pipeline. The aggregate production for the Kansas Properties at present is approximately one million cubic feet of gas and 400 barrels of oil per day. Revenue for the Kansas Wells is approximately $400,000 per month. 8 The Company has hired a full time geologist in Kansas to oversee operations in the Kansas Properties. The Company plans to drill between five and ten new wells in Ellis and Rush Counties, Kansas on its existing leases during this next fiscal year in response to drilling activity in the area establishing new areas of production. The Company is also engaged in gathering for a fee the gas produced from wells owned by others located in Kansas adjacent to the Company's wells and near the Company's gathering lines. The Company's plans for its Kansas properties include maintaining the current productive capacity of its existing wells through normal workovers and maintenance of the wells, performing gathering or sales services for adjacent producers, and expanding the Company's own production through drilling these additional wells. In addition, there are several capital development projects that are available with respect to the Kansas Properties which include recompletion of wells and major workovers to increase current production. These projects when completed may increase production in Kansas. Management, however, has made the decision to not perform this work at the present time, as the Company does not presently have the funds necessary to perform these projects. It will however, reconsider its decision if such funds become available through the Company's operations or other sources of financing. GOVERNMENTAL REGULATIONS The Company is subject to numerous state and federal regulations, environmental and otherwise, that may have a substantial negative effect on its ability to operate at a profit. For a discussion of the risks involved as a result of such regulations, see, "Effect of Existing or Probable Governmental Regulations on Business" and "Costs and Effects of Compliance with Environmental Laws" hereinafter in this section. PRINCIPAL PRODUCTS OR SERVICES AND MARKETS The Company will conduct exploration and production activities to produce crude oil and natural gas. The principal markets for these commodities are local refining companies, local utilities and private industry end users, which purchase the crude oil, and local utilities, private industry end users, and natural gas marketing companies, which purchase the natural gas. Gas production from the Swan Creek field can presently be delivered through the Company's completed pipeline to the Powell Valley Utility District in Hancock County, the Hawkins County Gas Utility, and Eastman Chemical Company in Sullivan County, as well as other industrial customers in the Kingsport area. The Company has acquired all necessary regulatory approvals and 100% of necessary property rights for the pipeline system. The Company's pipeline will not only provide transportation service for gas produced from the Company's wells, but will provide transportation of gas for small independent producers in the local area as well. Direct sales could also be made to some local towns, industries and utility 9 districts. Now that the pipeline has been completed, management believes that it will be able to sell all of its daily natural gas production from the Swan Creek Field. The Company anticipates that a sufficient quantity of crude oil or natural gas will be produced from the Swan Creek Field to supply the Company's customers and make the Company profitable. Natural gas from the Kansas Properties is delivered to Kansas-Nebraska Energy, Inc. in Bushton, Kansas. At present, crude oil is sold to the National Cooperative Refining Association in McPherson, Kansas, 120 miles from Hays. National Cooperative is solely responsible for transportation of the oil it purchases whether by truck or pipeline. There is a limited market in the area and the only other purchaser of crude oil is EOTT Energy Operations Ltd. RESERVE ANALYSES Ryder Scott Company of Houston, Texas ("Ryder Scott") has performed reserve analyses of all the Company's productive leases. Ryder Scott and its employees and its registered petroleum engineers have no interest in the Company or IRC, and performed these services at their standard rates. The net reserve values used hereafter were obtained from a report dated March 28, 2001 prepared by Ryder Scott. In substance, the report used estimates of oil and gas reserves based upon standard petroleum engineering methods which include decline curve analysis, volumetric calculations, pressure history, analogy, various correlations and technical judgment. Information for this purpose was obtained from owners of interests in the areas involved, state regulatory agencies, commercial services, outside operators and files of Ryder Scott. The net reserve values in the Ryder Scott Report were adjusted to take into account the working interests that have been sold by the Company in various wells in the Swan Creek Field. See, "Item 2 - Description of Property." The report of Ryder Scott provides that the net proved reserves for wells in the Swan Creek Field is 54,572 MMCF of natural gas and 569,774 barrels of oil. According to the Ryder Scott Report, discounting the net reserve values by 10% results in a present value as of December 31, 2000 of $443,367,924 before taxes and $430,066,886 after taxes for the Swan Creek Field. The reserves analysis performed by Ryder Scott Company for the Swan Creek field resulted in a decrease in the stated dollar value of the reserves of that field from the reserve analysis previously performed for the Company by Coburn Engineering of Tulsa, Oklahoma. This decrease in the stated dollar value of the reserve analysis was due to the fact that Ryder Scott utilized more conservative assumptions in its analysis in three primary respects. First, Ryder Scott assumed that the gas wells in the Swan Creek field would drain a smaller area per well based on the permeability of the structure. Second, Ryder Scott assumed that due to the complicated geology of the structure, certain oil zones in Swan Creek field may not be in communication with producing oil zones, and therefore did not classify those zones as proven undeveloped reserves for valuation purposes at this time. Finally, economic projections by Ryder 10 Scott of production rates used in the valuation process of the reserves were more conservative than those utilized by Coburn Engineering. The Company recognizes that varying levels of assumptions can be made in rendering an analysis of reserves and believes that the more conservative assumptions utilized by Ryder Scott are within the parameters customarily utilized in the analysis of reserves by companies performing reserve analysis. The Company also notes that Ryder Scott Company is well known in the oil and gas industry and by financial institutions throughout the United States and enjoys a reputation of being one of the preeminent firms engaged in performance of reserve analysis. Ryder Scott also performed a reserve analysis of the Kansas Properties. The net reserve values used hereafter were also obtained from the Ryder Scott Report dated March 28, 2001. According to the Ryder Scott Report, discounting the net reserve values by 10% results in a present value as of December 31, 2000 of $54,419,609 before taxes and $54,307,992 after taxes for the Kansas Properties. The Company believes that the reserve analysis reports prepared by Ryder Scott for the Company for the Swan Creek Field and Kansas Properties provide an essential basis for favorable consideration and review of the Company's producing properties by all potential industry partners and all financial institutions across the country. It is standard in the industry for reserve analyses such as these to be used as a basis for financing of drilling costs. Reserve analyses, however, are at best speculative, especially when based upon limited production; no assurance can be given that the reserves attributed to these leases exist or will be economically recoverable. The result of any reserve analysis is dependent upon the forecast of product prices utilized in the analysis which may be more or less than the actual price received during the period in which production occurs. DISTRIBUTION METHODS OF PRODUCTS OR SERVICES Crude oil is normally distributed in Tennessee by tank truck and natural gas is distributed and transported via pipeline. On September 3, 1999,the Company entered into a farmout agreement with Miller Petroleum, Inc. ("Miller") for ten wells to be drilled in the Swan Creek Field with the Company having an option to award up to an additional ten future wells. All locations are to be mutually agreed upon. Net revenue will be 81.25% to Miller and the Company will transport Miller's gas for a fee. See, Item 2 "Description of Property." COMPETITIVE BUSINESS CONDITIONS, COMPETITIVE POSITION IN THE INDUSTRY AND METHODS OF COMPETITION The Company's contemplated oil and gas exploration activities in the States of Tennessee and Kansas will be undertaken in a highly competitive and speculative business 11 atmosphere. In seeking any other suitable oil and gas properties for acquisition, the Company will be competing with a number of other companies, including large oil and gas companies and other independent operators with greater financial resources. Management does not believe that the Company's initial competitive position in the oil and gas industry will be significant. Its principal competitors in the State of Tennessee are Ashland Oil and Miller Services. In the area of the Company's pipeline, the Company is in a favorable position since it owns the only pipeline within a 20 mile radius. Within that area, the Company owns leases on approximately 49,000 acres. There are numerous producers in the area of the Kansas Properties. Some are larger and some smaller than the Company. However, management expects that it will be able to sell all of the gas and oil that the Kansas Properties produce. Management does not foresee any difficulties in procuring drilling rigs or the manpower to run them in the area of its operations. The experience of management has been that in most instances, drilling rigs have only a one or two day waiting period; however, several factors, including increased competition in the area, may limit the availability of drilling rigs, rig operators and related personnel and/or equipment; such an event may have a significant adverse impact on the profitability of the Company's operations. The Company anticipates no difficulty in procuring well drilling permits which are obtained from the Tennessee Oil and Gas Board. They are usually issued within one week of application. The Company generally does not apply for a permit until it is actually ready to commence drilling operations. The prices of the Company's products are controlled by the world oil market and the United States natural gas market; thus, competitive pricing behaviors are considered unlikely; however, competition in the oil and gas exploration industry exists in the form of competition to acquire the most promising acreage blocks and obtaining the most favorable prices for transporting the product. Management believes that the Company is well-positioned in these areas because of the transmission lines that run through and adjacent to the properties leased by the Company and because the Company holds relatively large acreage blocks in what management believes are promising areas. SOURCES AND AVAILABILITY OF RAW MATERIALS AND NAMES OF PRINCIPAL SUPPLIERS Excluding the development of oil and gas reserves and the production of oil and gas, the Company's operations are not dependent on the acquisition of any raw materials. See, "Competitive Business Conditions, Competitive Position in the Industry and Methods of Competition" set forth above. 12 DEPENDENCE ON ONE OR A FEW MAJOR CUSTOMERS The Company is presently dependent upon a small number of customers for the sale of production of gas from the Swan Creek Field, principally Eastman Chemical Company, and other industrial customers in the Kingsport area with which the Company may enter into gas sales contracts. Natural gas from the Kansas Properties is delivered to Kansas-Nebraska Energy, Inc. in Bushton, Kansas. At present, crude oil from the Kansas Properties is being trucked and transported through pipelines to the National Cooperative Refining Association in McPherson, Kansas, 120 miles from Hays, Kansas. National Cooperative is solely responsible for transportation of products whether by truck or pipeline. There is a limited market in the area and the only other purchaser of crude oil is EOTT Energy Operations Ltd. The Company, however, anticipates that it will be able to sell all of the oil and gas produced from the Kansas Properties. PATENTS, TRADEMARKS, LICENSES, FRANCHISES, CONCESSIONS, ROYALTY AGREEMENTS OR LABOR CONTRACTS, INCLUDING DURATION Royalty agreements relating to oil and gas production are standard in the industry. The amount of the Company's royalty payments varies from lease to lease. The amounts of the royalties on each of the Company's leases may be obtained from the Company. NEED FOR GOVERNMENTAL APPROVAL OF PRINCIPAL PRODUCTS OR SERVICES None of the principal products offered by the Company require governmental approval; however, permits are required for drilling oil or gas wells. See, "Effect of Existing or Probable Governmental Regulations on Business" below in this section. The transportation service offered by Tengasco Pipeline Corporation is subject to regulation by the Tennessee Regulatory Authority to the extent of certain construction, safety, tariff rates and charges, and nondiscrimination requirements under state law. These requirements are typical of those imposed on regulated utilities. Tengasco Pipeline Corporation has been granted a certificate of public convenience and necessity to operate as a pipeline utility in Hancock, Hawkins, and Claiborne counties, Tennessee. In addition, Tengasco Pipeline Corporation was authorized to construct and operate the portion of Phase II of its pipeline to Eastman Chemical Company by resolution of the City of Kingsport in May, 2000. This resolution was approved by the Tennessee Regulatory Authority as required by state law. All approvals for the Company's pipeline have been granted. The City of Kingsport, Tennessee has also enacted an ordinance dated June 6, 2000 granting to Tengasco Pipeline Corporation a franchise for twenty years to construct, maintain and 13 operate a gas system to import, transport, and sell natural gas to the City of Kingsport and its inhabitants, institutions and businesses for domestic, commercial, industrial and institutional uses. This ordinance and the franchise agreement it authorizes also require approval of the Tennessee Regulatory Authority under state law. Now that the pipeline to Eastman Chemical has been completed, Tengasco Pipeline and the City of Kingsport will initiate the required approval process for the ordinance and franchise agreement. Although the Company anticipates that regulatory approval will be granted, there can be no assurances that it will be granted, or that such approval may be granted in a timely manner, or that such approval may not be limited in some manner by the Tennessee Regulatory Authority as is expressly permitted under state law. Tengasco Pipeline Corporation presently has all required tariffs and approvals necessary to transport natural gas to all customers of the Company. See, "Effect of Existing or Probable Governmental Regulations on Business" below in this section. EFFECT OF EXISTING OR PROBABLE GOVERNMENTAL REGULATIONS ON BUSINESS Exploration and production activities relating to oil and gas leases are subject to numerous environmental laws, rules and regulations. The Federal Clean Water Act requires the Company to construct a fresh water containment barrier between the surface of each drilling site and the underlying water table. This involves the insertion of a seven-inch diameter steel casing into each well, with cement on the outside of the casing. The Company has fully complied with this environmental regulation, the cost of which is approximately $10,000 per well. The State of Tennessee also requires the posting of a bond to ensure that the Company's wells are properly plugged when abandoned. A separate $2,000 bond is required for each well drilled. The Company currently has the requisite amount of bonds on deposit with the State of Tennessee. As part of the Company's purchase of the Kansas Properties it acquired a statewide permit to drill in Kansas. Applications under such permit are applied for and issued within one- two weeks prior to drilling. At the present time, the State of Kansas does not require the posting of a bond either for permitting or to insure that the Company's wells are properly plugged when abandoned. All of the wells in the Kansas Properties have all permits required and are in compliance with the laws of the State of Kansas. The Company's operations are also subject to laws and regulations requiring removal and cleanup of environmental damages under certain circumstances. Laws and regulations protecting the environment have generally become more stringent in recent years, and may in certain circumstances impose "strict liability," rendering a corporation liable for environmental damages without regard to negligence or fault on the part of such corporation. Such laws and regulations may expose the Company to liability for the conduct of operations or conditions caused by others, or for acts of the Company which were in compliance with all applicable laws at the time such acts were performed. The modification of existing laws or 14 regulations or the adoption of new laws or regulations relating to environmental matters could have a material adverse effect on the Company's operations. In addition, the Company's existing and proposed operations could result in liability for fires, blowouts, oil spills, discharge of hazardous materials into surface and subsurface aquifers and other environmental damage, any one of which could result in personal injury, loss of life, property damage or destruction or suspension of operations. The Company believes it is presently in compliance with all applicable federal, state or local environmental laws, rules or regulations; however, continued compliance (or failure to comply) and future legislation may have an adverse impact on the Company's present and contemplated business operations. The Company's Board of Directors adopted resolutions to form an Environmental Response Policy and Emergency Action Response Policy Program. A plan was adopted which provides for the erection of signs at each well and at strategic locations along the pipeline containing telephone numbers of the Company's office and the home telephone numbers of key personnel. A list is maintained at the Company's office and at the home of key personnel listing phone numbers for fire, police, emergency services and Company employees who will be needed to deal with emergencies. The foregoing is only a brief summary of some of the existing environmental laws, rules and regulations to which the Company's business operations are subject, and there are many others, the effects of which could have an adverse impact on the Company. Future legislation in this area will no doubt be enacted and revisions will be made in current laws. No assurance can be given as to what effect these present and future laws, rules and regulations will have on the Company's current and future operations. RESEARCH AND DEVELOPMENT The Company has not expended any material amount in research and development activities during the last two fiscal years. Research done in conjunction with its exploration activities will consist primarily of conducting seismic surveys on the lease blocks. This work will be performed by the Company's full time geologist and other employees and will not have a material cost of anything more than standard salaries. COST AND EFFECTS OF COMPLIANCE WITH ENVIRONMENTAL LAWS See, "Effect of Existing or Probable Governmental Regulations on Business" set forth above in this section. 15 NUMBER OF TOTAL EMPLOYEES AND NUMBER OF FULL-TIME EMPLOYEES The Company presently has forty one full time employees and no part-time employees. ITEM 2. DESCRIPTION OF PROPERTY PROPERTY LOCATION, FACILITIES, SIZE AND NATURE OF OWNERSHIP The Company's Swan Creek Leases are on approximately 49,000 acres in Hancock, Claiborne, Knox, Jefferson and Union Counties in Tennessee. The initial terms of these leases vary from one to five years. Many of them can be extended at the option of the Company by payment of annual rent. Some of them will terminate unless the Company has commenced drilling. However, the Company does not anticipate any difficulty in continuing the Swan Creek Leases. See "Description of Business" - "General" above. Morita Properties, Inc., an affiliate of one of the Company's Directors, Shigemi Morita, currently has a 25% working interest in nine of the Company's existing wells, and a 50% working interest and 6% working interest in two of the Company's other existing wells. In addition, to those interests, Morita Properties, Inc. previously owned a 25% working interest in three of the Company's other existing wells and 12.5% working interest in another of the Company's wells which it subsequently sold. See Item 12 -"Certain Relationships and Related Transactions" - "Transactions with Management and Others." An individual who is not an affiliate of the Company purchased 25% working interests in two other wells, the Stephon Lawson No. 1 and the Patton No. 1. All of these wells are located in the Swan Creek Field. Another individual has a 29% revenue interest in the Laura Jean Lawson No. 3 well, also located in the Swan Creek Field, by virtue of having contributed her unleased acreage to the drilling unit and paying her proportionate share of the drilling costs of the well. The Company was obligated to allow that individual to participate on that basis in accordance with both customary industry practice and the requirements of the procedures of the Tennessee Oil and Gas Board in a forced pooling action brought by the Company to require the acreage to be included in the unit so that the well could be drilled. The forced pooling procedure was concluded by her contribution of acreage and agreement to pay proportionate share of drilling costs. The Company has also entered into a farmout agreement with Miller Petroleum, Inc. ("Miller") for ten wells to be drilled in the Swan Creek Field with the Company having an option to award up to an additional ten future wells. All locations are to be mutually agreed upon. 16 Net revenue will be 81.25% to Miller and the Company's subsidiary Tengasco Pipeline will transport Miller's gas. The Company reserves all offset locations to wells drilled under the farmout agreement. A total of four wells have been drilled under the farmout agreement. The Company acquired back from Miller a 50% working interest from Miller in three of those four wells in addition to its rights under the farmout agreement. Other than the working interests described or referred to in this Item, the Company retains all other working interests in wells drilled or to be drilled in the Swan Creek Field. Working interest owners in oil and gas wells are entitled to market their respective shares of production to purchasers other than purchasers with whom the Company has contracted. Absent such contractual arrangements being made by the working interest owners, the Company is authorized but is not required to provide a market for oil or gas attributable to working interest owners' production. At this time, the Company has not agreed to market gas for any working interest owner. If the Company does agree to market gas for working interest owners to the Company's customers, the Company will have to agree, at that time, to the terms of such marketing arrangements and it is possible that as a result of such arrangements, the Company's revenues from such customers may be correspondingly reduced. If the working interest owners make their own arrangements to market their natural gas to other end users along the pipeline which have been served by East Tennessee Natural Gas, an interstate pipeline, such gas would be transported through the Company's wholly owned subsidiary Tengasco Pipeline at published tariff rates. The current published tariff rate is for firm transportation at a demand charge of five cents per MMBTU per day plus a commodity charge of $0.80 per MMBTU. If the working interest owners do not market their production, either independently or through the Company, then their interest will be treated as not yet produced and will be balanced either when marketing arrangements are made by such working interest owners or when the well ceases to produce in accordance with customary industry practice. The Kansas Properties acquired from AFG contain 138 leases totaling 32,158 acres in the vicinity of Hays, Kansas. The original term on these leases was from 1 to 10 years and in most cases has expired, however, most leases are still in effect because they are being held by production. The Company maintains a 100% working interest in most wells. The leases provide for a landowner royalty of 12.5%. Some wells are subject to an overriding royalty interest from 0.5% to 9%. The Company leases its principal executive offices, consisting of approximately 5,647 square feet located at 603 Main Avenue, Suite 500, Knoxville, Tennessee, at a monthly rent of $4,705.83. The Company also leases a field office in Sneedville, Tennessee at a rental of $500 per month, an office in Hays, Kansas at a rental of $500 per month and an office in New York City at a rental of $2,600 per month. In addition, the Company has drilling equipment and vehicles which it acquired from IRC. All of this equipment is in satisfactory operating condition. The securities which the Company acquired from IRC were sold during 1996 for $250,000. On November 1, 2000, the 17 Company purchased an Ingersoll Rand RD20 drilling rig and related equipment from Ratliff Farms, Inc., an affiliate of Malcolm E. Ratliff, Chief Executive Officer and Chairman of the Board of Directors of the Company. See Item 12, "Certain Relationships and Related Transactions" - "Transactions with Management and Others." Tests to date on the completed wells on the Swan Creek Leases indicate substantial potential for future deliverability. Based upon engineering reports, management believes that the wells drilled to date have a life expectancy of approximately 25 years on a declining basis. The Company pays ad valorem taxes on its Kansas Properties. It does not pay any taxes on its Swan Creek Leases. The Company has general liability insurance for the Kansas Properties and the Swan Creek Field. ITEM 3. - LEGAL PROCEEDINGS Except as described hereafter, the Company is not a party to any pending material legal proceeding. To the knowledge of management, no federal, state or local governmental agency is presently contemplating any proceeding against the Company which would have a result materially adverse to the Company. To the knowledge of management, no director, executive officer or affiliate of the Company or owner of record or beneficially of more than 5% of the Company's common stock is a party adverse to the Company or has a material interest adverse to the Company in any proceeding. 1. The Company, its Chief Executive Officer, Malcolm E. Ratliff, and one of its attorneys, Morton S. Robson, have been named as defendants in an action commenced in the Supreme Court of the State of New York, New York County entitled MAUREEN COLEMAN, JOHN O. KOHLER, CHARLES MASSOUD, JONATHAN SARLIN, VON GRAFFENRIED A.G. AND VPM VERWATUNGS A.G., PLAINTIFFS V. TENGASCO, INC., MORTON S. ROBSON AND MALCOLM E. RATLIFF, DEFENDANTS, INDEX NO. 603009/98 In that action, the plaintiffs, shareholders of the Company each of which purchased restricted shares of the Company's Common Stock, allege that although they were entitled to sell their shares pursuant to SEC Rule 144 in the open market, they were precluded from doing so by the defendants' purported wrongful refusal to remove the restrictive legend from their shares. The plaintiffs own in the aggregate 35,000 shares of the Company's common stock. The plaintiffs are seeking damages in an amount equal to the difference between the amount they would have been able to sell their shares if the plaintiffs had acted to remove the restrictive legends when requested and the amount they will receive on the sale of their shares. The plaintiffs are also seeking punitive damages in an amount they claim to be in excess of $500,000 together with interest, costs and disbursements of bringing the action, including reasonable attorneys fees. The Company believes that there are several substantial factual and legal issues as to the date on which the shareholders were entitled to sell their stock pursuant to Rule 144. Management further believes that the Company did not wrongfully withhold its approval of the 18 removal of the restrictive legends at the times such removal was requested by the shareholders. However, in the event the Company is found to have improperly withheld its permission to remove the restrictive legends from the shares owned by the shareholders, the Company may be held liable for damages to the shareholders in an amount equal to the difference between the actual sale price of such shares and the sales price they would have realized on the date such restrictive legends should have been permitted to be removed. As this time it is not possible to ascertain with any certainty what such damages would be. 2. TENGASCO PIPELINE CORPORATION V. JAMES E. LARKIN AND KATHLEEN A. O CONNOR, No. 4929J in the Circuit Court for Hawkins County, Tennessee. This is a condemnation proceeding brought by Tengasco Pipeline Corporation to acquire a temporary construction easement and permanent right of way to maintain and operate a portion of Phase I of the Company's pipeline in Hawkins County, Tennessee. The court granted an order of possession to the Company in January, 1998 and the pipeline has been constructed across approximately 3,000 feet of the property concerned in a rural and very steep locale. The Company has had the right of way appraised at $4,000. The landowners, Mr. Larkin and Kathleen A. O Connor who both live on the property, contest the appraised value of the property and claim incidental damages to certain fish ponds located on their property. The landowners, despite a lack of evidence of any fish raising or aquaculture business actually being or having been operated on the premises or of any actual losses to such business, have counterclaimed for $867,585 in compensatory damages and $2.6 million in punitive damages arising from trespass and other legal theories. The Court required the parties to attempt to mediate this dispute and the mediation occurred in December, 2000. The parties were unable to reach a mediated settlement and the matter is expected to go to trial in the summer or fall of 2001. The discovery conducted to date has not disclosed any facts that reasonably suggest any likelihood of a substantial adverse result in this matter, and the Company intends to vigorously defend the allegations of the counterclaim which appear to be without any credible basis. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS (a) The annual meeting of stockholders of the Company was held on August 8, 2000. (b) The first item voted on was the election of Directors. Joseph E. Armstrong, Benton L. Becker, Edward W.T. Gray III, Robert D. Hatcher, Jr., Sanford E. McCormick, Shigemi Morita, Malcolm E. Ratliff and Allen J. Sweeney were elected as Directors of the Company for a term of one year or until their successors were elected and qualified. The results of voting were as follows: 6,264,102 votes for Joseph E. Armstrong and 1,094 withheld; 6,224,062 votes for Benton L. Becker and 41,134 withheld; 6,264,062 votes for Edward W.T. Gray III and 1,134 withheld; 6,245,102 votes for Robert D. Hatcher, Jr. and 20,094 withheld; 6,207,062 votes for Sanford E. McCormick and 58,134 withheld; 6,264,102 votes for Shigemi Morita and 1,094 withheld; 6,263,362 votes for 19 Malcolm E. Ratliff and 1,834 withheld; and, 6,256,661 votes for Allen J. Sweeney and 8,535 withheld. (c) The next item of business was the proposal to ratify the appointment of BDO Seidman, LLP, the independent certified public accountants of the Company, for fiscal 2000. The results of the voting were as follows: 6,250,236 votes for the resolution, 4,000 votes against and 10,960 votes abstained. A majority of the votes cast at the meeting having voted for the resolution, the resolution was duly passed. No other matters were voted on at the meeting. PART II ITEM 5 MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS MARKET INFORMATION The Company's common stock was listed on the OTC Bulletin Board of the NASD from March 31, 1994 through December 20, 1999 under the symbol TNGO. On December 10, 1999, the American Stock Exchange ("AMEX") approved the application of the Company to have its common stock listed on the AMEX. Trading of the Company's common stock on the AMEX commenced on December 21, 1999 under the symbol TGC. The range of high and low prices for shares of common stock of the Company during the fiscal years ended December 31, 1999 and December 31, 2000 are set forth below. BID --- HIGH LOW ---- --- For the Quarters Ending March 31, 2000 10.375 7.00 June 30, 2000 10.00 7.00 20 September 30, 2000 10.00 7.75 December 31, 2000 14.75 8.00 March 31, 1999 6.875 4.50 June 30, 1999 10.125 5.50 September 30, 1999 9.125 5.75 December 31, 1999 14.375 3.50 HOLDERS As of March 15, 2001, the number of shareholders of record of the Company's common stock was 395, and management believes that there are approximately 1,800 beneficial owners of the Company's common stock. DIVIDENDS There are no present material restrictions that limit the ability of the Company to pay dividends on common stock or that are likely to do so in the future. The Company has not paid any dividends with respect to its common stock, and does not intend to pay dividends in the foreseeable future. RECENT SALES OF UNREGISTERED SECURITIES The following tables provide information with respect to the sale of all "unregistered" and "restricted" securities sold by the Company during the past three years, which were not registered under the 1933 Act: COMMON STOCK DATE NUMBER OF AGGREGATE NAME OF OWNER ACQUIRED SHARES CONSIDERATION - ---------------- -------- --------- ------------- Habbersett, William C. TTEE UTD 9/1/94 1/5/98 2,303 $ 21,970.62 Hauser, Janice 1/21/98 3,008 $ 20,000.00 Mertins, Janelle 1/21/98 10,000 $ 77,500.00 21 Spoonbill, Inc. 1/29/98 50,000 $ 350,000.00 Ueshima, Takeshi 2/5/98 6,494 $ 50,000.00 Mobarak, Heather L. 2/12/98 500 $ 4,000.00 Smithers, Charles F., Jr. 2/12/98 6,250 $ 50,000.00 Eisert, Anthony & Marie 2/25/98 2,857 $ 20,000.00 Presnell, Joe 2/25/98 1,000 $ 6,650.00 L'Hussier, Harold 3/3/98 1,594 $ 11,715.90 Esrick, Ralph Trust 3/10/98 1,000 $ 7,170.00 Seevers, Larry 3/10/98 1,504 $ 10,000.00 Weeks, Everette, J. 3/10/98 500 $ 3,590.00 Stern, William TTEE 4/7/98 10,000 $ 70,000.00 Stern, William TTEE 4/9/98 5,000 $ 35,000.00 Morita, Shegemi 4/10/98 7,400 $ 37,000.00 Honeycutt, Robert M. 4/16/98 100 $ 639.00 Astuto, Angelo 4/22/98 500 $ 3,590.00 Astuto, Laura J. 4/22/98 500 $ 3,590.00 Giresi, Mary E. 4/22/98 2,000 $ 14,360.00 Nikovits, John L. 4/22/98 1,000 $ 7,180.00 Pych, Barbara M. 4/22/98 1,000 $ 7,180.00 Pych, Gregory L. 4/22/98 2,000 $ 14,360.00 Pych, Joseph 4/22/98 1,250 $ 8,975.00 Pych Joseph R. 4/22/98 1,000 $ 7,180.00 Pych, Robert F. 4/22/98 1,000 $ 7,180.00 Pych, Cynthia M. 4/24/98 2,000 $ 14,360.00 Presnell, Joe 4/28/98 1,000 $ 6,430.00 Harbert, Bill L. 4/30/98 40,000 $ 262,800.00 Adams, Stanley & Sharon E. 5/4/98 10,000 $ 71,300.00 Keller, James & Shirley 5/4/98 4,000 $ 28,520.00 Moor, John 5/4/98 1,000 $ 7,130.00 Padron, Ramon 5/13/98 1,000 $ 7,350.00 Fujita, Eiji 5/18/98 21,097 $ 150,000.00 Koshi, Junichiro 5/18/98 2,628 $ 20,000.00 Cajigas, Arthur & Hidako 5/21/98 1,143 $ 10,000.00 Kiryu, Hironori 5/26/98 1,406 $ 10,000.00 Mori, Masahiko 5/28/98 7,032 $ 50,000.00 Synap Corp. 5/29/98 9,143 $ 80,000.00 Fujii, Daisuke 6/1/98 1,406 $ 10,000.00 Ura, Yukari 6/2/98 1,406 $ 10,000.00 Harbert, Bill L. 6/11/98 75,414 $ 497,441.00 Burklow, Jim 6/15/98 1,000 $ 7,780.00 Presnell, Joe 6/15/98 1,000 $ 7,000.00 Carter Daryl M. 7/2/98 1,500 $ 10,500.00 Carter, Maury L. 7/2/98 3,500 $ 24,500.00 Kobayashi, Shungo 7/2/98 1,429 $ 10,000.00 22 Nagashima, Tsuyoshi 7/22/98 1,429 $ 10,000.00 Kitaoka, Yukiki 7/31/98 1,429 $ 10,000.00 Yoshida, Teruni 7/31/98 1,429 $ 10,000.00 Carvajah, Rose Marie 9/1/98 250 $ 1,750.00 Harris, Rona 9/1/98 500 $ 3,500.00 Mintzer, Dorothy 9/1/98 500 $ 3,500.00 Sherbal, Rose 9/1/98 500 $ 3,500.00 Warhaft, Terri 9/1/98 500 $ 3,500.00 Spoonbill, Inc. 9/2/98 50,000 $ 250,000.00 Harbert, Bill L. 10/22/98 150,200 $ 488,150.00 Stanley, David G. TTEE 12/8/98 5,000 $ 23,750.00 Houlihan, Smith & Co., Inc. 1/4/99 2,143 $ 15,000.00 Spoonbill, Inc. 1/6/99 140,000 $ 700,000.00 Wayne H. Gillis 1/6/99 12,016 $ 39,052.00 Silva, Anthony 1/26/99 20,000 $ 100,000.00 Morita, Shegemi 1/29/99 20,000 $ 100,000.00 Silva, Anthony 3/8/99 22,300 $ 100,350.00 Keeler, Richard & Rita, JTWROS 3/22/99 2,000 $ 9,000.00 Nishiwaki, Nick S. 3/23/99 40,000 $ 180,000.00 Spoonbill, Inc. 3/23/99 20,000 $ 90,000.00 AHS & Associates 3/26/99 5,625 $ 22,500.00 Harbert, Bill L. 4/5/99 125,000 $ 500,000.00 Houlihan, Smith & Co., Inc. 5/24/99 2,000 $ 10,000.00 Nishiwaki, Yasuko 6/30/99 20,000 $ 100,000.00 Silva, Anthony 8/5/99 50,000 $ 300,000.00 Spoonbill, Inc. 8/5/99 40,000 $ 200,000.00 Nishiwaki Yasuko 8/30/99 20,000 $ 100,000.00 Smithers, Anne H. 9/3/99 4,500 $ 25,020.00 Tanaka Memorial Foundation 9/17/99 9,000 $ 50,040.00 Wenger, Virgil E. 9/20/99 20,000 $ 117,000.00 Artola Company Ltd. 9/20/99 17,986 $ 100,000.00 Spoonbill, Inc. 9/24/99 50,000 $ 250,000.00 Smithers Benefit Plans 10/21/99 11,000 $ 61,000.00 Spoonbill, Inc. 10/25/99 50,000 $ 250,000.00 Spoonbill, Inc. 10/25/99 50,000 $ 250,000.00 Keller, James & Shirley 12/3/99 2,000 $ 7,000.00 Spoonbill, Inc. 12/29/99 50,000 $ 250,000.00 LCMS Foundation 12/30/99 8,200 $ 50,020.00 A.D. Tengo Partnership, LLC 12/30/99 820 $ 5,002.00 Akos, Stephen & Cynthia 12/30/99 820 $ 5,002.00 Stern, William M. TTEE/WMS RLT 12/30/99 820 $ 5,002.00 Stern, William M. TTEE/Gutman #2 12/30/99 820 $ 5,020.00 Cipponeri, Jerome 12/30/99 820 $ 5,002.20 Spoonbill, Inc. 1/19/00 37,500 $ 300,000.00 23 Spoonbill, Inc. 2/10/00 27,397 $ 200,000.00 Akos, Stephen & Cynthia 2/16/00 15,373 $ 95,000.00 Akos, Stephen & Cynthia 4/3/00 820 $ 5,000.00 A.D. Tengo Partnership, LLC 4/3/00 820 $ 5,000.00 Cipperoni, Jerome 4/3/00 1,640 $ 10,000.00 Devereux, Robert L. & Mary O. 4/3/00 1,640 $ 10,000.00 RKY Partnership, LLC 4/3/00 1,640 $ 10,000.00 S&K Partnership 4/3/00 18,033 $ 110,000.00 Stern, William M. TTEE/RLT 7/9/92 4/3/00 820 $ 5,000.00 Stern, William M. TTEE, Gutman GRAT #2 4/3/00 820 $ 5,000.00 Cipponeri, Jerome 4/5/00 8,818 $ 50,000.00 Spoonbill, Inc. 5/24/00 82,645 $ 500,000.00 Spoonbill, Inc. 6/14/00 52,632 $ 300,000.00 Intermark Gillis 6/19/00 1,536 $ 12,000.00 Akos, Stephen & Cynthia 7/7/00 817 $ 5,000.00 A.D. Tengo Partnership, LLC 7/7/00 817 $ 5,000.00 Cipponeri, Jerome 7/7/00 1,634 $ 10,000.00 Devereux, Robert L. & Mary O. 7/7/00 1,634 $ 10,000.00 RKY Partnership, LLC 7/7/00 1,634 $ 10,000.00 S&K Partnership 7/7/00 2,451 $ 15,000.00 Stern, William M. TTEE/RLT 7/9/92 7/7/00 817 $ 5,000.00 Stern, William M. TTEE, Gutman GRAT #2 7/7/00 817 $ 5,000.00 Intermark Gillis 7/10/00 768 $ 6,000.00 Intermark Gillis 8/4/00 768 $ 6,000.00 Bill L. Harbert 8/14/00 70,000 $ 490,000.00 Bill L. Harbert 8/16/00 50,000 $ 350,000.00 Bill L. Harbert 8/18/00 25,000 $ 175,000.00 Tanaka Memorial Foundation 8/29/00 7,143 $ 50,001.00 Anthony Silva 8/31/00 5,100 $ 35,700.00 Intermark Gillis 9/27/00 1,536 $ 12,000.00 A.D. Tengo Partnership, LLC 9/29/00 817 $ 5,000.00 Akos, Stephen & Cynthia 9/29/00 817 $ 5,000.00 Cipponeri, Jerome 9/29/00 1,634 $ 10,000.00 Devereux, Robert L. & Mary O. 9/29/00 1,634 $ 10,000.00 RKY Partnership 9/29/00 1,634 $ 10,000.00 S&K Partnership 9/29/00 2,451 $ 15,000.00 Stern, William M. TTEE/RLT 7/9/92 9/29/00 817 $ 5,000.00 Stern, William M. TTEE/Gutman GRAT #2 9/29/00 817 $ 5,000.00 Goda, Shin-Ichiro 10/5/00 14,286 $ 100,002.00 AEB Properties, Inc. 10/17/00 8,784 $ 65,000.00 Intermark Gillis 11/2/00 768 $ 6,000.00 24 Harbert, Bill L. 11/14/00 100,000 $ 700,000.00 Nishiwaki, Yasuko 12/5/00 173,611 $1,250,000.00 Intermark Gillis 12/7/00 768 $ 6,000.00 Kenny Securities 12/22/00 20,715 $ 180,013.00 A.D. Tengo Partnership 12/28/00 817 $ 5,000.00 Akos, Stephen & Cynthia 12/28/00 817 $ 5,000.00 Cipponeri, Jerome 12/28/00 1,634 $ 10,000.00 Devereux, Robert L. & Mary O. 12/28/00 1,634 $ 10,000.00 JFB Joint Venture 12/28/00 817 $ 5,000.00 RKY Partnership, LLC 12/28/00 1,634 $ 10,000.00 S&K Partnership 12/28/00 2,451 $ 15,000.00 Stern, William M. TTEE/RLT 7/9/92 12/28/00 817 $ 5,000.00 Series A 8% cumulative Convertible Preferred Stock ($100.00 per share) DATE NUMBER OF AGGREGATE NAME ACQUIRED SHARES CONSIDERATION - ---------------- -------- --------- ------------- Harding, Neal 10/30/98 2950 $2,950,000.00 Cipponeri, Jerome 10/30/98 500 $ 50,000.00 Kenny Vernon & Rosemary 10/30/98 1300 $ 130,000.00 Gorman, Robert & Anne 10/30/98 1000 $ 100,000.00 Cregan, John D 10/30/98 500 $ 50,000.00 Stern, William M, TTEE 10/30/98 750 $ 75,000.00 Hall, Kelly 12/30/98 1000 $ 100,000.00 Stern, William, TTEE William Stern Rev. Living Tr. DTD 7/7/92 4/13/99 600 $ 60,000.00 Harding, Neal 4/14/99 3035 $ 303,500.00 Herligy Shannon Shay 4/14/99 324 $ 32,400.00 Kenny, Vernon & Rosemary JT/WROS 4/14/99 1200 $ 120,000.00 Kollinger, Peter TTEE 4/20/99 1020 $ 102,000.00 Colson, William and Anita 6/10/99 710 $ 71,000.00 Harding, Neal 7/30/99 5000 $ 500,000.00 Artola Company Limited 1/21/00 2000 $ 200,000.00 Harbert, Bill L. 2/4/00 5000 $ 500,000.00 Gray, Edward W.T. III 2/7/00 3000 $ 300,000.00 25 Series B 8% cumulative Convertible Preferred Stock ($100.00 per share) DATE NUMBER OF AGGREGATE NAME ACQUIRED SHARES CONSIDERATION - ---------------- -------- --------- ------------- McGowan, Edward 9/5/00 1000 $ 100,000.00 Dolphin Offshore Partners, L.P. 9/5/00 9000 $ 900,000.00 Management believes that all of the foregoing persons were either "accredited investors" as that term is defined under applicable federal and state securities laws, rules and regulations, or were persons who by virtue of background, education and experience who could accurately evaluate the risks and merits attendant to an investment in the securities of the Company. Further, all such persons were provided with access to all material information regarding the Company, prior to the offer or sale of these securities, and each had an opportunity to ask of and receive answers from directors, executive officers, attorneys and accountants for the Company. The offers and sales of the foregoing securities are believed to have been exempt from the registration requirements of Section 5 of the 1933 Act, as amended, pursuant to Section 4(2) thereof, and from similar state securities laws, rules and regulations covering the offer and sale of securities by available state exemptions from such registration. ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS With the completion of its 60 mile pipeline and the flow of gas through the pipeline, the Company will be able to deliver its gas to Eastman, BAE SYSTEMS at the Holston Army Ammunition Plant and other customers in the Kingsport area and anticipates being able to sell substantially all of its natural gas production from the Swan Creek Field. The Company anticipates that its agreement with Eastman will require Eastman to purchase a minimum of 10,000 MMBTU of gas per day. The Company expects deliveries to Eastman to begin on or before April 30, 2001. Deliveries of natural gas to BAE SYSTEMS at the Holston facility commenced on April 4, 2001 and the Company anticipates that purchases under that agreement will be 1,800 MMBTU of gas per day. The completion of the pipeline will also allow the Company to focus on its drilling program on the Swan Creek leases and continue the development of that field. The existence of substantial deposits of hydrocarbons (oil and/or gas) in the Swan Creek structure (i.e. the rock formation beneath the surface) is confirmed by the following facts: (1) The Swan Creek structure is located in an area known as the Eastern Overthrust Belt which is an area with numerous faults. A fault is an area where geologic plates overlap. The Eastern Overthrust Belt is geologically similar to the Western Overthrust Belt located in the Rocky Mountains, where there are other oil and gas producing properties. 26 (2) The Company has successfully completed 24 gas wells in this area, all of which have been flow tested by metering gas from the wells through a one-half inch orifice. These tests all verify the presence of a substantial reservoir of natural gas and/or oil. One of these wells, the Reed #1 tested at 4,800,000 cubic feet of gas per day with a pressure of 800 psi. Another well, the Sutton #1 tested at 1,200,000 cubic feet per day with a pressure of 150 psi. The Company's present plan of operations for the next two years calls for the drilling of 50 additional wells in the Swan Creek Field at a cost of approximately $250,000 per well. Although the Company does not presently have the funds needed to enable it to complete its drilling program, it anticipates that as a result of the completion of the pipeline, it will receive sufficient proceeds from the sale of gas from the Swan Creek Field, in particular sales to Eastman, to complete the program. Alternatively, the Company believes that if proceeds from gas sales are insufficient to pay for the drilling program it will be able to obtain the necessary funds from other sources such as a bank loan, equity investment, or a joint venture with another company. Although there can be no assurances that such financing will be available, the Company believes that it will be able to procure such financing. The Company's present plan of operation also calls for contracting for sales of additional volumes of natural gas not only to Eastman and BAE Systems as their needs increase, but to other industrial customers in the Kingsport, Tennessee area as greater volumes of gas become available from the Swan Creek Field as a result of additional drilling. Other large industrial customers in Kingsport presently served by an interstate pipeline include Willamette Paper, General Shale (brick manufacturer) and AFG Glass. The aggregate requirements of these customers exceeds the requirements of Eastman. The Company has not entered into any contracts for sales to any of these potential customers, and no assurances can be made that such contracts will be agreed upon. However, the Company plans to fully exploit this significant potential market in the Kingsport area for serving large volume industrial customers. In addition, the Company's subsidiary, Tengasco Pipeline, has entered into a franchise agreement with the City of Kingsport that grants it authority for twenty years to construct facilities and to sell and distribute natural gas to all classes of customers in Kingsport, not only the large industrial customers listed herein. The franchise agreement is subject to approval by the Tennessee Regulatory Authority which the Company expects to be granted in the near future. See, Item 1 - "Business" - "Effect of Existing or Probable Government Regulation on Business." The Company estimates that its ultimate deliverability from the Swan Creek Field may reach 80 to 100 Mmcf per day or 2.5 to 3.1 Bcf per month. The Company expects to reach this capacity on or about June 30, 2003 upon completion of its drilling program. Certain additional pipelines or looping of existing pipeline may be necessary to increase pipeline capacity in order to accommodate transportation of this additional natural gas production. The Company has hired a full time geologist in Kansas to oversee operations in the Kansas Properties. The Company plans to drill between five and ten new wells in Ellis and Rush Counties, Kansas on its existing leases during this next fiscal year in response to drilling activity in the area establishing new areas of production. The Company is also engaged in gathering for a 27 fee the gas produced from wells owned by others located in Kansas adjacent to the Company's wells and near the Company's gathering lines. The Company's plans for its Kansas properties include maintaining the current productive capacity of its existing wells through normal workovers and maintenance of the wells, performing gathering or sales services for adjacent producers, and expanding the Company's own production through drilling these additional wells. In addition, there are several capital development projects that are available with respect to the Kansas Properties which include recompletion of wells and major workovers to increase current production. These projects when completed may well increase production in Kansas. However, the Company does not presently have the funds necessary for such projects and the ability to undertake such efforts is dependent on the Company obtaining such funds. Management has made the decision not to undertake such efforts at this time. It will however, reconsider its decision if such funds become available through the Company's operations or other sources of financing. The Company's plan of operation also includes exploration in six or more additional major geological structures in the East Tennessee area that are similar to the Swan Creek structure and which the Company's geology staff indicate have a high probability of producing hydrocarbons. The Company has either acquired seismic data on these structures from third party sources, or is conducting its own seismic studies with its own trucks and equipment. The seismic data is being analyzed at facilities of the University of Tennessee as part of the strategic alliance between the Company and the University of Tennessee. The seismic analysis and related leasing activities should be completed in approximately six months, and the Company plans to conduct exploration activities in these new areas. The Company plan to obtain funds for these activities from results of operations or from third party sources such as a bank loan or other third party financing. The Company has no plans, at present, to increase the number of its employees significantly. This plan of operation is based upon many variables and estimates, all of which may change or prove to be other than or different from information relied upon. RESULTS OF OPERATIONS The Company incurred a net loss to holders of common stock of $1,799,441 ($.20 per share of common stock) in 2000 compared to a net loss in 1999 to holders of common stock of $2,791,270 ($0.34 per share of common stock). The Company realized oil and gas revenues of $5,241,076 in 2000 as compared to $3,017,252 in 1999 resulting in an increase in revenues this past year of $2,223,824. Despite this increase in revenues, production costs and taxes in fiscal 2000 increased by only $49,482. The increase in revenues was primarily attributable to the increase in oil prices in 2000. In addition, 28 however, oil production in the Swan Creek Field increased from 21,964 barrels in 1999 to 47,281 barrels in 2000 as a result of drilling new wells in that field in 2000. Oil production in Kansas also increased from 113,758 barrels in 1999 to 143,949 barrels in 2000. Gas production in Kansas increased from 287,453 mcf in 1999 to 325,625 mcf in 2000. The Company's loss included $242,000 of professional fees due to a charge incurred in the fourth quarter of 2000 as a result of options granted to consultants and counsel to the Company. Depletion, depreciation and amortization increased from $233,807 in 1999 to $371,249 in 2000. The increase was due to depreciation on new equipment purchased late in the years of 1999 and in 2000, and an increase in depletion expense of $97,000 due to a change in estimate and increases in production. The change in estimate was due to the Company's decision to retain a different engineering firm, Ryder Scott Company, to render reserve analysis reports of the Company's properties which used more conservative assumptions in its analysis. See, "Item 1 - "Business" - "Reserve Analysis." General and administrative costs increased to $2,556,406 in 2000. This increase of $614,152 in these costs from the prior year was due primarily to an increase of $346,263 as a result of the hiring of additional personnel and consultants; increased costs of $76,491 in engineering services for reserve evaluations due to the Company's decision to utilize a different engineering firm; increased insurance coverage costs of $125,278, including blow out insurance for the wells; and, property taxes in the amount of $43,004 incurred in connection with Phase I of the pipeline. Interest expense decreased from $417,497 in 1999 to $415,376 in 2000. Although increased levels of debt raised the interest cost incurred by the Company, interest expense remained relatively consistent between 2000 and 1999. This was due to the fact that during 2000, $128,000 of interest cost was capitalized into pipeline facilities under construction relating to Phase II of the pipeline. No interest cost was capitalized in 1999 due to the fact that Phase I of the pipeline was completed and ready for its intended use during the entire year. The Company did not have any income tax expense in 2000 or 1999 due to a net operating loss carryforward. Deferred tax assets, consisting primarily of these loss carryforwards, have been fully reduced by a valuation allowance as management is unable to determine that these tax benefits are more likely than not to be realized. LIQUIDITY AND CAPITAL RESOURCES During 2000 and 1999, because the Company was still constructing Phase II of its pipeline, the Company's revenues were insufficient to fund its operations. Accordingly, significant cash was absorbed in the day to day operations. In addition, substantial financing was necessary to obtain the funds to complete construction of the pipeline. 29 Assuming that Eastman purchases the minimum daily requirements of gas from the Company provided for in its agreement with the Company and the Company is able to deliver this gas through its completed pipeline, it is anticipated that the Company will have more than sufficient proceeds from those sales and sales of gas to other customers to fund its day to day operations, continue with its drilling program and be profitable. While management believes that it is highly unlikely to occur, in the event that Eastman does not comply with the terms of its contract with the Company for whatever reason, or that the Company is unable to deliver the required amount of gas to Eastman, the Company would be forced to seek other options to obtain the funding necessary to meet its current and future cash requirements. Such options would include debt financing, sale of equity interests in the Company, a joint venture arrangement, the sale of oil and gas interests, etc. The inability of the Company to obtain the necessary cash funding on a timely basis would have an unfavorable effect on the Company's financial condition and would require the Company to materially reduce the scope of its operating and investing activities. As of December 31, 2000, the Company had total stockholders' equity of $10,864,202 on total assets of $25,224,724. The Company has a net working capital deficiency at December 31, 2000 of $622,299 as compared to a net deficiency of $1,406,263 at December, 1999. Net cash used in operating activities decreased from $2,587,003 in 1999 to $820,615 in 2000. This was primarily due to the fact that the Company's net loss in 2000 decreased to $1,541,884 from a net loss in 1999 of $2,671,923. The impact on cash used due to the net loss for 2000 was partially offset by non-cash depletion, depreciation and amortization ($371,249) and non-cash compensation and services paid by issuance of equity instruments ($284,000). Cash flow from working capital items in 2000 was $66,020 compared to uses of Cash flow of $353,837 in 1999. This reflects increases in accounts payable ($364,553) and accrued interest payable ($135,435) partially offset by an increase in accounts receivable ($301,421) and a decrease in other accrued liabilities ($140,955). Net cash used in investing activities amounted to $8,936,863 for 2000, compared to net cash used in the amount of $1,892,294 for 1999. The large increase in net cash used for investing activities during 2000 was primarily attributable to the construction of Phase II of the pipeline ($6,834,196 in 2000 as compared to $193,633 in 1999), additions to oil and gas properties ($1,456,996 in 2000 as compared to $1,413,029 in 1999) and additions to other property and equipment ($1,276,783 in 2000 as compared to $256,045 in 1999). Net cash provided by financing activities amounted to $10,940,863 for 2000 as compared to $3,896,693 for 1999. The primary sources of financing include proceeds from borrowings ($6,493,563 in 2000 as compared to $2,119,023 in 1999), private placements of stock ($4,425,713 in 2000 as compared to $2,771,722 in 1999) and convertible redeemable preferred stock ($2,000,000 in 2000 as compared to $1,188,900 in 1999). The primary use of cash in financing activities was the repayment of borrowings ($1,720,856 in 2000 as compared to $2,383,605 in 1999). 30 NEW ACCOUNTING PRONOUNCEMENTS Financial Accounting Standards Board Statement of Financial Accounting Standards ("SFAS") No. 133, "Accounting for Derivatives and Hedging Activities", as amended, by SFAS No. 137 and No. 138, is effective for all fiscal years beginning after June 15, 2000. This statement requires recognition of all derivative contracts as either assets or liabilities in the balance sheet and the measurement of them at fair value. If certain conditions are met, a derivative may be specifically designated as a hedge, the objective of which is to match the timing of any gains or losses on the hedge with the recognition of (i) the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk or (ii) the earnings effect of the hedged forecasted transaction. For a derivative not designated as a hedging instrument, the gain or loss is recognized in income in the period of change. Historically, the Company has not entered into any material derivative contracts either to hedge existing risks or for speculative purposes. Accordingly, the Company does not expect adoption of this new standard on January 1, 2001, to affect its financial statements. In December 1999 the Securities and Exchange Commission ("SEC") issued Staff Accounting Bulletin ("SAB") No. 101, "Revenue Recognition in Financial statements" which outlines the basic criteria that must be met to recognize revenue and provides guidance for presentation of revenue and for disclosure related to revenue recognition policies in financial statements filed with the SEC. Adoption of SAB No. 101 did not have a material impact on the Company's financial position or its results of operation. ITEM 7 FINANCIAL STATEMENTS The financial statements and supplementary data commence on page F-1. ITEM 8 CHANGES IN AND DISAGREEMENT WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE Not applicable. 31 PART III ITEM 9 DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS; COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT IDENTIFICATION OF DIRECTORS AND EXECUTIVE OFFICERS The following table sets forth the names of all current directors and executive officers of the Company. These persons will serve until the next annual meeting of stockholders (to be held at such time as the Board of Directors shall determine) or until their successors are elected or appointed and qualified, or their prior resignations or terminations. DATE OF INITIAL POSITIONS ELECTION OR NAME HELD DESIGNATION - ---- ---- ----------- Joseph E. Armstrong Director 3/13/97 4708 Hilldale Drive Knoxville, TN 37914 Benton L. Becker Director 8/31/99 1497 Lacosta Drive East Pembrook Pines, FL 33027 Edward W.T. Gray III Director 8/8/00 3 New Street Remsenberg, NY 11960 Robert D. Hatcher, Jr. Director 8/8/00 107 Golden Gate Lane Oak Ridge, TN 37830 Sanford E. McCormick Director 8/8/00 1100 Louisiana, Ste. 5425 Houston, TX 77002 Shigemi Morita Director 3/13/97 35 Park Avenue New York, NY 10016 32 Malcolm E. Ratliff Chairman of the 4/21/98 2100 Scott Lane Board; Chief Executive Knoxville, TN 37922 Officer Allen H. Sweeney Director 3/13/97 1400 Oak Tree Drive Edmund, OK 73003 Robert M. Carter President 8/8/00 760 Prince George Parish Drive Knoxville, TN 37922 Harold G. Morris, Jr. Executive Vice-President 10/19/99 153 Chuniloti Way Finance Loudon, TN 37774 Cary V. Sorensen Vice President and 07/09/99 509 Bretton Woods Dr. General Counsel Knoxville, TN 37919 Mark A. Ruth Chief Financial 12/14/98 104-D Cynthia Lane Officer Knoxville, TN 37922 Sheila Sloan Treasurer 12/4/96 121 Oostanali Way Loudon, TN 37774 Linda Parton Secretary 04/02/01 607 Summit View Knoxville, TN 37920 SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE In fiscal 2000, Malcolm E. Ratliff, the Company's Chief Executive Officer and Allen H. Sweeney, one of the Company's other Directors, inadvertently failed to timely file certain Form 4 reports. Mr. Ratliff failed to timely file nine Form 4 reports, including three reports that were to be filed in 1999, and one Form 5 report involving forty four transactions. Mr. Sweeney failed to timely file five Form 4 reports involving fourteen transactions. These deficiencies have all been cured. 33 BUSINESS EXPERIENCE Directors Joseph Earl Armstrong is 44 years old and a resident of Knoxville, Tennessee. He is a graduate of the University of Tennessee and Morristown College where he received a Bachelor of Science Degree in Business Administration. From 1988 to the present, he has been an elected State Representative for Legislative District 15 in Tennessee. From 1994 to the present he has been in charge of government relations for the Atlanta Life Insurance Co. From 1981 to 1994 he was a District Manager for the Atlanta Life Insurance Co. Benton L. Becker is 63 years old. In 1960 he received a B.A. degree from the University of Maryland. In 1966 he graduated from the American University Law School in Washington, D.C. He is currently engaged in the private practice of law in Coral Gables, Florida and Washington D.C., while regularly serving as a Distinguished Lecturer on constitutional law at the University of Miami in Coral Gables, Florida. His past positions include serving as a trial attorney for the U. S. Department of Justice, the Dade County, Florida State's Attorney Office and a Professor of Law at the University of Miami School of Law. During his career Mr. Becker has represented the U.S. House of representatives, the Republican National Committee and President Gerald R. Ford. In 1976 Mr. Becker represented Commonwealth Oil and Refining Company of Puerto Rico in a Federal trial and Appellate action against Texaco, Exxon and Mobil and obtained a multi-million dollar judgment for Commonwealth Oil. In 1980 he served as Board Chairman for Appalachian Oil and Gas. From June 5, 1995 to January 30, 1997 he served as Chairman of the Company's Board of Directors. Edward W. T. Gray III is 66 years old. He received an A.B. degree from Princeton University in 1956. In 1965 he graduated from the Stonier Graduate School of Banking. From 1968 to 1979 he was a Senior Vice-President with Bessemer Trust Company, N.A. located in New York City. From 1980 to 1999 he was the Chief Executive Officer and Director of Gray, Seifert & Co., an investment firm in New York City. In 1994 that firm was sold to and became an independent subsidiary of Legg Mason, Inc. From April 1999 to the present, Mr. Gray has been a Managing Director of White Oak Capital Management, Inc. Mr. Gray is also currently a Board Member of the Rotary Club of New York, the Lichtenstein Foundation and Family Counseling Service in Westhampton Beach, New York. Robert D. Hatcher, Jr. is 60 years old. He earned B.A. and M.S. degrees from Vanderbilt University in 1961 and 1962, with majors in geology and chemistry and a minor in mathematics. He earned a Ph.D. degree in 1965 from the University of Tennessee (Knoxville), in structural geology with a minor in chemistry. Thereafter, he worked with Humble Oil and Refining Company (now Exxon USA) for one year. In 1966 he accepted a faculty position at Clemson University where he taught and conducted research in the Appalachians until 1978. In 1978 Dr. Hatcher moved to Florida State University where he stayed until 1980. He then taught at the University of South Carolina until 1986. In 1986, Dr. Hatcher accepted a chair as a University of Tennessee/Oak Ridge National Laboratory Distinguished Scientist, which position he currently maintains. He has served on the Council (Board of Directors) of the Geological Society of 34 America (a not-for-profit corporation) from 1981-1983 and again from 1992-1994 when he served on the Executive Committee and as President (1993). He is currently serving on the Board of Trustees of the Geological Society of America Foundation. He served on the Executive Committee of the American Geological Institute (a not-for-profit corporation) from 1995-1997 and as President in 1996. He has also served on the National Academy of Sciences Board on Radioactive Waste Management and on several National Research Council, as well as on Federal Advisory Committees for the Nuclear Regulatory Commission and the Department of the Interior. He served as Science Advisor to South Carolina Governor Richard Riley for Off-Site Disposal of Radioactive Waste from 1984 through 1986. He was honored in 1997 by the I.C. White Award and in 1998 by being made an honorary citizen of West Virginia, both recognizing his long-term contributions to Appalachian geology. He is a Fellow in the American Association for the Advancement of Science. Dr. Hatcher is the author of over 150 journal articles and several texts and monographs, including a structural geology textbook which has been used in some 85 colleges and universities. He has also served as an Editor of the Geological Society of America Bulletin. Sanford E. McCormick is 69 years old. He is a Phi Beta Kappa graduate of Yale University. Mr. McCormick also attended L'Ecole des Sciences Politiques in Paris, France. He began his career in the oil and gas industry 40 years ago when he joined Zapata Corporation. He then served several independent oil and gas firms in executive positions. In 1964 he founded his own firm, McCormick Oil & Gas Company and directed its growth into an organization with 180 employees. McCormick Oil & Gas Company was listed on the American Stock Exchange and had a market capitalization of approximately $275 million. Its operations covered much of the United States and had offices in Houston, Corpus Christi and Midland, Texas; Lafayette, Louisiana; and, Denver, Colorado. The company conducted one of the industry's most successful public drilling programs, drilling 30 to 40 prospects annually. In 1983, Mr. McCormick converted McCormick Oil and Gas Company into a Master Limited Partnership. The Partnership was listed on the American and Pacific Stock Exchanges until its sale in 1985. The following year Mr. McCormick founded McCormick Resources, Inc. which was a pioneer in the application of horizontal drilling technologies to develop previously unproducible reservoirs with major reserve potential. McCormick Resources, Inc. became a major operator of coalbed methane properties, including a 500 well program in the Black Warrior Basin in Alabama which was operated under the name of MetFuel, Inc. a subsidiary of McCormick Resources, Inc. and was sold in 1992. In 1995, Mr. McCormick founded McCormick Partners, Inc. and put together a joint venture with Ouput Exploration, Inc., a subsidiary of Input/Output, Inc. the world's leading manufacturer of 3-D seismic acquisition equipment and a group of financial institutions to conduct a 3 year drilling program based on 3-D seismic. Shigemi Morita is 68 years old. He received an A.B. Degree from Elon College in North Carolina. From 1969 to 1996 he was the President and CEO of Morita & Co., an insurance agency specializing in insurance for Japanese companies doing business in the United States. In 1996, Morita & Co., Inc. was acquired by Tokio Marine Management, Inc., Mitsubishi International Corporation in New York and Mitsubishi International, Ltd. in Tokyo. He is President of Morita Properties, Inc., an oil and natural gas investor. 35 Malcolm E. Ratliff is 54 years old. He attended the University of Mississippi from 1965 to 1967. He has been involved in the oil and gas business since 1974, initially as a roustabout and then developing oil and gas leases. In 1992 he was involved with personal investments. In 1993 and 1994 he experienced serious health problems which prevented him from working. In April 1995, he became associated with the Company and, after its merger with Onasco, he served as a consultant to the Company's Board of Directors. From March 13, 1997 until March 13, 1998 when he resigned for health reasons, he was the Chief Executive Officer of the Company, and until his resignation on March 13, 1998, he was also acting as interim President of the Company as the result of the death, on September 19, 1997, of Daniel Follmer, the Company's President. On April 21, 1998 at the request of the Company's Board of Directors, Mr. Ratliff agreed to return to the management of the Company as its Chief Executive Officer. He has served as a Director of the Company since June 19, 1998. Allen H. Sweeney is 54 years old. He received an MBA in finance from Oklahoma City University in 1972 and a Bachelor Degree in Accounting from Oklahoma State University in 1969. From 1978 to 1980, he served as Treasurer and CEO of Phoenix Resources Company. From 1980 to 1981, he served as Vice-President-Finance for Plains Resources, Inc. From 1982 to 1984, he was Vice-President-Finance for Wildcat Mud, Inc. From 1984 to 1992 he operated an independent consulting service under the name of AHS and Associates, Inc. Since 1992, he has served as Director and President of Columbia Production Company and Mid-America Waste Management, Inc. Officers Robert M. Carter is 64 years old. He received a B.A. degree in Business form the Middle Tennessee State College. For 35 years he was an owner of Carter Lumber & Building Supply Company and Carter Warehouse in Loudon County, Tennessee. He has been with the Company since 1995 and during that time has been involved in all phases of the Company's business including pipeline construction, leasing financing and the negotiation of acquisitions. Mr. Carter was elected Vice-President of the Company in March, 1996, as Executive Vice- President in April 1997 and on March 13, 1998 he was elected as President of the Company. He served as President of the Company until he resigned from that position on October 19,1999. He then served as President of Tengasco Pipeline Corporation, a wholly owned subsidiary of the Company up until March 6, 2001. On August 8, 2000 he again was elected as President of the Company and continues to serve in that capacity. Harold G. Morris, Jr. is 53 years old. In 1970 he received a B.S. Degree in accounting from St. Peter's College in Jersey City, New Jersey. He is a member of the National Association of Certified Fraud Examiners. From 1970 to 1975 he worked in New York, New York for Main LaFrentz & Co., Certified Public Accountants where he was a senior auditor for the firm's largest client, CPC International, Inc. He was in charge of International Worldwide Consolidation, along with the translation of multi-national currencies (Asian, European and Canadian) into dollars. His experience includes audits of many industries including the audit of 36 Wall Street brokerage firms. From 1975 to 1980 he worked for Foster Wheeler Corporate headquarters in Livingston, New Jersey as Chief Internal Auditor where he assisted in all corporate mergers and acquisitions. During this time he was promoted to CEO and CFO of Copeland Systems, Inc. and then Treasurer/Controller of Chemical Separations Corp. in Oak Ridge Tennessee, both of which were wholly owned subsidiaries of Foster Wheeler. From 1980 to 1983, Mr. Morris was Group Controller of Macawber Engineering's U.S., Japan, England and Australian operations. From 1985 to 1999 he was Controller/Ass't. Secretary for W. J. Savage Co., Inc. in Knoxville, Tennessee. He joined the Company as Vice-President of Finance on October 19, 1999. On August 8, 2000 he was elected as Executive Vice-President of Finance. Cary V. Sorensen is 52 years old. He is a 1976 graduate of the University of Texas School of Law and has undergraduate and graduate degrees form North Texas State University and Catholic University in Washington, D.C. Prior to joining the Company in July, 1999, he had been continuously engaged in the practice of law in Houston, Texas relating to the energy industry since 1977, both in private law firms and a corporate law department, most recently serving for seven years as senior counsel with the litigation department of Enron Corp. before entering private practice in June, 1996. He has represented virtually all of the major oil companies headquartered in Houston and all of the operating subsidiaries of Enron Corp., as well as local distribution companies and electric utilities in a variety of litigated and administrative cases before state and federal courts and agencies in five states. These matters involved gas contracts, gas marketing, exploration and production disputes involving royalties or operating interests, land titles, oil pipelines and gas pipeline tariff matters at the state and federal levels, and general operation and regulation of interstate and intrastate gas pipelines. He has served as Vice-President and Legal Counsel of the Company since July 9, 1999. Mark A. Ruth is 42 years old. He is a certified public accountant with 17 years accounting experience. He received a B.S. degree in accounting with honors from the University of Tennessee at Knoxville. He has served as a project controls engineer for Bechtel Jacobs Company, LLC; business manager and finance officer for Lockheed Martin Energy Systems; settlement department head and senior accountant for the Federal deposit Insurance Corporation; senior financial analyst/internal auditor for Phillips Consumer Electronics Corporation; and, as an auditor for Arthur Andersen and Company. From December 14, 1998 to August 31, 1999 he served as the Company's Chief Financial Officer. On August 31, 1999 he was elected as a Vice- President of the Company and on November 8, 1999 he was again appointed as the Company's Chief Financial Officer. Sheila F. Sloan is 45 years old. She graduated from South Lake High School located in St. Clair Shores, Michigan in 1972. From 1981 to 1985 she worked as a purchasing agent for Sequoyah Land Company located in Madisonville, Tennessee. From 1990 to 1995 she managed the Form U-3 Weight Loss Centers in Knoxville, Tennessee. She has been with the Company since January 1996. On December 4, 1996 she was elected as the Company's Treasurer. 37 Linda S. Parton is 43 years old. Ms. Parton attended Southern West Virginia Community College. She also attended Millard Business School and obtained a two year secretarial certificate. She has fifteen years experience as a paralegal/legal assistant. She joined the Company in September 2000 and was appointed as the Company's secretary effective April 2, 2001. COMMITTEES The Company's Board has operating stock option, audit and compensation committees. Messrs. Sweeney, Becker and Gray compromise the stock option committee. Messrs. Sweeney, McCormick and Morita comprise the audit committee and Messrs. Armstrong, Becker and Gray are the members of the compensation committee. The Board also formed a field safety committee consisting of members of the Board and Officers of the Company. That committee consists of Messrs. Ratliff, Armstrong, McCormick, Carter, Sorenson and Jeffrey Brockman, the field supervisor for the Company's drilling operations. FAMILY RELATIONSHIPS There are no family relationships between any of the present directors or executive officers of the Company. INVOLVEMENT IN CERTAIN LEGAL PROCEEDING To the knowledge of management, during the past five years, no present or former director, executive officer, affiliate or person nominated to become a director or an executive officer of the Company: (1) Filed a petition under the federal bankruptcy laws or any state insolvency law, nor had a receiver, fiscal agent or similar officer appointed by a court for the business or property of such person, or any partnership in which he or she was a general partner at or within two years before the time of such filing, or any corporation or business association of which he or she was an executive officer at or within two years before the time of such filing; (2) Was convicted in a criminal proceeding or named subject of a pending criminal proceeding (excluding traffic violations and other minor offenses); (3) Was the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining him or her from or otherwise limiting his or her involvement in any type of business, securities or banking activities; 38 (4) Was found by a court of competent jurisdiction in a civil action, by the Securities and Exchange Commission or the Commodity Futures Trading Commission to have violated any federal or state securities law, and the judgment in such civil action or finding by the Securities and Exchange Commission has not been subsequently reversed, suspended, or vacated. ITEM 10 EXECUTIVE COMPENSATION The following table sets forth a summary of all compensation awarded to, earned or paid to, the Company's Chief Executive Officer during fiscal years ended December 31, 2000, December 31, 1999 and December 31, 1998. None of the Company's other executive officers earned compensation in excess of $100,000 per annum for services rendered to the Company in any capacity. 39 SUMMARY COMPENSATION TABLE
-----------LONG TERM AWARDS----- ANNUAL COMPENSATION -----------AWARDS----PAYOUTS ==================================================================================================================================== Name and YEAR SALARY ($) BONUS ($) OTHER ANNUAL RESTRICTED SECURITIES PAYOUTS ALL OTHER Principal Position COMPENSATION STOCK UNDERLYING COMPEN- ($) AWARDS($) OPTIONS SATION /SARS(#) - ------------------------------------------------------------------------------------------------------------------------------------ Malcolm E. Ratliff, 2000 $ 70,000 $-0- $500 -0- 50,000 -0- -0- Chief Executive Officer 1999 $ 60,000 $-0- $500 -0- 50,000 -0- -0- 1998 $ 60,000 $-0- $500 -0- -0- -0- -0- ====================================================================================================================================
40 OPTION GRANTS IN LAST FISCAL YEAR INDIVIDUALIZED GRANTS ================================================================================ NAME NUMBER OF PERCENT OF TOTAL EXERCISE EXPIRATION SECURITIES OPTIONS/SARS OR BASE DATE UNDERLYING GRANTED TO PRICE OPTIONS/SARS EMPLOYEES IN ($/SH) GRANTED (#) FISCAL 2000 - -------------------------------------------------------------------------------- MALCOLM E. RATLIFF 50,000 6.14% $8.69 10/26/03 ================================================================================ AGGREGATE OPTION EXERCISES FOR FISCAL 2000 AND YEAR END OPTION VALUES ================================================================================ VALUE(1) OF NUMBER OF SECURITIES UNEXERCISED UNDERLYING UNEXERCISED IN-THE-MONEY SHARES OPTIONS/SARS AT OPTIONS/SARS AT ACQUIRED DECEMBER 31, 2000 DECEMBER 31, 2000 NAME ON VALUE ($) EXERCISABLE/ EXERCISABLE/ EXERCISE REALIZED(2) UNEXERCISABLE UNEXERCISABLE - -------------------------------------------------------------------------------- MALCOLM E. RATLIFF -0- -0- 50,000/-0- $ 625,000/-0- ================================================================================ No options were exercised during fiscal year ended December 31, 2000 by the Chief Executive Officer. None of the Company's other executive officers earned compensation in excess of $100,000 per annum for services rendered to the Company in any capacity. The Company does not presently have a pension or similar plan for its directors, executive officers or employees. Management intends to adopt a 401(k) plan and full liability insurance for directors and executive officers and a health insurance plan for employees in the near future. COMPENSATION OF DIRECTORS - ---------- (1) Total value of unexercised options is based upon the fair market value of the Common Stock, $12.50 on December 29, 2000, as reported by The American Stock Exchange. (2) Value realized in dollars is based upon the difference between the fair market value of the Common Stock on the date of exercise, and the exercise price of the option. 41 The Board of Directors has resolved to compensate members of the Board of Directors for attendance at meetings at the rate of $250 per day, together with direct out-of-pocket expenses incurred in attendance at the meetings, including travel. The Directors, however, have waived such fees due to them as of this date for prior meetings. Members of the Board of Directors may also be requested to perform consulting or other professional services for the Company from time to time. The Board of Directors will set a rate of compensation for such services which may be no less favorable to the Company than if the services had been performed by an independent third party contractor. The Board of Directors has reserved to itself the right to review all directors' claims for compensation on an ad hoc basis. EMPLOYMENT CONTRACTS The Company has entered into an employment contracts with its Vice-President and General Counsel, Cary V. Sorensen for a period of two years through July 9, 2001 at an annual salary of $80,000. There are presently no other employment contracts relating to any member of management. However, depending upon the Company's operations and requirements, the Company may offer long term contracts to directors, executive officers or key employees in the future. ITEM 11 SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS The following tables set forth the share holdings of the Company's directors and executive officers and those persons who own more than 5% of the Company's common stock as of March 16, 2001 with these computations being based upon 9,663,610 shares of common stock being outstanding and assumes the exercise of 555,500 shares vested under options granted by the Company as of March 16, 2001. 42 FIVE PERCENT STOCKHOLDERS NUMBER OF SHARES PERCENT OF NAME AND ADDRESS TITLE BENEFICIALLY OWNED CLASS - ---------------- ----- ------------------ ------------ Industrial Resources Stockholder 2,574,358(3) 26.5% Corporation 603 Main Ave. Knoxville, TN 37902 Spoonbill, Inc. Stockholder 878,198 9.09% Tung Wai Commercial Bldg. 20th Floor 109-111 Gloucester Rd. Wanchai, Hong Kong Bill L. Harbert Stockholder 720,000 7.45% 820 Shaders Creek Pkwy. Birmingham, AL 35209 DIRECTORS AND OFFICERS NUMBER OF SHARES PERCENT OF NAME AND ADDRESS TITLE BENEFICIALLY OWNED CLASS - ---------------- ----- ------------------ ------------ Joseph Earl Armstrong Director 50,000(4) Less than 1% 4708 Hilldale Drive Knoxville, TN 37914 - ---------- (3) Malcolm E. Ratliff, the Chief Executive Officer and Chairman of the Board of Directors of the Company is the sole owner of the outstanding securities and President of Industrial Resources Corporation ("IRC"). Ownership of the IRC shares was previously transferred from Malcolm E. Ratliff, due to his illness, to his father, James Ratliff. In December 1999 ownership of the IRC shares was transferred back to Malcolm E. Ratliff from his father. Malcolm E. Ratliff's wife, Linda Ratliff, is the Secretary of IRC. Accordingly, IRC may be deemed to be an affiliate of the Company. James Ratliff, who is the father of Malcolm E. Ratliff, is the sole shareholder and President of Ratliff Farms, Inc. Malcolm E. Ratliff is the Vice-President/Secretary of Ratliff Farms. Malcolm E. Ratliff has voting control of the shares of the Company owned by Ratliff Farms, Inc. Accordingly, Ratliff Farms, Inc. may also be deemed to be an affiliate of the Company. The shares listed here for IRC include 1,715,000 shares owned directly by IRC, 53,698 shares owned directly and an option to purchase 50,000 shares held by Malcolm E. Ratliff, 725,660 shares owned directly by Ratliff Farms, Inc. and 30,000 shares owned directly by a trust of which Linda Ratliff is trustee and the children of Malcolm E. Ratliff are the beneficiaries. (4) Consists of 10,000 shares held directly and an option to purchase 40,000 shares. 43 Benton L. Becker Director 90,000(5) Less than 1% 1497 Lacosta Drive East Pembrook Pines, FL 33027 Edward W.T. Gray III Director 127,350(6) 1.3% 3 New Street Remsenberg, NY 11960 Robert D. Hatcher, Jr. Director 50,000(7) Less than 1% 107 Golden Gate Lane Oak Ridge, TN 37830 Sanford E. McCormick Director 40,000(8) Less than 1% 1100 Louisiana Ste. 5425 Houston, TX 77002 Shigemi Morita Director 235,141(9) 2.4% 35 Park Avenue New York, N.Y. 10016 Malcolm E. Ratliff Chief Executive 2,574,358(10) 26.5% 2100 Scott Lane Officer; Chairman Knoxville, TN 37922 of the Board - ------------ (5) Consists of 40,000 shares owned directly and an option to purchase 50,000 shares. (6) Consists of 77,350 shares held directly and an option to purchase 50,000 shares. (7) Consists of shares underlying an option. (8) Consists of shares underlying an option. (9) Consists of (10) 5,741 shares held directly, 79,400 shares held as an IRA beneficiary and options to purchase 50,000 shares. (10) Malcolm E. Ratliff, the Company's Chief Executive Officer and Chairman of the Board of Directors, is also the sole shareholder and President of Industrial Resources Corporation ("IRC"). Ownership of the IRC shares was previously transferred from Malcolm E. Ratliff, due to his illness to his father, James Ratliff. In December 1999 ownership of the IRC shares was transferred back to Malcolm E. Ratliff from his father. Linda Ratliff, Malcolm E. Ratliff's wife, is the Secretary of IRC. James Ratliff, who is the father of Malcolm E. Ratliff, is the sole shareholder and president of Ratliff Farms, Inc. Malcolm E. Ratliff is the Vice-President/Secretary of Ratliff Farms, Inc. Malcolm E. Ratliff has voting control over the shares of the Company owned by Ratliff Farms, Inc. The shares listed here include 1,715,000 shares owned directly by IRC, 53,698 shares owned directly and an option to purchase 50,000 shares held by Malcolm E. Ratliff, 725,660 owned directly by Ratliff Farms, Inc. and 30,000 shares owned directly by a trust of which Linda Ratliff is trustee and the beneficiaries are the children of Malcolm E. Ratliff (the "Ratliff Trust"). 44 Allen H. Sweeney Director 88,300(11) Less than 1% 1400 Oak Tree Drive Edmund, OK 73003 Robert M. Carter President 52,329(12) Less than 1% 760 Prince Georges Parish Knoxville, TN 37922 Harold G. Morris, Jr. Executive Vice- 28,000(13) Less than 1% 153 Chuniloti Way President Loudon, TN 37774 Cary V. Sorensen Vice-President 50,000(14) Less than 1% 509 Bretton Woods Dr. and General Counsel Knoxville, TN 37919 Mark A. Ruth Chief Financial 38,500(15) Less than 1% 104-D Cynthia Lane Officer Knoxville, TN 37922 Sheila F. Sloan Treasurer 17,000(16) Less than 1% 121 Oostanali Way Loudon, TN 37774 Linda Parton Secretary 2,000(17) Less than 1% 607 Summit View Knoxville, TN 37920 - -------- (11) Consists of 38,300 shares held indirectly through a company which he controls and an option to purchase 50,000 shares. (12) Consists of 7,329 shares held directly and an option to purchase 45,000 shares. (13) Consists of 3,000 shares held directly and an option to purchase 25,000 shares. (14) Consists of shares underlying an option. (15) Consists of shares underlying an option. (16) Consists of 2,000 shares held directly and an option to purchase 15,000 shares. (17) Consists of shares underlying an option. 45 All Officers and 3,442,978(18) 33.7% Directors as a group CHANGES IN CONTROL Except as indicated below, to the knowledge of the Company's management, there are no present arrangements or pledges of the Company's securities which may result in a change in control of the Company. ITEM 12 CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS TRANSACTIONS WITH MANAGEMENT AND OTHERS Except as set forth hereafter, there have been no material transactions, series of similar transactions or currently proposed transactions, to which the Company or any of its subsidiaries was or is to be a party, in which the amount involved exceeds $60,000 and in which any director or executive officer or any security holder who is known to the Company to own of record or beneficially more than 5% of the Company's common stock, or any member of the immediate family of any of the foregoing persons, had a material interest. On July 16, 1998, the Company entered into a loan agreement with five individual investors totaling $800,000. The loans were secured by a pledge of 118,200 shares of the Company's Common Stock owned by Malcolm E. Ratliff, the Company's Chief Executive Officer and a Director. The loans bore interest at the rate of 8% per annum and matured on October 14, 1998. Loan origination fees consisted of $64,000 in cash to the broker who arranged the loan and 16,800 shares of the Company's common stock advanced to the lenders and broker on behalf of the Company by Malcolm E. Ratliff. The shares advanced by Malcolm E. Ratliff were carried as a debt payable to him. Approximately $520,000 of this $800,000 loan was repaid by the Company out of proceeds from a Convertible Note in the amount of $1,500,000 received during October, 1998. The Convertible Note matures in five years and is convertible into shares of the Company's common stock at a price of $6.25 per share. In connection with the loan received by the Company evidenced by the Convertible Note, the Company issued 25,000 shares of its common stock to the lender as a loan fee. The balance of the $800,000 loans have been satisfied by the issuance to the lenders of 2,800 shares of Series A Shares convertible at a price of $5.75 per share. In 1999 the Company converted the debt payable of $163,800 to Malcolm E. - ---------- (18) Consists of shares held directly and indirectly by management, shares held by IRC, shares held by Ratliff Farms, Inc., shares held by the Ratliff Trust and 555,500 shares underlying options. 46 Ratliff for the shares he had advanced on behalf of the Company to common stock by issuing 16,800 shares of common stock in satisfaction of that obligation. The Company entered into a financial consulting agreement with Proton Capital, LLC ("Proton") of Westport Connecticut, for a two (2) year period commencing as of January 1, 1999, whereby Proton was to provide services in connection with shareholder relations, press releases, long term financial planning, corporate reorganizations and financing. Malcolm E. Ratliff, the Chief Executive Officer and a Director of the Company, entered into an agreement with Proton to sell Proton not more than 370,000 shares of common stock of the Company at $5.00 per share over a five (5) year period. Proton issued a non-recourse promissory note in the amount of $1.85 million, together with interest at six (6%) percent per annum (the "Proton Note"). The Proton Note was to be payable out of proceeds of the sale of the shares. The 370,000 shares were transferred from IRC, an affiliate of Mr. Ratliff, to Ratliff Farms, Inc., a privately held company solely owned by James Ratliff, the father of Malcolm E. Ratliff, and were then held in escrow pending the purchase of these shares by Proton. No shares were sold to Proton under the terms of that agreement. The Company subsequently entered into a similar financial consulting agreement with AM Partners, L.L.C. ("AM Partners") of Houston, Texas which replaced and superceded its agreement with Proton. As a result, the Proton agreement was deemed canceled. The agreement with AM Partners was for a one year period commencing October 1, 1999. Pursuant to the agreement AM Partners was to provide services in connection with investor relations, press releases, corporate reorganizations and financing. The Company paid AM Partners $5,000 per month commencing October 1, 1999. The agreement with AM Partners has now expired by its own terms and no payments are being made by the Company to AM Partners. In addition, as part of the agreement with AM Partners, the Proton Note to purchase up to 370,000 shares of the Company's common stock from Malcolm E. Ratliff was assigned to AM Partners and 147,000 of those shares were subsequently purchased. The balance of those shares are still being held in escrow pursuant to the terms of the Proton Note. In 1999, the Company converted $250,000 of debt together with accrued interest thereon payable to Malcolm E. Ratliff for a loan he had made to the Company to 54,000 shares of common stock and $22,000 of debt payable to a company owned by Allen H. Sweeney, one of the Company's Directors, for consulting services provided in connection with the preparation of the Company's business plan to 5,625 shares of common stock. In 1999, the Company paid Shigemi Morita $218,000 for commissions on private placements of common stock and consulting services. In December, 1999, Morita Properties, Inc., an affiliate of Mr. Morita, purchased for the sum of $625,000 a 25% working interest on a turnkey basis in two wells, Laura Jean Lawson #1 and Stephen Lawson #2 both of which are in the Swan Creek Field, and a 50% working interest in a third well, Springdale Land Company #1, which is a wildcat step-out well located approximately ten miles from the existing production. Pursuant to resolution of the Board of Directors in February, 2000, Morita Properties, Inc. has 47 purchased on a turnkey basis at an aggregate cost of $875,000 a 12.5% working interest in the Stephen Lawson #3 well which interest it subsequently sold, a 25% working interest in the Laura Jean Lawson #2 well, a 25% working interest in the R.D. Helton #2 well, a 25% working interest in the Stephen Lawson #4 well, a 25% working interest in the Hugh Roberts #1 well; a 25% working interest in the Wells/Yeary #1 well, a 25% working interest in the Hazel Sutton #2 well, and a 6% working interest in the Laura J. Lawson #3 well, all of which are in the Swan Creek Field. The purchases of these interests were concluded before the respective wells were drilled and the purchaser assumed all the attendant risks involved in normal and customary drilling operations, including the risk of a dry hole. The Company received fair market value for the interests conveyed and the sale of such interests was required to raise funds to allow drilling operations to continue. In 2000, the Company paid Mr. Morita approximately $270,000 for commissions on private placements of common stock and consulting services. In 1999, 30,000 shares of the Company's common stock held in the name of Tracmark, Inc. were transferred to an affiliate, Commonwealth Resources, Inc. James Ratliff, the father of Malcolm E. Ratliff, is the sole shareholder of Tracmark, Inc., as Trustee for the Ratliff family. Malcolm E. Ratliff is Vice-President of Tracmark, Inc. Malcolm E. Ratliff is the sole shareholder and President of Commonwealth Resources, Inc. and his wife, Linda Ratliff, is the Secretary/Treasurer of that corporation. Those 30,000 shares were subsequently transferred from Commonwealth Resources, Inc. to a family trust of which Linda Ratliff is the trustee and the beneficiaries are the children of Malcolm E. Ratliff. In December 1999, ownership of all of the outstanding and issued shares of IRC, the largest shareholder of the Company's common stock was transferred from James Ratliff to his son, Malcolm E. Ratliff. Ownership of the IRC shares had previously been transferred to James Ratliff due to the illness of Malcom E. Ratliff. IRC presently owns 1,715,000 shares of the Company's common stock. On August 16, 2000, Tengasco Pipeline Corporation ("TPC"), a wholly-owned subsidiary of the Company, entered into loan agreements (the "Loan Agreements") with five lenders (the "Lenders") for a loan (the "Loan") to finance the completion of Phase II of the Company's 58 mile pipeline. Under the terms of the Loan Agreements, the Lenders agreed to loan TPC $5.6 million for the construction and costs associated with Phase II. Repayment of the Loan was secured only by a first lien upon the pipeline assets of TPC. The Loan is to be repaid over a five-year term, accruing interest at 10.75% per annum from the date of funding, with no penalty for prepayment, and the first payment due in six months from closing. As additional consideration for making the Loan, each Lender is to share on a pro-rata basis, a total throughput fee for all of the Lenders of $.10 per MMBTU of natural gas delivered through the completed pipeline system. The throughput agreement will cease to exist when the Loan is paid in full. The Lenders include Morita Properties, Inc., an affiliate of Shigemi Morita, a Director of the Company which loaned TPC $500,000; Edward W.T. Gray III, a Director of the Company who loaned TPC $1,000,000; and, Malcolm E. Ratliff, Chairman of the Board of Directors and Chief Executive Officer of the Company who agreed to loan $2,000,000, to have been funded by November 15, 2000. The balance of the Loan in the amount of $2,100,000 was made by two 48 individuals, both of whom are shareholders of the Company. Under the Loan Agreements, a total of $3.85 million was loaned to TPC. Of the $2.0 million that was to be loaned to the Company by Malcolm E. Ratliff, the sum of $250,000 was loaned to the Company by Mr. Ratliff and is subject to the Loan Agreements. The remaining portion of funds necessary to complete the pipeline construction was obtained from other sources, including funds from Arvest United Bank of Edmond, Oklahoma under refinancing of existing loans to the Company, sales of common stock of the Company, and revenues from operations. On October 25, 2000, The Company's Board of Directors authorized the purchase of an RD20 drill rig and related equipment from Ratliff Farms, Inc., an affiliate of Malcolm E. Ratliff. This equipment had been provided by Ratliff Farms, Inc. for use by the Company and had been used for Company purposes without compensation for several years. Based on an independent appraisal of the equipment, the Company purchased the equipment effective November 1, 2000 for $995,000 in the form of a promissory note, payable on demand in five years, bearing interest at the rate of eight percent (8%) per annum with principal and interest being convertible into shares of the Company's common stock at the rate of $7.10 per share. On October 25, 2000, the Board of Directors of the Company adopted the Tengasco, Inc. Stock Incentive Plan (the "Plan") a stock option plan intended to provide an incentive to key employees, officers, directors and consultants of the Company, and its present and future subsidiary corporations, and to offer an additional inducement in obtaining the services of such individuals. The Plan is designed to increase the Company's ability to attract, retain and compensate persons of experience and ability and whose services are considered valuable, to encourage the sense of proprietorship in such persons, and to stimulate the active interest of such persons in the development and success of the Company. On October 27, 2000, a Registration Statement was filed on Form S-8 covering 1,000,000 shares of common stock (the "Common Stock") issuable under the Plan. The Plan provides for the grant to employees of the Company of "incentive stock options," within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended, nonqualified stock options to outside directors and consultants to the Company, and stock appreciation rights. The capability of the Plan to authorize the issuance of incentive stock options is subject to approval of the shareholders of the Company at the next annual meeting of shareholders. The Plan provides for its administration by a Stock Option Committee to be appointed by the Board and each member of which shall be a "non-employee director" within the meaning of Rule 16b-3 under the Securities Exchange Act of 1934, as amended. The Board appointed Allen Sweeney, Edward W.T. Gray III, and Benton Becker to the Stock Option Committee. The Committee has discretionary authority with respect to the awarding of options, including determining the individuals who shall receive options; the times when they shall receive them; whether an option shall be an incentive or a nonqualified stock option; the number of shares to be subject to each option; the term of each option; the date each option shall become exercisable; and to make all other determinations necessary or advisable for administering the Plan. 49 A maximum of 1,000,000 shares of the Company's Common Stock are issuable under the terms of the Plan. The Plan is in existence for a maximum of ten years. As of March 16, 2001 the Stock Option Committee had issued 44 options to purchase an aggregate of 889,715 shares of the Company's common stock pursuant to the Plan. The Plan is strictly compensatory in nature and is not in the nature of savings, dividend reinvestment, profit-sharing or pension plan. Accordingly, the Plan has no assets or funds to be administered or invested by its administrators. On October 27, 2000 the Stock Option Committee granted options for a term of three years to the following named officers and directors of the Company to purchase shares of the Company's common stock in the following amounts at a price of $8.69 per share which was the closing price of the stock as listed on the American Stock Exchange on that day: 50,000 shares to Malcolm E. Ratliff, Allen Sweeney, Benton Becker, Edward W. T. Gray III, Joe Armstrong, Robert Hatcher, Sanford McCormick, Robert M. Carter, Mark A. Ruth, and Cary V. Sorensen; 30,000 shares to Shigemi Morita; 25,000 shares to Harold Morris; and, 20,000 shares to Elizabeth Wendelken and Sheila Sloan. On January 24, 2001, the Stock Option Committee granted an additional option to Shigemi Morita to purchase 20,000 shares of the Company's common stock for a period of three years at a price of $14.44 per share. INDEBTEDNESS OF MANAGEMENT No officer, director or security holder known to the Company to own of record or beneficially more than 5% of the Company's common stock or any member of the immediate family of any of the foregoing persons is indebted to the Company. PARENT OF THE ISSUER Unless IRC may be deemed to be a parent of the Company, the Company has no parent. 50 PART IV ITEM 13 EXHIBITS AND REPORTS 1. Financial Statements: Consolidated Balance Sheets Consolidated Statements of Loss Consolidated Statements of Stockholders' Equity Consolidated Statements of Cash Flows 2. Exhibits. (a) - The following documents heretofore filed by the Company with the commission are hereby incorporated by reference herein: (i) from the Registration Statement on Form 10-SB filed with the Commission August 7, 1997 (Registration No. 0-29386) Exhibit Number and Description 3.1 Initial Articles of Incorporation 3.2 Bylaws 3.3 Articles of Amendment dated April 12, 1966 3.4 Articles of Amendment dated July 12, 1984 3.5 Articles of Amendment dated December 18, 1991 3.6 Articles of Amendment dated September 11, 1992 3.7 Articles of Incorporation of the Tennessee of wholly-owned subsidiary 3.8 Articles of Merger and Plan of Merger (taking into account the formation of the Tennessee wholly-owned subsidiary for the purpose of changing the Company's domicile and effecting reverse split) 5.1 Opinion of Robson & Miller, LLP 10.1(a) Purchase Agreement with IRC 10.1(b) Amendment to Purchase Agreement with IRC 10.1(c) General Bill of Sale and Promissory Note 10.2(a) Compensation Agreement - M. E. Ratliff 10.2(b) Compensation Agreement - Jeffrey D. Jenson 10.2(c) Compensation Agreement - Leonard W. Burningham 10.3 Agreement with The Natural Gas Utility District of Hawkins County, Tennessee 10.4 Agreement with Powell Valley Electric Cooperative, Inc. 10.5 Agreement with Enserch Energy Services, Inc. 16.1 Letter of David T. Thomson, CPA, Regarding Change in Certifying Accountant 51 16.2 Letter of Charles M. Stivers, CPA, Regarding Change in Certifying Accountant 16.3 Letter of Price-Bednar, LLP, CPA, Regarding Change in Certifying Accountant 23.1 Consent of Charles M. Stivers, CPA 23.2 Consent of David T. Thomson, CPA 23.3 Consent of BDO Seidman, LLP 23.4 Consent of Robson & Miller, LLP 99.1 Beech Creek Lease Schedule 99.2 Wildcat Lease Schedule 99.3 Burning Springs Lease Schedule 99.4 Fentress County Lease Schedule 99.5 Swan Creek Lease Schedule 99.6 Alabama Lease Schedule 99.7 Coburn Engineering Report dated June 18, 1997. (ii) from Amendment No. 1 to the Registration Statement on Form 10-SB filed with the Commission December 11, 1997 (Registration No. 0-29386) Exhibit Number and Description 5.1 Opinion of Robson & Miller, LLP 23.1 Consent of Charles M. Stivers, CPA 23.3 Consent of BDO Seidman, LLP 23.4 Consent of Robson & Miller, LLP 23.5 Consent of Coburn Petroleum Engineering Co. (iii) Current Report on Form 8-K, Date of Report, February 27, 1998: Exhibit Number and Description 2.1 Plan of Acquisition. Agreement dated December 18, 1997 between AFG Energy, Inc. and Tengasco, Inc. regarding sale of assets of AFG Energy, Inc. (iii) Current Report on Form 8-KA, Date of Report, February 27, 1998: Exhibit Number and Description Financial Statements of Business Acquired (AFG Energy, Inc.) Independent auditor's report, statement of revenues and direct operating expenses and notes to financial statements of the properties acquired by Tengasco, Inc. from AFG Energy, Inc. Pro Forma Financial Information 52 Pro forma combined statements of loss for year ended December 31, 1997 for Tengasco, Inc. from AFG Energy, Inc. 2.1(a) Exhibit A to Agreement dated December 18, 1997 between AFG Energy, Inc. and Tengasco, Inc. regarding sale of assets of AFG Energy, Inc. 2.1(a) Exhibit A to Agreement dated December 18, 1997 between AFG Energy, Inc. and Tengasco, Inc. regarding sale of assets of AFG Energy, Inc. (iv) Annual Report on Form 10-KSB, Date of Report, April 10, 1998 Exhibit Number and Description 10.6 Teaming Agreement between Operations Management International, Inc. and Tengasco, Inc. dated March 12, 1997 10.7 Agreement for Transition Services between Operations Management International, Inc. and Tengasco, Inc. regarding thEast Tennessee Technology Park 99.8 Coburn Engineering Report dated February 18, 1997 (Paper copy filed on Form SE pursuant to continuing hardship granted by Office of EDGAR Policy) 99.9 Columbia Engineering Report dated March 2, 1997 (Paper copy filed on Form SE pursuant to continuing hardship granted by Office of EDGAR Policy) (v) Annual Report on Form 10-KSB, Date of Report, April 14, 1999 Exhibit Number and Description 3.9 Amendment to the Corporate Charter dated June 24, 1998 3.10 Amendment to the Corporate Charter dated October 30, 1998 99.10 Coburn Engineering Report dated February 9, 1999 (Paper copy filed on Form SE pursuant to continuing hardship granted by Office of EDGAR Policy) 99.11 Columbia Engineering Report dated February 20, 1999 (Paper copy filed on Form SE pursuant to continuing hardship granted by Office of EDGAR Policy) (vi) Current Report on Form 8-K, Date of Report, October 18, 1999: Exhibit Number and Description 10.9 Amendment Agreement dated October 19, 1999 between Tengasco, Inc. and The Natural Gas Utility District of Hawkins County, Tennessee 53 (vii) Current Report on Form 8-KA, Date of Report, November 18, 1999: Exhibit Number and Description 10.10 Natural Gas Sales Agreement dated November 18, 1999 between Tengasco, Inc. and Eastman Chemical Company (viii) Annual Report on Form 10-KSB, Date of Report, April 12, 2000 Exhibit Number and Description 3.11 Amendment to the Corporate Charter filed March 17 , 2000 10.11 Agreement between A.M. Partners L.L.C. and Tengasco, Inc. dated October 6, 1999 10.12 Agreement between Southcoast Capital L.L.C. and Tengasco, Inc. dated February 25, 2000 10.13 Franchise Agreement between Powell Valley Utility District and Tengasco, Inc. dated January 25, 2000 10.14 Amendment Agreement between Eastman Chemical Company and Tengasco, Inc. dated March 27, 2000 99.12 Coburn Engineering Report dated March 30, 2000 (Paper copy filed on Form SE pursuant to continuing hardship granted by Office of EDGAR Policy) 99.13 Columbia Engineering Report dated January 31, 2000 (Paper copy filed on Form SE pursuant to continuing hardship granted by Office of EDGAR Policy) (ix) Current Report on Form 8-K, Date of Report, August 16, 2000: Exhibit Number and Description 10.15 Loan Agreement between Tengasco Pipeline Corporation and Morita Properties, Inc. dated August 16, 2000. 10.15(a) Promissory note made by Tengasco Pipeline Corporation to Morita Properties, Inc. dated August 16, 2000. 10.15(b) Throughput Agreement between Tengasco Pipeline Corporation and Morita Properties, Inc. dated August 16, 2000. 10.16 Loan Agreement between Tengasco Pipeline Corporation and Edward W.T. Gray III dated August 16, 2000. 54 10.16(a) Promissory note made by Tengasco Pipeline Corporation to Edward W.T. Gray III dated August 16, 2000. 10.16(b) Throughput Agreement between Tengasco Pipeline Corporation and Edward W.T. Gray III dated August 16, 2000. 10.17 Loan Agreement between Tengasco Pipeline Corporation and Malcolm E. Ratliff dated August 16, 2000. 10.17(a) Promissory note made by Tengasco Pipeline Corporation to Malcolm E. Ratliff dated August 16, 2000. 10.17(b) Throughput Agreement between Tengasco Pipeline Corporation and Malcolm E. Ratliff dated August 16, 2000. 10.18 Loan Agreement between Tengasco Pipeline Corporation and Charles F. Smithers, Jr. dated August 16, 2000. 10.18(a) Promissory note made by Tengasco Pipeline Corporation to Charles F. Smithers, Jr. 10.18(b) Throughput Agreement between Tengasco Pipeline Corporation and Charles F. Smithers dated August 16, 2000. 10.19 Loan Agreement between Tengasco Pipeline Corporation and Nick Nishiwaki dated August 16, 2000. 10.19(a) Promissory note made by Tengasco Pipeline Corporation to Nick Nishiwaki dated August 16, 2000. 10.19(b) Throughput Agreement between Tengasco Pipeline Corporation and Nick Nishiwaki dated August 16, 2000. (x) Form S-8 Registration Statement for shares to be purchased pursuant to options granted pursuant to the Tengasco, Inc. Stock Incentive Plan dated October 25, 2000: Exhibit Number and Description 4.1 Tengasco, Inc. Incentive Stock Plan 5.1 Opinion of Robson Ferber Frost Chan & Essner, LLP 23.1 Consent of BDO Seidman, LLP 55 23.2 Consent of Robson Ferber Frost Chan & Essner, LLP contained in Exhibit No. 5.1 The following exhibits are filed herewith: 10.19 Memorandum Agreement between Tengasco, Inc. and The University of Tennessee dated February 13, 2001 10.20 Natural Gas Sales Agreement between Tengasco, Inc. and BAE SYSTEMS Ordnance Systems Inc. dated March 30, 2001 99.14 Ryder Scott Report 99.14(a) Consent of Ryder Scott Company 21 List of Subsidiaries SIGNATURES Pursuant to the requirements of Section 13 or 15 (d) of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. TENGASCO, INC. (Registrant) By: /s/ MALCOLM E. RATLIFF ----------------------- Malcolm E. Ratliff, Chief Executive Officer Dated: April 10, 2000 Pursuant to the requirements of the Securities and Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in their capacities and on the dates indicated. 56 Signature Title Date /s/ MALCOLM E. RATLIFF Chief Executive Officer; April 10, 2001 - -------------------------- Chairman of the Board Malcolm E. Ratliff Of Directors /s/ JOSEPH EARL ARMSTRONG Director April 10, 2001 - -------------------------- Joseph Earl Armstrong /s/ BENTON L. BECKER Director April 10, 2001 - -------------------------- Benton L. Becker /s/ EDWARD W.T. GRAY III Director April 10, 2001 - -------------------------- Edward W.T. Gray III /s/ ROBERT D. HATCHER, JR. Director April 10, 2001 - -------------------------- Robert D. Hatcher, Jr. /s/ SANFORD E. MCCORMICK Director April 12, 2001 - -------------------------- Sanford E. McCormick /s/ SHIGEMI MORITA Director April 10, 2001 - -------------------------- Shigemi Morita /s/ ALLEN H. SWEENEY Director April 12, 2001 - -------------------------- Allen H. Sweeney /s/ ROBERT M. CARTER President April 10, 2001 - -------------------------- Robert M. Carter 57 /s/ MARK A. RUTH Principal Financial April 10, 2001 - --------------------------- and Accounting Officer Mark A. Ruth 58 TENGASCO, INC. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2000 AND 1999 F-1 TENGASCO, INC. AND SUBSIDIARIES ======================================================= CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2000 AND 1999 F-2 TENGASCO, INC. AND SUBSIDIARIES CONTENTS ================================================================================ INDEPENDENT AUDITORS' REPORT F-4 CONSOLIDATED FINANCIAL STATEMENTS Consolidated Balance sheets F-5 Consolidated Statements of loss F-6 Consolidated Statements of stockholders' equity F-7 Consolidated Statements of cash flows F-8-9 Notes to consolidated financial statements F-10-33 F-3 [BDO Seidman LLP Letterhead] INDEPENDENT AUDITORS' REPORT Board of Directors Tengasco, Inc. and Subsidiaries Knoxville, Tennessee We have audited the accompanying consolidated balance sheets of Tengasco, Inc. and Subsidiaries as of December 31, 2000 and 1999, and the related consolidated statements of loss, stockholders' equity and cash flows for the years then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Tengasco, Inc. and Subsidiaries as of December 31, 2000 and 1999, and the results of their operations and their cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. /s/ BDO Seidman, LLP Atlanta, Georgia March 12, 2001 F-4 TENGASCO, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS ================================================================================
DECEMBER 31, 2000 1999 - ------------------------------------------------------------------------------------------------------ ASSETS (Notes 6 and 7) CURRENT Cash and cash equivalents $ 1,603,975 $ 420,590 Accounts receivable 835,404 533,983 Inventory 251,345 259,753 - ------------------------------------------------------------------------------------------------------ TOTAL CURRENT ASSETS 2,690,724 1,214,326 OIL AND GAS PROPERTIES, net (on the basis of full cost accounting) (Notes 3 and 15) 9,704,029 8,444,036 COMPLETED PIPELINE FACILITIES 4,200,000 4,200,000 PIPELINE FACILITIES UNDER CONSTRUCTION, at cost (Note 4) 6,847,038 12,842 OTHER PROPERTY AND EQUIPMENT, net (Note 5) 1,677,432 574,895 RESTRICTED CASH (Note 1) - 625,000 OTHER 105,501 111,613 - ------------------------------------------------------------------------------------------------------ $ 25,224,724 $ 15,182,712 ======================================================================================================
SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. F-5 TENGASCO, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS ================================================================================
DECEMBER 31, 2000 1999 - ----------------------------------------------------------------------------------------------------------------------- LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Notes payable (Note 6) $ - $ 750,000 Current maturities of long-term debt - related party (Notes 2 and 7) 500,000 - Current maturities of long-term debt (Note 7) 1,608,486 1,025,085 Accounts payable - trade 1,016,462 651,909 Accrued interest payable 135,435 - Accrued liabilities 52,640 193,595 - ----------------------------------------------------------------------------------------------------------------------- TOTAL CURRENT LIABILITIES 3,313,023 2,620,589 - ----------------------------------------------------------------------------------------------------------------------- LONG-TERM DEBT - RELATED PARTIES, less current maturities (Notes 2 and 7) 4,845,000 500,000 LONG TERM DEBT, less current maturities (Note 7) 2,263,599 2,619,293 - ----------------------------------------------------------------------------------------------------------------------- Total long-term debt 7,108,599 3,119,293 - ----------------------------------------------------------------------------------------------------------------------- Total liabilities 10,421,622 5,739,882 - ----------------------------------------------------------------------------------------------------------------------- COMMITMENTS AND CONTINGENCIES (Notes 4, 8 and 10) PREFERRED STOCK, $.0001 par value; authorized 25,000,000 shares (Note 9): Series A 8% cumulative, convertible, mandatorily redeemable; 29,389 and 19,889 shares outstanding; redemption value $2,938,900 and $1,988,900 2,938,900 1,988,900 Series B 8% cumulative, convertible, mandatorily redeemable; 1,000 shares outstanding; redemption value $1,000,000 in 2000; no shares outstanding in 1999 1,000,000 - - ----------------------------------------------------------------------------------------------------------------------- TOTAL PREFERRED STOCK 3,938,900 1,988,900 - ----------------------------------------------------------------------------------------------------------------------- STOCKHOLDERS' EQUITY (Notes 6 and 10) Common stock, $.001 par value; authorized 50,000,000 shares 9,296 8,533 Additional paid-in capital 25,941,709 20,732,759 Accumulated deficit (15,086,803) (13,287,362) - ----------------------------------------------------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 10,864,202 7,453,930 - ----------------------------------------------------------------------------------------------------------------------- $ 25,224,724 $ 15,182,712 =======================================================================================================================
SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. F-6 TENGASCO, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF LOSS ================================================================================
YEARS ENDED DECEMBER 31, 2000 1999 - ----------------------------------------------------------------------------------------------------------------------- OIL AND GAS REVENUES $ 5,241,076 $ 3,017,252 - ----------------------------------------------------------------------------------------------------------------------- COSTS AND EXPENSES Production costs and taxes 2,614,414 2,564,932 Depreciation, depletion and amortization 371,249 233,807 General and administrative costs 2,556,406 1,942,254 Interest expense 415,376 417,497 Public relations 106,195 86,061 Professional fees (Notes 11 and 14) 719,320 444,624 - ----------------------------------------------------------------------------------------------------------------------- Total costs and expenses 6,782,960 5,689,175 - ----------------------------------------------------------------------------------------------------------------------- NET LOSS (1,541,884) (2,671,923) Dividends on preferred stock 257,557 119,347 - ----------------------------------------------------------------------------------------------------------------------- NET LOSS AVAILABLE TO COMMON STOCKHOLDERS $ (1,799,441) $ (2,791,270) ======================================================================================================================= NET LOSS AVAILABLE TO COMMON STOCKHOLDERS PER SHARE Basic and diluted $ (0.20) $ (0.34) ======================================================================================================================= Weighted average shares outstanding 8,813,049 8,149,900 =======================================================================================================================
SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. F-7 TENGASCO, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY YEARS ENDED DECEMBER 31, 2000 AND 1999 ================================================================================
COMMON UNAMORTIZED COMMON STOCK STOCK ADDITIONAL STOCK ------------------------- ISSUABLE PAID-IN OPTION SHARES AMOUNT (NOTE 10) CAPITAL AWARDS DEFICIT - ------------------------------------------------------------------------------------------------------------------------ BALANCE, January 1, 1999 7,644,212 $7,644 $ 700,000 $16,796,038 $(162,500) $(10,496,092) Net loss - - - - - (2,671,923) Common stock issued on conversion of debt 83,100 83 - 508,917 - - Common stock issued for exercised options 20,000 20 - 9,980 - - Stock option awards and amortization, net - - - - 162,500 - Common stock issued in private placements, net of related expense 775,802 776 (700,000) 3,471,722 - - Stock issued for services 9,768 10 - 41,990 - Payment of dividends on convertible - - - - - (119,347) redeemable preferred stock Other - - - (95,888) - - - ------------------------------------------------------------------------------------------------------------------------ BALANCE, December 31, 1999 8,532,882 8,533 - 20,732,759 - (13,287,362) Net loss - - - - - (1,541,884) Common stock issued on conversion of debt 73,669 74 - 449,920 - - Common stock issued for exercised options 20,715 21 - 179,992 - - Common stock issued on conversion of preferred stock 8,818 9 - 49,991 - - Stock option awards for professional services - - - 242,000 - - Common stock issued in private placements, net of related expense 654,098 654 - 4,245,054 - - Stock issued for services 5,376 5 - 41,993 - - Payment of dividends on convertible redeemable preferred stock - - - - - (257,557) - ------------------------------------------------------------------------------------------------------------------------ BALANCE, December 31, 2000 9,295,558 $9,296 $ - $25,941,709 $ - $(15,086,803) ========================================================================================================================
SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. F-8 TENGASCO, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS ================================================================================
YEARS ENDED DECEMBER 31, 2000 1999 - ----------------------------------------------------------------------------------------------------------------------- OPERATING ACTIVITIES Net loss $(1,541,884) $(2,671,923) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation, depletion and amortization 371,249 233,807 Compensation and services paid in stock options, stock warrants, and common stock 284,000 204,500 Changes in assets and liabilities: Accounts receivable (301,421) (386,933) Inventory 8,408 (159,455) Accounts payable - trade 364,553 300,342 Accrued interest payable 135,435 - Accrued liabilities (140,955) (107,341) - ----------------------------------------------------------------------------------------------------------------------- Net cash used in operating activities (820,615) (2,587,003) - ----------------------------------------------------------------------------------------------------------------------- INVESTING ACTIVITIES Additions to other property and equipment (1,276,783) (256,045) Net additions to oil and gas properties (1,456,996) (1,413,029) Proceeds on sale of oil and gas interests - 625,000 Additions to pipeline facilities under construction (6,834,196) (193,633) Decrease (increase) in restricted cash 625,000 (625,000) Other 6,112 (29,587) - ----------------------------------------------------------------------------------------------------------------------- Net cash used in investing activities (8,936,863) (1,892,294) - -----------------------------------------------------------------------------------------------------------------------
F-9 TENGASCO, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS ================================================================================
YEARS ENDED DECEMBER 31, 2000 1999 - ----------------------------------------------------------------------------------------------------------------------- FINANCING ACTIVITIES Proceeds from exercise of options - 10,000 Proceeds from borrowings 6,493,563 2,119,023 Repayments of borrowings (1,720,856) (2,383,605) Net proceeds from issuance of common stock 4,425,713 2,771,722 Proceeds from private placements of convertible redeemable preferred stock 2,000,000 1,188,900 Collection of due from stockholder - 400,000 Dividends on convertible redeemable preferred stock (257,557) (119,347) - ----------------------------------------------------------------------------------------------------------------------- Net cash provided by financing activities 10,940,863 3,986,693 - ----------------------------------------------------------------------------------------------------------------------- NET CHANGE IN CASH AND CASH EQUIVALENTS 1,183,385 (492,604) CASH AND CASH EQUIVALENTS, beginning of year 420,590 913,194 - ----------------------------------------------------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS, end of year $ 1,603,975 $ 420,590 ======================================================================================================================= SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: During 2000, the Company converted preferred stock to common stock. $ 50,000 $ - During 2000 and 1999, respectively, the Company issued common stock on conversion of debt. $ 450,000 $ 509,000 During 2000 and 1999, respectively, the Company issued common stock for services received. $ 284,000 $ 204,500 =======================================================================================================================
SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. F-10 TENGASCO, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ================================================================================ 1. SUMMARY OF ORGANIZATION SIGNIFICANT ACCOUNTING POLICIES Tengasco, Inc. (the "Company"), a publicly held corporation, was organized under the laws of the State of Utah on April 18, 1916, as Gold Deposit Mining and Milling Company. The Company subsequently changed its name to Onasco Companies, Inc. Effective May 2, 1995, Industrial Resources Corporation, a Kentucky corporation ("IRC"), acquired voting control of the Company in exchange for approximately 60% of the assets of IRC. Accordingly, the assets acquired, which included certain oil and gas leases, equipment, marketable securities and vehicles, were recorded at IRC's historical cost. The transaction was accomplished through the Company's issuance of 4,000,000 shares of its common stock and a $450,000, 8% promissory note payable to IRC. The promissory note was converted into 83,799 shares of Tengasco, Inc. common stock in December 1995. The Company changed its domicile from the State of Utah to the State of Tennessee on May 5, 1995 and its name was changed from "Onasco Companies, Inc." to "Tengasco, Inc." The Company's principal business consists of oil and gas exploration, production and related property management in the Appalachian region of eastern Tennessee and in the state of Kansas. The Company's corporate offices are in Knoxville, Tennessee. The Company operates as one reportable business segment, based on the similarity of activities. During 1996, the Company formed Tengasco Pipeline Corporation, a wholly-owned subsidiary, to manage the construction and operation of a 51 mile gas pipeline as well as other pipelines planned for the future. PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of the Company, Tengasco Pipeline Corporation and Tennessee Land and Mineral, Inc. All significant intercompany balances and transactions have been eliminated. F-11 TENGASCO, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ================================================================================ BASIS OF PRESENTATION The Company's financial statements have been presented on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company continues to be in the early stages of its oil and gas related operating history as it endeavors to expand its operations through the continuation of its drilling program in the Tennessee Swan Creek Field. The Company anticipates beginning distribution of natural gas from those fields in April 2001. During the year ended December 31, 2000, the Company borrowed $3,850,000 from Directors and other related parties in order to fund the completion of the pipeline. Completion of Phase II of the pipeline occurred on March 8, 2001. Management expects cash flow from operations to satisfy any short term operating needs. However, until significant operations commence from natural gas sales through the completed pipeline, the Company will need to be able to obtain other sources of financing to support intended drilling programs and other exploratory activities. The Company plans to fund these activities from the proceeds from other debt financing from lenders and directors, from the sale of oil and gas interests, and from private placement offerings of equity securities. Management believes that the Company will be able to attain the projected levels of operations necessary to meet its operational needs, or be able to obtain the necessary financing to fund future growth and ultimately to attain profitability. However, there can be no assurances that the Company will obtain the necessary funding or obtain such funding in a timely manner in order to meet its current and future cash requirements. The inability of the Company to maintain the projected operational levels of sales or to obtain the necessary cash funding on a timely basis would have an unfavorable effect on the Company's financial condition and would require the Company to materially reduce the scope of its operating and investing activities. USE OF ESTIMATES The accompanying financial statements are prepared in conformity with accounting principles generally accepted in the United States of America which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The actual results could differ from those estimates. F-12 TENGASCO, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ================================================================================ REVENUE RECOGNITION The Company recognizes revenues at the time of exchange of goods and services. CASH AND CASH EQUIVALENTS The Company considers all investments with a maturity of three months or less when purchased to be cash equivalents. RESTRICTED CASH In 1999 an affiliate of a board member paid the Company $625,000 for certain oil and gas well interests. Per agreement with the buyer, this cash is restricted to use for payments of drilling costs for the related wells. At December 31, 2000, the related wells were in production and the restricted cash had been used to pay drilling costs. INVENTORY Inventory consists primarily of crude oil in tanks and is carried at market value. OIL AND GAS PROPERTIES The Company follows the full cost method of accounting for oil and gas property acquisition, exploration and development activities. Under this method, all productive and nonproductive costs incurred in connection with the acquisition of, exploration for and development of oil and gas reserves for each cost center are capitalized. Capitalized costs include lease acquisitions, geological and geophysical work, delay rentals and the costs of drilling, completing and equipping oil and gas wells. Gains or losses are recognized only upon sales or dispositions of significant amounts of oil and gas reserves representing an entire cost center. Proceeds from all other sales or dispositions are treated as reductions to capitalized costs. The capitalized costs of oil and gas properties, plus estimated future development costs relating to proved reserves and estimated costs of plugging and abandonment, net of estimated salvage value, are amortized on the unit-of-production method based on total proved reserves. The costs of unproved properties are excluded from amortization until the properties are evaluated, subject to an annual assessment of whether impairment has occurred. The costs of F-13 TENGASCO, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ================================================================================ significant development projects awaiting completion of pipeline facilities are excluded from amortization until such time as the pipeline facilities are completed. The Company's proved gas reserves were estimated by Columbia Engineering, independent petroleum engineers, for the Kansas properties, and by Coburn Petroleum Engineering for the Tennessee properties in 1999. These reserves were estimated by Ryder Scott Company, Petroleum Consultants in 2000. The capitalized oil and gas property and pipeline costs, less accumulated depreciation, depletion and amortization and related deferred income taxes, if any, are generally limited to an amount (the ceiling limitation) equal to the sum of: (a) the present value of estimated future net revenues computed by applying current prices in effect as of the balance sheet date (with consideration of price changes only to the extent provided by contractual arrangements) to estimated future production of proved oil and gas reserves, less estimated future expenditures (based on current costs) to be incurred in developing and producing the reserves using a discount factor of 10% and assuming continuation of existing economic conditions; and (b) the cost of investments in unevaluated properties excluded from the costs being amortized. No ceiling writedown was recorded in 2000 or 1999. PIPELINE FACILITIES Pipeline facilities under construction consist of direct and indirect construction costs, capitalized interest and capitalized overhead. Once the facility has been determined to be complete and ready for its intended use, it is reclassified to pipeline facilities. Once the pipeline has been placed in service, it will be depreciated over its estimated useful life (presently anticipated to be 30 years). Phase I of the pipeline was completed during 1999, yet has not been placed in service. Phase II of the pipeline was completed on March 8, 2001. Accordingly, no depreciation expense has been recorded for 2000 and 1999 relating to pipeline facilities. OTHER PROPERTY AND EQUIPMENT Other property and equipment are carried at cost. The Company provides for depreciation of other property and equipment using the straight-line method over the estimated useful lives of the assets which range from five to ten years. F-14 TENGASCO, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ================================================================================ IMPAIRMENT OF LONG-LIVED ASSETS AND LONG-LIVED ASSETS TO BE DISPOSED OF Management believes that none of its long-lived assets are impaired, and the accompanying financial statements reflect no charges or allowances for impairment. INCOME TAXES The Company accounts for income taxes using the "liability method." Accordingly, deferred tax liabilities and assets are determined based on the temporary differences between the financial statement and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse. CONCENTRATION OF CREDIT RISK Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivable. At times, such cash in banks is in excess of the FDIC insurance limit. At December 31, 1999, the Company had deposits with one financial institution in an amount which exceeded the federally insured limit by approximately $1 million. At December 31, 2000, the Company had deposits with two financial institutions in amounts which exceeded the federally insured limit by approximately $450,000 and $800,000. The Company's primary business activities include oil and gas sales to several customers in the states of Tennessee and Kansas. The related trade receivables subject the Company to a concentration of credit risk within the oil and gas industry. The Company has entered into a contract to supply a chemical manufacturer with natural gas once the pipeline facility has been completed. This customer will be the Company's primary customer of natural gas sales. Additionally, the Company sells a majority of its crude oil primarily to two customers, one each in Tennessee and Kansas. Although management believes that customers could be replaced in the ordinary course of business, if the present customers were to discontinue business with the Company, it could have a significant adverse effect on the Company's projected results of operations. F-15 TENGASCO, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ================================================================================ LOSS PER COMMON SHARE Basic loss per share is computed by dividing loss available to common shareholders by the weighted average number of shares outstanding during each year. Shares issued during the year are weighted for the portion of the year that they were outstanding. Diluted loss per share is calculated in a manner consistent with that of basic loss per share while giving effect to all dilutive potential common shares that were outstanding during the period. Basic and diluted loss per share are based upon 8,813,049 shares for the year ended December 31, 2000 and 8,149,900 shares for the year ended December 31, 1999. There were 1,092,038 and 732,967 potential weighted common shares outstanding during 2000 and 1999 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. FAIR VALUES OF FINANCIAL INSTRUMENTS Fair values of cash and cash equivalents and short-term debt approximate cost due to the short period of time to maturity. Fair values of long-term debt are based on quoted market prices or pricing models using current market rates, which approximate carrying values. NEW ACCOUNTING PRONOUNCEMENTS SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities," as amended by SFAS No. 137 and 138, is effective for all fiscal years beginning after June 15, 2000. This statement requires recognition of all derivative contracts as either assets or liabilities in the balance sheet and the measurement of them at fair value. If certain conditions are met, a derivative may be specifically designated as a hedge, the objective of which is to match the timing of any gains or losses on the hedge with the recognition of (i) the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk or (ii) the earnings effect of the hedged forecasted transaction. For a derivative not designated as a hedging instrument, the gain or loss is recognized in income in the period of change. Historically, the Company has not entered into any material derivative contracts either to hedge existing risks or for speculative purposes. The adoption of the new standard on January 1, 2001 will not affect the Company's financial statements. F-16 TENGASCO, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ================================================================================ In December 1999, the SEC issued Staff Accounting Bulletin ("SAB") No. 101 "Revenue Recognition in Financial Statements" which outlines the basic criteria that must be met to recognize revenue and provides guidance for presentation of revenue and for disclosure related to revenue recognition policies in financial statements filed with the SEC. Adoption of SAB No. 101 did not have a material impact on the Company's financial position or its results of operations. RECLASSIFICATIONS Certain prior year amounts have been reclassified to conform with current year presentation. 2. RELATED PARTY During 2000, the Company acquired debt TRANSACTIONS financing in the amount of $3,850,000 from two members of the board of directors, one affiliate, and two shareholders in order to complete construction of its pipeline from Swan Creek to Kingsport (see Note 5). The directors will also receive a throughput fee once production begins, and will continue to receive such fees until the debt is repaid. The throughput fee is 10 cents per MMBtu delivered through the pipeline in proportion to the director's proportion of total debt. The volume delivered shall be calculated on a monthly basis (see Note 7). During 2000, the Company acquired debt financing from a major officer/stockholder in the amount of $995,000 in order to purchase a drilling rig (see Note 7). During 2000, the Company paid approximately $270,000 in consulting fees and commissions on equity transactions to a member of the Board of Directors. In December 1999, the Company sold for aggregate consideration of $625,000 a 25% working interest in two wells and a 50% working interest in a third well, located in the Swan Creek Field, to a related party company affiliated with a member of the Board of Directors. During 1999, the Company converted $250,000 of debt together with accrued interest thereon payable to a major officer/stockholder of the Company into 54,000 shares of common stock. In addition, the Company converted $163,800 of non-interest bearing accounts payable to this officer/stockholder into 16,800 shares of common stock. F-17 TENGASCO, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ================================================================================ During 1999, the Company converted $22,000 of debt payable to a company owned by a member of the Board of Directors for consulting services into 5,625 shares of common stock. During 1999, the Company paid approximately $218,000 in consulting fees and commissions on equity transactions to a member of the Board of Directors. 3. OIL AND GAS The following table sets forth PROPERTIES information concerning the Company's oil and gas properties:
DECEMBER 31, 2000 1999 ================================================================== Oil and gas properties, at cost $10,209,323 $8,752,327 Accumulation depreciation, depletion and amortization (505,294) (308,291) ------------------------------------------------------------------- Oil and gas properties, net $ 9,704,029 $8,444,036 ====================================================================
4. PIPELINE FACILITIES In 1996, the Company began construction UNDER CONSTRUCTION of a 51-mile gas pipeline which will (1) connect the Swan Creek development project to a gas purchaser and (2) enable the Company to develop gas distribution business opportunities in the future. Phase I, a 23 mile portion of the pipeline, was completed in 1998. As of December 31, 2000, management estimates the costs to complete Phase II of the pipeline are approximately $1.3 million. In January 1997, the Company entered into an agreement with the Tennessee Valley Authority ("TVA") whereby the TVA allows the Company to bury the pipeline within the TVA's transmission line rights-of-way. In return for this right, the Company paid $35,000 and agreed to annual payments of approximately $6,200 for 20 years. This agreement expires in 2017 at which time the parties may renew the agreement for another 20 year term in consideration of similar inflation-adjusted payment terms. F-18 TENGASCO, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ================================================================================ 5. OTHER PROPERTY Other property and equipment consisted AND EQUIPMENT of the following:
DECEMBER 31, 2000 1999 ==================================================================== Machinery and equipment $1,689,128 $ 605,069 Vehicles 522,854 377,208 Other 63,734 63,735 --------------------------------------------------------------------- 2,275,716 1,046,012 Less accumulated depreciation (598,284) (471,117) --------------------------------------------------------------------- Other property and equipment - net $1,677,432 $ 574,895 =====================================================================
6. NOTES PAYABLE Notes payable consisted of the following:
DECEMBER 31, 2000 1999 ======================================================================= Note payable, in default, to an investment company due May 1997 with interest payable monthly at 10% per annum; collateralized by a subordinated security interest in all assets of the Company. $ - $500,000 Note payable, in default, to a company due April 1997 with interest payable monthly at 10% per annum; collateralized by all assets of the Company. $ - 250,000 ----------------------------------------------------------------------- $ - $750,000 =======================================================================
In conjunction with the issuance of each of the notes payable listed above, the Company granted the lenders detachable stock warrants which enabled the holder to obtain up to 200,000 shares of the Company's common stock at a price of $5 per share. These notes were not paid as of their respective original due dates. In March 1997, the Company filed a claim against the three lenders and a former officer of the Company asserting that the Company did not authorize the issuances of certain stock warrants related to the F-19 TENGASCO, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ================================================================================ borrowings and seeking rescission of the warrant agreements. The Company disputed the validity of the stock warrant agreements based upon certain provisions which were not authorized by the board of directors. These claims were ultimately settled as discussed below. In January 2000, the respective parties agreed to settle the disputes. As settlement the Company paid an aggregate of approximately $880,000 of principal and accrued interest as payment in full for the remaining notes outstanding. The above-mentioned warrants were deemed null and void and unenforceable F-20 TENGASCO, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ================================================================================ 7. LONG TERM DEBT Long-term debt to unrelated entities consisted of the following:
DECEMBER 31, 2000 1999 ============================================================================= Note payable to a bank, with $52,364 principal payments due monthly commencing on December 31, 1999 through November 30, 2002. Interest is payable monthly commencing December 31, 1999 at prime plus 1% per annum. The note is guaranteed by a major shareholder and is collatalized by certain of the Company's assets. The note was repaid in 2000. $ - $1,828,327 Note payable to the bank with $95,000 principal payments due monthly commencing on January 1, 2001 through February 1, 2003. Interest payable monthly commencing January 1, 2001 at prime plus 1% (9.5% at December 31, 2000) per annum. The note is guaranteed by a major shareholder and is collatalized by certain of the Company's assets. 2,469,989 - Note payable to an institution, with $75,000 principal payments due quarterly beginning January 1, 2000; remaining balance due October 2003; with interest payable monthly at 8% per annum. Note is convertible into common stock of the Company at a rate of $6.25 per share of common stock. Note is unsecured. 975,000 1,425,000 Thirteen individual vehicle and equipment notes having interest at the rate of 8.4% to 11.95% per annum collateralized by vehicles and equipment with monthly payments including interest of $493 to $1,049 due 2001 to 2006, collateralized by vehicles and equipment. 427,096 391,051 -----------------------------------------------------------------------------
F-21 TENGASCO, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ================================================================================
DECEMBER 31, 2000 1999 ----------------------------------------------------------------------------- Total long term debt due to unrelated entities carried forward $ 3,872,085 $ 3,644,378 Less current maturities (1,608,486) (1,025,085) ----------------------------------------------------------------------------- Long term debt due to unrelated entities, less current maturities 2,263,599 2,619,293 ----------------------------------------------------------------------------- Long-term debt to related parties consisted of the following: Note payable to a related party; entire principal balance due December 2001, with interest payable quarterly at 8% per annum. Note is convertible into common stock of the Company at a rate of $5.00 per share of common stock. 500,000 500,000 Note payable to a related party (Note 2); entire principal balance due November 2005, with interest payable quarterly at 8% per annum. Note is convertible into common stock of the Company at a rate of $7.10 per share of common stock. Note is unsecured. 995,000 - Note payable to related parties (Note 2); entire principal balance due August 2005, with interest payable quarterly at 10.75% per annum. Note is collateralized by the Pipeline. 3,850,000 - ----------------------------------------------------------------------------- Total long term debt due to related parties 5,345,000 500,000 Less current maturities 500,000 - ----------------------------------------------------------------------------- Long term debt due to related parties, less current maturities $ 4,845,000 $ 500,000 ============================================================================
F-22 TENGASCO, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ================================================================================ The aggregate maturities of long term debt as of December 31, 2000, are as follows: Year Amount ---------------------------------------- 2001 $2,108,486 2002 1,526,794 2003 633,499 2004 53,219 2005 4,895,087 ---------------------------------------- $9,217,085 ======================================= 8. COMMITMENTS The Company is a party to lawsuits in AND CONTINGENCIES the ordinary course of its business. While the damages sought in some of these actions are material, the Company does not believe that it is probable that the outcome of any individual action will have a material adverse effect, or that it is likely that adverse outcomes of individually insignificant actions will be significant enough, in number or magnitude, to have a material adverse effect in the aggregate. In the ordinary course of business the Company has entered into various equipment and office leases which have terms ranging from one to five years. Approximate future minimum lease payments to be made under noncancellable operating leases are as follows: Year Amount --------------------------------------- 2001 $170,404 2002 71,255 2003 60,158 2004 59,210 2005 62,617 --------------------------------------- $423,644 --------------------------------------- Office rent expense was approximately $86,120 and $52,590 for the years ended December 31, 2000 and 1999, respectively. F-23 TENGASCO, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ================================================================================ 9. CONVERTIBLE In 1999 the Company issued 11,889 shares REDEEMABLE of Series A Preferred Stock for PREFERRED STOCK $1,988,900, which netted the Company approximately $1,894,000 after commissions. In December 1999, the Company's Board of Directors authorized the issuance of 100,000 shares of Series B Convertible Redeemable Preferred Stock ("Series B Preferred Stock"). As of December 31, 1999 no Series B Preferred Stock had been issued. In 2000, the Company issued 1,000 shares of Series A Preferred Stock for $1,000,000, which netted the Company approximately $960,000 after commissions. In the same year, the Company issued 1,000 shares of Series B Preferred Stock for $1,000,000. No commissions were paid on the Series B Preferred Stock. In April 2000, one holder converted 5,000 shares of Series A Preferred Stock into Common Stock. No additional consideration was given to the Company for this conversion. In conjunction with the issuances of the Series B Preferred Stock described above, the Company granted the purchasers detachable stock warrants which enable the holders to obtain up to 11,111 shares of the Company's common stock at a price of $9 per share. The holders of both the Series A and Series B Preferred Stock are entitled to a cumulative dividend of 8% per quarter. However, the payment of the dividends on the Series B Preferred Stock is subordinate to that of the Series A Preferred Stock. In the event that the Company does not make any two of six consecutive quarterly dividend payments, the holders of the Series A Preferred Stock may appoint those directors which would constitute of majority of the Board of Directors. In such a scenario, the holders of the Preferred Shares would be entitled to elect a majority of the Board of Directors until all accrued and unpaid dividends have been paid. Shares of both Series A and B of Preferred Stock are or will be immediately convertible into shares of Common Stock. Each $100 liquidation preference share of preferred stock is convertible at a rate of $5.75 and $9.00 for the Series A and B, respectively, per share of common stock. The conversion rate is subject to downward adjustment if the Company subsequently issues shares of common stock for consideration less than $5.75 and $9.00 for the Series A and B, respectively, per share. F-24 TENGASCO, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ================================================================================ The Company may redeem both of the Series A and B Preferred Shares upon payment of $100 per share plus any accrued and unpaid dividends. Further, with respect to the Series A Preferred Stock, commencing on October 1, 2003 and at each quarterly date thereafter while the Series A Preferred Stock is outstanding, the Company is required to redeem one-twentieth of the maximum number of Series A Preferred Stock outstanding. With respect to the Series B Preferred Stock, on the fifth anniversary after issuance, the Company is required to redeem all outstanding Series B Preferred Stock. 10. COMMON STOCK TO BE In 1998, an institution purchased ISSUED AND DUE FROM 140,000 shares of common stock for STOCKHOLDER $700,000. As of December 31, 1998, the stockholder owed the Company $400,000 for the stock purchase. Additionally, as of December 31, 1998, the Company had not issued the shares. The entire $700,000 was included as common stock to be issued on the accompanying consolidated balance sheet as of December 31, 1998. In 1999, the Company issued the shares and collected the receivable. 11. STOCK OPTIONS In October 2000, the Company approved a Stock Incentive Plan. The Plan is effective for a ten-year period commencing on October 25, 2000 and ending on October 24, 2010. The aggregate number of shares of Common Stock as to which options and Stock Appreciation Rights may be granted to Employees under the plan shall not exceed 1,000,000. Options are not transferable, are exercisable for 3 months after voluntary resignation from the Company and terminate immediately upon involuntary termination from the company. The purchase price of shares subject to this Nonqualified Stock Option Plan shall be determined at the time the options are granted, but are not permitted to be less than 85% of the Fair Market Value of such shares on the date of grant. Furthermore, an employee in the plan may not, immediately prior to the grant of an Incentive Stock Option hereunder, own stock in the Company representing more than ten percent of the total voting power of all classes of stock of the Company unless the per share option price specified by the Board for the Incentive Stock Options granted such and Employee is at least 110% of the Fair Market Value of the Company's stock on the date of grant and such option, by its terms, is not exercisable after the expiration of 5 years from the date such stock option is granted. F-25 TENGASCO, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ================================================================================ Stock option activity in 2000 and 1999 is summarized below:
2000 1999 -------------------------- ------------------------ AVERAGE AVERAGE EXERCISE EXERCISE SHARES PRICE SHARES PRICE ------------------------------------------------------------------------------- OUTSTANDING, beginning of year 505,000 $6.91 375,000 $5.80 Granted 814,715 8.69 475,000 6.90 Exercised (20,715) 8.69 (20,000) 5.00 Expired/canceled (330,000) 6.91 (325,000) 5.66 --------- -------- OUTSTANDING, end of year 969,000 8.54 505,000 6.91 EXERCISABLE, end of year 885,960 $8.49 252,083 $5.50 ===============================================================================
The following table summarizes information about stock options outstanding at December 31, 2000:
OPTIONS OPTIONS OUTSTANDING EXERCISABLE ------------------------------------------- ---------------- AVERAGE AVERAGE REMAINING EXERCISE CONTRACTUAL PRICE SHARES LIFE (YEARS) SHARES ----------------------------------------------------------- ---------------- 7.00 175,000 .33 175,000 8.69 794,000 2.83 710,960 ----------- ----------- Total 8.38 969,000 885,960 =============================================================================
F-26 TENGASCO, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ================================================================================ The weighted average fair value of all options granted during 2000 and 1999 is $3.41 and $2.88 per share respectively, calculated using the Black-Scholes Option-Pricing model. The amount of compensation expense related to stock options included in general and administrative costs in the accompanying consolidated statements of loss was approximately $162,500 for the year ended December 31, 1999. No compensation expense related to stock options was incurred in 2000. The Company issued 70,715 options to non-employees and non-directors in 2000. The expense of $242,000 for these options has been included in professional fees expense because the options were issued to providers of such services. The expense was calculated using a fair market value of the options based on the Black-Scholes option-pricing model assumptions discussed below. Statement of Financial Accounting Standards No. 123, ("SFAS 123"), "Accounting for Stock-Based Compensation" was implemented in January 1996. As permitted by SFAS 123, the Company has continued to account for stock compensation to employees by applying the provisions of Accounting Principles Board Opinion No. 25. If the accounting provisions of SFAS 123 had been adopted, net loss and loss per share would have been as follows:
2000 1999 ----------------------------------------------------------------------- Net loss available to common shareholders As reported $(1,799,441) $(2,791,270) Pro forma (4,052,452) (3,529,395) ======================================================================= Basic and diluted loss per share As reported $(0.20) $(0.34) Pro forma (0.46) (0.43) =======================================================================
For employees, the fair value of stock options used to compute pro forma net loss and loss per share disclosures is the estimated present value at grant date using the Black-Scholes option-pricing model with the following weighted average assumptions for 2000 and 1999: Expected volatility of 50% for 2000 and 106% for 1999; a risk free interest rate of 5.86% in 2000 and 6.17% in 1999; and an expected option life of 3 years for 2000 and 1.1 year in 1999. F-27 TENGASCO, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ================================================================================ 12. INCOME TAXES The Company had no taxable income during the years ended December 31, 2000 and 1999. A reconciliation of the statutory U.S. Federal income tax and the income tax provision included in the accompanying consolidated statements of loss is as follows:
YEAR ENDED DECEMBER 31, 2000 1999 -------------------------------------------------------------------- Statutory rate 34% 34% Tax benefit at statutory rate $(452,500) $(908,000) State income tax benefit (75,500) (167,000) Nondeductible travel and entertainment 19,000 19,000 Nondeductible compensation expense - 62,000 Other 5,000 199,000 Increase in deferred tax asset valuation allowance 504,000 795,000 -------------------------------------------------------------------- Total income tax provision $ - $ - ====================================================================
The components of the net deferred tax assets are as follows:
YEAR ENDED DECEMBER 31, 2000 1999 ---------------------------------------------------------------------- Net operating loss carryforward $4,972,000 $ 4,344,000 Capital loss carryforward 263,000 263,000 Employee stock option tax benefits - 124,000 ---------------------------------------------------------------------- 5,235,000 4,731,000 Valuation allowance (5,235,000) (4,731,000) ---------------------------------------------------------------------- Net deferred taxes $ - $ - ----------------------------------------------------------------------
The Company recorded a valuation allowance at December 31, 2000 and 1999 equal to the excess of deferred tax assets over deferred tax liabilities as management is unable to determine that these tax benefits are more likely than not to be realized. F-28 TENGASCO, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ================================================================================ As of December 31, 2000, the Company had net operating loss carryforwards of approximately $13,088,000, which will expire between 2010 and 2015, if not utilized. Additionally, at December 31, 2000, the Company had capital loss carryforwards of approximately $657,000 which will expire, if not offset against capital gains, as follows: 2001-$576,000, 2002-$81,000. 13. SUPPLEMENTAL CASH The Company paid approximately $544,000 FLOW INFORMATION and $479,000 for interest in 2000 and 1999, respectively. In 2000 the Company capitalized $128,000 of this amount. The Company paid no income taxes in 2000 and 1999. In 1999, the Company issued 54,000 shares of common stock to convert a note payable to an officer plus accrued interest thereon in the approximate amount of $270,000, which approximated the fair value of the shares. In 2000 and 1999, the Company issued 5,376 and 9,768 shares of common stock as consideration for approximately $42,000 and $41,000, respectively of services, which approximated the fair value of the common stock. In 1999, the lender of the note payable with an original balance of $1,500,000 sold $75,000 of this note to other holders. These holders then converted the notes into common stock at the rate of $6.25 per share. In 2000, the lender converted approximately $450,000 of the outstanding debt into common stock under the same agreement. 14. SIGNIFICANT FOURTH A significant portion of the net loss QUARTER EVENTS available to common shareholders was incurred during the three months ended December 31, 2000. During this period, the Company incurred approximately $260,000 of maintenance and other costs on completed natural gas wells in anticipation of the completion of the pipeline in the first quarter of 2001. Additionally, during the fourth quarter of 2000, the Company incurred approximately $140,000 in professional fees associated with an abandoned potential business venture and increased interest expense associated with newly acquired related party debt of approximately $30,000 (which is net of approximately $130,000 of interest capitalized during this period). As a result of the Company issuing stock options to consultants and counsel to the Company, the Company was required to recognize professional fee expense totalling $242,000 in the fourth quarter. These factors, combined with an average decrease in crude oil prices of approximately 10% during the F-29 TENGASCO, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ================================================================================ quarter and decreases in production resulted in additional operating losses of approximately $1,192,000 during this period in comparison to previous quarterly reporting periods of the Company. 15. SUPPLEMENTAL OIL AND Information with respect to the GAS INFORMATION Company's oil and gas producing activities is presented in the following tables. Estimates of reserve quantities, as well as future production and discounted cash flows before income taxes, were determined by Ryder Scott Engineering as of December 31, 2000 and by Coburn Petroleum Engineering and Columbia Engineering, independent petroleum engineers, as of December 31, 1999. OIL AND GAS RELATED COSTS The following table sets forth information concerning costs related to the Company's oil and gas property acquisition, exploration and development activities in the United States during the years ended December 31, 2000 and 1999:
2000 1999 ----------------------------------------------------------------------- Property acquisition Proved $ - $ 13,921 Unproved 5,702 17,265 Less - proceeds from sales of properties (1,176,411) (625,000) Development costs 2,430,702 1,110,288 ----------------------------------------------------------------------- $ 1,259,993 $ 516,474 =======================================================================
RESULTS OF OPERATIONS FROM OIL AND GAS PRODUCING ACTIVITIES The following table sets forth the Company's results of operations from oil and gas producing activities for the years ended:
December 31, 2000 1999 --------------------------------------------------------------------- Revenues $ 5,241,076 $ 3,017,252 Production costs and taxes (2,614,414) (2,564,932) Depreciation, depletion and amortization (197,000) (92,000) --------------------------------------------------------------------- Income from oil and gas producing activities $ 2,429,662 $ 360,320 =====================================================================
F-30 TENGASCO, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ================================================================================ In the presentation above, no deduction has been made for indirect costs such as corporate overhead or interest expense. No income taxes are reflected above due to the Company's tax loss carryforwards. OIL AND GAS RESERVES (UNAUDITED) The following table sets forth the Company's net proved oil and gas reserves at December 31, 2000 and 1999 and the changes in net proved oil and gas reserves for the years then ended. Proved reserves represent the estimated quantities of crude oil and natural gas which geological and engineering data demonstrate with reasonable certainty to be recoverable in the future years from known reservoirs under existing economic and operating conditions. The reserve information indicated below requires substantial judgment on the part of the reserve engineers, resulting in estimates which are not subject to precise determination. Accordingly, it is expected that the estimates of reserves will change as future production and development information becomes available and that revisions in these estimates could be significant. Reserves are measured in barrels (bbls) in the case of oil, and units of one thousand cubic feet (MCF) in the case of gas.
OIL (BBLS) GAS (MCF) ----------------------------------------------------------------------------- Proved reserves Balance, December 31, 1998 1,624,622 46,176,025 Discoveries and extensions 1,295,685 13,566,161 Revisions of previous estimates 444,893 15,268,361 Production (137,997) (215,260) ----------------------------------------------------------------------------- Balance, December 31, 1999 3,227,203 74,795,287 Discoveries and extensions 56,103 1,059,147 Revisions of previous estimates (1,309,366) (27,998,986) Production (159,035) (315,577) ----------------------------------------------------------------------------- Balance, December 31, 2000 1,814,905 47,539,871 ============================================================================= Proved developed producing reserves at, December 31, 2000 1,553,759 2,888,769 ============================================================================= Proved developed producing reserves at, December 31, 1999 1,688,073 3,248,552 =============================================================================
F-31 TENGASCO, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ================================================================================ Of the Company's total proved reserves as of December 31, 2000 and 1999, approximately 21% and 13%, respectively, were classified as proved developed producing, 34% and 35%, respectively, were classified as proved developed non-producing and 45% and 52%, respectively, were classified as proved undeveloped. All of the Company's reserves are located in the continental United States. The reserves analysis performed by Ryder Scott Company for the Swan Creek field resulted in a decrease in the stated dollar value of the reserves of that field from the reserve analysis previously performed for the Company by Coburn Engineering of Tulsa, Oklahoma. This decrease in the stated dollar value of the reserve analysis was due to the fact that Ryder Scott utilized more conservative assumptions in its analysis in three primary respects. First, Ryder Scott assumed that the gas wells in the Swan Creek field would drain a smaller area per well based on the permeability of the structure. Second, Ryder Scott assumed that due to the complicated geology of the structure, certain oil zones in Swan Creek field may not be in communication with producing oil zones, and therefore did not classify those zones as proven undeveloped reserves for valuation purposes at this time. Finally, economic projections by Ryder Scott of production rates used in the valuation process of the reserves were more conservative than those utilized by Coburn Engineering. The Company recognizes that varying levels of assumptions can be made in rendering an analysis of reserves and believes that the more conservative assumptions utilized by Ryder Scott are within the parameters customarily utilized in the analysis of reserves by companies performing reserve analysis. The Company also notes that Ryder Scott Company is well known in the oil and gas industry and by financial institutions throughout the United States and enjoys a reputation of being one of the preeminent firms engaged in performance of reserve analysis. F-32 TENGASCO, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ================================================================================ STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS (UNAUDITED) The standardized measure of discounted future net cash flows from the Company's proved oil and gas reserves is presented in the following table:
AMOUNTS IN THOUSANDS December 31, 2000 1999 ---------------------------------------------------------------------------- Future cash inflows $ 505,733 $252,270 Future production costs and taxes (41,689) (30,598) Future development costs (8,225) (5,634) Future income tax expenses (122,881) (55,090) ---------------------------------------------------------------------------- Net future cash flows 332,938 160,948 Discount at 10% for timing of cash flows (97,195) (60,066) ---------------------------------------------------------------------------- Discounted future net cash flows from proved reserves $ 235,743 $100,882 ============================================================================
The following table sets forth the changes in the standardized measure of discounted future net cash flows from proved reserves during 2000 and 1999:
AMOUNTS IN THOUSANDS 2000 1999 ---------------------------------------------------------------------------- BALANCE, beginning of year $ 100,882 $ 42,976 Sales, net of production costs and taxes (2,627) (452) Discoveries and extensions 1,778 27,394 Changes in prices and production costs 360,082 27,919 Revisions of quantity estimates (186,289) 21,799 Development costs incurred 1,236 1,076 Interest factor - accretion of discount 13,355 5,329 Net change in income taxes (53,572) (22,869) Changes in future development costs (3,237) 556 Changes in production rates and other 4,135 (2,846) ---------------------------------------------------------------------------- BALANCE, end of year $ 235,743 $100,882 ============================================================================
F-33 TENGASCO, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ================================================================================ Estimated future net cash flows represent an estimate of future net revenues from the production of proved reserves using current sales prices, along with estimates of the operating costs, production taxes and future development and abandonment costs (less salvage value) necessary to produce such reserves. The average prices used at December 31, 2000 and 1999 were $25.62 and $23.01 per barrel of oil and $9.66 and $2.38 per mcf of gas, respectively. No deduction has been made for depreciation, depletion or any indirect costs such as general corporate overhead or interest expense. Operating costs and production taxes are estimated based on current costs with respect to producing gas properties. Future development costs are based on the best estimate of such costs assuming current economic and operating conditions. Income tax expense is computed based on applying the appropriate statutory tax rate to the excess of future cash inflows less future production and development costs over the current tax basis of the properties involved, less applicable carryforwards, for both regular and alternative minimum tax. The future net revenue information assumes no escalation of costs or prices, except for gas sales made under terms of contracts which include fixed and determinable escalation. Future costs and prices could significantly vary from current amounts and, accordingly, revisions in the future could be significant. F-34 EX-10.19 2 c20582_ex10-19.txt MEMORANDUM OF AGREEMENT Between Tengasco, Inc. and The University of Tennessee Concerning Cooperation on Matters Pertaining to the Use of Seismic Equipment PURPOSE The purpose of this Agreement is to identify the roles and responsibilities of Tengasco, Inc. (Tengasco), a publicly held company with headquarters in Knoxville, Tennessee, and The University of Tennessee in certain matters related to cooperative use and maintenance of seismic equipment, and to specify a cost-effective means of cooperation to enhance the effectiveness of each party in carrying out its mission. BACKGROUND The Department of Geological Sciences at The University of Tennessee possesses certain instruments, vehicles, and equipment that comprise a vibroseis system for producing tomographic images of subsurface geologic structures. The vibroseis system can be used for educational and research purposes that are beneficial to the University as an institution of research and higher learning. Tengasco is in the business of exploring for and producing oil and natural gas, and supplies natural gas to certain municipalities and businesses, in Tennessee. Tengasco uses vibroseis imaging in the course of their business operations. Central to a vibroseis system is the servo-hydraulic vibrator, a truck-mounted, hydraulically operated engine capable of applying approximately 14 tons of force to the surface of the earth for the purpose of generating seismic waves. The vibrator requires specially trained operators and routine, expert maintenance. The University possesses one model Y-1100A vibrator manufactured by the George E. Failing Company. Tengasco owns two Y-1100A vibrators. The cost operating and maintaining a vibroseis system at The University for educational and research purposes exceeds the resources available at the institution. For this reason, the vibroseis system owned by the University remained unused since about 1994. The condition of the vehicles and other vibroseis equipment deteriorates due to inactivity and lack of routine maintenance. GENERAL AGREEMENT The parties agree on the following points: COOPERATION. The University of Tennessee and Tengasco agree to cooperate in the maintenance and operation of their vibroseis systems. EQUIPMENT. The Equipment covered by this Agreement includes the servo-hydraulic vibrators, together with the electronic controls, radios, geophones, cables, seismographs, and vehicles used to produce seismic data at remote field locations. Not included under this Agreement are computers or other data processing equipment permanently installed in laboratories at The University of Tennessee. Also not included is equipment installed as part of the regional seismic network used for monitoring earthquakes in East Tennessee and surrounding areas. OWNERSHIP. The Equipment currently in possession of the University shall at all times remain the property of The University of Tennessee. The Equipment owned by Tengasco shall remain the sole property of Tengasco. USE. Tengasco shall have the right to use the Equipment as it deems appropriate for its business objectives. The University of Tennessee shall have the right to use the Equipment for educational and research projects. When Tengasco uses the Equipment, the persons permitted to operate the equipment will include employees, contractors, and agents of Tengasco. When the University uses the Equipment, the persons permitted to operate the Equipment will include faculty, staff, and students at the University. COSTS. The University and Tengasco understand that use of the Equipment entails costs to the owner for routine maintenance and operation. Tengasco agrees to reimburse The University for all regular and routine maintenance on the Equipment subject to this Agreement, as required to keep the Equipment in good operating condition. Tengasco further agrees to reimburse The University for costs of operation when Tengasco employees, contractors, or agents use the Equipment. Tengasco further agrees to an additional reimbursement to The University for indirect costs at the rate of 15% over and above the direct costs. INDEMNIFY AND HOLD HARMLESS. Tengasco agrees to indemnify The University of Tennessee from and against any claims or judgments for damage to any person or property arising out of the operation or maintenance of any Equipment subject to this Agreement when operated by employees, contractors, or agents of Tengasco. Tengasco agrees that its obligation to indemnify shall be supported by liability insurance, naming The University of Tennessee as an additional insured, obtained and maintained in force by Tengasco at its sole cost and expense. NOT EXCLUSIVE. The parties understand and agree that this Agreement is not exclusive. Other companies may enter into similar agreements to share equipment, scientific expertise, or other resources with The University of Tennessee. Tengasco understands and acknowledges that the University has an obligation to cooperate with other agencies of the State or Federal government, and with other companies even if such companies may be in competition with Tengasco in the business of oil and gas exploration. Other parties who may enter into agreements with The University should interpret nothing in this Agreement to allow access to Tengasco data or Equipment. 2 PROVISION OF SEISMIC INFORMATION AND DATA The University of Tennessee recognizes that the information gathered by use of the Equipment subject to this Agreement and the processed results of that information is or may be of a sensitive and proprietary nature to the exploration business of Tengasco. The University of Tennessee agrees that any information obtained by Tengasco through use of the Equipment and the processed results of that information shall be held confidential and not disclosed to any third party for a period of one year from the date any such information is recorded by use of the Equipment, unless required to be disclosed by the Tennessee Public Records Act, Tenn. Code Ann. ss. 10-7-503. Tengasco agrees that use of this information by The University of Tennessee, its professors, students or agents is not subject to this confidentiality requirement; provided, however, that no publication of any study or research based in whole or in part on information acquired by Tengasco through use of the Equipment shall be made during the same one year period unless express written permission is granted by Tengasco. IMPLEMENTING ARRANGEMENTS The parties agree to respect and observe the roles and responsibilities set forth in this Agreement. The Associate Vice President for Research for The University of Tennessee and the Chief Executive Officer for Tengasco are the responsible executives for implementing this Agreement. If a disagreement arises on the implementation requirements for this Agreement, the issue will be submitted to the responsible executives to this Agreement for adjudication. In order to carry out the Agreement, separate arrangements will be executed between The University and Tengasco. Those separate arrangements will provide for, among other things, the statement of work and budget, confidentiality and nondisclosure agreement, and will reference this Agreement. Either party may terminate this agreement by providing written notice to the other twelve months in advance of the effective date of termination. For The University of Tennessee For Tengasco, Inc. /s/ Kenneth R. Walker /s/ M. E. Ratliff - --------------------- ----------------- Kenneth R. Walker M. E. Ratliff Associate Vice President for Research Chief Executive Officer Date: 13 Feb. 01 Date: -------------------------------- --------------------------- 3 EX-10.20 3 c20582_ex10-20.txt NATURAL GAS SALES AGREEMENT --------------------------- THIS AGREEMENT is made and entered into this the 30th day of March, ("Contract Date") by and between BAE SYSTEMS ORDNANCE SYSTEMS INC. ("Buyer"), and TENGASCO, INC. ("Seller"). W I T N E S S E T H: -------------------- WHEREAS, Seller has substantial natural gas reserves in Hawkins, Hancock, Claiborne, and surrounding counties in Tennessee, and Tengasco Pipeline Corporation, a wholly owned subsidiary of Tengasco, Inc. desires to construct a pipeline to deliver such natural gas to customers that will purchase natural gas for customer's use, and for other purposes; and WHEREAS, Seller has developed natural gas reserves and plans to produce Natural Gas from its properties in Hawkins, Hancock, Claiborne, and surrounding Counties in Tennessee and transport that Natural Gas through facilities to be constructed and owned by Tengasco Pipeline Corporation; and, WHEREAS, Buyer requires natural gas for its plant facilities ("Plant") located in Kingsport, Sullivan County, Tennessee; and WHEREAS, Seller desires to sell and Buyer desires to purchase Natural Gas; NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth, Buyer and Seller agree as follows: ARTICLE 1 QUANTITY -------- 1.1 VOLUME. Subject to the other provisions of this Agreement, each Day Seller shall make available a Maximum Volume of Natural Gas. Seller is not obligated to provide more than the Maximum Volume available on any Day. "Maximum Volume" will be 5,000 MMBtu's per day. Buyer agrees to purchase a Minimum Volume of gas per day. "Minimum Volume" means with respect to any Day, the lesser of i) 5,000 MMBtu's or ii) Buyer's actual requirements on such Day. Buyer and Seller agree that the Minimum Volume and Maximum Volume to be delivered under this Agreement are subject to availability of Seller's Natural Gas after sales are made by Seller to Eastman Chemical Company at the maximum volume stated in the existing contract with Eastman Chemical Company at the date of this Agreement, which is 15,000 MMBtu's per day. Buyer and Seller further agree, subject to the preceding sentence, that the Maximum Volume of gas shall be delivered under this Agreement prior to the delivery by Seller of all other volumes, if any, that may be contracted for sale by Seller to any customer other than Eastman Chemical Company at any time during the term of this agreement. 1.2 Buyer does not have the ability to predict its exact total Natural Gas fuel purchase requirement on a daily basis, and, as a result, may fail to purchase the Minimum Volume on a given Day; provided, however, Buyer shall make a reasonable effort to purchase and receive the Minimum Volume on each Day. 1.3 Seller's reserves in Hancock, Hawkins, Claiborne, and surrounding Counties are being developed by Seller and Seller's capability to produce additional volumes may increase over time. Buyer may from time to time, consider additional projects at its Plant that would utilize Natural Gas. Should Buyer's need for Natural Gas from Seller be greater than the Maximum Volume and if Seller has additional Natural Gas available from its Tennessee property, Buyer and Seller may agree to increase the Maximum Volume in accordance with Buyer's increased needs. ARTICLE II PRICE ----- 2.1 For the purpose of calculating the delivered price to be paid in any Month pursuant to Section 2.2 of this Article, "Index Price" means the price per MMBtu published in McGraw-Hill's INSIDE F.E.R.C'S GAS MARKET REPORT ("INSIDE FERC"), equal to the Henry Hub price index as shown in the table labeled "Market Center Spot Gas Prices. The published price used to determine the Index Price for Natural Gas purchased in any Month is the first published price for deliveries in that Month. 2.2 If the Index Price is not published for any Month, then the parties shall negotiate, in good faith, in an attempt to agree to a substitute index which most closely approximates the Index Price in order to calculate the price under Section 2.3 for that Month and any succeeding Month in which the Index Price is not published. If the parties fail to agree upon a substitute index on or before the date payment is due for the first Month for which the Index Price is not published, the parties shall determine a substitute index by arbitration. The arbitration shall be by a single impartial arbitrator in accordance with the Federal Arbitration Act and the Commercial Arbitration Rules of the American Arbitration Association to the extent not in conflict with such Act. The arbitrator shall be selected by the American Arbitration Association if the parties are unable to agree on an arbitrator. If the parties fail to agree upon substitute index on or before the date payment is due for any Month for which the Index Price is not published and a substitute index has not been established by arbitration, then Buyer shall pay Seller for all Natural Gas purchased in that Month the price per MMBtu in effect or paid subject to adjustment during the immediately preceding Month subject to adjustment as 2 hereinafter provided. Once the substitute index is determined by arbitration, adjustment shall be made in the prices previously paid for any Month, for which the Index Price was not published, to implement the substitute index. 2.3 Subject to Section 2.2 and 2.5, Buyer shall pay Seller the Index Price plus $0.05 per MMBtu for all Natural Gas delivered by Seller under this Agreement. 2.4 Either party may propose that new pricing provisions become effective ("Proposal Effective Date") on the commencement of the sixth (6th) Contract Year (or the commencement of any succeeding Contract Year) by giving written notice to the other party at least twelve (12) Months prior to the Proposal Effective Date. If either party proposes a new pricing methodology in the manner provided above but the parties do not agree in writing on a new pricing methodology at least seven (7) Months before the Proposal Effective Date, the existing pricing methodology will continue in effect but either party may terminate this Agreement effective on the Proposal Effective Date by giving the other party written notice of termination at least (6) Months prior to the Proposal Effective Date. If either party proposes a new pricing methodology in the manner provided above, and the parties agree in writing on a new pricing methodology by the Proposal Effective Date, that pricing methodology is effective on the Proposal Effective Date and continues in effect until a new price becomes effective under this Agreement. 2.5 If Buyer has a competitive offer for similar volumes under similar terms and conditions as hereunder, but at a better price, Buyer may notify Seller of the competitive offer ("Market Price Notice"). If Buyer gives a Market Price Notice in accordance with its rights under the foregoing provisions of this Section, Seller will provide written notice that it either agrees to meet such competitive offer or to release Buyer from its purchase obligations herein. 2.6 Should Seller offer to sell Natural Gas to another Buyer for similar volumes under similar terms and conditions as hereunder but at a price lower than the price determined by 2.3, 2.4 or 2.5, Seller shall immediately extend such lower price to Buyer. ARTICLE III DELIVERY POINT -------------- 3.1 Seller shall deliver all Natural Gas quantities at the inlet side of Buyer's meter station located at Buyer's Plant site as specified by Buyer, so long as such site location does not unduly burden Seller, near Kingsport, Tennessee ("Delivery Point"). Title shall transfer to Buyer at such Delivery Point. 3.2 Buyer shall, at Buyer's sole cost and expense, install at the Delivery Point all necessary meters, valves, fittings, controllers, pressure control valve, knock-out 3 tanks, and telemetry as required to effect and monitor deliveries hereunder. In addition, to provide Buyer with requested signals and real-time delivery quantity parameters, certain check metering and electronic monitoring abilities shall also be installed by Buyer at Buyer's expense. Buyer shall provide any necessary surface site, easement and rights of ingress and egress that may be required for the installation and operation of such measurement and regulation station, as well as any and all necessary electrical power, connections and junction boxes at a mutually agreeable location within such site. Seller shall have the right to review and approve the station design and site preparation scope, specifications and all construction drawings prior to initiation of any work hereunder. ARTICLE IV TERM ---- 4.1 Unless terminated earlier in accordance with one of the other provisions of this Agreement, this Agreement shall become effective on the earlier of the 30th day of March, 2001 or the date the physical pipeline facilities and metering facilities are constructed and installed by Seller and Buyer, and commences and continues in effect for twenty (20) consecutive Contract Years ("Primary Term"). This Agreement is automatically extended for successive terms of one (1) Contract Year each unless and until it is terminated by either party at the end of the Primary Term or then end of any successive Contract Year by giving written notice at least twelve (12) Months prior to such termination. ARTICLE V NOTICES ------- 5.1 Any notice, request, demand, or statement provided for in this Agreement must be in writing and is deemed given when actually delivered to a party at the address indicated below for such party or, if mailed, it is deemed given three (3) business Days after it is mailed by first class mail, postage paid, to a party at the address indicated below for such party or, if sent by facsimile transmission, when receipt of a legible facsimile is confirmed by such party. 4 - -------------------------------------------------------------------------------- BUYER: SELLER: ------ ------- - -------------------------------------------------------------------------------- ALL NOTICES NOTICES AND NOMINATIONS ----------- ----------------------- - -------------------------------------------------------------------------------- BAE SYSTEMS ORDNANCE SYSTEMS INC. Tengasco Inc. - -------------------------------------------------------------------------------- Holston Army Ammunition Plant Medical Arts Bldg. 4509 West Stone Drive 603 Main Ave., Suite 500 - -------------------------------------------------------------------------------- Kingsport, Tennessee 37660 Knoxville, Tennessee 37902 - -------------------------------------------------------------------------------- Attention: Gary W. Taylor Attention: Harold G. Morris - -------------------------------------------------------------------------------- Facsimile: 423-247-2261 Facsimile: (423) 523-9894 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- For confirmation of facsimile receipt: For confirmation of facsimile receipt: - -------------------------------------------------------------------------------- (423) 578-6508 (423) 523-1124 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- STATEMENT AND PAYMENTS: STATEMENT AND PAYMENTS: ----------------------- ----------------------- - -------------------------------------------------------------------------------- BAE Systems Ordnance Systems Inc. Tengasco, Inc. - -------------------------------------------------------------------------------- Holston Army Ammunition Plant Medical Arts Bldg. 4509 West Stone Drive - -------------------------------------------------------------------------------- Kingsport, Tennessee 37660 603 Main Ave., Suite 500 - -------------------------------------------------------------------------------- Attention: Accounts Payable Knoxville, Tennessee 37902 - -------------------------------------------------------------------------------- Either party may, from time to time, designate a new address as its address for such purposes by registered or certified letter or facsimile transmission addressed to the other party. ARTICLE VI FAILURE TO DELIVER ------------------ 6.1 If Seller fails to fulfill its delivery quota, both on time and as to quality or quantity, ("Seller's Deficiency") of Natural Gas that it is obligated to make available under this Agreement, and such failure is not excused by this Agreement or law, Buyer may, as its sole and exclusive remedy, except for remedies under 4.3 of the General Conditions, cover Seller's Deficiency and recover from Seller (a) any positive remainder of i) the costs that Buyer actually and reasonably incurred to purchase Seller's Deficiency from a third party less ii) the costs that Buyer would have paid for Seller's Deficiency if delivered hereunder, plus (b) any reasonable and necessary attorney's fees and court costs, incurred by Buyer in order to recover such damages from Seller. However, in no event may Buyer recover a total amount in excess of $0.40 for each MMBtu of Seller's Deficiency. 5 ARTICLE VII GENERAL TERMS AND CONDITIONS ---------------------------- 7.1 All the General Terms and Conditions attached as Appendix A hereto are incorporated by this reference and made a part of this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement. BUYER: ATTEST: BAE SYSTEMS ORDNANCE SYSTEMS INC. By: Gary Taylor By: Anthony B. Hewitt ------------------------------ ---------------------------------- Title: Commercial Development Director ---------------------------------- SELLER: ATTEST: TENGASCO, INC. By: Linda Parton By: Robert Carter ------------------------------ ---------------------------------- Title: President ---------------------------------- 6 APPENDIX A GENERAL TERMS AND CONDITIONS Attached hereto and made a part of, by mutual agreement of the parties, that certain Natural Gas Sales Agreement ("Agreement") dated March 30, 2001 between TENGASCO, INC. ("Seller") and BAE SYSTEMS ORDNANCE SYSTEMS INC. ("Buyer"). ARTICLE A-1 DEFINITIONS ----------- Except in those certain instances where the context requires another meaning, the following terms when used in this Agreement shall have the following meanings: 1.1 "NATURAL GAS" MEANS natural gas produced from natural gas wells and natural gas produced in association with oil (casinghead gas) and/or the residue natural gas resulting from processing both casinghead gas and Natural Gas-well gas. Natural Gas shall mean only such Natural Gas as is being or may be produced from wells of Seller in Hawkins, Hancock, Claiborne and surrounding counties, Tennessee. 1.2 "DAY" means the period of twenty-four (24) consecutive hours beginning at 7:00 a.m. Eastern Standard or Daylight Time on any calendar Day and ending at 7:00 a.m. Eastern Standard Time on the calendar Day immediately following. 1.3 "MONTH" means a period beginning at 7:00 a.m. Eastern Standard or Daylight Time on the first Day of a calendar Month and ending at 7:00 a.m. Eastern Standard or Daylight Time on the first Day of the calendar Month immediately following, except that the first Month shall begin on the date of initial deliveries of Natural Gas hereunder and shall end at 7:00 a.m. Eastern Standard or Daylight Time on the first Day of the calendar Month immediately following. 1.4 "CONTRACT YEAR" means a period of (12) consecutive calendar Months beginning on the Contract Date, PROVIDED that upon termination of this Agreement, the Contract Year then in progress shall end. 1.5 "PSIA" means pounds per square inch absolute. 1.6 "PSIG" means pounds per square inch gauge. 1.7 "MCF" means one thousand (1000) cubic feet at a pressure of fourteen and sixty-five hundredths (14.65) psia and at a temperature of sixty degrees (60) Fahrenheit. 1.8 "BTU" means a British thermal unit. 7 1.9 "MMBTU" means one million (1,000,000) Btu. 1.10 "HEATING VALUE" means the gross number of British Thermal Units which would be contained in the volume of one (1) cubic foot of Natural Gas at a temperature of sixty degrees (60) Fahrenheit, when saturated with water vapor and under a pressure of fourteen and sixty-five hundredths (14.65) pounds per square inch absolute and adjusted to reflect the actual water vapor content of the Natural Gas delivered provided, however, if the water vapor content is seven (7) pounds per million cubic feet or less, the Natural Gas shall be deemed dry. 1.11 "SELLER'S TRANSPORTER" means, with respect to any Delivery Point, any entity other than Seller that delivers the Natural Gas sold hereunder for Seller at such Delivery Point. 1.12 "BUYER'S TRANSPORTER" means, with respect to any Delivery Point, any entity other than Buyer that receives the Natural Gas delivered hereunder for Buyer at said Delivery Point. 1.13 "METER OPERATOR" means Seller or Seller's Transporter and Seller shall perform or cause Seller's Transporter to perform in any duties ascribed to the "Meter Operator". ARTICLE A-II MEASUREMENT AND TESTS --------------------- 2.1 The Meter Operator shall measure the quantities delivered. The measuring equipment shall be constructed, installed and operated as follows: 2.1.1 Orifice Meters - in accordance with ANSI/API 2530, American Gas Association Report No. 3, and any subsequent amendments, revisions or modifications thereof. 2.1.2 Positive Meters - in accordance with American Gas Association Measurement Committee Report No. 6, and any subsequent amendments, revisions or modifications thereof. 2.1.3 Turbine Meters - in accordance with American Gas Association Measurement Committee Report No. 7, and any subsequent amendments, revisions or modifications thereof. 2.1.4 Electronic Transducers and Flow Computers - in accordance with the applicable American Gas Association Standards including, but not limited to American Gas Association Measurement Committee Report Nos. 3, 5, 6 and 7, and any subsequent amendments, revisions or modifications thereof. 8 2.2 The unit of volume for purposes of measurement shall be one (1) cubic foot of Natural Gas at a temperature base of sixty degrees (60(degree)) Fahrenheit and at a pressure base of fourteen and sixty-five hundredths (14.65) psia. 2.3 The Meter Operator shall use the arithmetical average of the temperatures recorded during each Day, the factor for specific gravity determined by a recording gravitometer or chromatographic device installed and located at a suitable point to record representative specific gravity of the Natural Gas being metered, and adjustments to measured Natural Gas volumes for the effects of supercompressibility, made in accordance with accepted American Gas Association standards, to make computations of quantity delivered under this Agreement. Seller shall obtain appropriate carbon dioxide and nitrogen mole fraction values for the Natural Gas delivered as may be required to compute such supercompressibility adjustments in accordance with standard testing procedures. 2.4 The Meter Operator shall determine temperature by a recording thermometer continuously used and installed so as to record properly the temperature of the Natural Gas flowing through the meter. 2.5 The Meter Operator shall determine specific gravity with accuracy to the nearest one-thousandth by taking samples of the Natural Gas at the point of measurement at such times as may be determined to be necessary in practice by the use of chromatographic analysis or other methods commonly used and accepted in the industry. 2.6 The assumed atmospheric (barometric) pressure for the Delivery Point is 14.5 PSIA. 2.7 The Meter Operator shall calculate the deviation of the Natural Gas from Ideal Gas Laws, at the pressures, temperatures and specific gravity under which said Natural Gas is delivered to Buyer, shall be calculated in accordance with API 2530. 2.8 The Meter Operator shall determine the Heating Value of the Natural Gas at the Delivery Point(s) by using a Cutler-Hammer or other standard type calorimeter or by calculating the heating value from an online chromatograph or a Natural Gas analysis of a continuous Natural Gas sample. A Party to this Agreement that is not the Meter Operator may, at such time or times as it may desire, determine the Heating Value of the Natural Gas using an industry accepted method. In the event of any material variance between such test by Meter Operator and the last or next succeeding test made by the non-operating party, a joint test, the cost of which shall be shared equally by both parties, will be run employing the method utilized by the Meter Operator, and the result thereof will be controlling, effective the first day of the calendar Month preceding such joint test. The Btu content of any volume of Natural Gas shall be determined for all purposes, including payment, under this Agreement by multiplying the Heating Value of the Natural Gas as determined by the last test in accordance with this 9 Section 2.8 by the number of cubic feet contained in such volume, as determined in accordance with Sections 2.2 and 2.3. 2.9 Except as provided in Section 2.8, the Meter Operator shall test the quality of the Natural Gas delivered hereunder by approved standard methods from time to time as requested by any party hereto. 2.10 The Meter Operator shall install, and maintain, at its expense, measuring equipment, housing devices, and materials of standard manufacture. Any party that is not the Meter Operator at a Delivery Point may install and operate check-measuring equipment that does not interfere with the use of meter Operator's equipment. The Meter Operator shall maintain, operate and furnish, at its expense, testing equipment of standard manufacture. 2.11 The Meter Operator shall test the accuracy of its measuring and testing equipment at necessary intervals, and at least approximately every thirty (30) Days. The Meter Operator shall give notice of the time and nature of each test to the other party sufficiently in advance to permit the other party to have a representative present. The Meter Operator shall test measuring and testing equipment by reasonable means and methods in the presence of representatives of both Seller and Buyer, if present. If the non-operating party fails to have a representative present after proper notice, the Meter Operator shall provide the results of such tests of equipment and/or Natural Gas quality to the non-operating party but the results of such tests shall nevertheless be considered accurate until the next test. All tests shall be made at the Meter Operator's expense, except that the non-operating party shall bear the expense of tests made at its request if the inaccuracy found is one percent (1%) or less. 2.12 If at any time any of the measuring or testing equipment is found to be out of service, or registering inaccurately in any percentage, the Meter Operator shall adjust it at once to read accurately within the limits prescribed by the manufacturer. If such equipment is out of service, or inaccurate by an amount exceeding one percent (1%) at a reading corresponding to the average rate of flow for the period since the last preceding test, the previous reading of such equipment is disregarded for any period definitely known or agreed upon, or if not so known or agreed upon, for a period of sixteen (16) Days or one-half (1/2) of the elapsed time since the last test, whichever is shorter. The quantity of Natural Gas delivered during such period shall be estimated by: a) Using the data recorded by any check-measuring equipment if installed and accurately registering; or b) if not installed or registering accurately, by correcting the error if the percentage of error is ascertainable by calibration, test or mathematical calculation; or 10 c) If neither such method is feasible, by estimating the quantity, or quality, delivered based upon deliveries under similar conditions during a period when the equipment was registering accurately. No corrections shall be made for recorded inaccuracies of one percent (1%) or less. 2.13 Each party has the right to inspect equipment installed or furnished by the other, and the charts and other measurement or testing data of the other, at all times during business hours, but the reading, calibration and adjustment of such equipment and changing of charts shall be done only by the party furnishing such equipment. Each party shall preserve all original test data, charts and other similar records in such party's possession for a period of at least two (2) years. ARTICLE A-III DELIVERY PRESSURE ----------------- 3.1 Seller shall deliver the Natural Gas to Buyer at a pressure sufficient to effect delivery into the facilities of Buyer, up to five hundred (500) psig, with a minimum pressure of two hundred (200) psig, controlled to plus or minus 10 psig of that pressure. Buyer will take the Natural Gas at the pressure of delivery and thereafter regulate and control such pressure as may be required for its own usage. ARTICLE A-IV QUALITY ------- 4.1 Seller shall cause the Natural Gas quantities to be delivered to Buyer under this Agreement at the Delivery Point to be free of gum, gum-forming constituents, and other liquid or solid matter that may become separated from the Natural Gas during transportation, and to conform to the following specifications: - -------------------------------------------------------------------------------- a) Dust, rust and other solids None - -------------------------------------------------------------------------------- b) Carbon Dioxide Not more than 2.0% by volume - -------------------------------------------------------------------------------- c) Oxygen Not more than 0.5% by volume - -------------------------------------------------------------------------------- d) Hydrogen Sulfide Not more than 0.25 grains per 100 cubic feet - -------------------------------------------------------------------------------- e) Total Sulfur Not more than 2.0 grains per 100 cubic feet - -------------------------------------------------------------------------------- f) Free Water None - -------------------------------------------------------------------------------- g) Heating Value Not less than 970 Btu per cubic foot and less than one (1) percent variation within any 30 minute period - -------------------------------------------------------------------------------- h) Temperature Not less than 40 F nor more than 120 F. - -------------------------------------------------------------------------------- i) Water Vapor Not more than 7 lbs. Per million cubic feet - -------------------------------------------------------------------------------- j) Nitrogen Not more than 5% by volume, and to be reduced as provided in Section 4.2 below - -------------------------------------------------------------------------------- k) Isopentane and heavier Not more than 4/10 of 1 gallon per Mcf - -------------------------------------------------------------------------------- 11 - -------------------------------------------------------------------------------- Hydrocarbon - -------------------------------------------------------------------------------- l) Total Nonhydrocarbons Not more than 5% by volume (Nonhydrocarbons shall include, but not be limited to, hydrogen sulfide, sulfur, carbon dioxide, oxygen, and nitrogen) - -------------------------------------------------------------------------------- In the event Seller is unable to meet these quality specifications, Seller shall notify Buyer and if Buyer refuses to accept such off quality Natural Gas, Seller shall immediately stop delivery of off quality Natural Gas into the pipeline, and take whatever steps are necessary to resume delivery of Natural Gas meeting these quality specifications. 4.2 [omitted] 4.3 If any Natural Gas tendered under this Agreement fails to meet the applicable quality specifications as provided above in Sections 4.1, Buyer may refuse to accept such Natural Gas. If Buyer refuses any such Natural Gas because it fails to meet the applicable quality specifications set forth in Sections 4.1, Buyer must give Seller written notice ("Quality Notice") within five (5) Days of such refusal of the particular specifications that Seller or Seller's Transporter has failed to meet. If Seller or Seller's Transporter fails to correct the cause of any failure to meet the applicable quality specifications within the thirty (30) Days ("Correction Period") immediately following Seller's receipt of any Quality Notice, and such failure is not excused by law or the provisions of the Agreement, Buyer may by additional notice immediately suspend purchase of any volume of Natural Gas hereunder for an additional period not less than 90 days ("Suspension Period") during which time Seller may continue to correct the cause of any failure to meet the applicable quality specifications. If the correction is not made by the end of the Suspension Period, Buyer may terminate this Agreement, at any time in the thirty (30) Days immediately following the end of the Suspension Period, upon written notice to Seller. 4.4 If any Natural Gas tendered under this Agreement fails to meet applicable quality specifications as provided above in Sections 4.1 on five separate occasions within any six (6) month period, Buyer may, upon thirty (30) days written notice, terminate this Agreement. ARTICLE A-V PAYMENTS -------- 5.1 After delivery of Natural Gas has commenced, Seller shall, on or before the twentieth (20th) Day of each Month, ("Invoice Month"), render to Buyer a statement showing the quantity of Natural Gas sold at the Delivery Point in the immediately preceding Month ("Production Month") and the amount owed Seller. Buyer shall provide or cause to be provided any information that may be necessary in order to permit Seller to render statements in accordance with this Section 5.1. Buyer shall pay Seller on or before the 15th Day of each Month following the Invoice Month, for all Natural Gas 12 delivered hereunder during the preceding Production Month, PROVIDED, if presentation of said statement is delayed after the twentieth (20th) of the Month, then the time for payment shall be extended until (25) Days after receipt of such statement by Buyer. Should Buyer question, in good faith, any portion of Seller's statement, then Buyer may withhold payment, if applicable, for the amount in question if Buyer gives Seller written notice of the reason it questions that amount on or before the date it would otherwise be due. Buyer shall, however, make timely payment of the portion of the invoice amount not in question. The parties agree to meet, if necessary, to resolve any questions and, upon resolution, any additional amounts owned by Buyer to Seller shall be promptly paid. 5.2 Each party is entitled, at any and all reasonable times, to examine the books and records of the other, to the extent necessary to verify the accuracy of any statement, charge, computation or demand made under this Agreement. ARTICLE A-VI TAXES ----- 6.1 Seller shall pay or cause to be paid the royalties and taxes lawfully levied on Seller, and applicable to the Natural Gas produced, transported and delivered hereunder prior to its delivery to Buyer or Buyer's designee. Buyer shall pay all taxes lawfully levied on Buyer applicable to such Natural Gas after delivery to Buyer or Buyer's designee. Each Party shall indemnify, defend and hold harmless the other Party for any Claims for Taxes for which such Party is responsible hereunder. Upon request, a Party shall provide a certificate of exemption or other evidence of exemption from any Tax and each Party agrees to cooperate with the other in obtaining an exemption and minimizing Taxes payable in respect of all Transactions. ARTICLE A-VII WARRANTIES, LIABILITIES AND REMEDIES ------------------------------------ 7.1 Seller warrants title to all Natural Gas delivered by it, that it has the right to sell the same, and that such Natural Gas is free from valid liens and valid adverse claims of every kind. 7.2 Title to the Natural Gas sold and delivered hereunder shall pass to Buyer at the Delivery Point. As between the parties hereto, Seller shall be in control and possession of the Natural Gas and responsible for any cost, loss, liability, damage and/or injury to or death of any persons (including, without limitation, reasonable attorney fees) occurring until same shall have been delivered at the Delivery Point, after which delivery Buyer shall be deemed to be in exclusive control and possession thereof and shall be responsible for any cost, loss, liability, damage and/or injury to or death of any persons (including, without limitation, reasonable attorney's fees) caused thereby, 13 except for unknown or unknowable defects in the Natural Gas which cause in whole or in part damage, injury, or loss. SELLER SHALL INDEMNIFY, DEFEND, AND HOLD HARMLESS BUYER, ITS SUCCESSORS, AND ASSIGNS AS WELL AS ITS OFFICERS, EMPLOYEES, AND AGENTS (COLLECTIVELY THE "INDEMNITIES") FROM AND AGAINST ANY AND ALL CLAIMS, LOSSES, DAMAGES, CAUSES OF ACTION, FINES, PENALTIES, SUITS, LIABILITIES, AND JUDGEMENTS OF EVERY KIND AND CHARACTER, INCLUDING ALL EXPENSES OF LITIGATION, COURT COSTS, AND REASONABLE ATTORNEY'S FEES, FOR ANY INJURY TO OR DEATH OF ANY PERSON, AND FOR ANY DAMAGE TO ANY PROPERTY, WHICH RESULTS FROM OR IN CONNECTION WITH THE NATURAL GAS BEFORE ITS RECEIPT AT THE DELIVERY POINT REGARDLESS OF WHETHER ANY SUCH INJURIES, DEATH, OR DAMAGES ARE CAUSED OR ALLEGEDLY CAUSED BY THE JOINT, CONCURRING OR SOLE NEGLIGENCE, OR STRICT LIABILITY OF (i) BUYER AND SELLER, (ii) BUYER AND ANY OTHER PERSON OR ENTITY, OR (iii) BUYER OR ANY OTHER ENTITY OR COMBINATION OF ENTITIES. BUYER SHALL INDEMNIFY, DEFEND, AND HOLD HARMLESS SELLER, ITS SUCCESSORS, AND ASSIGNS AS WELL AS ITS OFFICERS, EMPLOYEES, AND AGENTS (COLLECTIVELY THE "INDEMNITIES") FROM AND AGAINST ANY AND ALL CLAIMS, LOSSES, DAMAGES, CAUSES OF ACTION, FINES, PENALTIES, SUITS, LIABILITIES, AND JUDGEMENTS OF EVERY KIND AND CHARACTER, INCLUDING ALL EXPENSES OF LITIGATION, COURT COSTS, AND REASONABLE ATTORNEY'S FEES, FOR ANY INJURY TO OR DEATH OF ANY PERSON, AND FOR ANY DAMAGE TO ANY PROPERTY, WHICH RESULTS FROM OR IN CONNECTION WITH THE NATURAL GAS AFTER ITS RECEIPT AT THE DELIVERY POINT, REGARDLESS OF WHETHER ANY SUCH INJURIES, DEATH, OR DAMAGES ARE CAUSED OR ALLEGEDLY CAUSED BY THE JOINT, CONCURRING OR SOLE NEGLIGENCE, OR STRICT LIABILITY OF (i) SELLER AND BUYER, (ii) SELLER AND ANY OTHER PERSON OR ENTITY, OR (iii) SELLER OR ANY OTHER ENTITY OR COMBINATION OF ENTITIES. 7.3 Unless either Party is limited to a different sole and exclusive remedy by the other provisions of this Agreement, either Party's sole and exclusive remedy for any breach by the other Party of any obligation, covenant, representation, or warranty is only the recovery of actual damages for any direct economic losses to the extent recoverable under applicable law. Notwithstanding any other provision to the contrary or the invalidity or unenforceability of any sole and exclusive remedy or other provision of this Agreement, neither Party is entitled to recover (in contract, tort, equity, or otherwise) any incidental, special, punitive or consequential damages which arise out of or relate to this Agreement or in connection with the performance or breach thereof, and any right to recover any of said damages is hereby waived and released. 14 ARTICLE A-VIII FORCE MAJEURE ------------- 8.1 In the event either Party is rendered unable, wholly or in part, by Force Majeure to carry out its obligations under this Agreement, except for the obligations to make payments hereunder, it is agreed that, on such Party's giving notice and reasonably full particulars of such Force Majeure, orally as soon as practical and followed in writing or by electronic transmission, to the other Party within a reasonable time after the occurrence of the Force Majeure relied on, the obligations of the Party giving such notice, so far as they are affected by such Force Majeure, shall be suspended during the continuance of any inability so caused, but for no longer period, and such Force Majeure shall, so far as possible, be remedied with all reasonable dispatch. The term "Force Majeure" shall mean, for purposes of this Agreement, acts of God, strikes, lockouts, or industrial disputes, interruptions by government or court orders, present and future valid orders of any governmental authority, inability to secure or delay in securing easements, rights-of-way, materials (including those occasioned by reason of allocations promulgated by authorized governmental agencies), washouts, explosions, breakage, accident, repairs, alterations or freezing of pipelines, or other equipment, the termination or interruption by others of Natural Gas supplies or any other cause, whether of the kind herein enumerated or otherwise, which is not reasonably within the control of the party claiming Force Majeure. The foregoing enumerated and other causes of Force Majeure shall constitute "Force Majeure" regardless of whether or not they are foreseeable. The Force Majeure shall, so far as possible, be remedied with all reasonable dispatch. The settlement of strikes or lockouts or industrial disputes or disturbances shall be entirely within the discretion of the party having the difficulty, and the above requirement that any Force Majeure shall be remedied with all reasonable dispatch shall not require the settlement of strikes, lockouts, or industrial disputes or disturbances, or the settlement or negotiation by Seller of purchase or transportation contracts, by acceding to the demands of any opposing party therein when such course is inadvisable in the discretion of the party having the difficulty. In no event shall any curtailment of obligations hereunder due to these Force Majeure conditions exceed the extent of the shortages caused by the Force Majeure condition. ARTICLE A-IX GOVERNMENTAL RULES, REGULATIONS AND AUTHORIZATIONS -------------------------------------------------- 9.1 This Agreement is subject to all valid applicable State, Local, and Federal laws, orders, directives, rules and regulations of any governmental authority having jurisdiction. Each party has the right to question the validity and applicability of any such laws, orders, directives, rules and regulations and the jurisdiction of any governmental authority. Neither Buyer nor Seller shall institute any proceeding before any governmental authority seeking to obtain sales or service from Seller except as expressly provided under the provisions of this Agreement. If the sums due Seller under this Agreement are now or become subject to rate regulation by any 15 governmental authority, it is stipulated and agreed (i) that any price, rate or fee that Seller is or hereafter becomes entitled to collect in accordance with this Agreement, is just and reasonable, fair and equitable and not preferential or discriminatory, and (ii) that no price, rate or fee that Seller is or hereafter becomes entitled to collect in accordance with this Agreement, shall constitute an increase or change in rates. 9.2 If at any time while this Agreement is in effect, any governmental authority takes any action as to either party ("Affected Party") or any transporter of the Affected Party whereby the sale or purchase of Natural Gas under this Agreement, or transportation or other handling (including, without limitation, compression or treating), of the Natural Gas sold under this Agreement is proscribed or subjected to terms, conditions, regulations, restraints, taxes, price or rate controls that are, in the Affected Party's good faith opinion, unduly burdensome to the Affected Party, the Affected Party may thereafter terminate this Agreement by giving at least ninety (90) Days prior written notice to the other party, provided the Affected Party terminates all of the Affected Party's other contracts, which are similarly affected by the government action, to the extent the Affected Party has the right to terminate such other contracts under a clause that is similar to this clause. 9.3 Buyer shall, upon Seller's request, consent to the granting of any governmental approval that may be required, in order for Seller a) to abandon any and all facilities and services arising out of or in connection with this Agreement, if this Agreement is terminated in accordance with its provisions, or b) to charge and collect any price, rate, charge, or fee that Seller is entitled to receive under this Agreement. 9.4 Seller warrants that it complies with governmental acquisition rules, natural gas exploration and transport rules, and Public Service Authority rules and Buyer is entitled to rely fully on Seller's compliance with these rules. ARTICLE A-X ASSIGNMENT ---------- 10.1 The provisions of this Agreement are binding upon and inure to the benefit of the successors, assigns, and legal representatives of the parties hereto. Subject to the other provisions of this Section, this Agreement may not be assigned, in whole or in part, without the prior written consent of the other party, which consent can not be unreasonably withheld. ARTICLE A-XI OTHER TERMS AND CONDITIONS -------------------------- 11.1 WAIVER. No waiver, by either Seller or Buyer, of any default of the other under this Agreement operates as a waiver of any other default, whether of like or different character or nature. 16 11.2 HEADINGS. The headings used throughout this Agreement are inserted for reference purposes only, and are not to be construed or taken into account in interpreting the provisions of any Article, nor to be deemed in any way to supplement, modify or explain the effects of any provision. 11.3 MODIFICATION. No amendment, release, waiver or other modification of this Agreement is effective unless made in writing and executed by duly authorized representatives of both parties. 11.4 INTEGRATION. This Agreement is the final, complete, and exclusive statement of the agreement between the parties. 11.5 NO THIRD PARTY BENEFICIARIES. Nothing contained in this Agreement shall confer any rights, as a third party beneficiary or otherwise, upon any entity other than Buyer, Seller and their successors and assigns. 11.6 SEVERABILITY. The invalidity or unenforceability of any provision of this Agreement does not invalidate or affect the enforceability of any provision of this Agreement. 11.7 PREPARATION. This Agreement was prepared by all parties to it and not by any party to the exclusion of the other parties. Neither Seller nor Buyer had an unfair advantage during the negotiation of this Agreement. 11.8 APPLICABLE LAW. AS TO ALL MATTERS OF CONSTRUCTION AND INTERPRETATION, THIS AGREEMENT AND THE RIGHTS AND DUTIES OF THE PARTIES IS GOVERNED BY THE LAWS OF THE STATE OF TENNESSEE. VENUE AND SOLE JURISDICTION FOR ANY LITIGATION UNDER THIS AGREEMENT SHALL BE IN SULLIVAN COUNTY, TENNESSEE. 11.9 CONFIDENTIALITY. Neither party shall disclose the provisions of this Agreement to any person except to the extent disclosure is required by any governmental authority, financing entity, or reasonably necessary for the performance and enforcement of this Agreement without the prior written consent of the other party. Seller agrees to have its employees execute individual secrecy agreements that, at a minimum, include the terms found in this Agreement. 11.10 RELATIONSHIP OF PARTIES. Neither this Agreement nor the performance of this Agreement creates, expressly, impliedly or otherwise, a fiduciary relationship or any other special relationship between Buyer and Seller. All the duties owed by one party to the other in connection with this Agreement are solely contractual in nature and these duties do not arise in tort or sound in tort. 17 EX-10.21 4 c20582_ex10-21.txt Exhibit 21 List of Subsidiaries Name State of Incorporation Tengasco Pipeline Corporation Tennessee Tennessee Land Mineral Corporation Tennessee EX-99.14 5 c20582_ex99-14.txt TENGASCO, INC. Estimated Future Reserves and Income Attributable to Certain Leasehold and Royalty Interests SEC Case As of December 31, 2000 RYDER SCOTT COMPANY PETROLEUM CONSULTANTS TABLE OF CONTENTS TENGASCO, INC. TABLE OF CONTENTS DISCUSSION RESERVE DEFINITIONS TABLE NO. --------- PROPERTY RANKING -------------------------------------------------- A SUMMARY OF GROSS AND NET RESERVE AND INCOME DATA ------------------ B SUMMARY OF INITIAL BASIC DATA ------------------------------------- C GRAND SUMMARIES --------------- TOTAL PROVED ALL CATEGORIES ------------------------------------ 1 PROVED PRODUCING ----------------------------------------------- 2 PROVED SHUT-IN ------------------------------------------------- 3 PROVED BEHIND PIPE --------------------------------------------- 4 PROVED UNDEVELOPED --------------------------------------------- 5 TOTAL PROBABLE UNDEVELOPED ------------------------------------- 6 TOTAL POSSIBLE UNDEVELOPED ------------------------------------- 7 STATE SUMMARIES - KANSAS TOTAL PROVED ALL CATEGORIES ------------------------------------ 8 PROVED PRODUCING ----------------------------------------------- 9 PROVED BEHIND PIPE --------------------------------------------- 10 PROVED UNDEVELOPED --------------------------------------------- 11 TOTAL PROBABLE UNDEVELOPED ------------------------------------- 12 ARPIN SOUTH FIELD, ROOKS CO., KANSAS THYFAULT (ARBUCKLE) - PROVED PRODUCING ------------------------ 13 ASH CREEK FIELD, BARTON CO., KANSAS UNRUH (ARBUCKLE) - PROVED PRODUCING --------------------------- 14 AXELSON FIELD, ROOKS CO., KANSAS AXELSON #1 (LANSING) - PROVED PRODUCING ----------------------- 15 BEISEL FIELD, RUSSELL CO., KANSAS BEISEL (ARBUCKLE) - PROVED PRODUCING -------------------------- 16 BEISEL #9 PUD (ARBUCKLE) - PROVED UNDEVELOPED ----------------- 17 BIELMAN FIELD, ELLIS CO., KANSAS GRASS (ARBUCKLE) - PROVED PRODUCING --------------------------- 18 RYDER SCOTT COMPANY PETROLEUM CONSULTANTS TENGASCO, INC. TABLE OF CONTENTS (CONT'D) TABLE NO. --------- CARPENTER FIELD, EDWARDS CO., KANSAS HENNING (LNSG-PSLV) - PROVED PRODUCING ------------------------ 19 CARROLL FIELD, BARTON CO., KANSAS KEENAN -B- (ABCK-KSSC-LNSG) - PROVED PRODUCING ---------------- 20 CENTERVIEW FIELD, STAFFORD CO., KANSAS BECKERDITE #1 (ARBUCKLE) - PROVED PRODUCING ------------------- 21 CHASE-SILICA FIELD, BARTON CO., KANSAS LANDER #1 - PROVED PRODUCING ------------------------------------- 22 LANDER #3 PBUD (ARBUCKLE) - PROBABLE UNDEVELOPED ----------------- 23 ROSE, CHARLES - PROVED PRODUCING --------------------------------- 24 CHEYENNE FIELD, BARTON CO., KANSAS HAMMEKE (SIMPSON) - PROVED PRODUCING -------------------------- 25 CONVERSE FIELD, BARTON CO., KANSAS IANNITTI (ARBUCKLE) - PROVED PRODUCING ------------------------ 26 IANNITTI #9 PUD (ARBUCKLE) - PROVED UNDEVELOPED --------------- 27 COOPER FIELD, GRAHAM CO., KANSAS DEYOUNG (ABCK-TOPK) - PROVED PRODUCING ------------------------ 28 LEWIS -A- (LANSING) - PROVED PRODUCING ------------------------ 29 DAVIDSON FIELD, RUSSELL CO., KANSAS FOSTER (ARBUCKLE) - PROVED PRODUCING -------------------------- 30 DISTRICT 57 FIELD, ELLIS CO., KANSAS FLAX -F- (KSSC-LNSG) - PROVED PRODUCING ----------------------- 31 DUNES NORTH FIELD, PAWNEE CO., KANSAS BARSTOW (KSSC-LNSG) - PROVED PRODUCING ------------------------ 32 LOVETT (LANSING) - PROVED PRODUCING --------------------------- 33 ELLIS NW FIELD, TREGO CO., KANSAS BAUGHER #1 (ARBUCKLE) - PROVED PRODUCING ---------------------- 34 FICKEN FIELD, RUSH CO., KANSAS SCHWINDT FARMS (LANSING) - PROVED PRODUCING ------------------- 35 GATES NORTH FIELD, STAFFORD CO., KANSAS HOFFMAN (ARBUCKLE) - PROVED PRODUCING ------------------------- 36 SCHULZ (ARBUCKLE) - PROVED PRODUCING -------------------------- 37 RYDER SCOTT COMPANY PETROLEUM CONSULTANTS TENGASCO, INC. TABLE OF CONTENTS (CONT'D) TABLE NO. --------- GIESICK FIELD, RUSH CO., KANSAS GIESICK #2 (TOPEKA) - PROVED PRODUCING ------------------------ 38 GOTTSCHALK FIELD, ELLIS CO., KANSAS WERTH #1 (OREAD & TOPEKA) - PROVED PRODUCING ------------------ 39 HERMAN FIELD, BARTON CO., KANSAS KARST (LANSING) - PROVED PRODUCING ---------------------------- 40 HOBROCK FIELD, OSBORNE CO., KANSAS HOBROCK (PENNSYLVANIAN) - PROVED PRODUCING -------------------- 41 HOGAN (PENNSYLVANIAN) - PROVED PRODUCING ---------------------- 42 IRVIN FIELD, ELLIS CO., KANSAS KINDERKNECHT -B- (ARBUCKLE) - PROVED PRODUCING ---------------- 43 KRAUS FIELD, ELLIS CO., KANSAS KRAUS -A- - PROVED PRODUCING ----------------------------------- 44 KRAUS -B- (ARBUCKLE) - PROVED PRODUCING ----------------------- 45 KRAUS -I- (ABCK-KSSC-LNSG) - PROVED PRODUCING ----------------- 46 LEIKER EAST FIELD, ELLIS CO., KANSAS LEIKER (KSSC-LNSG) - PROVED PRODUCING ------------------------- 47 LEONHARDT SOUTHEAST FIELD, ELLIS CO., KANSAS KRAUS #1 (KSSC-LNSG) - PROVED PRODUCING ----------------------- 48 LIEBENTHAL FIELD, RUSH CO., KANSAS DECHANT -B- #2 (KANSAS CITY) - PROVED PRODUCING ------------------ 49 GRAHAM #1 (KC-LANSING) - PROVED PRODUCING ------------------------ 50 LEGLEITER -B- #1 (KSSC-LNSG) - PROVED PRODUCING ------------------ 51 LEGLEITER -C- #1 (PLEASONTON) - PROVED PRODUCING ----------------- 52 LITTLE RIO FIELD, RICE CO., KANSAS WHITEMAN-HOLLAND (KSSC-LNSG-MSSP) - PROVED PRODUCING ---------- 53 MARCOTTE FIELD, ROOKS CO., KANSAS CROFFOOT (ARBUCKLE) - PROVED PRODUCING --------------------------- 54 CROFFOOT -A- (ARBUCKLE) - PROVED PRODUCING ----------------------- 55 CROFFOOT -B- (ARBUCKLE) - PROVED PRODUCING ----------------------- 56 CROFFOOT -C- (ARBUCKLE) - PROVED PRODUCING ----------------------- 57 DICK (ARBUCKLE) - PROVED PRODUCING ------------------------------- 58 RYDER SCOTT COMPANY PETROLEUM CONSULTANTS TENGASCO, INC. TABLE OF CONTENTS (CONT'D) TABLE NO. --------- MCHALE FIELD, ROOKS CO., KANSAS HARRISON -A- (ARBUCKLE) - PROVED PRODUCING ----------------------- 59 HILGERS -B- (ARBUCKLE) - PROVED PRODUCING ------------------------ 60 KABA #1 (ARBUCKLE-LANSING-T) - PROVED PRODUCING ------------------ 61 OMLOR FIELD, STAFFORD CO., KANSAS MILLER (KSSC-LNSG) - PROVED PRODUCING ------------------------- 62 WILLIAMS (KSSC-LNSG) - PROVED PRODUCING ----------------------- 63 OTIS-ALBERT FIELD, RUSH CO., KANSAS HARTMAN #1-C (PENNSYLVANIAN) - PROVED PRODUCING --------------- 64 PARADISE CREEK FIELD, ROOKS CO., KANSAS STAHL (ARBUCKLE) - PROVED PRODUCING --------------------------- 65 STAHL #7 PUD (ARBUCKLE) - PROVED UNDEVELOPED ------------------ 66 PAWNEE ROCK FIELD, PAWNEE CO., KANSAS O'SCHULTZ #1 (ARBUCKLE) - PROVED PRODUCING ----------------------- 67 OETKIN (ARBUCKLE) - PROVED PRODUCING ----------------------------- 68 OETKIN #8 PBUD (ARBUCKLE) - PROBABLE UNDEVELOPED ----------------- 69 PLAINVILLE FIELD, ROOKS CO., KANSAS ANDERSON -A- (LANSING) - PROVED PRODUCING --------------------- 70 BARDOT #2 (KSSC-LNSG) - PROVED PRODUCING ---------------------- 71 GARVERT #1-A (KANSAS CITY) - PROVED PRODUCING ----------------- 72 GARVERT -B- #1 (CNGL-LNSG-PLSN) - PROVED PRODUCING ------------ 73 HARRISON -C- (LANSING) - PROVED PRODUCING --------------------- 74 JACO (LANSING) - PROVED PRODUCING ----------------------------- 75 ROSS (LANSING) - PROVED PRODUCING ----------------------------- 76 PLEASANT FIELD, RUSH CO., KANSAS BASGALL -C- #4 (DOVER) - PROVED PRODUCING --------------------- 77 PLEASANT FIELD, ELLIS CO., KANSAS HONAS #1-A (ARBUCKLE) - PROVED PRODUCING ---------------------- 78 PLEASANT VIEW FIELD, RUSH CO., KANSAS URBAN -K- (KSSC-LNSG) - PROVED PRODUCING ---------------------- 79 URBAN -K- #5 BP (DOVER) - PROVED BEHIND PIPE ------------------ 80 PLEASANT VIEW NW FIELD, RUSH CO., KANSAS URBAN (KSSC-LNSG) - PROVED PRODUCING ----------------------------- 81 URBAN #6 PUD (KSSC-LNSG) - PROVED UNDEVELOPED -------------------- 82 URBAN #7 PUD (KSSC-LNSG) - PROVED UNDEVELOPED -------------------- 83 RYDER SCOTT COMPANY PETROLEUM CONSULTANTS TENGASCO, INC. TABLE OF CONTENTS (CONT'D) TABLE NO. --------- REICHEL FIELD, RUSH CO., KANSAS ALLEN #1 A&D (SHAWNEE) - PROVED PRODUCING --------------------- 84 APPL #1 (TOPEKA) - PROVED PRODUCING --------------------------- 85 APPL #2 (TOPEKA) - PROVED PRODUCING --------------------------- 86 BEAHM #1 (LANSING) - PROVED PRODUCING ------------------------- 87 BIEBER #1 (TOPEKA) - PROVED PRODUCING ------------------------- 88 BIEBER -A- #1 (TOPEKA) - PROVED PRODUCING --------------------- 89 BRACK -A- #3 (GRANITE WASH) - PROVED PRODUCING ---------------- 90 BREIT #1 (TOPEKA) - PROVED PRODUCING -------------------------- 91 BREIT-HOLZMEISTER -B- (TOPEKA) - PROVED PRODUCING ------------- 92 DECKER -A- #1 (SHAWNEE) - PROVED PRODUCING -------------------- 93 EDWARDS #1 (LANSING) - PROVED PRODUCING ----------------------- 94 ELDER #1 (TOPEKA) - PROVED PRODUCING -------------------------- 95 FOOS #1 (LANSING) - PROVED PRODUCING -------------------------- 96 FOOS -A- #1 (LANSING) - PROVED PRODUCING ---------------------- 97 FRYE #2 (TOPEKA) - PROVED PRODUCING --------------------------- 98 GIESICK #1 (KANSAS CITY) - PROVED PRODUCING ------------------- 99 GILLIG #1 (TOPEKA) - PROVED PRODUCING ------------------------- 100 GRUMBEIN #1-A (KSSC-LNSG) - PROVED PRODUCING ------------------ 101 HANHARDT #1 (TOPEKA) - PROVED PRODUCING ----------------------- 102 HANHARDT #1-A (TOPEKA) - PROVED PRODUCING --------------------- 103 HANHARDT #1-A BP (TOPEKA) - PROVED BEHIND PIPE ---------------- 104 HOFFMAN #3 (CHASE) - PROVED PRODUCING ------------------------- 105 HOLZMEISTER #1 (SHAWNEE) - PROVED PRODUCING ------------------- 106 HOLZMEISTER #1-A - PROVED PRODUCING ---------------------------- 107 HOLZMEISTER #1-B (KC-LANSING) - PROVED PRODUCING -------------- 108 HONDERICK #1-C (LANSING) - PROVED PRODUCING ------------------- 109 HOOFER #1 (KSSC-LNSG) - PROVED PRODUCING ---------------------- 110 JANSON #2-A (SHAWNEE) - PROVED PRODUCING ---------------------- 111 KAISER #1 (KSSC-LNSG) - PROVED PRODUCING ---------------------- 112 KAISER #2 (TOPEKA) - PROVED PRODUCING ------------------------- 113 KLEWENO #1 (TOPEKA) - PROVED PRODUCING ------------------------ 114 KLEWENO -A- #1 (TOPEKA) - PROVED PRODUCING -------------------- 115 KOBER #1 (KSSC-LNSG) - PROVED PRODUCING ----------------------- 116 LEBSACK -A- #1 (KSSC-LNSG) - PROVED PRODUCING ----------------- 117 LIPPERT #2 (KSSC-LNSG) - PROVED PRODUCING --------------------- 118 LIPPERT #3 (COTTONWOOD) - PROVED PRODUCING -------------------- 119 LIPPERT #3 BP (WINFIELD) - PROVED BEHIND PIPE ----------------- 120 LIPPERT -B- #1 (PENNSYLVANIAN) - PROVED PRODUCING ------------- 121 LIPPERT -B- #2 - PROVED PRODUCING ------------------------------ 122 LIPPERT -C- #1 (TOPEKA) - PROVED PRODUCING -------------------- 123 MCGILL #1 (SHAWNEE) - PROVED PRODUCING ------------------------ 124 O'DELL #1 (SHAWNEE) - PROVED PRODUCING ------------------------ 125 OCHS #1-A (SHAWNEE) - PROVED PRODUCING ------------------------ 126 PFEIFER -B- #1-B (WABAUNSEE) - PROVED PRODUCING --------------- 127 RAU #1 (TOPEKA) - PROVED PRODUCING ---------------------------- 128 RYDER SCOTT COMPANY PETROLEUM CONSULTANTS TENGASCO, INC. TABLE OF CONTENTS (CONT'D) TABLE NO. --------- REICHEL FIELD, RUSH CO., KANSAS (CONT'D) REICHEL #1 (KANSAS CITY) - PROVED PRODUCING ------------------- 129 ROTHE #1 (TOPEKA) - PROVED PRODUCING -------------------------- 130 ROTHE, R. #1 (KANSAS CITY) - PROVED PRODUCING ----------------- 131 SCHEUERMAN -A- #1 (GRWS-SHWN) - PROVED PRODUCING -------------- 132 SCHLITTER #2 (PENNSYLVANIAN) - PROVED PRODUCING --------------- 133 SCHNEIDER #1 (KANSAS CITY) - PROVED PRODUCING ----------------- 134 SHERWOOD #1 (SHAWNEE) - PROVED PRODUCING ---------------------- 135 STEITZ -A- #1 (KANSAS CITY) - PROVED PRODUCING ---------------- 136 STEITZ -B- #1 (TOPEKA) - PROVED PRODUCING --------------------- 137 THIELENHAUS #1 (TOPEKA) - PROVED PRODUCING -------------------- 138 THIELENHAUS #1 BP (TOPEKA) - PROVED BEHIND PIPE --------------- 139 TORREY #2 (KSSC-LNSG) - PROVED PRODUCING ---------------------- 140 URBAN R & A #1 (WABAUNSEE) - PROVED PRODUCING ----------------- 141 REICHEL EAST FIELD, RUSH CO., KANSAS BAHR #1 (KSSC-LNSG) - PROVED PRODUCING ------------------------ 142 REICHEL WEST FIELD, RUSH CO., KANSAS LEGLEITER -A- #1 (CHASE) - PROVED PRODUCING ---------------------- 143 MUTH #1&2 (CHSE-SHWN) - PROVED PRODUCING ------------------------- 144 RIDGEWAY SOUTH FIELD, TREGO CO., KANSAS SCHOENTHALER (ARBUCKLE) - PROVED PRODUCING -------------------- 145 RIGA NORTHEAST FIELD, TREGO CO., KANSAS KELLER (KSSC-LNSG) - PROVED PRODUCING ---------------------------- 146 KELLER -A- (ARBUCKLE) - PROVED PRODUCING ------------------------- 147 RUGGELS WEST FIELD, OSBORNE CO., KANSAS MAIER (KSSC-LNSG) - PROVED PRODUCING ----------------------------- 148 MAIER #1 BP (KSSC-LNSG) - PROVED BEHIND PIPE --------------------- 149 SANDFORD FIELD, BARTON CO., KANSAS BEN TEMPERO (ARBUCKLE) - PROVED PRODUCING ------------------------ 150 BEN TEMPERO #5 PUD (ARBUCKLE) - PROVED UNDEVELOPED --------------- 151 SCHWINDT FIELD, RUSH CO., KANSAS JACOBS -B- (CNGL-LNSG-MSSP-VIOL) - PROVED PRODUCING ----------- 152 SPRING CREEK FIELD, TREGO CO., KANSAS RIDGWAY (ARBUCKLE) - PROVED PRODUCING ------------------------- 153 STOCKTON FIELD, ROOKS CO., KANSAS HINDMAN, D.A. (TOPEKA) - PROVED PRODUCING --------------------- 154 STEBBINS (HOWARD) - PROVED PRODUCING -------------------------- 155 RYDER SCOTT COMPANY PETROLEUM CONSULTANTS TENGASCO, INC. TABLE OF CONTENTS (CONT'D) TABLE NO. --------- STOCKTON FIELD, ROOKS CO., KANSAS (CONT'D) WATTS - PROVED PRODUCING --------------------------------------- 156 STREMEL FIELD, RUSH CO., KANSAS OCHS #1 & 3 (MISSISSIPPIAN) - PROVED PRODUCING ------------------- 157 URBAN -D- #2 (KSSC-LNSG) - PROVED PRODUCING ---------------------- 158 THACKER FIELD, RUSSELL CO., KANSAS THACKER #2 (KC-LANSING) - PROVED PRODUCING -------------------- 159 TRAPP FIELD, BARTON CO., KANSAS DEUTSCH (ARBUCKLE) - PROVED PRODUCING ---------------------------- 160 HOWLIER #1 (ARBUCKLE) - PROVED PRODUCING ------------------------- 161 WEBSTER FIELD, ROOKS CO., KANSAS CERROW-CERROW -A- (ARBUCKLE) - PROVED PRODUCING ------------------ 162 LOWRY #1 (ARBUCKLE) - PROVED PRODUCING --------------------------- 163 WERTH NORTH FIELD, ELLIS CO., KANSAS SCHNELLER (ABCK-LNSG) - PROVED PRODUCING ---------------------- 164 WESTHUSIN FIELD, ROOKS CO., KANSAS DOUGHERTY EAST #1 (LANSING) - PROVED PRODUCING ------------------- 165 DOUGHERTY EAST #1 BP (ARBUCKLE) - PROVED PRODUCING --------------- 166 DOUGHERTY EAST #2 PUD (ARBUCKLE) - PROVED PRODUCING -------------- 167 YOHE FIELD, ROOKS CO., KANSAS FINNESY (LANSING) - PROVED PRODUCING ----------------------------- 168 MOSHER (LANSING) - PROVED PRODUCING ------------------------------ 169 STATE SUMMARIES - TENNESSEE TOTAL PROVED ALL CATEGORIES ------------------------------------ 170 PROVED PRODUCING ----------------------------------------------- 171 PROVED SHUT-IN ------------------------------------------------- 172 PROVED BEHIND PIPE --------------------------------------------- 173 PROVED UNDEVELOPED --------------------------------------------- 174 TOTAL PROBABLE UNDEVELOPED ------------------------------------- 175 TOTAL POSSIBLE UNDEVELOPED ------------------------------------- 176 SWAN CREEK FIELD, HANCOCK CO., TENNESSEE ANITA COLSON #1 (KNOX) - PROVED SHUT-IN -------------------------- 177 ANITA COLSON #1 (TRENTON) - PROVED BEHIND PIPE ------------------- 178 ANITA COLSON #2 (TRENTON) - PROVED SHUT-IN ----------------------- 179 CHEVRON WARREN REED #1 (KNOX) - PROVED SHUT-IN ------------------- 180 D. SUTTON HEIRS #1 (KNOX) - PROVED SHUT-IN ----------------------- 181 D. SUTTON HEIRS #1 (TRENTON) - PROVED BEHIND PIPE ---------------- 182 RYDER SCOTT COMPANY PETROLEUM CONSULTANTS TENGASCO, INC. TABLE OF CONTENTS (CONT'D) TABLE NO. --------- SWAN CREEK FIELD, HANCOCK CO., TENNESSEE (CONT'D) DARRELL SUTTON #1 (KNOX) - PROVED SHUT-IN --------------------- 183 DEWEY SUTTON #1 (TRENTON) - PROVED PRODUCING ------------------ 184 DORIS HELTON #1 (KNOX) - PROVED SHUT-IN ----------------------- 185 DORIS HELTON #1 (TRENTON-STONE RIVER) - PROVED BEHIND PIPE ---- 186 GARY PATTON #2 (KNOX) - PROVED SHUT-IN ------------------------ 187 GARY PATTON #2 (KNOX) - PROVED BEHIND PIPE -------------------- 188 LAURA J. LAWSON #1 (MURFREESBORO) - PROVED SHUT-IN ------------ 189 LAURA J. LAWSON #1 (MURFREESBORO) - PROVED BEHIND PIPE -------- 190 LAURA J. LAWSON #2 (KNOX) - PROVED SHUT-IN -------------------- 191 LAURA J. LAWSON #2 (TRENTON-MURFREESBORO) - PROVED BEHIND PIPE -- 192 PAUL REED #1 (KNOX) - PROVED SHUT-IN -------------------------- 193 PAUL REED #2 (STONES RIVER) - PROVED PRODUCING ---------------- 194 PAUL REED #2 (TRTN-SR) - PROVED BEHIND PIPE ------------------- 195 PAUL REED #3 (KNOX) - PROVED SHUT-IN -------------------------- 196 PAUL REED #3 (TRENTON) - PROVED BEHIND PIPE ------------------- 197 PAUL REED #4 (KNOX) - PROVED SHUT-IN -------------------------- 198 PAUL REED #4 (TRENTON) - PROVED BEHIND PIPE ------------------- 199 PAUL REED #5 (STONES RIVER) - PROVED PRODUCING ---------------- 200 PAUL REED/HELTON UNIT #6 (STONES RIVER) - PROVED PRODUCING ---- 201 PURKEY #1 (KNOX) - PROVED SHUT-IN ----------------------------- 202 RAY DEAN HELTON #1 (KNOX) - PROVED SHUT-IN -------------------- 203 RAY DEAN HELTON #1 (TRENTON-STONES RIVER) - PROVED BEHIND PIPE -- 204 STEPHEN LAWSON #1 (TRENTON) - PROVED PRODUCING ---------------- 205 STEPHEN LAWSON #2 (KNOX) - PROVED SHUT-IN --------------------- 206 STEPHEN LAWSON #3 (KNOX) - PROVED SHUT-IN --------------------- 207 STEPHEN LAWSON #3 (TRNT-SR-MFB) - PROVED BEHIND PIPE ---------- 208 STEPHEN LAWSON #4 (KNOX) - PROVED SHUT-IN --------------------- 209 STEPHEN LAWSON #4 (STONES RIVER) - PROVED BEHIND PIPE --------- 210 T.J. HARRISON #1 (TRENTON) - PROVED PRODUCING ----------------- 211 WARREN REED #1 (KNOX) - PROVED SHUT-IN ------------------------ 212 WARREN REED #1 (KNOX) - PROVED BEHIND PIPE -------------------- 213 WARREN REED #2 (KNOX) - PROVED SHUT-IN ------------------------ 214 WARREN REED #2 (SR-MFB) - PROVED BEHIND PIPE ------------------ 215 LOCATION # 1 (KNOX) - PROVED UNDEVELOPED ---------------------- 216 LOCATION # 2 (KNOX) - PROVED UNDEVELOPED ---------------------- 217 LOCATION # 4 (KNOX) - PROVED UNDEVELOPED ---------------------- 218 LOCATION # 5 (KNOX) - PROVED UNDEVELOPED ---------------------- 219 LOCATION # 6 (KNOX) - PROVED UNDEVELOPED ---------------------- 220 LOCATION # 7 (KNOX) - PROVED UNDEVELOPED ---------------------- 221 LOCATION # 8 (KNOX) - PROVED UNDEVELOPED ---------------------- 222 LOCATION # 9 (KNOX) - PROVED UNDEVELOPED ---------------------- 223 LOCATION #10 (KNOX) - PROVED UNDEVELOPED ---------------------- 224 LOCATION #11 (KNOX) - PROVED UNDEVELOPED ---------------------- 225 LOCATION #12 (KNOX) - PROVED UNDEVELOPED ---------------------- 226 LOCATION #13 (KNOX) - PROVED UNDEVELOPED ---------------------- 227 RYDER SCOTT COMPANY PETROLEUM CONSULTANTS TENGASCO, INC. TABLE OF CONTENTS (CONT'D) TABLE NO. --------- SWAN CREEK FIELD, HANCOCK CO., TENNESSEE (CONT'D) LOCATION #14 (KNOX) - PROVED UNDEVELOPED ---------------------- 228 LOCATION #15 (KNOX) - PROVED UNDEVELOPED ---------------------- 229 LOCATION #16 (KNOX) - PROVED UNDEVELOPED ---------------------- 230 LOCATION #17 (KNOX) - PROVED UNDEVELOPED ---------------------- 231 LOCATION #18 (KNOX) - PROVED UNDEVELOPED ---------------------- 232 LOCATION #19 (KNOX) - PROVED UNDEVELOPED ---------------------- 233 LOCATION #20 (KNOX) - PROVED UNDEVELOPED ---------------------- 234 LOCATION #21 (KNOX) - PROVED UNDEVELOPED ---------------------- 235 LOCATION #23 (KNOX) - PROVED UNDEVELOPED ---------------------- 236 LOCATION #24 (KNOX) - PROVED UNDEVELOPED ---------------------- 237 LOCATION #25 (KNOX) - PROVED UNDEVELOPED ---------------------- 238 LOCATION #26 (KNOX) - PROVED UNDEVELOPED ---------------------- 239 LOCATION #27 (KNOX) - PROVED UNDEVELOPED ---------------------- 240 LOCATION #28 (KNOX) - PROVED UNDEVELOPED ---------------------- 241 LOCATION #29 (KNOX) - PROVED UNDEVELOPED ---------------------- 242 LOCATION #30 (KNOX) - PROVED UNDEVELOPED ---------------------- 243 PROBABLE LOCATIONS (KNOX) - PROBABLE UNDEVELOPED -------------- 244 POSSIBLE LOCATIONS (KNOX) - POSSIBLE UNDEVELOPED -------------- 245 RYDER SCOTT COMPANY PETROLEUM CONSULTANTS DISCUSSION [LOGO OMITTED] RYDER SCOTT COMPANY FAX (713) 651-0849 --------------------- PETROLEUM CONSULTANTS 1100 LOUISIANA SUITE 3800 HOUSTON, TEXAS 77002-5218 TELEPHONE (713) 651-9191 March 28, 2001 Tengasco, Inc. 603 Main Avenue, Suite 500 Knoxville, Tennessee 37902 Gentlemen: At your request, we have prepared an estimate of the reserves, future production, and income attributable to certain leasehold and royalty interests of Tengasco, Inc. (Tengasco) as of December 31, 2000. The subject properties are located in the states of Kansas and Tennessee. The income data were estimated using the Securities and Exchange Commission (SEC) requirements for future price and cost parameters. The estimated reserves and future income amounts presented in this report are related to hydrocarbon prices. Hydrocarbon prices in effect at December 31, 2000 were used in the preparation of this report as required by SEC rules; however, actual future prices may vary significantly from December 31, 2000 prices. Therefore, volumes of reserves actually recovered and amounts of income actually received may differ significantly from the estimated quantities presented in this report. The results of this study are summarized below. SEC PARAMETERS Estimated Net Reserves and Income Data Certain Leasehold and Royalty Interests of TENGASCO, INC. As of December 31, 2000 ----------------------------------------------------------
Proved --------------------------------------------------------- Developed --------------------------- Total Producing Non-Producing Undeveloped Proved ------------ ------------ ------------ ------------ NET REMAINING RESERVES Oil/Condensate - Barrels 1,553,759 102,452 158,694 1,814,905 Gas - MMCF 2,889 19,447 25,204 47,540 INCOME DATA Future Gross Revenue $ 55,404,068 $185,921,819 $243,048,991 $484,374,878 Deductions 23,585,661 2,472,202 10,443,540 36,501,403 ------------ ------------ ------------ ------------ Future Net Income (FNI) $ 31,818,407 $183,449,617 $232,605,451 $447,873,475 Discounted FNI @ 10% $ 17,700,380 $127,521,566 $169,979,312 $315,201,258
3700, 700 - 2ND STREET, S.W. CALGARY, ALBERTA T2P 2W2 TEL (403) 262-2799 FAX (403) 262-2790 600 17TH STREET, SUITE 1610N DENVER, COLORADO 80202-5416 TEL (303) 623-9147 FAX (303) 623-4258
Tengasco, Inc. March 28, 2001 Page 2 Total Total Probable Possible Undeveloped Undeveloped ------------ ------------ NET REMAINING RESERVES Oil/Condensate - Barrels 50,949 0 Gas - MMCF 11,985 7,213 INCOME DATA Future Gross Revenue $114,926,058 $ 68,354,301 Deductions 1,732,078 819,162 ------------ ------------ Future Net Income (FNI) $113,193,980 $ 67,535,139 Discounted FNI @ 10% $ 75,436,619 $ 43,252,319 Liquid hydrocarbons are expressed in standard 42 gallon barrels. All gas volumes are sales gas expressed in millions of cubic feet (MMCF) at the official temperature and pressure bases of the areas in which the gas reserves are located. The future gross revenue is after the deduction of production taxes. The deductions comprise the normal direct costs of operating the wells, ad valorem taxes, recompletion costs, development costs. The future net income is before the deduction of state and federal income taxes and general administrative overhead, and has not been adjusted for outstanding loans that may exist nor does it include any adjustment for cash on hand or undistributed income. No attempt was made to quantify or otherwise account for any accumulated gas production imbalances that may exist. Gas reserves account for approximately 90.5 percent and liquid hydrocarbon reserves account for the remaining 9.5 percent of total future gross revenue from proved reserves. The discounted future net income shown above was calculated using a discount rate of 10 percent per annum compounded monthly. Future net income was discounted at four other discount rates which were also compounded monthly. These results are shown on each estimated projection of future production and income presented in a later section of this report and in summary form below. Discounted Future Net Income As of December 31, 2000 --------------------------------------------------- Discount Rate Total Total Total Percent Proved Probable Possible ------------- ------------ ----------- ----------- 5 $369,991,384 $91,653,358 $53,825,724 15 $274,357,219 $62,960,973 $35,019,134 20 $242,643,265 $53,172,179 $28,549,812 25 $217,256,551 $45,354,631 $23,422,959 The results shown above are presented for your information and should not be construed as our estimate of fair market value. RESERVES INCLUDED IN THIS REPORT The PROVED RESERVES included herein conform to the definition as set forth in the Securities and Exchange Commission's Regulation S-X Part 210.4-10 (a) as clarified by subsequent Commission Staff Accounting Bulletins. The PROBABLE RESERVES and POSSIBLE RESERVES included herein conform to definitions of probable and possible reserves approved by the SPE/WPC using the deterministic RYDER SCOTT COMPANY PETROLEUM CONSULTANTS Tengasco, Inc. March 28, 2001 Page 3 methodology. The definitions of proved, probable, and possible reserves are included under the tab "Reserve Definitions" in this report. We have included probable and possible reserves and income in this report at the request of Tengasco. These data are for Tengasco's information only, and should not be included in reports to the SEC according to the SEC disclosure specifications. The probable reserves are less certain to be recovered than the proved reserves and reserves classified as possible are less certain to be recovered than those in the probable category. The reserves and income quantities attributable to the different reserve classifications that are included herein have not been adjusted to reflect the varying degrees of risk associated with them and thus are not comparable. Because of the direct relationship between volumes of proved undeveloped reserves and development plans, we include in the proved undeveloped category only reserves assigned to undeveloped locations that we have been assured will definitely be drilled. The various reserve status categories are defined under the tab "Reserve Definitions" in this report. The developed non-producing reserves included herein are comprised of the shut-in and behind pipe categories. ESTIMATES OF RESERVES The reserves included herein were estimated using the performance, volumetric and analogy methods. The reserves estimated by the performance method utilized extrapolations of various historical data in those cases where such data were definitive in our opinion. Performance estimates accounted for 20.9 per cent of the proved reserves on a net oil equivalent basis. Reserves were estimated by the volumetric and analogy methods in those cases where there were inadequate historical performance data to establish a definitive trend or where the use of performance data as a basis for the reserve estimates was considered to be inappropriate. Reserves by analogy accounted for 45.3 per cent of reserves and volumetric estimates accounted for the remaining 33.8 percent. The reserves included in this report are estimates only and should not be construed as being exact quantities. They may or may not be actually recovered, and if recovered, the revenues therefrom and the actual costs related thereto could be more or less than the estimated amounts. Moreover, estimates of reserves may increase or decrease as a result of future operations. FUTURE PRODUCTION RATES Initial production rates are based on the current producing rates for those wells now on production. Test data and other related information were used to estimate the anticipated initial production rates for those wells or locations that are not currently producing. If no production decline trend has been established, future production rates were held constant, or adjusted for the effects of curtailment where appropriate, until a decline in ability to produce was anticipated. An estimated rate of decline was then applied to depletion of the reserves. If a decline trend has been established, this trend was used as the basis for estimating future production rates. For reserves not yet on production, sales were estimated to commence at an anticipated date furnished by Tengasco. The future production rates from wells now on production may be more or less than estimated because of changes in market demand or allowables set by regulatory bodies. Wells or locations that are not currently producing may start producing earlier or later than anticipated in our estimates of their future production rates. RYDER SCOTT COMPANY PETROLEUM CONSULTANTS Tengasco, Inc. March 28, 2001 Page 4 HYDROCARBON PRICES Tengasco furnished us with hydrocarbon prices in effect at December 31, 2000 and with its forecasts of future prices which take into account SEC and Financial Accounting Standards Board (FASB) rules, current market prices, contract prices, and fixed and determinable price escalations where applicable. The hydrocarbon prices utilized this study were $26.46 per barrel and $5.30 per Mcf for the properties located in the state of Kansas and $24.10 per barrel and $9.77 per Mcf for the properties located in the state of Tennessee. In accordance with FASB Statement No. 69, December 31, 2000 market prices were determined using the daily oil price or daily gas sales price ("spot price") adjusted for oilfield or gas gathering hub and wellhead price differences (e.g. grade, transportation, gravity, sulfur and BS&W) as appropriate. Also in accordance with SEC and FASB specifications, changes in market prices subsequent to December 31, 2000 were not considered in this report. COSTS Operating costs for the leases and wells in this report are based on the operating expense reports of Tengasco and include only those costs directly applicable to the leases or wells. When applicable, the operating costs include a portion of general and administrative costs allocated directly to the leases and wells under terms of operating agreements. No deduction was made for indirect costs such as general administration and overhead expenses, loan repayments, interest expenses, and exploration and development prepayments that were not charged directly to the leases or wells. Development costs were furnished to us by Tengasco and are based on authorizations for expenditure for the proposed work or actual costs for similar projects. At the request of Tengasco, their estimate of zero abandonment costs after salvage value was used in this report. Ryder Scott has not performed a detailed study of the abandonment costs or the salvage value and makes no warranty for Tengasco's estimate. Current costs were held constant throughout the life of the properties. GENERAL Table A presents a one line summary of proved reserve and income data for each of the subject properties which are ranked according to their future net income discounted at 10 percent per year. Table B presents a one line summary of gross and net reserves and income data for each of the subject properties. Table C presents a one line summary of initial basic data for each of the subject properties. Tables 1 through 245 present our estimated projection of production and income by years beginning January 1, 2001, by state, field, and lease or well. While it may reasonably be anticipated that the future prices received for the sale of production and the operating costs and other costs relating to such production may also increase or decrease from existing levels, such changes were, in accordance with rules adopted by the SEC, omitted from consideration in making this evaluation. The estimates of reserves presented herein were based upon a detailed study of the properties in which Tengasco owns an interest; however, we have not made any field examination of the properties. No consideration was given in this report to potential environmental liabilities that may exist RYDER SCOTT COMPANY PETROLEUM CONSULTANTS Tengasco, Inc. March 28, 2001 Page 5 nor were any costs included for potential liability to restore and clean up damages, if any, caused by past operating practices. Tengasco has informed us that they have furnished us all of the accounts, records, geological and engineering data, and reports and other data required for this investigation. The ownership interests, prices, and other factual data furnished by Tengasco were accepted without independent verification. The estimates presented in this report are based on data available through November 2000. Tengasco has assured us of their intent and ability to proceed with the development activities included in this report, and that they are not aware of any legal, regulatory or political obstacles that would significantly alter their plans. Neither we nor any of our employees have any interest in the subject properties and neither the employment to make this study nor the compensation is contingent on our estimates of reserves and future income for the subject properties. This report was prepared for the exclusive use and sole benefit of Tengasco, Inc. The data, work papers, and maps used in this report are available for examination by authorized parties in our offices. Please contact us if we can be of further service. Very truly yours, RYDER SCOTT COMPANY, L.P. /s/ C. PATRICK MCINTURFF -------------------------------- C. Patrick McInturff, P.E. Petroleum Engineer CPM/sw Approved: /s/ JOHN R. WARNER - ------------------------------------- John R. Warner, P.E. Executive Vice President-International RYDER SCOTT COMPANY PETROLEUM CONSULTANTS RESERVE DEFINITIONS PETROLEUM RESERVES DEFINITIONS INTRODUCTION Reserves are those quantities of petroleum which are anticipated to be commercially recovered from known accumulations from a given date forward. All reserve estimates involve some degree of uncertainty. The uncertainty depends chiefly on the amount of reliable geologic and engineering data available at the time of the estimate and the interpretation of these data. The relative degree of uncertainty may be conveyed by placing reserves into one of two principal classifications, either proved or unproved. Unproved reserves are less certain to be recovered than proved reserves and may be further sub-classified as probable and possible reserves to denote progressively increasing uncertainty in their recoverability. It should be noted that Securities and Exchange Commission Regulation S-K prohibits the disclosure of estimated quantities of probable or possible reserves of oil and gas and any estimated value thereof in any documents publicly filed with the Commission. Reserves estimates will generally be revised as additional geologic or engineering data become available or as economic conditions change. Reserves do not include quantities of petroleum being held in inventory, and may be reduced for usage or processing losses if required for financial reporting. Reserves may be attributed to either natural energy or improved recovery methods. Improved recovery methods include all methods for supplementing natural energy or altering natural forces in the reservoir to increase ultimate recovery. Examples of such methods are pressure maintenance, cycling, waterflooding, thermal methods, chemical flooding, and the use of miscible and immiscible displacement fluids. Other improved recovery methods may be developed in the future as petroleum technology continues to evolve. PROVED RESERVES (SEC DEFINITIONS) Securities and Exchange Commission Regulation S-X Rule 4-10 paragraph (a) defines proved reserves as follows: PROVED OIL AND GAS RESERVES. Proved oil and gas reserves are the estimated quantities of crude oil, natural gas, and natural gas liquids which geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions, i.e., prices and costs as of the date the estimate is made. Prices include consideration of changes in existing prices provided only by contractual arrangements, but not on escalations based upon future conditions. (i) Reservoirs are considered proved if economic producibility is supported by either actual production or conclusive formation test. The area of a reservoir considered proved includes: (A) that portion delineated by drilling and defined by gas-oil and/or oil-water contacts, if any; and RYDER SCOTT COMPANY PETROLEUM CONSULTANTS PETROLEUM RESERVES DEFINITIONS Page 2 (B) the immediately adjoining portions not yet drilled, but which can be reasonably judged as economically productive on the basis of available geological and engineering data. In the absence of information on fluid contacts, the lowest known structural occurrence of hydrocarbons controls the lower proved limit of the reservoir. (ii) Reserves which can be produced economically through application of improved recovery techniques (such as fluid injection) are included in the "proved" classification when successful testing by a pilot project, or the operation of an installed program in the reservoir, provides support for the engineering analysis on which the project or program was based. (iii) Estimates of proved reserves do not include the following: (A) oil that may become available from known reservoirs but is classified separately as "indicated additional reserves"; (B) crude oil, natural gas, and natural gas liquids, the recovery of which is subject to reasonable doubt because of uncertainty as to geology, reservoir characteristics, or economic factors; (C) crude oil, natural gas, and natural gas liquids, that may occur in undrilled prospects; and (D) crude oil, natural gas, and natural gas liquids, that may be recovered from oil shales, coal, gilsonite and other such sources. PROVED DEVELOPED OIL AND GAS RESERVES. Proved developed oil and gas reserves are reserves that can be expected to be recovered through existing wells with existing equipment and operating methods. Additional oil and gas expected to be obtained through the application of fluid injection or other improved recovery techniques for supplementing the natural forces and mechanisms of primary recovery should be included as "proved developed reserves" only after testing by a pilot project or after the operation of an installed program has confirmed through production response that increased recovery will be achieved. PROVED UNDEVELOPED RESERVES. Proved undeveloped oil and gas reserves are reserves that are expected to be recovered from new wells on undrilled acreage, or from existing wells where a relatively major expenditure is required for recompletion. Reserves on undrilled acreage shall be limited to those drilling units offsetting productive units that are reasonably certain of production when drilled. Proved reserves for other undrilled units can be claimed only where it can be demonstrated with certainty that there is continuity of production from the existing productive formation. Under no circumstances should estimates for proved undeveloped reserves be attributable to any acreage for which an application of fluid injection or other improved recovery technique is contemplated, unless such techniques have been proved effective by actual tests in the area and in the same reservoir. Certain Staff Accounting Bulletins published subsequent to the promulgation of Regulation S-X have dealt with matters relating to the application of financial accounting and disclosure rules for oil and gas producing activities. In particular, the following interpretations extracted from Staff Accounting Bulletins set forth the Commission staff's view on specific questions pertaining to proved oil and gas reserves. RYDER SCOTT COMPANY PETROLEUM CONSULTANTS PETROLEUM RESERVES DEFINITIONS Page 3 Economic producibility of estimated proved reserves can be supported to the satisfaction of the Office of Engineering if geological and engineering data demonstrate with reasonable certainty that those reserves can be recovered in future years under existing economic and operating conditions. The relative importance of the many pieces of geological and engineering data which should be evaluated when classifying reserves cannot be identified in advance. In certain instances, proved reserves may be assigned to reservoirs on the basis of a combination of electrical and other type logs and core analyses which indicate the reservoirs are analogous to similar reservoirs in the same field which are producing or have demonstrated the ability to produce on a formation test. (extracted from SAB-35) In determining whether "proved undeveloped reserves" encompass acreage on which fluid injection (or other improved recovery technique) is contemplated, is it appropriate to distinguish between (i) fluid injection used for pressure maintenance during the early life of a field and (ii) fluid injection used to effect secondary recovery when a field is in the late stages of depletion? ... The Office of Engineering believes that the distinction identified in the above question may be appropriate in a few limited circumstances, such as in the case of certain fields in the North Sea. The staff will review estimates of proved reserves attributable to fluid injection in the light of the strength of the evidence presented by the registrant in support of a contention that enhanced recovery will be achieved. (extracted from SAB-35) Companies should report reserves of natural gas liquids which are net to their leasehold interest, i.e., that portion recovered in a processing plant and allocated to the leasehold interest. It may be appropriate in the case of natural gas liquids not clearly attributable to leasehold interests ownership to follow instruction (b) of Item 2(b)(3) of Regulation S-K and report such reserves separately and describe the nature of the ownership. (extracted from SAB-35) THE STAFF BELIEVES THAT SINCE COALBED METHANE GAS CAN BE RECOVERED FROM COAL IN ITS NATURAL AND ORIGINAL LOCATION, IT SHOULD BE INCLUDED IN PROVED RESERVES, PROVIDED THAT IT COMPLIES IN ALL OTHER RESPECTS WITH THE DEFINITION OF PROVED OIL AND GAS RESERVES AS SPECIFIED IN RULE 4-10(A)(2) INCLUDING THE REQUIREMENT THAT METHANE PRODUCTION BE ECONOMICAL AT CURRENT PRICES, COSTS, (NET OF THE TAX CREDIT) AND EXISTING OPERATING CONDITIONS. (EXTRACTED FROM SAB-85) Statements in Staff Accounting Bulletins are not rules or interpretations of the Commission nor are they published as bearing the Commission's official approval; they represent interpretations and practices followed by the Division of Corporation Finance and the Office of the Chief Accountant in administering the disclosure requirements of the Federal securities laws. SUB-CATEGORIZATION OF DEVELOPED RESERVES (SPE/WPC DEFINITIONS) In accordance with guidelines adopted by the Society of Petroleum Engineers (SPE) and the World Petroleum Congress (WPC), developed reserves may be sub-categorized as producing or non-producing. PRODUCING. Reserves sub-categorized as producing are expected to be recovered from completion intervals which are open and producing at the time of the estimate. Improved recovery reserves are considered producing only after the improved recovery project is in operation. RYDER SCOTT COMPANY PETROLEUM CONSULTANTS PETROLEUM RESERVES DEFINITIONS Page 4 NON-PRODUCING. Reserves sub-categorized as non-producing include shut-in and behind pipe reserves. Shut-in reserves are expected to be recovered from (1) completion intervals which are open at the time of the estimate but which have not started producing, (2) wells which were shut-in awaiting pipeline connections or as a result of a market interruption, or (3) wells not capable of production for mechanical reasons. Behind pipe reserves are expected to be recovered from zones in existing wells, which will require additional completion work or future recompletion prior to the start of production. UNPROVED RESERVES (SPE/WPC DEFINITIONS) Unproved reserves are based on geologic and/or engineering data similar to that used in estimates of proved reserves; but technical, contractual, economic, or regulatory uncertainties preclude such reserves being classified as proved. Unproved reserves may be further classified as probable reserves and possible reserves. Unproved reserves may be estimated assuming future economic conditions different from those prevailing at the time of the estimate. The effect of possible future improvements in economic conditions and technological developments can be expressed by allocating appropriate quantities of reserves to the probable and possible classifications. PROBABLE RESERVES. Probable reserves are those unproved reserves which analysis of geological and engineering data suggests are more likely than not to be recoverable. In this context, when probabilistic methods are used, there should be at least a 50 percent probability that the quantities actually recovered will equal or exceed the sum of estimated proved plus probable reserves. In general, probable reserves may include (1) reserves anticipated to be proved by normal step-out drilling where sub-surface control is inadequate to classify these reserves as proved, (2) reserves in formations that appear to be productive based on well log characteristics but lack core data or definitive tests and which are not analogous to producing or proved reserves in the area, (3) incremental reserves attributable to infill drilling that could have been classified as proved if closer statutory spacing had been approved at the time of the estimate, (4) reserves attributable to improved recovery methods that have been established by repeated commercially successful applications when (a) a project or pilot is planned but not in operation and (b) rock, fluid, and reservoir characteristics appear favorable for commercial application, (5) reserves in an area of the formation that appears to be separated from the proved area by faulting and the geologic interpretation indicates the subject area is structurally higher than the proved area, (6) reserves attributable to a future workover, treatment, re-treatment, change of equipment, or other mechanical procedures, where such procedure has not been proved successful in wells which exhibit similar behavior in analogous reservoirs, and (7) incremental reserves in proved reservoirs where an alternative interpretation of performance or volumetric data indicates more reserves than can be classified as proved. POSSIBLE RESERVES. Possible reserves are those unproved reserves which analysis of geological and engineering data suggests are less likely to be recoverable than probable reserves. In this context, when probabilistic methods are used, there should be at least a 10 percent probability that the quantities actually recovered will equal or exceed the sum of estimated proved plus probable plus possible reserves. RYDER SCOTT COMPANY PETROLEUM CONSULTANTS PETROLEUM RESERVES DEFINITIONS Page 5 In general, possible reserves may include (1) reserves which, based on geological interpretations, could possibly exist beyond areas classified as probable, (2) reserves in formations that appear to be petroleum bearing based on log and core analysis but may not be productive at commercial rates, (3) incremental reserves attributed to infill drilling that are subject to technical uncertainty, (4) reserves attributed to improved recovery methods when (a) a project or pilot is planned but not in operation and (b) rock, fluid, and reservoir characteristics are such that a reasonable doubt exists that the project will be commercial, and (5) reserves in an area of the formation that appears to be separated from the proved area by faulting and geological interpretation indicates the subject area is structurally lower than the proved area. RYDER SCOTT COMPANY PETROLEUM CONSULTANTS PROPERTY RANKING [LOGO OMITTED] RYDER SCOTT COMPANY TABLE A --------------------- Page 1 of 12 PETROLEUM CONSULTANTS TENGASCO, INC. PROPERTY RANKING BY PROVED DISCOUNTED FUTURE NET INCOME AS OF DECEMBER 31, 2000 SEC CASE
($) --------NET RESERVES-------- ($) FUTURE NET PERCENT CUMULATIVE (A) (BARRELS) (MMCF) FUTURE NET INCOME DISC. OF PERCENT TABLE STATUS OIL/COND.(B) GAS INCOME (C) AT 10.0% TOTAL OF TOTAL NUMBER ------ -------------- ---------- -------------- ------------- ------- --------- ------ SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-SI 0 4,549 42,905,373 27,828,474 8.829 8.829 214 WARREN REED #2 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-UD 0 3,337 31,271,875 22,671,454 7.193 16.021 216 LOCATION # 1 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-UD 0 2,782 26,014,807 18,846,372 5.979 22.001 217 LOCATION # 2 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-SI 0 2,157 20,292,540 12,939,684 4.105 26.106 198 PAUL REED #4 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-SI 0 1,667 15,705,799 12,011,204 3.811 29.917 180 CHEVRON WARREN REED #1 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-UD 0 1,668 15,475,938 11,196,802 3.552 33.469 221 LOCATION # 7 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-SI 0 1,749 16,433,616 11,140,327 3.534 37.003 181 D. SUTTON HEIRS #1 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-UD 0 1,668 15,475,405 11,040,496 3.503 40.506 227 LOCATION #13 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-SI 0 1,602 15,060,731 10,360,880 3.287 43.793 185 DORIS HELTON #1 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-UD 0 1,334 12,315,947 8,869,411 2.814 46.607 219 LOCATION # 5 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-UD 0 1,223 11,265,008 7,981,230 2.532 49.139 222 LOCATION # 8 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-SI 0 1,134 10,655,753 7,927,799 2.515 51.654 177 ANITA COLSON #1 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-UD 0 1,111 10,228,493 7,777,888 2.468 54.122 224 LOCATION #10 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-UD 0 1,111 10,228,962 7,720,723 2.449 56.571 225 LOCATION #11 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-UD 0 1,111 10,228,962 7,720,723 2.449 59.021 226 LOCATION #12 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-UD 0 1,111 10,228,862 7,656,855 2.429 61.450 228 LOCATION #14 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-UD 0 1,006 9,235,435 7,221,576 2.291 63.741 220 LOCATION # 6 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-SI 0 1,128 10,618,027 7,194,694 2.283 66.023 202 PURKEY #1 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-UD 0 1,013 9,299,506 7,066,251 2.242 68.265 229 LOCATION #15
[LOGO OMITTED] RYDER SCOTT COMPANY TABLE A --------------------- Page 2 of 12 PETROLEUM CONSULTANTS TENGASCO, INC. PROPERTY RANKING BY PROVED DISCOUNTED FUTURE NET INCOME AS OF DECEMBER 31, 2000 SEC CASE
($) --------NET RESERVES-------- ($) FUTURE NET PERCENT CUMULATIVE (A) (BARRELS) (MMCF) FUTURE NET INCOME DISC. OF PERCENT TABLE STATUS OIL/COND.(B) GAS INCOME (C) AT 10.0% TOTAL OF TOTAL NUMBER ------ -------------- ---------- -------------- ------------- ------- --------- ------ SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-UD 0 834 7,581,261 5,394,837 1.712 69.977 218 LOCATION # 4 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-SI 0 720 6,739,816 5,124,797 1.626 71.603 191 LAURA J. LAWSON #2 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-UD 0 778 7,060,459 5,119,690 1.624 73.227 223 LOCATION # 9 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-UD 0 778 7,062,795 5,022,296 1.593 74.820 232 LOCATION #18 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-SI 0 623 5,834,581 4,553,857 1.445 76.265 207 STEPHEN LAWSON #3 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-SI 0 613 5,790,793 4,309,009 1.367 77.632 193 PAUL REED #1 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-SI 0 568 5,306,698 4,250,549 1.349 78.981 187 GARY PATTON #2 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-UD 0 555 4,968,730 3,776,673 1.198 80.179 230 LOCATION #16 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-UD 0 555 4,968,630 3,745,400 1.188 81.367 231 LOCATION #17 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-UD 0 555 4,965,840 3,594,708 1.140 82.507 235 LOCATION #21 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-UD 0 555 4,965,740 3,564,939 1.131 83.638 236 LOCATION #23 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-SI 0 402 3,776,489 3,560,528 1.130 84.768 203 RAY DEAN HELTON #1 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-UD 0 500 4,443,467 3,222,626 1.022 85.791 234 LOCATION #20 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-SI 0 431 4,014,410 3,171,220 1.006 86.797 196 PAUL REED #3 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-SI 0 436 4,062,896 3,145,504 0.998 87.795 209 STEPHEN LAWSON #4 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-UD 0 444 3,916,720 2,963,411 0.940 88.735 233 LOCATION #19 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-SI 0 335 3,125,875 2,564,728 0.814 89.548 212 WARREN REED #1 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-UD 0 335 2,894,573 2,097,744 0.666 90.214 237 LOCATION #24 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-PD 125,017 0 2,729,712 1,918,675 0.609 90.823 200 PAUL REED #5
[LOGO OMITTED] RYDER SCOTT COMPANY TABLE A --------------------- Page 3 of 12 PETROLEUM CONSULTANTS TENGASCO, INC. PROPERTY RANKING BY PROVED DISCOUNTED FUTURE NET INCOME AS OF DECEMBER 31, 2000 SEC CASE
($) --------NET RESERVES-------- ($) FUTURE NET PERCENT CUMULATIVE (A) (BARRELS) (MMCF) FUTURE NET INCOME DISC. OF PERCENT TABLE STATUS OIL/COND.(B) GAS INCOME (C) AT 10.0% TOTAL OF TOTAL NUMBER ------ -------------- ---------- -------------- ------------- ------- --------- ------ SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-UD 0 279 2,372,694 1,807,508 0.573 91.396 238 LOCATION #25 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-PD 80,057 0 1,736,110 1,292,196 0.410 91.806 184 DEWEY SUTTON #1 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-PD 56,103 0 1,176,309 889,847 0.282 92.088 201 PAUL REED/HELTON UNIT #6 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-SI 0 105 976,739 857,395 0.272 92.360 179 ANITA COLSON #2 MCHALE FIELD, ROOKS COUNTY, KANSAS PV-PD 93,123 0 1,583,391 795,182 0.252 92.613 59 HARRISON -A- SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-BP 0 113 984,566 743,944 0.236 92.849 204 RAY DEAN HELTON #1 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-SI 0 89 811,374 711,752 0.226 93.074 183 DARRELL SUTTON #1 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-SI 0 84 765,111 698,952 0.222 93.296 206 STEPHEN LAWSON #2 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-BP 0 141 1,278,735 621,503 0.197 93.493 215 WARREN REED #2 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-BP 0 140 1,257,417 593,815 0.188 93.682 182 D. SUTTON HEIRS #1 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-UD 0 112 795,266 592,579 0.188 93.870 240 LOCATION #27 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-UD 0 112 795,266 592,579 0.188 94.058 241 LOCATION #28 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-UD 0 112 795,266 592,579 0.188 94.246 239 LOCATION #26 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-UD 0 112 795,266 587,682 0.186 94.432 242 LOCATION #29 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-UD 0 112 795,266 587,682 0.186 94.619 243 LOCATION #30 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-PD 34,174 0 682,092 525,380 0.167 94.785 194 PAUL REED #2 PARADISE CREEK FIELD, ROOKS COUNTY, KANSAS PV-PD 79,854 0 869,846 464,980 0.148 94.933 65 STAHL SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-BP 8,466 141 1,462,677 457,447 0.145 95.078 192 LAURA J. LAWSON #2 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-BP 0 98 877,442 442,093 0.140 95.218 186 DORIS HELTON #1
[LOGO OMITTED] RYDER SCOTT COMPANY TABLE A --------------------- Page 4 of 12 PETROLEUM CONSULTANTS TENGASCO, INC. PROPERTY RANKING BY PROVED DISCOUNTED FUTURE NET INCOME AS OF DECEMBER 31, 2000 SEC CASE
($) --------NET RESERVES-------- ($) FUTURE NET PERCENT CUMULATIVE (A) (BARRELS) (MMCF) FUTURE NET INCOME DISC. OF PERCENT TABLE STATUS OIL/COND.(B) GAS INCOME (C) AT 10.0% TOTAL OF TOTAL NUMBER ------ -------------- ---------- -------------- ------------- ------- --------- ------ REICHEL WEST FIELD, RUSH COUNTY, KANSAS PV-PD 0 292 989,088 420,634 0.133 95.352 144 MUTH #1&2 REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 231 756,577 407,274 0.129 95.481 99 GIESICK #1 PLAINVILLE FIELD, ROOKS COUNTY, KANSAS PV-PD 42,807 0 719,648 361,850 0.115 95.596 75 JACO REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 215 1,135,809 346,253 0.110 95.706 84 ALLEN #1 A&D SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-BP 0 77 674,860 335,918 0.107 95.812 195 PAUL REED #2 MARCOTTE FIELD, ROOKS COUNTY, KANSAS PV-PD 59,499 0 473,313 318,295 0.101 95.913 56 CROFFOOT -B- REICHEL FIELD, RUSH COUNTY, KANSAS PV-BP 0 94 452,020 317,217 0.101 96.014 139 THIELENHAUS #1 BP REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 209 815,755 295,392 0.094 96.107 93 DECKER -A- #1 REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 171 671,147 294,907 0.094 96.201 140 TORREY #2 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-BP 29,630 20 787,107 288,955 0.092 96.293 208 STEPHEN LAWSON #3 RUGGELS WEST FIELD, OSBORNE COUNTY, KANSAS PV-BP 22,174 0 490,957 283,230 0.090 96.383 149 MAIER #1 BP MARCOTTE FIELD, ROOKS COUNTY, KANSAS PV-PD 35,176 0 665,429 277,375 0.088 96.471 54 CROFFOOT SANDFORD FIELD, BARTON COUNTY, KANSAS PV-PD 35,588 0 450,485 276,739 0.088 96.558 150 BEN TEMPERO KRAUS FIELD, ELLIS COUNTY, KANSAS PV-PD 25,052 0 447,696 263,734 0.084 96.642 46 KRAUS -I- BEISEL FIELD, RUSSELL COUNTY, KANSAS PV-UD 33,906 0 547,220 252,794 0.080 96.722 17 BEISEL #9 PUD PARADISE CREEK FIELD, ROOKS COUNTY, KANSAS PV-UD 39,657 0 597,397 252,216 0.080 96.802 66 STAHL #7 PUD SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-BP 13,545 45 656,842 235,603 0.075 96.877 188 GARY PATTON #2 REICHEL WEST FIELD, RUSH COUNTY, KANSAS PV-PD 0 176 603,430 233,583 0.074 96.951 143 LEGLEITER -A- #1 YOHE FIELD, ROOKS COUNTY, KANSAS PV-PD 26,442 0 399,657 233,392 0.074 97.025 169 MOSHER
[LOGO OMITTED] RYDER SCOTT COMPANY TABLE A --------------------- Page 5 of 12 PETROLEUM CONSULTANTS TENGASCO, INC. PROPERTY RANKING BY PROVED DISCOUNTED FUTURE NET INCOME AS OF DECEMBER 31, 2000 SEC CASE
($) --------NET RESERVES-------- ($) FUTURE NET PERCENT CUMULATIVE (A) (BARRELS) (MMCF) FUTURE NET INCOME DISC. OF PERCENT TABLE STATUS OIL/COND.(B) GAS INCOME (C) AT 10.0% TOTAL OF TOTAL NUMBER ------ -------------- ---------- -------------- ------------- ------- --------- ------ KRAUS FIELD, ELLIS COUNTY, KANSAS PV-PD 24,709 0 284,661 219,697 0.070 97.095 44 KRAUS -A- SANDFORD FIELD, BARTON COUNTY, KANSAS PV-UD 36,131 0 431,485 214,627 0.068 97.163 151 BEN TEMPERO #5 PUD SCHWINDT FIELD, RUSH COUNTY, KANSAS PV-PD 32,299 0 438,484 211,726 0.067 97.230 152 JACOBS -B- MARCOTTE FIELD, ROOKS COUNTY, KANSAS PV-PD 30,890 0 426,624 209,550 0.066 97.297 58 DICK RIDGEWAY SOUTH FIELD, TREGO COUNTY, KANSAS PV-PD 17,422 0 283,083 203,406 0.065 97.361 145 SCHOENTHALER CHASE-SILICA FIELD, BARTON COUNTY, KANSAS PV-PD 27,979 0 419,548 201,099 0.064 97.425 24 ROSE, CHARLES BIELMAN FIELD, ELLIS COUNTY, KANSAS PV-PD 41,100 0 474,490 201,072 0.064 97.489 18 GRASS REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 87 378,619 197,610 0.063 97.551 128 RAU #1 AXELSON FIELD, ROOKS COUNTY, KANSAS PV-PD 32,091 0 387,446 186,241 0.059 97.610 15 AXELSON #1 REICHEL FIELD, RUSH COUNTY, KANSAS PV-BP 0 42 218,509 175,121 0.056 97.666 120 LIPPERT #3 BP REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 85 324,914 175,106 0.056 97.722 131 ROTHE, R. #1 LITTLE RIO FIELD, RICE COUNTY, KANSAS PV-PD 25,673 0 326,373 170,467 0.054 97.776 53 WHITEMAN-HOLLAND SPRING CREEK FIELD, TREGO COUNTY, KANSAS PV-PD 19,150 0 261,557 168,048 0.053 97.829 153 RIDGWAY YOHE FIELD, ROOKS COUNTY, KANSAS PV-PD 28,464 0 282,996 165,716 0.053 97.882 168 FINNESY REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 75 216,667 163,342 0.052 97.933 134 SCHNEIDER #1 THACKER FIELD, RUSSELL COUNTY, KANSAS PV-PD 12,459 0 306,720 162,931 0.052 97.985 159 THACKER #2 OMLOR FIELD, STAFFORD COUNTY, KANSAS PV-PD 28,465 0 348,977 157,556 0.050 98.035 63 WILLIAMS SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-BP 13,545 30 525,594 152,227 0.048 98.083 178 ANITA COLSON #1 PLAINVILLE FIELD, ROOKS COUNTY, KANSAS PV-PD 21,545 0 380,361 146,806 0.047 98.130 72 GARVERT #1-A
[LOGO OMITTED] RYDER SCOTT COMPANY TABLE A --------------------- Page 6 of 12 PETROLEUM CONSULTANTS TENGASCO, INC. PROPERTY RANKING BY PROVED DISCOUNTED FUTURE NET INCOME AS OF DECEMBER 31, 2000 SEC CASE
($) --------NET RESERVES-------- ($) FUTURE NET PERCENT CUMULATIVE (A) (BARRELS) (MMCF) FUTURE NET INCOME DISC. OF PERCENT TABLE STATUS OIL/COND.(B) GAS INCOME (C) AT 10.0% TOTAL OF TOTAL NUMBER ------ -------------- ---------- -------------- ------------- ------- --------- ------ REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 88 287,710 140,051 0.044 98.174 96 FOOS #1 GATES NORTH FIELD, STAFFORD COUNTY, KANSAS PV-PD 20,541 0 292,448 137,073 0.043 98.218 37 SCHULZ REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 102 307,055 136,317 0.043 98.261 119 LIPPERT #3 PLAINVILLE FIELD, ROOKS COUNTY, KANSAS PV-PD 16,102 0 211,543 132,907 0.042 98.303 76 ROSS REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 97 249,052 131,840 0.042 98.345 103 HANHARDT #1-A WERTH NORTH FIELD, ELLIS COUNTY, KANSAS PV-PD 20,243 0 210,597 130,735 0.041 98.387 164 SCHNELLER WEBSTER FIELD, ROOKS COUNTY, KANSAS PV-PD 22,089 0 260,985 128,115 0.041 98.427 162 CERROW-CERROW -A- RIGA NORTHEAST FIELD, TREGO COUNTY, KANSAS PV-PD 18,028 0 218,434 123,840 0.039 98.467 147 KELLER -A- DAVIDSON FIELD, RUSSELL COUNTY, KANSAS PV-PD 16,745 0 159,568 123,669 0.039 98.506 30 FOSTER REICHEL FIELD, RUSH COUNTY, KANSAS PV-BP 0 31 149,186 122,095 0.039 98.544 104 HANHARDT #1-A BP COOPER FIELD, GRAHAM COUNTY, KANSAS PV-PD 19,077 0 229,754 119,116 0.038 98.582 29 LEWIS -A- PLEASANT VIEW NW FIELD, RUSH COUNTY, KANSAS PV-UD 24,500 0 291,455 114,893 0.036 98.619 82 URBAN #6 PUD PLEASANT VIEW NW FIELD, RUSH COUNTY, KANSAS PV-UD 24,500 0 291,455 112,068 0.036 98.654 83 URBAN #7 PUD STREMEL FIELD, RUSH COUNTY, KANSAS PV-PD 16,318 0 194,791 105,407 0.033 98.688 158 URBAN -D- #2 RUGGELS WEST FIELD, OSBORNE COUNTY, KANSAS PV-PD 9,189 0 160,381 105,006 0.033 98.721 148 MAIER REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 89 316,288 104,957 0.033 98.754 88 BIEBER #1 REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 81 286,856 102,581 0.033 98.787 94 EDWARDS #1 REICHEL EAST FIELD, RUSH COUNTY, KANSAS PV-PD 0 70 264,818 99,687 0.032 98.819 142 BAHR #1 REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 61 258,103 99,283 0.031 98.850 89 BIEBER -A- #1
[LOGO OMITTED] RYDER SCOTT COMPANY TABLE A --------------------- Page 7 of 12 PETROLEUM CONSULTANTS TENGASCO, INC. PROPERTY RANKING BY PROVED DISCOUNTED FUTURE NET INCOME AS OF DECEMBER 31, 2000 SEC CASE
($) --------NET RESERVES-------- ($) FUTURE NET PERCENT CUMULATIVE (A) (BARRELS) (MMCF) FUTURE NET INCOME DISC. OF PERCENT TABLE STATUS OIL/COND.(B) GAS INCOME (C) AT 10.0% TOTAL OF TOTAL NUMBER ------ -------------- ---------- -------------- ------------- ------- --------- ------ COOPER FIELD, GRAHAM COUNTY, KANSAS PV-PD 17,609 0 143,130 98,122 0.031 98.881 28 DEYOUNG BEISEL FIELD, RUSSELL COUNTY, KANSAS PV-PD 25,229 0 139,245 96,638 0.031 98.912 16 BEISEL ARPIN SOUTH FIELD, ROOKS COUNTY, KANSAS PV-PD 10,497 0 122,331 95,792 0.030 98.942 13 THYFAULT REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 46 114,496 94,963 0.030 98.972 129 REICHEL #1 PAWNEE ROCK FIELD, PAWNEE COUNTY, KANSAS PV-PD 11,992 0 126,642 93,723 0.030 99.002 67 O'SCHULTZ #1 REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 69 233,617 89,706 0.028 99.031 126 OCHS #1-A SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-BP 8,418 6 193,570 85,430 0.027 99.058 210 STEPHEN LAWSON #4 REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 55 142,032 84,725 0.027 99.084 136 STEITZ -A- #1 KRAUS FIELD, ELLIS COUNTY, KANSAS PV-PD 15,239 0 129,637 83,989 0.027 99.111 45 KRAUS -B- MCHALE FIELD, ROOKS COUNTY, KANSAS PV-PD 11,916 0 112,769 81,414 0.026 99.137 60 HILGERS -B- TRAPP FIELD, BARTON COUNTY, KANSAS PV-PD 5,876 0 101,832 81,205 0.026 99.163 161 HOWLIER #1 PLEASANT VIEW FIELD, RUSH COUNTY, KANSAS PV-BP 0 33 141,732 80,875 0.026 99.188 80 URBAN -K- #5 BP REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 64 218,077 77,262 0.025 99.213 135 SHERWOOD #1 IRVIN FIELD, ELLIS COUNTY, KANSAS PV-PD 16,772 0 123,179 76,732 0.024 99.237 43 KINDERKNECHT -B- PLAINVILLE FIELD, ROOKS COUNTY, KANSAS PV-PD 12,590 0 189,715 74,989 0.024 99.261 73 GARVERT -B- #1 PAWNEE ROCK FIELD, PAWNEE COUNTY, KANSAS PV-PD 12,720 0 96,892 74,768 0.024 99.285 68 OETKIN REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 44 147,887 73,863 0.023 99.308 87 BEAHM #1 CHEYENNE FIELD, BARTON COUNTY, KANSAS PV-PD 12,300 0 121,436 73,363 0.023 99.331 25 HAMMEKE STOCKTON FIELD, ROOKS COUNTY, KANSAS PV-PD 12,955 0 137,163 71,289 0.023 99.354 155 STEBBINS
[LOGO OMITTED] RYDER SCOTT COMPANY TABLE A --------------------- Page 8 of 12 PETROLEUM CONSULTANTS TENGASCO, INC. PROPERTY RANKING BY PROVED DISCOUNTED FUTURE NET INCOME AS OF DECEMBER 31, 2000 SEC CASE
($) --------NET RESERVES-------- ($) FUTURE NET PERCENT CUMULATIVE (A) (BARRELS) (MMCF) FUTURE NET INCOME DISC. OF PERCENT TABLE STATUS OIL/COND.(B) GAS INCOME (C) AT 10.0% TOTAL OF TOTAL NUMBER ------ -------------- ---------- -------------- ------------- ------- --------- ------ GATES NORTH FIELD, STAFFORD COUNTY, KANSAS PV-PD 10,532 0 140,971 68,661 0.022 99.376 36 HOFFMAN REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 33 110,050 66,662 0.021 99.397 138 THIELENHAUS #1 LEIKER EAST FIELD, ELLIS COUNTY, KANSAS PV-PD 8,620 0 187,018 65,747 0.021 99.418 47 LEIKER HERMAN FIELD, BARTON COUNTY, KANSAS PV-PD 10,854 0 116,760 64,399 0.020 99.438 40 KARST PLEASANT VIEW NW FIELD, RUSH COUNTY, KANSAS PV-PD 13,787 0 81,791 64,151 0.020 99.459 81 URBAN SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-BP 0 15 112,301 64,078 0.020 99.479 199 PAUL REED #4 REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 39 104,254 62,335 0.020 99.499 116 KOBER #1 REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 27 106,354 60,928 0.019 99.518 100 GILLIG #1 HOBROCK FIELD, OSBORNE COUNTY, KANSAS PV-PD 5,518 0 115,694 60,600 0.019 99.537 41 HOBROCK SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-BP 0 14 105,604 59,112 0.019 99.556 197 PAUL REED #3 STOCKTON FIELD, ROOKS COUNTY, KANSAS PV-PD 12,368 0 117,936 58,691 0.019 99.575 156 WATTS DISTRICT 57 FIELD, ELLIS COUNTY, KANSAS PV-PD 13,148 0 117,157 58,452 0.019 99.593 31 FLAX -F- SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-BP 6,674 0 101,429 56,241 0.018 99.611 213 WARREN REED #1 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-BP 0 15 102,448 55,309 0.018 99.629 190 LAURA J. LAWSON #1 WESTHUSIN FIELD, ROOKS COUNTY, KANSAS PV-PD 6,393 0 93,349 54,832 0.017 99.646 165 DOUGHERTY EAST #1 REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 31 84,858 51,478 0.016 99.662 137 STEITZ -B- #1 CENTERVIEW FIELD, STAFFORD COUNTY, KANSAS PV-PD 7,368 0 67,156 51,184 0.016 99.679 21 BECKERDITE #1 REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 6,258 0 70,757 50,549 0.016 99.695 112 KAISER #1 REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 15 71,332 45,785 0.015 99.709 102 HANHARDT #1
[LOGO OMITTED] RYDER SCOTT COMPANY TABLE A --------------------- Page 9 of 12 PETROLEUM CONSULTANTS TENGASCO, INC. PROPERTY RANKING BY PROVED DISCOUNTED FUTURE NET INCOME AS OF DECEMBER 31, 2000 SEC CASE
($) --------NET RESERVES-------- ($) FUTURE NET PERCENT CUMULATIVE (A) (BARRELS) (MMCF) FUTURE NET INCOME DISC. OF PERCENT TABLE STATUS OIL/COND.(B) GAS INCOME (C) AT 10.0% TOTAL OF TOTAL NUMBER ------ -------------- ---------- -------------- ------------- ------- --------- ------ REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 23 72,248 44,883 0.014 99.723 132 SCHEUERMAN -A- #1 CONVERSE FIELD, BARTON COUNTY, KANSAS PV-PD 10,670 0 51,664 44,399 0.014 99.737 26 IANNITTI STOCKTON FIELD, ROOKS COUNTY, KANSAS PV-PD 9,007 0 78,872 44,374 0.014 99.752 154 HINDMAN, D.A. REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 37 95,849 44,368 0.014 99.766 97 FOOS -A- #1 PLEASANT VIEW FIELD, RUSH COUNTY, KANSAS PV-PD 5,676 0 77,376 43,756 0.014 99.780 79 URBAN -K- REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 38 93,021 40,176 0.013 99.792 109 HONDERICK #1-C MARCOTTE FIELD, ROOKS COUNTY, KANSAS PV-PD 8,260 0 56,851 38,880 0.012 99.805 55 CROFFOOT -A- DUNES NORTH FIELD, PAWNEE COUNTY, KANSAS PV-PD 10,018 0 61,044 38,575 0.012 99.817 33 LOVETT ELLIS NW FIELD, TREGO COUNTY, KANSAS PV-PD 7,891 0 52,655 37,873 0.012 99.829 34 BAUGHER #1 GIESICK FIELD, RUSH COUNTY, KANSAS PV-PD 0 27 52,174 35,938 0.011 99.840 38 GIESICK #2 REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 29 72,863 35,537 0.011 99.852 117 LEBSACK -A- #1 REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 25 67,051 34,066 0.011 99.862 115 KLEWENO -A- #1 PLAINVILLE FIELD, ROOKS COUNTY, KANSAS PV-PD 4,276 0 55,500 31,000 0.010 99.872 70 ANDERSON -A- REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 10 37,539 29,262 0.009 99.881 101 GRUMBEIN #1-A REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 16 33,795 28,316 0.009 99.890 130 ROTHE #1 REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 28 54,479 28,250 0.009 99.899 85 APPL #1 STREMEL FIELD, RUSH COUNTY, KANSAS PV-PD 3,243 6 40,479 27,891 0.009 99.908 157 OCHS #1 & 3 RIGA NORTHEAST FIELD, TREGO COUNTY, KANSAS PV-PD 4,507 0 32,057 22,697 0.007 99.915 146 KELLER REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 16 35,488 22,504 0.007 99.923 95 ELDER #1
[LOGO OMITTED] RYDER SCOTT COMPANY TABLE A --------------------- Page 10 of 12 PETROLEUM CONSULTANTS TENGASCO, INC. PROPERTY RANKING BY PROVED DISCOUNTED FUTURE NET INCOME AS OF DECEMBER 31, 2000 SEC CASE
($) --------NET RESERVES-------- ($) FUTURE NET PERCENT CUMULATIVE (A) (BARRELS) (MMCF) FUTURE NET INCOME DISC. OF PERCENT TABLE STATUS OIL/COND.(B) GAS INCOME (C) AT 10.0% TOTAL OF TOTAL NUMBER ------ -------------- ---------- -------------- ------------- ------- --------- ------ REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 12 33,265 22,088 0.007 99.930 123 LIPPERT -C- #1 OMLOR FIELD, STAFFORD COUNTY, KANSAS PV-PD 5,773 0 33,570 21,641 0.007 99.936 62 MILLER CARPENTER FIELD, EDWARDS COUNTY, KANSAS PV-PD 4,440 0 29,106 19,936 0.006 99.943 19 HENNING REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 4,846 0 26,526 16,588 0.005 99.948 92 BREIT-HOLZMEISTER -B- DUNES NORTH FIELD, PAWNEE COUNTY, KANSAS PV-PD 4,119 0 24,170 16,007 0.005 99.953 32 BARSTOW REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 14 20,978 15,983 0.005 99.958 113 KAISER #2 WEBSTER FIELD, ROOKS COUNTY, KANSAS PV-PD 2,979 0 18,675 15,493 0.005 99.963 163 LOWRY #1 REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 9 22,871 15,058 0.005 99.968 90 BRACK -A- #3 GOTTSCHALK FIELD, ELLIS COUNTY, KANSAS PV-PD 0 15 15,978 12,853 0.004 99.972 39 WERTH #1 REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 6 13,609 12,296 0.004 99.976 86 APPL #2 REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 8 15,701 11,692 0.004 99.980 133 SCHLITTER #2 WESTHUSIN FIELD, ROOKS COUNTY, KANSAS PV-PD 2,453 0 35,531 11,294 0.004 99.983 166 DOUGHERTY EAST #1 BP PLAINVILLE FIELD, ROOKS COUNTY, KANSAS PV-PD 3,230 0 13,664 11,254 0.004 99.987 74 HARRISON -C- MARCOTTE FIELD, ROOKS COUNTY, KANSAS PV-PD 3,555 0 11,705 9,703 0.003 99.990 57 CROFFOOT -C- CHASE-SILICA FIELD, BARTON COUNTY, KANSAS PV-PD 3,738 0 10,797 9,237 0.003 99.993 22 LANDER #1 REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 15 13,488 8,954 0.003 99.996 114 KLEWENO #1 REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 2 9,246 7,097 0.002 99.998 141 URBAN R & A #1 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-PD 1,067 0 6,954 6,196 0.002 100.000 205 STEPHEN LAWSON #1 REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 1 368 353 0.000 100.000 121 LIPPERT -B- #1
[LOGO OMITTED] RYDER SCOTT COMPANY TABLE A --------------------- Page 11 of 12 PETROLEUM CONSULTANTS TENGASCO, INC. PROPERTY RANKING BY PROVED DISCOUNTED FUTURE NET INCOME AS OF DECEMBER 31, 2000 SEC CASE
($) --------NET RESERVES-------- ($) FUTURE NET PERCENT CUMULATIVE (A) (BARRELS) (MMCF) FUTURE NET INCOME DISC. OF PERCENT TABLE STATUS OIL/COND.(B) GAS INCOME (C) AT 10.0% TOTAL OF TOTAL NUMBER ------ -------------- ---------- -------------- ------------- ------- --------- ------ REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 1 286 270 0.000 100.000 108 HOLZMEISTER #1-B PLEASANT FIELD, ELLIS COUNTY, KANSAS PV-PD 0 0 0 0 0.000 100.000 78 HONAS #1-A LIEBENTHAL FIELD, RUSH COUNTY, KANSAS PV-PD 0 0 0 0 0.000 100.000 51 LEGLEITER -B- #1 SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-SI 0 0 0 0 0.000 100.000 189 LAURA J. LAWSON #1 REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 0 0 0 0.000 100.000 98 FRYE #2 PLEASANT FIELD, RUSH COUNTY, KANSAS PV-PD 0 0 0 0 0.000 100.000 77 BASGALL -C- #4 REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 0 0 0 0.000 100.000 91 BREIT #1 LIEBENTHAL FIELD, RUSH COUNTY, KANSAS PV-PD 0 0 0 0 0.000 100.000 50 GRAHAM #1 HOBROCK FIELD, OSBORNE COUNTY, KANSAS PV-PD 0 0 0 0 0.000 100.000 42 HOGAN PLAINVILLE FIELD, ROOKS COUNTY, KANSAS PV-PD 0 0 0 0 0.000 100.000 71 BARDOT #2 TRAPP FIELD, BARTON COUNTY, KANSAS PV-PD 0 0 0 0 0.000 100.000 160 DEUTSCH REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 0 0 0 0.000 100.000 105 HOFFMAN #3 FICKEN FIELD, RUSH COUNTY, KANSAS PV-PD 0 0 0 0 0.000 100.000 35 SCHWINDT FARMS REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 0 0 0 0.000 100.000 127 PFEIFER -B- #1-B LIEBENTHAL FIELD, RUSH COUNTY, KANSAS PV-PD 0 0 0 0 0.000 100.000 49 DECHANT -B- #2 CONVERSE FIELD, BARTON COUNTY, KANSAS PV-UD 0 0 0 0 0.000 100.000 27 IANNITTI #9 PUD REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 0 0 0 0.000 100.000 110 HOOFER #1 REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 0 0 0 0.000 100.000 111 JANSON #2-A SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE PV-PD 0 0 0 0 0.000 100.000 211 T.J. HARRISON #1
[LOGO OMITTED] RYDER SCOTT COMPANY TABLE A --------------------- Page 12 of 12 PETROLEUM CONSULTANTS TENGASCO, INC. PROPERTY RANKING BY PROVED DISCOUNTED FUTURE NET INCOME AS OF DECEMBER 31, 2000 SEC CASE
($) --------NET RESERVES-------- ($) FUTURE NET PERCENT CUMULATIVE (A) (BARRELS) (MMCF) FUTURE NET INCOME DISC. OF PERCENT TABLE STATUS OIL/COND.(B) GAS INCOME (C) AT 10.0% TOTAL OF TOTAL NUMBER ------ -------------- ---------- -------------- ------------- ------- --------- ------ REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 0 0 0 0.000 100.000 107 HOLZMEISTER #1-A WESTHUSIN FIELD, ROOKS COUNTY, KANSAS PV-PD 0 0 0 0 0.000 100.000 167 DOUGHERTY EAST #2 PUD CARROLL FIELD, BARTON COUNTY, KANSAS PV-PD 0 0 0 0 0.000 100.000 20 KEENAN -B- LEONHARDT SOUTHEAST FIELD, ELLIS COUNTY, KANSAS PV-PD 0 0 0 0 0.000 100.000 48 KRAUS #1 MCHALE FIELD, ROOKS COUNTY, KANSAS PV-PD 0 0 0 0 0.000 100.000 61 KABA #1 REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 0 0 0 0.000 100.000 118 LIPPERT #2 REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 0 0 0 0.000 100.000 106 HOLZMEISTER #1 OTIS-ALBERT FIELD, RUSH COUNTY, KANSAS PV-PD 0 0 0 0 0.000 100.000 64 HARTMAN #1-C LIEBENTHAL FIELD, RUSH COUNTY, KANSAS PV-PD 0 0 0 0 0.000 100.000 52 LEGLEITER -C- #1 REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 0 0 0 0.000 100.000 122 LIPPERT -B- #2 ASH CREEK FIELD, BARTON COUNTY, KANSAS PV-PD 0 0 0 0 0.000 100.000 14 UNRUH REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 0 0 0 0.000 100.000 124 MCGILL #1 REICHEL FIELD, RUSH COUNTY, KANSAS PV-PD 0 0 0 0 0.000 100.000 125 O'DELL #1 -------------- ---------- -------------- ------------- ------- --------- **** TOTALS **** 1,814,905 47,540 447,873,475 315,201,258 100.000 100.000
(A) RESERVE TYPES: PV = PROVED STATUS: PD = PRODUCING DP = DEPLETED PB = PROBABLE BP = BEHIND PIPE NP = NON-PRODUCING PS = POSSIBLE SI = SHUT IN PB = PAYBACK UD = UNDEVELOPED (B) EXCLUDES PLANT PRODUCTS (C) BEFORE FEDERAL OR STATE/PROVINCE INCOME TAXES SUMMARY OF GROSS AND NET RESERVE AND INCOME DATA [LOGO OMITTED] RYDER SCOTT COMPANY TABLE B --------------------- Page 1 of 7 PETROLEUM CONSULTANTS TENGASCO, INC. ESTIMATED FUTURE RESERVES AND INCOME SUMMARY OF GROSS AND NET RESERVE AND INCOME DATA AS OF DECEMBER 31, 2000 SEC CASE
------ESTIMATED REMAINING RESERVES---------- ------------ESTIMATED FUTURE DOLLARS-------------- -------100% GROSS---- ---------NET---------- GROSS REV. --NET INCOME BEFORE FIT-- (A) (BARRELS) (MMCF) (BARRELS) (MMCF) AFTER PROD. TOTAL DISCOUNTED STATUS OIL/COND(B) GAS OIL/COND(B) SALES GAS TAXES DEDUCTIONS UNDISCOUNTED AT 10.0% ------ ----------- --------- ----------- --------- ------------ ------------ ------------ ----------- *** KANSAS PROPERTIES *** ARPIN SOUTH FIELD, ROOKS COUNTY, KANSAS THYFAULT PV-PD 12,797 0 10,497 0 277,311 154,980 122,331 95,792 ASH CREEK FIELD, BARTON COUNTY, KANSAS UNRUH PV-PD 0 0 0 0 0 0 0 0 AXELSON FIELD, ROOKS COUNTY, KANSAS AXELSON #1 PV-PD 40,469 0 32,091 0 847,763 460,317 387,446 186,241 BEISEL FIELD, RUSSELL COUNTY, KANSAS BEISEL PV-PD 28,833 0 25,229 0 666,483 527,238 139,245 96,638 BEISEL #9 PUD PV-UD 38,750 0 33,906 0 895,724 348,504 547,220 252,794 BIELMAN FIELD, ELLIS COUNTY, KANSAS GRASS PV-PD 46,972 0 41,100 0 1,085,776 611,286 474,490 201,072 CARPENTER FIELD, EDWARDS COUNTY, KANSAS HENNING PV-PD 6,265 0 4,440 0 117,306 88,200 29,106 19,936 CARROLL FIELD, BARTON COUNTY, KANSAS KEENAN -B- PV-PD 0 0 0 0 0 0 0 0 CENTERVIEW FIELD, STAFFORD COUNTY, KANSAS BECKERDITE #1 PV-PD 9,125 0 7,368 0 194,658 127,502 67,156 51,184 CHASE-SILICA FIELD, BARTON COUNTY, KANSAS LANDER #1 PV-PD 5,039 0 3,738 0 98,752 87,955 10,797 9,237 LANDER #3 PBUD PB-UD 47,258 0 35,056 0 926,102 490,294 435,808 214,922 ROSE, CHARLES PV-PD 31,976 0 27,979 0 739,142 319,594 419,548 201,099 CHEYENNE FIELD, BARTON COUNTY, KANSAS HAMMEKE PV-PD 14,749 0 12,300 0 324,947 203,511 121,436 73,363 CONVERSE FIELD, BARTON COUNTY, KANSAS IANNITTI PV-PD 12,195 0 10,670 0 281,884 230,220 51,664 44,399 IANNITTI #9 PUD PV-UD 0 0 0 0 0 0 0 0 COOPER FIELD, GRAHAM COUNTY, KANSAS DEYOUNG PV-PD 20,124 0 17,609 0 465,186 322,056 143,130 98,122 LEWIS -A- PV-PD 21,802 0 19,077 0 503,962 274,208 229,754 119,116 DAVIDSON FIELD, RUSSELL COUNTY, KANSAS FOSTER PV-PD 19,755 0 16,745 0 442,369 282,801 159,568 123,669 DISTRICT 57 FIELD, ELLIS COUNTY, KANSAS FLAX -F- PV-PD 15,026 0 13,148 0 347,328 230,171 117,157 58,452 DUNES NORTH FIELD, PAWNEE COUNTY, KANSAS BARSTOW PV-PD 5,357 0 4,119 0 108,826 84,656 24,170 16,007 LOVETT PV-PD 13,034 0 10,018 0 264,662 203,618 61,044 38,575 ELLIS NW FIELD, TREGO COUNTY, KANSAS BAUGHER #1 PV-PD 10,306 0 7,891 0 208,457 155,802 52,655 37,873
[LOGO OMITTED] RYDER SCOTT COMPANY TABLE B --------------------- Page 2 of 7 PETROLEUM CONSULTANTS
TENGASCO, INC. ESTIMATED FUTURE RESERVES AND INCOME SUMMARY OF GROSS AND NET RESERVE AND INCOME DATA AS OF DECEMBER 31, 2000 SEC CASE ------ESTIMATED REMAINING RESERVES---------- ------------ESTIMATED FUTURE DOLLARS-------------- -------100% GROSS---- ---------NET---------- GROSS REV. --NET INCOME BEFORE FIT-- (A) (BARRELS) (MMCF) (BARRELS) (MMCF) AFTER PROD. TOTAL DISCOUNTED STATUS OIL/COND(B) GAS OIL/COND(B) SALES GAS TAXES DEDUCTIONS UNDISCOUNTED AT 10.0% ------ ----------- --------- ----------- --------- ------------ ------------ ------------ ----------- KANSAS PROPERTIES - CONTINUED FICKEN FIELD, RUSH COUNTY, KANSAS SCHWINDT FARMS PV-PD 0 0 0 0 0 0 0 0 GATES NORTH FIELD, STAFFORD COUNTY, KANSAS HOFFMAN PV-PD 18,912 0 10,532 0 278,234 137,263 140,971 68,661 SCHULZ PV-PD 37,048 0 20,541 0 542,654 250,206 292,448 137,073 GIESICK FIELD, RUSH COUNTY, KANSAS GIESICK #2 PV-PD 0 42 0 27 144,595 92,421 52,174 35,938 GOTTSCHALK FIELD, ELLIS COUNTY, KANSAS WERTH #1 PV-PD 0 22 0 15 77,139 61,161 15,978 12,853 HERMAN FIELD, BARTON COUNTY, KANSAS KARST PV-PD 15,460 0 10,854 0 286,727 169,967 116,760 64,399 HOBROCK FIELD, OSBORNE COUNTY, KANSAS HOBROCK PV-PD 11,449 0 5,518 0 145,767 30,073 115,694 60,600 HOGAN PV-PD 0 0 0 0 0 0 0 0 IRVIN FIELD, ELLIS COUNTY, KANSAS KINDERKNECHT -B- PV-PD 19,168 0 16,772 0 443,083 319,904 123,179 76,732 KRAUS FIELD, ELLIS COUNTY, KANSAS KRAUS -A- PV-PD 30,121 0 24,709 0 652,743 368,082 284,661 219,697 KRAUS -B- PV-PD 17,416 0 15,239 0 402,576 272,939 129,637 83,989 KRAUS -I- PV-PD 30,540 0 25,052 0 661,818 214,122 447,696 263,734 LEIKER EAST FIELD, ELLIS COUNTY, KANSAS LEIKER PV-PD 23,644 0 8,620 0 227,728 40,710 187,018 65,747 LEONHARDT SOUTHEAST FIELD, ELLIS COUNTY, KANSAS KRAUS #1 PV-PD 0 0 0 0 0 0 0 0 LIEBENTHAL FIELD, RUSH COUNTY, KANSAS DECHANT -B- #2 PV-PD 0 0 0 0 0 0 0 0 GRAHAM #1 PV-PD 0 0 0 0 0 0 0 0 LEGLEITER -B- #1 PV-PD 0 0 0 0 0 0 0 0 LEGLEITER -C- #1 PV-PD 0 0 0 0 0 0 0 0 LITTLE RIO FIELD, RICE COUNTY, KANSAS WHITEMAN-HOLLAND PV-PD 31,297 0 25,673 0 678,225 351,852 326,373 170,467 MARCOTTE FIELD, ROOKS COUNTY, KANSAS CROFFOOT PV-PD 40,840 0 35,176 0 929,277 263,848 665,429 277,375 CROFFOOT -A- PV-PD 9,600 0 8,260 0 218,203 161,352 56,851 38,880 CROFFOOT -B- PV-PD 72,532 0 59,499 0 1,571,817 1,098,504 473,313 318,295 CROFFOOT -C- PV-PD 4,407 0 3,555 0 93,903 82,198 11,705 9,703 DICK PV-PD 35,303 0 30,890 0 816,036 389,412 426,624 209,550 MCHALE FIELD, ROOKS COUNTY, KANSAS HARRISON -A- PV-PD 106,426 0 93,123 0 2,460,081 876,690 1,583,391 795,182 HILGERS -B- PV-PD 13,618 0 11,916 0 314,789 202,020 112,769 81,414 KABA #1 PV-PD 0 0 0 0 0 0 0 0 OMLOR FIELD, STAFFORD COUNTY, KANSAS MILLER PV-PD 8,144 0 5,773 0 152,504 118,934 33,570 21,641 WILLIAMS PV-PD 39,800 0 28,465 0 751,979 403,002 348,977 157,556
[LOGO OMITTED] RYDER SCOTT COMPANY TABLE B --------------------- Page 3 of 7 PETROLEUM CONSULTANTS TENGASCO, INC. ESTIMATED FUTURE RESERVES AND INCOME SUMMARY OF GROSS AND NET RESERVE AND INCOME DATA AS OF DECEMBER 31, 2000 SEC CASE
------ESTIMATED REMAINING RESERVES---------- ------------ESTIMATED FUTURE DOLLARS-------------- -------100% GROSS---- ---------NET---------- GROSS REV. --NET INCOME BEFORE FIT-- (A) (BARRELS) (MMCF) (BARRELS) (MMCF) AFTER PROD. TOTAL DISCOUNTED STATUS OIL/COND(B) GAS OIL/COND(B) SALES GAS TAXES DEDUCTIONS UNDISCOUNTED AT 10.0% ------ ----------- --------- ----------- --------- ------------ ------------ ------------ ----------- KANSAS PROPERTIES - CONTINUED OTIS-ALBERT FIELD, RUSH COUNTY, KANSAS HARTMAN #1-C PV-PD 0 0 0 0 0 0 0 0 PARADISE CREEK FIELD, ROOKS COUNTY, KANSAS STAHL PV-PD 94,642 0 79,854 0 2,109,558 1,239,712 869,846 464,980 STAHL #7 PUD PV-UD 47,000 0 39,657 0 1,047,635 450,238 597,397 252,216 PAWNEE ROCK FIELD, PAWNEE COUNTY, KANSAS O'SCHULTZ #1 PV-PD 14,618 0 11,992 0 316,790 190,148 126,642 93,723 OETKIN PV-PD 16,007 0 12,720 0 336,037 239,145 96,892 74,768 OETKIN #8 PBUD PB-UD 20,000 0 15,893 0 419,862 310,875 108,987 41,606 PLAINVILLE FIELD, ROOKS COUNTY, KANSAS ANDERSON -A- PV-PD 4,887 0 4,276 0 112,965 57,465 55,500 31,000 BARDOT #2 PV-PD 0 0 0 0 0 0 0 0 GARVERT #1-A PV-PD 24,623 0 21,545 0 569,161 188,800 380,361 146,806 GARVERT -B- #1 PV-PD 14,389 0 12,590 0 332,608 142,893 189,715 74,989 HARRISON -C- PV-PD 3,692 0 3,230 0 85,332 71,668 13,664 11,254 JACO PV-PD 48,922 0 42,807 0 1,130,863 411,215 719,648 361,850 ROSS PV-PD 18,403 0 16,102 0 425,383 213,840 211,543 132,907 PLEASANT FIELD, RUSH COUNTY, KANSAS BASGALL -C- #4 PV-PD 0 0 0 0 0 0 0 0 PLEASANT FIELD, ELLIS COUNTY, KANSAS HONAS #1-A PV-PD 0 0 0 0 0 0 0 0 PLEASANT VIEW FIELD, RUSH COUNTY, KANSAS URBAN -K- PV-PD 6,487 0 5,676 0 149,950 72,574 77,376 43,756 URBAN -K- #5 BP PV-BP 0 50 0 33 171,930 30,198 141,732 80,875 PLEASANT VIEW NW FIELD, RUSH COUNTY, KANSAS URBAN PV-PD 15,757 0 13,787 0 364,227 282,436 81,791 64,151 URBAN #6 PUD PV-UD 28,000 0 24,500 0 647,224 355,769 291,455 114,893 URBAN #7 PUD PV-UD 28,000 0 24,500 0 647,224 355,769 291,455 112,068 REICHEL FIELD, RUSH COUNTY, KANSAS ALLEN #1 A&D PV-PD 0 330 0 215 1,135,809 0 1,135,809 346,253 APPL #1 PV-PD 0 43 0 28 146,145 91,666 54,479 28,250 APPL #2 PV-PD 0 10 0 6 32,633 19,024 13,609 12,296 BEAHM #1 PV-PD 0 72 0 44 230,891 83,004 147,887 73,863 BIEBER #1 PV-PD 0 147 0 89 472,520 156,232 316,288 104,957 BIEBER -A- #1 PV-PD 0 100 0 61 323,834 65,731 258,103 99,283 BRACK -A- #3 PV-PD 0 13 0 9 45,527 22,656 22,871 15,058 BREIT #1 PV-PD 0 0 0 0 0 0 0 0 BREIT-HOLZMEISTER -B- PV-PD 5,626 0 4,846 0 128,026 101,500 26,526 16,588 DECKER -A- #1 PV-PD 0 323 0 209 1,102,259 286,504 815,755 295,392 EDWARDS #1 PV-PD 0 124 0 81 426,568 139,712 286,856 102,581 ELDER #1 PV-PD 0 25 0 16 85,288 49,800 35,488 22,504 FOOS #1 PV-PD 0 144 0 88 462,871 175,161 287,710 140,051 FOOS -A- #1 PV-PD 0 60 0 37 193,177 97,328 95,849 44,368 FRYE #2 PV-PD 0 0 0 0 0 0 0 0 GIESICK #1 PV-PD 0 356 0 231 1,222,441 465,864 756,577 407,274 GILLIG #1 PV-PD 0 42 0 27 144,752 38,398 106,354 60,928 GRUMBEIN #1-A PV-PD 0 16 0 10 53,426 15,887 37,539 29,262 HANHARDT #1 PV-PD 0 25 0 15 81,357 10,025 71,332 45,785 HANHARDT #1-A PV-PD 0 160 0 97 514,460 265,408 249,052 131,840 HANHARDT #1-A BP PV-BP 0 50 0 31 161,186 12,000 149,186 122,095 HOFFMAN #3 PV-PD 0 0 0 0 0 0 0 0 HOLZMEISTER #1 PV-PD 0 0 0 0 0 0 0 0 HOLZMEISTER #1-A PV-PD 0 0 0 0 0 0 0 0
[LOGO OMITTED] RYDER SCOTT COMPANY TABLE B --------------------- Page 4 of 7 PETROLEUM CONSULTANTS TENGASCO, INC. ESTIMATED FUTURE RESERVES AND INCOME SUMMARY OF GROSS AND NET RESERVE AND INCOME DATA AS OF DECEMBER 31, 2000 SEC CASE
------ESTIMATED REMAINING RESERVES---------- ------------ESTIMATED FUTURE DOLLARS-------------- -------100% GROSS---- ---------NET---------- GROSS REV. --NET INCOME BEFORE FIT-- (A) (BARRELS) (MMCF) (BARRELS) (MMCF) AFTER PROD. TOTAL DISCOUNTED STATUS OIL/COND(B) GAS OIL/COND(B) SALES GAS TAXES DEDUCTIONS UNDISCOUNTED AT 10.0% ------ ----------- --------- ----------- --------- ------------ ------------ ------------ ----------- KANSAS PROPERTIES - CONTINUED REICHEL FIELD, RUSH COUNTY - CONTINUED HOLZMEISTER #1-B PV-PD 0 2 0 1 5,389 5,103 286 270 HONDERICK #1-C PV-PD 0 58 0 38 199,023 106,002 93,021 40,176 HOOFER #1 PV-PD 0 0 0 0 0 0 0 0 JANSON #2-A PV-PD 0 0 0 0 0 0 0 0 KAISER #1 PV-PD 7,152 0 6,258 0 165,329 94,572 70,757 50,549 KAISER #2 PV-PD 0 22 0 14 76,306 55,328 20,978 15,983 KLEWENO #1 PV-PD 0 25 0 15 79,192 65,704 13,488 8,954 KLEWENO -A- #1 PV-PD 0 39 0 25 132,823 65,772 67,051 34,066 KOBER #1 PV-PD 0 60 0 39 205,438 101,184 104,254 62,335 LEBSACK -A- #1 PV-PD 0 49 0 29 151,144 78,281 72,863 35,537 LIPPERT #2 PV-PD 0 0 0 0 0 0 0 0 LIPPERT #3 PV-PD 0 156 0 102 536,830 229,775 307,055 136,317 LIPPERT #3 BP PV-BP 0 65 0 42 223,509 5,000 218,509 175,121 LIPPERT -B- #1 PV-PD 0 1 0 1 2,672 2,304 368 353 LIPPERT -B- #2 PV-PD 0 0 0 0 0 0 0 0 LIPPERT -C- #1 PV-PD 0 21 0 12 63,793 30,528 33,265 22,088 MCGILL #1 PV-PD 0 0 0 0 0 0 0 0 O'DELL #1 PV-PD 0 0 0 0 0 0 0 0 OCHS #1-A PV-PD 0 106 0 69 362,945 129,328 233,617 89,706 PFEIFER -B- #1-B PV-PD 0 0 0 0 0 0 0 0 RAU #1 PV-PD 0 142 0 87 457,751 79,132 378,619 197,610 REICHEL #1 PV-PD 0 71 0 46 243,668 129,172 114,496 94,963 ROTHE #1 PV-PD 0 24 0 16 83,873 50,078 33,795 28,316 ROTHE, R. #1 PV-PD 0 139 0 85 448,466 123,552 324,914 175,106 SCHEUERMAN -A- #1 PV-PD 0 35 0 23 118,896 46,648 72,248 44,883 SCHLITTER #2 PV-PD 0 13 0 8 43,701 28,000 15,701 11,692 SCHNEIDER #1 PV-PD 0 124 0 75 398,427 181,760 216,667 163,342 SHERWOOD #1 PV-PD 0 108 0 64 336,549 118,472 218,077 77,262 STEITZ -A- #1 PV-PD 0 85 0 55 291,961 149,929 142,032 84,725 STEITZ -B- #1 PV-PD 0 52 0 31 166,218 81,360 84,858 51,478 THIELENHAUS #1 PV-PD 0 51 0 33 174,306 64,256 110,050 66,662 THIELENHAUS #1 BP PV-BP 0 145 0 94 498,598 46,578 452,020 317,217 TORREY #2 PV-PD 0 266 0 171 901,483 230,336 671,147 294,907 URBAN R & A #1 PV-PD 0 3 0 2 9,246 0 9,246 7,097 REICHEL EAST FIELD, RUSH COUNTY, KANSAS BAHR #1 PV-PD 0 108 0 70 370,563 105,745 264,818 99,687 REICHEL WEST FIELD, RUSH COUNTY, KANSAS LEGLEITER -A- #1 PV-PD 0 320 0 176 928,166 324,736 603,430 233,583 MUTH #1&2 PV-PD 0 544 0 292 1,544,632 555,544 989,088 420,634 RIDGEWAY SOUTH FIELD, TREGO COUNTY, KANSAS SCHOENTHALER PV-PD 21,239 0 17,422 0 460,260 177,177 283,083 203,406 RIGA NORTHEAST FIELD, TREGO COUNTY, KANSAS KELLER PV-PD 5,151 0 4,507 0 119,057 87,000 32,057 22,697 KELLER -A- PV-PD 20,604 0 18,028 0 476,268 257,834 218,434 123,840 RUGGELS WEST FIELD, OSBORNE COUNTY, KANSAS MAIER PV-PD 13,593 0 9,189 0 242,759 82,378 160,381 105,006 MAIER #1 BP PV-BP 32,800 0 22,174 0 585,775 94,818 490,957 283,230 SANDFORD FIELD, BARTON COUNTY, KANSAS BEN TEMPERO PV-PD 43,384 0 35,588 0 940,155 489,670 450,485 276,739 BEN TEMPERO #5 PUD PV-UD 44,045 0 36,131 0 954,485 523,000 431,485 214,627 SCHWINDT FIELD, RUSH COUNTY, KANSAS JACOBS -B- PV-PD 36,913 0 32,299 0 853,273 414,789 438,484 211,726 SPRING CREEK FIELD, TREGO COUNTY, KANSAS RIDGWAY PV-PD 24,573 0 19,150 0 505,900 244,343 261,557 168,048
[LOGO OMITTED] RYDER SCOTT COMPANY TABLE B --------------------- Page 5 of 7 PETROLEUM CONSULTANTS TENGASCO, INC. ESTIMATED FUTURE RESERVES AND INCOME SUMMARY OF GROSS AND NET RESERVE AND INCOME DATA AS OF DECEMBER 31, 2000 SEC CASE
------ESTIMATED REMAINING RESERVES---------- ------------ESTIMATED FUTURE DOLLARS-------------- -------100% GROSS---- ---------NET---------- GROSS REV. --NET INCOME BEFORE FIT-- (A) (BARRELS) (MMCF) (BARRELS) (MMCF) AFTER PROD. TOTAL DISCOUNTED STATUS OIL/COND(B) GAS OIL/COND(B) SALES GAS TAXES DEDUCTIONS UNDISCOUNTED AT 10.0% ------ ----------- --------- ----------- --------- ------------ ------------ ------------ ----------- KANSAS PROPERTIES - CONTINUED STOCKTON FIELD, ROOKS COUNTY, KANSAS HINDMAN, D.A. PV-PD 11,128 0 9,007 0 237,940 159,068 78,872 44,374 STEBBINS PV-PD 17,237 0 12,955 0 342,240 205,077 137,163 71,289 WATTS PV-PD 15,281 0 12,368 0 326,727 208,791 117,936 58,691 STREMEL FIELD, RUSH COUNTY, KANSAS OCHS #1 & 3 PV-PD 3,707 9 3,243 6 115,171 74,692 40,479 27,891 URBAN -D- #2 PV-PD 18,649 0 16,318 0 431,076 236,285 194,791 105,407 THACKER FIELD, RUSSELL COUNTY, KANSAS THACKER #2 PV-PD 14,698 0 12,459 0 329,133 22,413 306,720 162,931 TRAPP FIELD, BARTON COUNTY, KANSAS DEUTSCH PV-PD 0 0 0 0 0 0 0 0 HOWLIER #1 PV-PD 7,645 0 5,876 0 155,241 53,409 101,832 81,205 WEBSTER FIELD, ROOKS COUNTY, KANSAS CERROW-CERROW -A- PV-PD 25,244 0 22,089 0 583,527 322,542 260,985 128,115 LOWRY #1 PV-PD 3,514 0 2,979 0 78,689 60,014 18,675 15,493 WERTH NORTH FIELD, ELLIS COUNTY, KANSAS SCHNELLER PV-PD 24,677 0 20,243 0 534,763 324,166 210,597 130,735 WESTHUSIN FIELD, ROOKS COUNTY, KANSAS DOUGHERTY EAST #1 PV-PD 8,340 0 6,393 0 168,877 75,528 93,349 54,832 DOUGHERTY EAST #1 BP PV-PD 3,200 0 2,453 0 64,797 29,266 35,531 11,294 DOUGHERTY EAST #2 PUD PV-PD 0 0 0 0 0 0 0 0 YOHE FIELD, ROOKS COUNTY, KANSAS FINNESY PV-PD 32,531 0 28,464 0 751,964 468,968 282,996 165,716 MOSHER PV-PD 30,220 0 26,442 0 698,547 298,890 399,657 233,392 STATE SUMMARIES - KANSAS ------------------------ PROVED PRODUCING 1,536,282 4,687 1,257,341 2,889 48,474,702 22,987,472 25,487,230 13,068,086 PROVED BEHIND PIPE 32,800 310 22,174 200 1,640,998 188,594 1,452,404 978,538 PROVED UNDEVELOPED 185,795 0 158,694 0 4,192,292 2,033,280 2,159,012 946,598 ----------- --------- ---------- ---------- ------------ ------------ ------------ ------------ TOTAL PROVED 1,754,877 4,997 1,438,209 3,089 54,307,992 25,209,346 29,098,646 14,993,222 TOTAL PROBABLE UNDEVELOPED 67,258 0 50,949 0 1,345,964 801,169 544,795 256,528
[LOGO OMITTED] RYDER SCOTT COMPANY TABLE B --------------------- Page 6 of 7 PETROLEUM CONSULTANTS TENGASCO, INC. ESTIMATED FUTURE RESERVES AND INCOME SUMMARY OF GROSS AND NET RESERVE AND INCOME DATA AS OF DECEMBER 31, 2000 SEC CASE
------ESTIMATED REMAINING RESERVES---------- ------------ESTIMATED FUTURE DOLLARS-------------- -------100% GROSS---- ---------NET---------- GROSS REV. --NET INCOME BEFORE FIT-- (A) (BARRELS) (MMCF) (BARRELS) (MMCF) AFTER PROD. TOTAL DISCOUNTED STATUS OIL/COND(B) GAS OIL/COND(B) SALES GAS TAXES DEDUCTIONS UNDISCOUNTED AT 10.0% ------ ----------- --------- ----------- --------- ------------ ------------ ------------ ----------- *** TENNESSEE PROPERTIES *** SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE ANITA COLSON #1 PV-SI 0 1,296 0 1,134 10,749,752 93,999 10,655,753 7,927,799 ANITA COLSON #1 PV-BP 15,480 34 13,545 30 598,531 72,937 525,594 152,227 ANITA COLSON #2 PV-SI 0 120 0 105 995,074 18,335 976,739 857,395 CHEVRON WARREN REED #1 PV-SI 0 1,905 0 1,667 15,796,595 90,796 15,705,799 12,011,204 D. SUTTON HEIRS #1 PV-SI 0 2,578 0 1,749 16,576,370 142,754 16,433,616 11,140,327 D. SUTTON HEIRS #1 PV-BP 0 206 0 140 1,324,487 67,070 1,257,417 593,815 DARRELL SUTTON #1 PV-SI 0 102 0 89 845,814 34,440 811,374 711,752 DEWEY SUTTON #1 PV-PD 91,494 0 80,057 0 1,871,499 135,389 1,736,110 1,292,196 DORIS HELTON #1 PV-SI 0 1,831 0 1,602 15,186,715 125,984 15,060,731 10,360,880 DORIS HELTON #1 PV-BP 0 112 0 98 928,736 51,294 877,442 442,093 GARY PATTON #2 PV-SI 0 865 0 568 5,379,032 72,334 5,306,698 4,250,549 GARY PATTON #2 PV-BP 20,640 69 13,545 45 745,767 88,925 656,842 235,603 LAURA J. LAWSON #1 PV-SI 0 0 0 0 0 0 0 0 LAURA J. LAWSON #1 PV-BP 0 17 0 15 140,969 38,521 102,448 55,309 LAURA J. LAWSON #2 PV-SI 0 1,097 0 720 6,824,712 84,896 6,739,816 5,124,797 LAURA J. LAWSON #2 PV-BP 12,900 215 8,466 141 1,535,032 72,355 1,462,677 457,447 PAUL REED #1 PV-SI 0 818 0 613 5,810,793 20,000 5,790,793 4,309,009 PAUL REED #2 PV-PD 45,566 0 34,174 0 798,892 116,800 682,092 525,380 PAUL REED #2 PV-BP 0 103 0 77 732,091 57,231 674,860 335,918 PAUL REED #3 PV-SI 0 657 0 431 4,083,239 68,829 4,014,410 3,171,220 PAUL REED #3 PV-BP 0 22 0 14 136,822 31,218 105,604 59,112 PAUL REED #4 PV-SI 0 2,465 0 2,157 20,440,236 147,696 20,292,540 12,939,684 PAUL REED #4 PV-BP 0 17 0 15 140,969 28,668 112,301 64,078 PAUL REED #5 PV-PD 142,876 0 125,017 0 2,922,512 192,800 2,729,712 1,918,675 PAUL REED/HELTON UNIT #6 PV-PD 85,490 0 56,103 0 1,311,509 135,200 1,176,309 889,847 PURKEY #1 PV-SI 0 2,578 0 1,128 10,689,404 71,377 10,618,027 7,194,694 RAY DEAN HELTON #1 PV-SI 0 459 0 402 3,806,160 29,671 3,776,489 3,560,528 RAY DEAN HELTON #1 PV-BP 0 129 0 113 1,069,705 85,139 984,566 743,944 STEPHEN LAWSON #1 PV-PD 2,440 0 1,067 0 24,954 18,000 6,954 6,196 STEPHEN LAWSON #2 PV-SI 0 128 0 84 796,060 30,949 765,111 698,952 STEPHEN LAWSON #3 PV-SI 0 814 0 623 5,907,867 73,286 5,834,581 4,553,857 STEPHEN LAWSON #3 PV-BP 38,700 26 29,630 20 881,302 94,195 787,107 288,955 STEPHEN LAWSON #4 PV-SI 0 664 0 436 4,129,560 66,664 4,062,896 3,145,504 STEPHEN LAWSON #4 PV-BP 12,827 9 8,418 6 250,370 56,800 193,570 85,430 T.J. HARRISON #1 PV-PD 0 0 0 0 0 0 0 0 WARREN REED #1 PV-SI 0 383 0 335 3,175,946 50,071 3,125,875 2,564,728 WARREN REED #1 PV-BP 7,628 0 6,674 0 156,029 54,600 101,429 56,241 WARREN REED #2 PV-SI 0 5,822 0 4,549 43,106,589 201,216 42,905,373 27,828,474 WARREN REED #2 PV-BP 0 181 0 141 1,340,093 61,358 1,278,735 621,503 LOCATION # 1 PV-UD 0 3,813 0 3,337 31,621,527 349,652 31,271,875 22,671,454 LOCATION # 2 PV-UD 0 3,179 0 2,782 26,362,747 347,940 26,014,807 18,846,372 LOCATION # 4 PV-UD 0 953 0 834 7,904,625 323,364 7,581,261 5,394,837 LOCATION # 5 PV-UD 0 1,525 0 1,334 12,643,822 327,875 12,315,947 8,869,411 LOCATION # 6 PV-UD 0 1,150 0 1,006 9,532,061 296,626 9,235,435 7,221,576 LOCATION # 7 PV-UD 0 1,906 0 1,668 15,807,341 331,403 15,475,938 11,196,802 LOCATION # 8 PV-UD 0 1,398 0 1,223 11,593,488 328,480 11,265,008 7,981,230 LOCATION # 9 PV-UD 0 889 0 778 7,373,910 313,451 7,060,459 5,119,690 LOCATION #10 PV-UD 0 1,270 0 1,111 10,533,139 304,646 10,228,493 7,777,888 LOCATION #11 PV-UD 0 1,270 0 1,111 10,533,157 304,195 10,228,962 7,720,723 LOCATION #12 PV-UD 0 1,270 0 1,111 10,533,157 304,195 10,228,962 7,720,723 LOCATION #13 PV-UD 0 1,906 0 1,668 15,805,340 329,935 15,475,405 11,040,496 LOCATION #14 PV-UD 0 1,270 0 1,111 10,533,157 304,295 10,228,862 7,656,855 LOCATION #15 PV-UD 0 1,158 0 1,013 9,599,354 299,848 9,299,506 7,066,251 LOCATION #16 PV-UD 0 634 0 555 5,261,055 292,325 4,968,730 3,776,673 LOCATION #17 PV-UD 0 634 0 555 5,261,055 292,425 4,968,630 3,745,400 LOCATION #18 PV-UD 0 889 0 778 7,372,941 310,146 7,062,795 5,022,296 LOCATION #19 PV-UD 0 507 0 444 4,205,933 289,213 3,916,720 2,963,411 LOCATION #20 PV-UD 0 571 0 500 4,734,594 291,127 4,443,467 3,222,626 LOCATION #21 PV-UD 0 634 0 555 5,258,023 292,183 4,965,840 3,594,708 LOCATION #23 PV-UD 0 634 0 555 5,258,023 292,283 4,965,740 3,564,939 LOCATION #24 PV-UD 0 383 0 335 3,175,946 281,373 2,894,573 2,097,744 LOCATION #25 PV-UD 0 319 0 279 2,645,239 272,545 2,372,694 1,807,508 LOCATION #26 PV-UD 0 128 0 112 1,061,413 266,147 795,266 592,579 LOCATION #27 PV-UD 0 128 0 112 1,061,413 266,147 795,266 592,579
[LOGO OMITTED] RYDER SCOTT COMPANY TABLE B --------------------- Page 7 of 7 PETROLEUM CONSULTANTS TENGASCO, INC. ESTIMATED FUTURE RESERVES AND INCOME SUMMARY OF GROSS AND NET RESERVE AND INCOME DATA AS OF DECEMBER 31, 2000 SEC CASE
------ESTIMATED REMAINING RESERVES---------- ------------ESTIMATED FUTURE DOLLARS-------------- -------100% GROSS---- ---------NET---------- GROSS REV. --NET INCOME BEFORE FIT-- (A) (BARRELS) (MMCF) (BARRELS) (MMCF) AFTER PROD. TOTAL DISCOUNTED STATUS OIL/COND(B) GAS OIL/COND(B) SALES GAS TAXES DEDUCTIONS UNDISCOUNTED AT 10.0% ------ ----------- --------- ----------- --------- ------------ ------------ ------------ ----------- TENNESSEE PROPERTIES - CONTINUED SWAN CREEK FIELD, HANCOCK COUNTY - CONTINUED LOCATION #28 PV-UD 0 128 0 112 1,061,413 266,147 795,266 592,579 LOCATION #29 PV-UD 0 128 0 112 1,061,413 266,147 795,266 587,682 LOCATION #30 PV-UD 0 128 0 112 1,061,413 266,147 795,266 587,682 PROBABLE LOCATIONS PB-UD 0 13,697 0 11,985 113,580,094 930,909 112,649,185 75,180,091 POSSIBLE LOCATIONS PS-UD 0 8,243 0 7,213 68,354,301 819,162 67,535,139 43,252,319 STATE SUMMARIES - TENNESSEE --------------------------- PROVED PRODUCING 367,866 0 296,418 0 6,929,366 598,189 6,331,177 4,632,294 PROVED SHUT-IN 0 24,582 0 18,392 174,299,918 1,423,297 172,876,621 122,351,353 PROVED BEHIND PIPE 108,175 1,140 80,278 855 9,980,903 860,311 9,120,592 4,191,675 PROVED UNDEVELOPED 0 28,802 0 25,204 238,856,699 8,410,260 230,446,439 169,032,714 ----------- --------- ---------- ---------- ------------ ----------- ------------ ------------ TOTAL PROVED 476,041 54,524 376,696 44,451 430,066,886 11,292,057 418,774,829 300,208,036 TOTAL PROBABLE UNDEVELOPED 0 13,697 0 11,985 113,580,094 930,909 112,649,185 75,180,091 TOTAL POSSIBLE UNDEVELOPED 0 8,243 0 7,213 68,354,301 819,162 67,535,139 43,252,319 GRAND SUMMARIES - TOTAL PROPERTIES ---------------------------------- PROVED PRODUCING 1,904,148 4,687 1,553,759 2,889 55,404,068 23,585,661 31,818,407 17,700,380 PROVED SHUT-IN 0 24,582 0 18,392 174,299,918 1,423,297 172,876,621 122,351,353 PROVED BEHIND PIPE 140,975 1,450 102,452 1,055 11,621,901 1,048,905 10,572,996 5,170,213 PROVED UNDEVELOPED 185,795 28,802 158,694 25,204 243,048,991 10,443,540 232,605,451 169,979,312 ----------- --------- ---------- ---------- ------------ ----------- ------------ ------------ ----------- --------- ---------- ---------- ------------ ----------- ------------ ------------ TOTAL PROVED 2,230,918 59,521 1,814,905 47,540 484,374,878 36,501,403 447,873,475 315,201,258 TOTAL PROBABLE UNDEVELOPED 67,258 13,697 50,949 11,985 114,926,058 1,732,078 113,193,980 75,436,619 TOTAL POSSIBLE UNDEVELOPED 0 8,243 0 7,213 68,354,301 819,162 67,535,139 43,252,319
(A) Reserve Types: PV = Proved Status: PD = Producing DP = Depleted PB = Probable BP = Behind Pipe NP = Non-Producing PS = Possible SI = Shut In PB = Payback UD = Undeveloped (B) Excludes Plant Products SUMMARY OF INITIAL BASIC DATA [LOGO OMITTED] RYDER SCOTT COMPANY TABLE C --------------------- Page 1 of 11 PETROLEUM CONSULTANTS TENGASCO, INC. SUMMARY OF INITIAL BASIC DATA AS OF DECEMBER 31, 2000 SEC CASE
RES. NO. ----INTERESTS----- LIQUIDS --GAS DATA-- GROSS PRI. TYPE OF LOCATION ----EVALUATED----- PRICE PRICE COST PROD (A) WELLS SEC TWP RNG W.I. N.R.I. $/BBL $(B) BTU $/MONTH ---- ----- ----- -------------- -------- -------- --------- ------- ---- --------- ARPIN SOUTH FIELD, ROOKS COUNTY, KANSAS -------------------- THYFAULT OIL PV-PD 1 8-9S-20W 1.000000 0.820313 26.46 0.0000 N/A 1476. ASH CREEK FIELD, BARTON COUNTY, KANSAS --------------------- UNRUH OIL PV-PD 2 30-20S-15W 0.812500 0.710938 0.00 0.0000 N/A 778. AXELSON FIELD, ROOKS COUNTY, KANSAS -------------------- AXELSON #1 OIL PV-PD 2 24-7S-19W 1.000000 0.792969 26.46 0.0000 N/A 1221. BEISEL FIELD, RUSSELL COUNTY, KANSAS ---------------------- BEISEL OIL PV-PD 4 15-14S-12W 1.000000 0.875000 26.46 0.0000 N/A 3446. BEISEL #9 PUD OIL PV-UD 1 15-14S-12W 1.000000 0.875000 26.46 0.0000 N/A 862. BIELMAN FIELD, ELLIS COUNTY, KANSAS -------------------- GRASS OIL PV-PD 1 24-15S-18W 1.000000 0.875000 26.46 0.0000 N/A 1326. CARPENTER FIELD, EDWARDS COUNTY, KANSAS ---------------------- HENNING OIL PV-PD 1 1-24S-17W 0.875000 0.708801 26.46 0.0000 N/A 630. CARROLL FIELD, BARTON COUNTY, KANSAS --------------------- KEENAN -B- OIL PV-PD 0 21-17S-14W 0.992754 0.868660 0.00 0.0000 N/A 0. CENTERVIEW FIELD, STAFFORD COUNTY, KANSAS ----------------------- BECKERDITE #1 OIL PV-PD 1 21-24S-13W 0.937500 0.807495 26.46 0.0000 N/A 1193. CHASE-SILICA FIELD, BARTON COUNTY, KANSAS --------------------- LANDER #1 OIL PV-PD 1 10-20S-11W 0.915630 0.741803 26.46 0.0000 N/A 1601. LANDER #3 PBUD OIL PB-UD 1 10-20S-11W 0.915630 0.741803 26.46 0.0000 N/A 1601. ROSE, CHARLES OIL PV-PD 3 3-20S-11W 1.000000 0.875000 26.46 0.0000 N/A 803. CHEYENNE FIELD, BARTON COUNTY, KANSAS --------------------- HAMMEKE OIL PV-PD 1 2-19S-12W 1.000000 0.833984 26.46 0.0000 N/A 881.
[LOGO OMITTED] RYDER SCOTT COMPANY TABLE C --------------------- Page 2 of 11 PETROLEUM CONSULTANTS TENGASCO, INC. SUMMARY OF INITIAL BASIC DATA AS OF DECEMBER 31, 2000 SEC CASE
RES. NO. ----INTERESTS----- LIQUIDS --GAS DATA-- GROSS PRI. TYPE OF LOCATION ----EVALUATED----- PRICE PRICE COST PROD (A) WELLS SEC TWP RNG W.I. N.R.I. $/BBL $(B) BTU $/MONTH ---- ----- ----- -------------- -------- -------- --------- ------- ---- --------- CONVERSE FIELD, BARTON COUNTY, KANSAS --------------------- IANNITTI OIL PV-PD 6 19-20S-15W 1.000000 0.875000 26.46 0.0000 N/A 3837. IANNITTI #9 PUD OIL PV-UD 0 19-20S-15W 1.000000 0.875000 0.00 0.0000 N/A 0. COOPER FIELD, GRAHAM COUNTY, KANSAS --------------------- DEYOUNG OIL PV-PD 2 4-10S-21W 1.000000 0.875000 26.46 0.0000 N/A 1988. LEWIS -A- OIL PV-PD 2 9-10S-21W 1.000000 0.875000 26.46 0.0000 N/A 836. DAVIDSON FIELD, RUSSELL COUNTY, KANSAS ---------------------- FOSTER OIL PV-PD 4 33-15S-11W 1.000000 0.847656 26.46 0.0000 N/A 2643. DISTRICT 57 FIELD, ELLIS COUNTY, KANSAS -------------------- FLAX -F- OIL PV-PD 1 28-12S-20W 1.000000 0.875000 26.46 0.0000 N/A 683. DUNES NORTH FIELD, PAWNEE COUNTY, KANSAS --------------------- BARSTOW OIL PV-PD 1 14-22S-15W 0.937500 0.769043 26.46 0.0000 N/A 516. LOVETT OIL PV-PD 1 15-22S-15W 0.937000 0.768633 26.46 0.0000 N/A 1092. ELLIS NW FIELD, TREGO COUNTY, KANSAS -------------------- BAUGHER #1 OIL PV-PD 1 23-12S-21W 1.000000 0.765630 26.46 0.0000 N/A 1129. FICKEN FIELD, RUSH COUNTY, KANSAS ------------------- SCHWINDT FARMS OIL PV-PD 1 23-17S-18W 1.000000 0.820313 0.00 0.0000 N/A 657. GATES NORTH FIELD, STAFFORD COUNTY, KANSAS ----------------------- HOFFMAN OIL PV-PD 1 22-21S-13W 0.687500 0.556915 26.46 0.0000 N/A 531. SCHULZ OIL PV-PD 2 22-21S-13W 0.687500 0.554449 26.46 0.0000 N/A 892. GIESICK FIELD, RUSH COUNTY, KANSAS ------------------- GIESICK #2 GAS PV-PD 1 19-17S-17W 1.000000 0.875000 0.00 5.9400 892 567. GOTTSCHALK FIELD, ELLIS COUNTY, KANSAS -------------------- WERTH #1 GAS PV-PD 1 36-15S-18W 1.000000 0.875000 0.00 5.9400 892 703. HERMAN FIELD, BARTON COUNTY, KANSAS --------------------- KARST OIL PV-PD 2 18-16S-14W 0.812500 0.702051 26.46 0.0000 N/A 734.
[LOGO OMITTED] RYDER SCOTT COMPANY TABLE C --------------------- Page 3 of 11 PETROLEUM CONSULTANTS TENGASCO, INC. SUMMARY OF INITIAL BASIC DATA AS OF DECEMBER 31, 2000 SEC CASE
RES. NO. ----INTERESTS----- LIQUIDS --GAS DATA-- GROSS PRI. TYPE OF LOCATION ----EVALUATED----- PRICE PRICE COST PROD (A) WELLS SEC TWP RNG W.I. N.R.I. $/BBL $(B) BTU $/MONTH ---- ----- ----- -------------- -------- -------- --------- ------- ---- --------- HOBROCK FIELD, OSBORNE COUNTY, KANSAS ---------------------- HOBROCK OIL PV-PD 1 3-10S-15W 0.593750 0.481947 26.46 0.0000 N/A 190. HOGAN OIL PV-PD 3 10-10S-15W 0.593750 0.480972 0.00 0.0000 N/A 989. IRVIN FIELD, ELLIS COUNTY, KANSAS -------------------- KINDERKNECHT -B- OIL PV-PD 2 8-14S-19W 1.000000 0.875000 26.46 0.0000 N/A 1538. KRAUS FIELD, ELLIS COUNTY, KANSAS -------------------- KRAUS -A- OIL PV-PD 3 22-14S-19W 1.000000 0.820310 26.46 0.0000 N/A 3042. KRAUS -B- OIL PV-PD 2 16-14S-19W 1.000000 0.875000 26.46 0.0000 N/A 1429. KRAUS -I- OIL PV-PD 2 27-14S-19W 1.000000 0.820313 26.46 0.0000 N/A 762. LEIKER EAST FIELD, ELLIS COUNTY, KANSAS -------------------- LEIKER OIL PV-PD 1 14-15S-18W 0.416670 0.364590 26.46 0.0000 N/A 207. LEONHARDT SOUTHEAST FIELD, ELLIS COUNTY, KANSAS -------------------------- KRAUS #1 OIL PV-PD 2 28-14S-18W 1.000000 0.792969 0.00 0.0000 N/A 1861. LIEBENTHAL FIELD, RUSH COUNTY, KANSAS ------------------- DECHANT -B- #2 GAS PV-PD 0 23-16S-18W 1.000000 0.875000 0.00 0.0000 N/A 0. GRAHAM #1 GAS PV-PD 0 23-16S-18W 1.000000 0.875000 0.00 0.0000 N/A 0. LEGLEITER -B- #1 GAS PV-PD 0 26-16S-18W 1.000000 0.875000 0.00 0.0000 N/A 0. LEGLEITER -C- #1 GAS PV-PD 0 24-16S-18W 1.000000 0.875000 0.00 0.0000 N/A 0. LITTLE RIO FIELD, RICE COUNTY, KANSAS ------------------- WHITEMAN-HOLLAND OIL PV-PD 3 19-19S-6W 1.000000 0.820313 26.46 0.0000 N/A 1076. MARCOTTE FIELD, ROOKS COUNTY, KANSAS -------------------- CROFFOOT OIL PV-PD 5 11-10S-20W 1.000000 0.861328 26.46 0.0000 N/A 559. CROFFOOT -A- OIL PV-PD 4 11-10S-20W 1.000000 0.860369 26.46 0.0000 N/A 996. CROFFOOT -B- OIL PV-PD 6 11-10S-20W 1.000000 0.820313 26.46 0.0000 N/A 6424. CROFFOOT -C- OIL PV-PD 2 11-10S-20W 1.000000 0.806641 26.46 0.0000 N/A 1126. DICK OIL PV-PD 2 17-10S-19W 1.000000 0.875000 26.46 0.0000 N/A 1044.
[LOGO OMITTED] RYDER SCOTT COMPANY TABLE C --------------------- Page 4 of 11 PETROLEUM CONSULTANTS TENGASCO, INC. SUMMARY OF INITIAL BASIC DATA AS OF DECEMBER 31, 2000 SEC CASE
RES. NO. ----INTERESTS----- LIQUIDS --GAS DATA-- GROSS PRI. TYPE OF LOCATION ----EVALUATED----- PRICE PRICE COST PROD (A) WELLS SEC TWP RNG W.I. N.R.I. $/BBL $(B) BTU $/MONTH ---- ----- ----- -------------- -------- -------- --------- ------- ---- --------- MCHALE FIELD, ROOKS COUNTY, KANSAS -------------------- HARRISON -A- OIL PV-PD 5 17-9S-18W 1.000000 0.875000 26.46 0.0000 N/A 2295. HILGERS -B- OIL PV-PD 3 17-9S-18W 1.000000 0.875000 26.46 0.0000 N/A 1365. KABA #1 OIL PV-PD 0 16-9S-18W 1.000000 0.847656 0.00 0.0000 N/A 0. OMLOR FIELD, STAFFORD COUNTY, KANSAS ----------------------- MILLER OIL PV-PD 1 11-22S-14W 0.875000 0.708801 26.46 0.0000 N/A 723. WILLIAMS OIL PV-PD 2 11-22S-14W 0.875000 0.715210 26.46 0.0000 N/A 1094. OTIS-ALBERT FIELD, RUSH COUNTY, KANSAS ------------------ HARTMAN #1-C GAS PV-PD 0 2-18S-16W 1.000000 0.820313 0.00 0.0000 N/A 0. PARADISE CREEK FIELD, ROOKS COUNTY, KANSAS --------------------- STAHL OIL PV-PD 4 21-9S-18W 1.000000 0.843750 26.46 0.0000 N/A 4078. STAHL #7 PUD OIL PV-UD 1 21-9S-18W 1.000000 0.843750 26.46 0.0000 N/A 1020. PAWNEE ROCK FIELD, PAWNEE COUNTY, KANSAS --------------------- O'SCHULTZ #1 OIL PV-PD 2 13-20S-16W 0.937500 0.820313 26.46 0.0000 N/A 1525. OETKIN OIL PV-PD 2 24-20S-16W 0.937500 0.794678 26.46 0.0000 N/A 2384. OETKIN #8 PBUD OIL PB-UD 1 24-20S-16W 0.937500 0.794678 26.46 0.0000 N/A 1192. PLAINVILLE FIELD, ROOKS COUNTY, KANSAS -------------------- ANDERSON -A- OIL PV-PD 1 12-10S-18W 1.000000 0.875000 26.46 0.0000 N/A 298. BARDOT #2 OIL PV-PD 0 12-10S-18W 1.000000 0.875000 0.00 0.0000 N/A 0. GARVERT #1-A OIL PV-PD 1 18-10S-17W 1.000000 0.875000 26.46 0.0000 N/A 400. GARVERT -B- #1 OIL PV-PD 1 13-10S-18W 1.000000 0.875000 26.46 0.0000 N/A 336. HARRISON -C- OIL PV-PD 2 12-10S-18W 1.000000 0.875000 26.46 0.0000 N/A 943. JACO OIL PV-PD 4 13-10S-18W 1.000000 0.875000 26.46 0.0000 N/A 1085. ROSS OIL PV-PD 2 12-10S-18W 1.000000 0.875000 26.46 0.0000 N/A 972. PLEASANT FIELD, RUSH COUNTY, KANSAS ------------------- BASGALL -C- #4 GAS PV-PD 0 10-16S-17W 1.000000 0.875000 0.00 0.0000 N/A 0.
[LOGO OMITTED] RYDER SCOTT COMPANY TABLE C --------------------- Page 5 of 11 PETROLEUM CONSULTANTS TENGASCO, INC. SUMMARY OF INITIAL BASIC DATA AS OF DECEMBER 31, 2000 SEC CASE
RES. NO. ----INTERESTS----- LIQUIDS --GAS DATA-- GROSS PRI. TYPE OF LOCATION ----EVALUATED----- PRICE PRICE COST PROD (A) WELLS SEC TWP RNG W.I. N.R.I. $/BBL $(B) BTU $/MONTH ---- ----- ----- -------------- -------- -------- --------- ------- ---- --------- PLEASANT FIELD, ELLIS COUNTY, KANSAS -------------------- HONAS #1-A OIL PV-PD 1 22-13S-20W 1.000000 0.820310 0.00 0.0000 N/A 290. PLEASANT VIEW FIELD, RUSH COUNTY, KANSAS -------------------- URBAN -K- OIL PV-PD 1 10-16S-17W 1.000000 0.875000 26.46 0.0000 N/A 337. URBAN -K- #5 BP GAS PV-BP 1 10-16S-17W 1.000000 0.875000 0.00 5.9400 892 337. PLEASANT VIEW NW FIELD, RUSH COUNTY, KANSAS ----------------------- URBAN OIL PV-PD 3 10-16S-17W 1.000000 0.875000 26.46 0.0000 N/A 2882. URBAN #6 PUD OIL PV-UD 1 10-16S-17W 1.000000 0.875000 26.46 0.0000 N/A 961. URBAN #7 PUD OIL PV-UD 1 10-16S-17W 1.000000 0.875000 26.46 0.0000 N/A 961. REICHEL FIELD, RUSH COUNTY, KANSAS ------------------- ALLEN #1 A&D GAS PV-PD 1 33-16S-16W 1.000000 0.875000 0.00 5.9400 892 0. APPL #1 GAS PV-PD 1 10-17S-17W 1.000000 0.875000 0.00 5.9400 892 318. APPL #2 GAS PV-PD 1 10-17S-17W 1.000000 0.820313 0.00 5.9400 892 464. BEAHM #1 GAS PV-PD 1 36-17S-17W 1.000000 0.820313 0.00 5.9400 892 298. BIEBER #1 GAS PV-PD 1 15-17S-17W 1.000000 0.820313 0.00 5.9400 892 331. BIEBER -A- #1 GAS PV-PD 1 15-17S-17W 1.000000 0.820313 0.00 5.9400 892 168. BRACK -A- #3 GAS PV-PD 1 34-17S-16W 1.000000 0.875000 0.00 5.9400 892 191. BREIT #1 GAS PV-PD 1 7-16S-17W 1.000000 0.875000 0.00 0.0000 N/A 663. BREIT-HOLZMEISTER -B- OIL PV-PD 1 7-16S-17W 1.000000 0.861328 26.46 0.0000 N/A 500. DECKER -A- #1 GAS PV-PD 1 8-17S-16W 1.000000 0.868164 0.00 5.9400 892 607. EDWARDS #1 GAS PV-PD 1 35-16S-17W 1.000000 0.875000 0.00 5.9400 892 296. ELDER #1 GAS PV-PD 1 19-17S-16W 1.000000 0.875000 0.00 5.9400 892 355. FOOS #1 GAS PV-PD 1 25-17S-17W 1.000000 0.820313 0.00 5.9400 892 439. FOOS -A- #1 GAS PV-PD 1 22-17S-17W 1.000000 0.820313 0.00 5.9400 892 275. FRYE #2 GAS PV-PD 0 4-17S-17W 1.000000 0.875000 0.00 0.0000 N/A 0. GIESICK #1 GAS PV-PD 1 19-17S-16W 1.000000 0.875000 0.00 5.9400 892 1416. GILLIG #1 GAS PV-PD 1 24-17S-17W 1.000000 0.875000 0.00 5.9400 892 205. GRUMBEIN #1-A GAS PV-PD 1 9-17S-17W 1.000000 0.875000 0.00 5.9400 892 213. HANHARDT #1 GAS PV-PD 1 24-17S-17W 1.000000 0.820313 0.00 5.9400 892 77. HANHARDT #1-A GAS PV-PD 1 24-17S-17W 1.000000 0.820313 0.00 5.9400 892 832.
[LOGO OMITTED] RYDER SCOTT COMPANY TABLE C --------------------- Page 6 of 11 PETROLEUM CONSULTANTS TENGASCO, INC. SUMMARY OF INITIAL BASIC DATA AS OF DECEMBER 31, 2000 SEC CASE
RES. NO. ----INTERESTS----- LIQUIDS --GAS DATA-- GROSS PRI. TYPE OF LOCATION ----EVALUATED----- PRICE PRICE COST PROD (A) WELLS SEC TWP RNG W.I. N.R.I. $/BBL $(B) BTU $/MONTH ---- ----- ----- -------------- -------- -------- --------- ------- ---- --------- REICHEL FIELD, RUSH COUNTY, KANSAS (CONT.) ------------------------------------------ HANHARDT #1-A BP GAS PV-BP 1 24-17S-17W 1.000000 0.820313 0.00 5.9400 892 0. HOFFMAN #3 GAS PV-PD 0 29-16S-17W 1.000000 0.820313 0.00 0.0000 N/A 0. HOLZMEISTER #1 GAS PV-PD 0 8-16S-17W 1.000000 0.847656 0.00 0.0000 N/A 0. HOLZMEISTER #1-A GAS PV-PD 1 27-16S-17W 1.000000 0.847656 0.00 0.0000 N/A 197. HOLZMEISTER #1-B GAS PV-PD 1 7-16S-17W 1.000000 0.861328 0.00 5.9400 892 243. HONDERICK #1-C GAS PV-PD 1 10-17S-17W 1.000000 0.875000 0.00 5.9400 892 234. HOOFER #1 GAS PV-PD 0 19-16S-17W 1.000000 0.861328 0.00 0.0000 N/A 0. JANSON #2-A GAS PV-PD 1 7-17S-16W 1.000000 0.875000 0.00 0.0000 N/A 500. KAISER #1 OIL PV-PD 1 28-16S-16W 1.000000 0.875000 26.46 0.0000 N/A 639. KAISER #2 GAS PV-PD 1 2-17S-17W 1.000000 0.875000 0.00 5.9400 892 494. KLEWENO #1 GAS PV-PD 1 25-17S-17W 1.000000 0.820313 0.00 5.9400 892 382. KLEWENO -A- #1 GAS PV-PD 1 23-17S-17W 1.000000 0.875000 0.00 5.9400 892 189. KOBER #1 GAS PV-PD 1 6-18S-16W 1.000000 0.875000 0.00 5.9400 892 408. LEBSACK -A- #1 GAS PV-PD 1 21-17S-17W 1.000000 0.783854 0.00 5.9400 892 211. LIPPERT #2 GAS PV-PD 0 19-16S-17W 1.000000 0.861328 0.00 0.0000 N/A 0. LIPPERT #3 GAS PV-PD 1 19-16S-17W 1.000000 0.875000 0.00 5.9400 892 505. LIPPERT #3 BP GAS PV-BP 1 19-16S-17W 1.000000 0.875000 0.00 5.9400 892 0. LIPPERT -B- #1 GAS PV-PD 1 29-16S-17W 1.000000 0.755625 0.00 5.9400 892 144. LIPPERT -B- #2 GAS PV-PD 0 29-16S-17W 1.000000 0.755625 0.00 0.0000 N/A 0. LIPPERT -C- #1 GAS PV-PD 1 32-16S-17W 1.000000 0.765625 0.00 5.9400 892 159. MCGILL #1 GAS PV-PD 0 3-17S-17W 1.000000 0.875000 0.00 0.0000 N/A 0. O'DELL #1 GAS PV-PD 1 34-16S-17W 1.000000 0.861328 0.00 0.0000 N/A 500. OCHS #1-A GAS PV-PD 1 28-16S-16W 1.000000 0.875000 0.00 5.9400 892 274. PFEIFER -B- #1-B GAS PV-PD 0 8-16S-17W 1.000000 0.875000 0.00 0.0000 N/A 0. RAU #1 GAS PV-PD 1 10-17S-17W 1.000000 0.820313 0.00 5.9400 892 223. REICHEL #1 GAS PV-PD 1 23-17S-17W 1.000000 0.875000 0.00 5.9400 892 1502. ROTHE #1 GAS PV-PD 1 31-17S-16W 1.000000 0.875000 0.00 5.9400 892 686. ROTHE, R. #1 GAS PV-PD 1 20-17S-16W 1.000000 0.820313 0.00 5.9400 892 351. SCHEUERMAN -A- #1 GAS PV-PD 1 4-17S-17W 1.000000 0.875000 0.00 5.9400 892 196. SCHLITTER #2 GAS PV-PD 1 18-16S-17W 1.000000 0.861328 0.00 5.9400 892 224.
[LOGO OMITTED] RYDER SCOTT COMPANY TABLE C --------------------- Page 7 of 11 PETROLEUM CONSULTANTS TENGASCO, INC. SUMMARY OF INITIAL BASIC DATA AS OF DECEMBER 31, 2000 SEC CASE
RES. NO. ----INTERESTS----- LIQUIDS --GAS DATA-- GROSS PRI. TYPE OF LOCATION ----EVALUATED----- PRICE PRICE COST PROD (A) WELLS SEC TWP RNG W.I. N.R.I. $/BBL $(B) BTU $/MONTH ---- ----- ----- -------------- -------- -------- --------- ------- ---- --------- REICHEL FIELD, RUSH COUNTY, KANSAS (CONT.) ------------------------------------------ SCHNEIDER #1 GAS PV-PD 1 13-17S-17W 1.000000 0.820313 0.00 5.9400 892 1420. SHERWOOD #1 GAS PV-PD 1 25-16S-17W 1.000000 0.792969 0.00 5.9400 892 251. STEITZ -A- #1 GAS PV-PD 1 11-17S-17W 1.000000 0.875000 0.00 5.9400 892 607. STEITZ -B- #1 GAS PV-PD 1 14-17S-17W 1.000000 0.820313 0.00 5.9400 892 339. THIELENHAUS #1 GAS PV-PD 1 14-17S-17W 1.000000 0.875000 0.00 5.9400 892 251. THIELENHAUS #1 BP GAS PV-BP 1 14-17S-17W 1.000000 0.875000 0.00 5.9400 892 251. TORREY #2 GAS PV-PD 1 19-16S-17W 1.000000 0.861328 0.00 5.9400 892 488. URBAN R & A #1 GAS PV-PD 1 20-16S-17W 1.000000 0.875000 0.00 5.9400 892 0. REICHEL EAST FIELD, RUSH COUNTY, KANSAS ------------------- BAHR #1 GAS PV-PD 1 35-17S-18W 1.000000 0.875000 0.00 5.9400 892 252. REICHEL WEST FIELD, RUSH COUNTY, KANSAS ------------------- LEGLEITER -A- #1 GAS PV-PD 1 11-17S-18W 1.000000 0.738281 0.00 5.9400 892 688. MUTH #1&2 GAS PV-PD 2 1-17S-18W 1.000000 0.722656 0.00 5.9400 892 1177. RIDGEWAY SOUTH FIELD, TREGO COUNTY, KANSAS --------------------- SCHOENTHALER OIL PV-PD 1 34-12S-21W 1.000000 0.820313 26.46 0.0000 N/A 1001. RIGA NORTHEAST FIELD, TREGO COUNTY, KANSAS --------------------- KELLER OIL PV-PD 2 9-13S-21W 1.000000 0.875000 26.46 0.0000 N/A 600. KELLER -A- OIL PV-PD 3 9-13S-21W 1.000000 0.875000 26.46 0.0000 N/A 941. RUGGELS WEST FIELD, OSBORNE COUNTY, KANSAS ---------------------- MAIER OIL PV-PD 1 16-10S-15W 0.812500 0.676025 26.46 0.0000 N/A 476. MAIER #1 BP OIL PV-BP 1 16-10S-15W 0.812500 0.676025 26.46 0.0000 N/A 476. SANDFORD FIELD, BARTON COUNTY, KANSAS --------------------- BEN TEMPERO OIL PV-PD 1 26-17S-14W 1.000000 0.820312 26.46 0.0000 N/A 2129. BEN TEMPERO #5 PUD OIL PV-UD 1 26-17S-14W 1.000000 0.820312 26.46 0.0000 N/A 1500. SCHWINDT FIELD, RUSH COUNTY, KANSAS ------------------- JACOBS -B- OIL PV-PD 1 30-17S-18W 1.000000 0.875000 26.46 0.0000 N/A 1083.
[LOGO OMITTED] RYDER SCOTT COMPANY TABLE C --------------------- Page 8 of 11 PETROLEUM CONSULTANTS TENGASCO, INC. SUMMARY OF INITIAL BASIC DATA AS OF DECEMBER 31, 2000 SEC CASE
RES. NO. ----INTERESTS----- LIQUIDS --GAS DATA-- GROSS PRI. TYPE OF LOCATION ----EVALUATED----- PRICE PRICE COST PROD (A) WELLS SEC TWP RNG W.I. N.R.I. $/BBL $(B) BTU $/MONTH ---- ----- ----- -------------- -------- -------- --------- ------- ---- --------- SPRING CREEK FIELD, TREGO COUNTY, KANSAS ------------------- RIDGWAY OIL PV-PD 1 32-12S-21W 1.000000 0.779300 26.46 0.0000 N/A 1067. STOCKTON FIELD, ROOKS COUNTY, KANSAS -------------------- HINDMAN, D.A. OIL PV-PD 1 35-7S-17W 1.000000 0.809370 26.46 0.0000 N/A 598. STEBBINS OIL PV-PD 1 26-7S-17W 0.925000 0.751570 26.46 0.0000 N/A 695. WATTS OIL PV-PD 1 26-7S-17W 0.925000 0.809380 26.46 0.0000 N/A 660. STREMEL FIELD, RUSH COUNTY, KANSAS ------------------- OCHS #1 & 3 OIL PV-PD 1 30-16S-16W 1.000000 0.875000 26.46 5.9400 892 526. URBAN -D- #2 OIL PV-PD 2 30-16S-16W 1.000000 0.875000 26.46 0.0000 N/A 785. THACKER FIELD, RUSSELL COUNTY, KANSAS ---------------------- THACKER #2 OIL PV-PD 1 29-13S-13W 1.000000 0.847656 26.46 0.0000 N/A 110. TRAPP FIELD, BARTON COUNTY, KANSAS --------------------- DEUTSCH OIL PV-PD 1 16-16S-13W 1.000000 0.820313 0.00 0.0000 N/A 890. HOWLIER #1 OIL PV-PD 1 8-16S-13W 0.937000 0.768633 26.46 0.0000 N/A 456. WEBSTER FIELD, ROOKS COUNTY, KANSAS -------------------- CERROW-CERROW -A- OIL PV-PD 1 33-8S-19W 1.000000 0.875000 26.46 0.0000 N/A 891. LOWRY #1 OIL PV-PD 1 33-8S-19W 1.000000 0.847656 26.46 0.0000 N/A 811. WERTH NORTH FIELD, ELLIS COUNTY, KANSAS -------------------- SCHNELLER OIL PV-PD 3 34-12S-20W 1.000000 0.820313 26.46 0.0000 N/A 1487. WESTHUSIN FIELD, ROOKS COUNTY, KANSAS -------------------- DOUGHERTY EAST #1 OIL PV-PD 1 18-9S-16W 0.934400 0.766500 26.46 0.0000 N/A 483. DOUGHERTY EAST #1 BP OIL PV-PD 1 18-9S-16W 0.934400 0.766500 26.46 0.0000 N/A 483. DOUGHERTY EAST #2 PUD OIL PV-PD 0 18-9S-16W 0.934400 0.766500 0.00 0.0000 N/A 0. YOHE FIELD, ROOKS COUNTY, KANSAS -------------------- FINNESY OIL PV-PD 3 33-8S-18W 1.000000 0.875000 26.46 0.0000 N/A 1891. MOSHER OIL PV-PD 2 33-8S-18W 1.000000 0.875000 26.46 0.0000 N/A 1107.
[LOGO OMITTED] RYDER SCOTT COMPANY TABLE C --------------------- Page 9 of 11 PETROLEUM CONSULTANTS TENGASCO, INC. SUMMARY OF INITIAL BASIC DATA AS OF DECEMBER 31, 2000 SEC CASE
RES. NO. ----INTERESTS----- LIQUIDS --GAS DATA-- GROSS PRI. TYPE OF LOCATION ----EVALUATED----- PRICE PRICE COST PROD (A) WELLS SEC TWP RNG W.I. N.R.I. $/BBL $(B) BTU $/MONTH ---- ----- ----- -------------- -------- -------- --------- ------- ---- --------- SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE ------------------------- ANITA COLSON #1 GAS PV-SI 1 11-1S-74E 1.000000 0.875000 0.00 9.7700 1000 500. ANITA COLSON #1 OIL PV-BP 1 11-1S-74E 1.000000 0.875000 24.10 9.7700 1000 800. ANITA COLSON #2 GAS PV-SI 1 11-1S-74E 1.000000 0.875000 0.00 9.7700 1000 500. CHEVRON WARREN REED #1 GAS PV-SI 1 11-1S-74E 1.000000 0.875000 0.00 9.7700 1000 500. D. SUTTON HEIRS #1 GAS PV-SI 1 11-1S-74E 1.000000 0.678444 0.00 9.7700 1000 500. D. SUTTON HEIRS #1 GAS PV-BP 1 11-1S-74E 1.000000 0.678444 0.00 9.7700 1000 600. DARRELL SUTTON #1 GAS PV-SI 1 6-1S-75E 1.000000 0.875000 0.00 9.7700 1000 500. DEWEY SUTTON #1 OIL PV-PD 1 6-1S-75E 1.000000 0.875000 24.10 0.0000 N/A 800. DORIS HELTON #1 GAS PV-SI 1 11-1S-74E 1.000000 0.875000 0.00 9.7700 1000 500. DORIS HELTON #1 GAS PV-BP 1 11-1S-74E 1.000000 0.875000 0.00 9.7700 1000 600. GARY PATTON #2 GAS PV-SI 1 6-1S-75E 1.000000 0.656250 0.00 9.7700 1000 500. GARY PATTON #2 OIL PV-BP 1 6-1S-75E 1.000000 0.656250 24.10 9.7700 1000 800. LAURA J. LAWSON #1 OIL PV-SI 0 6-1S-75E 1.000000 0.875000 0.00 0.0000 N/A 0. LAURA J. LAWSON #1 GAS PV-BP 1 6-1S-75E 1.000000 0.875000 0.00 9.7700 1000 600. LAURA J. LAWSON #2 GAS PV-SI 1 6-1S-75E 1.000000 0.656250 0.00 9.7700 1000 500. LAURA J. LAWSON #2 GAS PV-BP 1 6-1S-75E 1.000000 0.656250 24.10 9.7700 1000 600. PAUL REED #1 GAS PV-SI 0 10-1S-74E 1.000000 0.750000 0.00 9.7700 1000 0. PAUL REED #2 OIL PV-PD 1 10-1S-74E 1.000000 0.750000 24.10 0.0000 N/A 800. PAUL REED #2 GAS PV-BP 1 10-1S-74E 1.000000 0.750000 0.00 9.7700 1000 600. PAUL REED #3 GAS PV-SI 1 10-1S-74E 1.000000 0.656250 0.00 9.7700 1000 500. PAUL REED #3 GAS PV-BP 1 10-1S-74E 1.000000 0.656250 0.00 9.7700 1000 600. PAUL REED #4 GAS PV-SI 1 6-1S-75E 1.000000 0.875000 0.00 9.7700 1000 500. PAUL REED #4 GAS PV-BP 1 6-1S-75E 1.000000 0.875000 0.00 9.7700 1000 600. PAUL REED #5 OIL PV-PD 1 10-1S-74E 1.000000 0.875000 24.10 0.0000 N/A 800. PAUL REED/HELTON UNIT #6 OIL PV-PD 1 6-1S-75E 1.000000 0.656250 24.10 0.0000 N/A 800. PURKEY #1 GAS PV-SI 1 11-1S-74E 0.500000 0.437500 0.00 9.7700 1000 500. RAY DEAN HELTON #1 GAS PV-SI 1 10-1S-74E 1.000000 0.875000 0.00 9.7700 1000 500. RAY DEAN HELTON #1 GAS PV-BP 1 10-1S-74E 1.000000 0.875000 0.00 9.7700 1000 600. STEPHEN LAWSON #1 OIL PV-PD 1 6-1S-75E 0.500000 0.437500 24.10 0.0000 N/A 800.
[LOGO OMITTED] RYDER SCOTT COMPANY TABLE C --------------------- Page 10 of 11 PETROLEUM CONSULTANTS TENGASCO, INC. SUMMARY OF INITIAL BASIC DATA AS OF DECEMBER 31, 2000 SEC CASE
RES. NO. ----INTERESTS----- LIQUIDS --GAS DATA-- GROSS PRI. TYPE OF LOCATION ----EVALUATED----- PRICE PRICE COST PROD (A) WELLS SEC TWP RNG W.I. N.R.I. $/BBL $(B) BTU $/MONTH ---- ----- ----- -------------- -------- -------- --------- ------- ---- --------- SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE (CONT.) --------------------------------------------------- STEPHEN LAWSON #2 GAS PV-SI 1 6-1S-75E 1.000000 0.656250 0.00 9.7700 1000 500. STEPHEN LAWSON #3 GAS PV-SI 1 6-1S-75E 1.000000 0.765624 0.00 9.7700 1000 500. STEPHEN LAWSON #3 OIL PV-BP 1 6-1S-75E 1.000000 0.765624 24.10 9.7700 1000 800. STEPHEN LAWSON #4 GAS PV-SI 1 1.000000 0.656250 0.00 9.7700 1000 500. STEPHEN LAWSON #4 OIL PV-BP 1 1.000000 0.656250 24.10 9.7700 1000 800. T.J. HARRISON #1 OIL PV-PD 0 10-1S-74E 1.000000 0.875000 0.00 0.0000 N/A 0. WARREN REED #1 GAS PV-SI 1 6-1S-75E 1.000000 0.875000 0.00 9.7700 1000 500. WARREN REED #1 OIL PV-BP 1 6-1S-75E 1.000000 0.875000 24.10 0.0000 N/A 800. WARREN REED #2 GAS PV-SI 1 11-1S-74E 1.000000 0.781250 0.00 9.7700 1000 500. WARREN REED #2 GAS PV-BP 1 11-1S-74E 1.000000 0.781250 0.00 9.7700 1000 600. LOCATION # 1 GAS PV-UD 1 11-1S-74E 1.000000 0.875000 0.00 9.7700 1000 500. LOCATION # 2 GAS PV-UD 1 11-1S-74E 1.000000 0.875000 0.00 9.7700 1000 500. LOCATION # 4 GAS PV-UD 1 11-1S-74E 1.000000 0.875000 0.00 9.7700 1000 500. LOCATION # 5 GAS PV-UD 1 11-1S-74E 1.000000 0.875000 0.00 9.7700 1000 500. LOCATION # 6 GAS PV-UD 1 11-1S-74E 1.000000 0.875000 0.00 9.7700 1000 500. LOCATION # 7 GAS PV-UD 1 11-1S-74E 1.000000 0.875000 0.00 9.7700 1000 500. LOCATION # 8 GAS PV-UD 1 11-1S-74E 1.000000 0.875000 0.00 9.7700 1000 500. LOCATION # 9 GAS PV-UD 1 11-1S-74E 1.000000 0.875000 0.00 9.7700 1000 500. LOCATION #10 GAS PV-UD 1 11-1S-74E 1.000000 0.875000 0.00 9.7700 1000 500. LOCATION #11 GAS PV-UD 1 11-1S-74E 1.000000 0.875000 0.00 9.7700 1000 500. LOCATION #12 GAS PV-UD 1 11-1S-74E 1.000000 0.875000 0.00 9.7700 1000 500. LOCATION #13 GAS PV-UD 1 11-1S-74E 1.000000 0.875000 0.00 9.7700 1000 500. LOCATION #14 GAS PV-UD 1 11-1S-74E 1.000000 0.875000 0.00 9.7700 1000 500. LOCATION #15 GAS PV-UD 1 11-1S-74E 1.000000 0.875000 0.00 9.7700 1000 500. LOCATION #16 GAS PV-UD 1 11-1S-74E 1.000000 0.875000 0.00 9.7700 1000 500. LOCATION #17 GAS PV-UD 1 11-1S-74E 1.000000 0.875000 0.00 9.7700 1000 500. LOCATION #18 GAS PV-UD 1 11-1S-74E 1.000000 0.875000 0.00 9.7700 1000 500. LOCATION #19 GAS PV-UD 1 11-1S-74E 1.000000 0.875000 0.00 9.7700 1000 500. LOCATION #20 GAS PV-UD 1 11-1S-74E 1.000000 0.875000 0.00 9.7700 1000 500. LOCATION #21 GAS PV-UD 1 11-1S-74E 1.000000 0.875000 0.00 9.7700 1000 500.
[LOGO OMITTED] RYDER SCOTT COMPANY TABLE C --------------------- Page 11 of 11 PETROLEUM CONSULTANTS TENGASCO, INC. SUMMARY OF INITIAL BASIC DATA AS OF DECEMBER 31, 2000 SEC CASE
RES. NO. ----INTERESTS----- LIQUIDS --GAS DATA-- GROSS PRI. TYPE OF LOCATION ----EVALUATED----- PRICE PRICE COST PROD (A) WELLS SEC TWP RNG W.I. N.R.I. $/BBL $(B) BTU $/MONTH ---- ----- ----- -------------- -------- -------- --------- ------- ---- --------- SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE (CONT.) --------------------------------------------------- LOCATION #23 GAS PV-UD 1 11-1S-74E 1.000000 0.875000 0.00 9.7700 1000 500. LOCATION #24 GAS PV-UD 1 11-1S-74E 1.000000 0.875000 0.00 9.7700 1000 500. LOCATION #25 GAS PV-UD 1 11-1S-74E 1.000000 0.875000 0.00 9.7700 1000 500. LOCATION #26 GAS PV-UD 1 11-1S-74E 1.000000 0.875000 0.00 9.7700 1000 500. LOCATION #27 GAS PV-UD 1 11-1S-74E 1.000000 0.875000 0.00 9.7700 1000 500. LOCATION #28 GAS PV-UD 1 11-1S-74E 1.000000 0.875000 0.00 9.7700 1000 500. LOCATION #29 GAS PV-UD 1 11-1S-74E 1.000000 0.875000 0.00 9.7700 1000 500. LOCATION #30 GAS PV-UD 1 11-1S-74E 1.000000 0.875000 0.00 9.7700 1000 500. PROBABLE LOCATIONS GAS PB-UD 10 11-1S-74E 1.000000 0.875000 0.00 9.7700 1000 5000. POSSIBLE LOCATIONS GAS PS-UD 13 11-1S-74E 1.000000 0.875000 0.00 9.7700 1000 6500.
(A) RESERVE TYPES: PV = PROVED STATUS: PD = PRODUCING PB = PROBABLE BP = BEHIND PIPE PS = POSSIBLE SI = SHUT IN UD = UNDEVELOPED DP = DEPLETED PB = PAYBACK NP = NON-PRODUCING (B) IF BTU IS SHOWN, GAS PRICE IN $/MMBTU. IF BTU IS N/A, PRICE IS IN $/MCF. GRAND SUMMARY PROJECTIONS [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 1 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
GRAND SUMMARY TOTAL PROVED TOTAL PROPERTIES ALL CATEGORIES REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 5.00% - 369,991,384 FINAL - 10.00% - 315,201,258 REMARKS - 15.00% - 274,357,219 20.00% - 242,643,265 25.00% - 217,256,551
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 233 218,862 0 11,304 177,937 0 9,042.132 25.62 9.66 2002 243 197,358 0 11,801 160,965 0 9,681.236 25.73 9.67 2003 239 173,311 0 8,046 141,437 0 6,592.087 25.80 9.64 2004 238 155,610 0 5,662 127,206 0 4,627.489 25.88 9.60 2005 236 140,632 0 4,051 115,195 0 3,280.444 25.95 9.53 2006 231 130,215 0 3,563 106,992 0 2,870.689 25.94 9.52 2007 228 115,627 0 3,053 94,932 0 2,446.434 26.03 9.51 2008 218 111,331 0 2,370 90,383 0 1,882.348 26.01 9.46 2009 208 101,593 0 1,789 82,232 0 1,409.887 26.05 9.39 2010 191 119,003 0 1,441 94,504 0 1,114.597 25.65 9.32 2011 184 96,367 0 1,133 77,096 0 869.379 25.87 9.25 2012 173 87,728 0 902 71,241 0 683.738 25.89 9.17 2013 163 74,894 0 668 61,034 0 492.122 26.02 8.98 2014 148 63,044 0 555 51,376 0 406.242 26.14 8.86 2015 138 52,048 0 495 42,495 0 353.955 26.26 8.79 SUB-TOTAL 1,837,623 0 56,833 1,495,025 0 45,752.779 25.87 9.57 REMAINDER 393,295 0 2,688 319,880 0 1,787.101 26.42 7.29 TOTAL 2,230,918 0 59,521 1,814,905 0 47,539.880 25.97 9.48 CUMULATIVE 6,747,192 0 24,593 ULTIMATE 8,978,110 0 84,114
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 4,559,169 0 87,302,045 0 91,861,214 50,540 2,585,923 89,224,751 2002 4,141,037 0 93,639,253 0 97,780,290 40,856 2,779,007 94,960,427 2003 3,648,994 0 63,541,372 0 67,190,366 32,957 1,878,728 65,278,681 2004 3,291,707 0 44,415,530 0 47,707,237 26,720 1,307,120 46,373,397 2005 2,989,883 0 31,253,014 0 34,242,897 21,684 912,191 33,309,022 2006 2,774,866 0 27,336,580 0 30,111,446 20,735 797,469 29,293,242 2007 2,471,149 0 23,261,806 0 25,732,955 15,760 677,453 25,039,742 2008 2,351,159 0 17,807,120 0 20,158,279 15,440 515,613 19,627,226 2009 2,142,538 0 13,236,214 0 15,378,752 13,124 379,933 14,985,695 2010 2,424,381 0 10,390,748 0 12,815,129 25,990 295,820 12,493,319 2011 1,994,537 0 8,039,797 0 10,034,334 16,382 226,721 9,791,231 2012 1,844,535 0 6,270,449 0 8,114,984 14,718 175,057 7,925,209 2013 1,587,824 0 4,420,469 0 6,008,293 10,372 120,262 5,877,659 2014 1,343,099 0 3,600,330 0 4,943,429 6,854 96,255 4,840,320 2015 1,116,121 0 3,110,853 0 4,226,974 4,196 82,258 4,140,520 SUB-TOT 38,680,999 0 437,625,580 0 476,306,579 316,328 12,829,810 463,160,441 REMAIN 8,452,380 0 13,028,574 0 21,480,954 16,911 249,606 21,214,437 TOTAL 47,133,379 0 450,654,154 0 497,787,533 333,239 13,079,416 484,374,878
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 1,456,970 0 5,391,750 0 6,848,720 82,376,031 82,376,031 77,500,804 2002 1,607,117 0 2,500,000 0 4,107,117 90,853,310 173,229,341 78,437,744 2003 1,608,670 0 0 0 1,608,670 63,670,011 236,899,352 49,811,934 2004 1,596,118 0 0 0 1,596,118 44,777,279 281,676,631 31,697,809 2005 1,564,644 0 12,000 0 1,576,644 31,732,378 313,409,009 20,330,806 2006 1,588,591 0 165,000 0 1,753,591 27,539,651 340,948,660 15,929,328 2007 1,534,752 0 0 0 1,534,752 23,504,990 364,453,650 12,332,643 2008 1,470,260 0 20,000 0 1,490,260 18,136,966 382,590,616 8,621,118 2009 1,366,317 0 25,000 0 1,391,317 13,594,378 396,184,994 5,846,518 2010 1,260,449 0 86,213 0 1,346,662 11,146,657 407,331,651 4,335,472 2011 1,176,805 0 0 0 1,176,805 8,614,426 415,946,077 3,034,804 2012 1,103,801 0 25,000 0 1,128,801 6,796,408 422,742,485 2,167,112 2013 1,017,238 0 0 0 1,017,238 4,860,421 427,602,906 1,404,810 2014 935,528 0 0 0 935,528 3,904,792 431,507,698 1,019,554 2015 814,421 0 0 0 814,421 3,326,099 434,833,797 786,867 SUBTOT 20,101,681 0 8,224,963 0 28,326,644 434,833,797 313,257,323 REMAIN 8,174,759 0 0 0 8,174,759 13,039,678 447,873,475 1,943,935 TOTAL 28,276,440 0 8,224,963 0 36,501,403 447,873,475 315,201,258 LIFE OF SUMMARY IS 39.33 YEARS. THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT.
[LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 2 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
GRAND SUMMARY PROVED TOTAL PROPERTIES PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 5.00% - 22,709,048 FINAL - 10.00% - 17,700,380 REMARKS - 15.00% - 14,545,375 20.00% - 12,371,054 25.00% - 10,777,925
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 188 203,313 0 310 165,331 0 193.444 25.56 5.30 2002 188 178,726 0 291 145,585 0 179.719 25.65 5.30 2003 186 158,514 0 272 129,302 0 168.278 25.74 5.30 2004 186 141,744 0 253 115,826 0 157.900 25.82 5.30 2005 184 127,602 0 247 104,489 0 148.685 25.90 5.30 2006 177 113,146 0 221 92,702 0 140.586 25.96 5.30 2007 177 102,141 0 214 83,728 0 130.850 26.02 5.30 2008 170 93,555 0 194 76,722 0 119.957 26.08 5.30 2009 168 84,731 0 182 69,441 0 113.240 26.13 5.30 2010 158 75,732 0 171 62,040 0 107.093 26.16 5.30 2011 155 69,005 0 162 56,539 0 99.585 26.20 5.30 2012 148 63,341 0 150 51,913 0 91.618 26.24 5.30 2013 143 56,813 0 141 46,550 0 86.673 26.28 5.30 2014 131 50,175 0 130 41,041 0 82.445 26.30 5.30 2015 122 42,097 0 131 34,467 0 77.667 26.36 5.30 SUB-TOTAL 1,560,635 0 3,069 1,275,676 0 1,897.740 25.92 5.30 REMAINDER 343,513 0 1,618 278,083 0 991.029 26.43 5.30 TOTAL 1,904,148 0 4,687 1,553,759 0 2,888.769 26.01 5.30 CUMULATIVE 6,747,192 0 24,545 ULTIMATE 8,651,340 0 29,232
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 4,225,611 0 1,024,960 0 5,250,571 50,007 3,179 5,197,385 2002 3,734,085 0 952,239 0 4,686,324 40,203 2,947 4,643,174 2003 3,327,920 0 891,617 0 4,219,537 32,444 2,768 4,184,325 2004 2,990,585 0 836,629 0 3,827,214 26,237 2,588 3,798,389 2005 2,706,611 0 787,801 0 3,494,412 21,232 2,447 3,470,733 2006 2,406,689 0 744,893 0 3,151,582 17,260 2,311 3,132,011 2007 2,178,759 0 693,308 0 2,872,067 14,115 2,146 2,855,806 2008 2,000,874 0 635,587 0 2,636,461 11,640 1,969 2,622,852 2009 1,814,384 0 600,000 0 2,414,384 9,600 1,862 2,402,922 2010 1,623,329 0 567,426 0 2,190,755 7,911 1,759 2,181,085 2011 1,481,456 0 527,649 0 2,009,105 6,602 1,635 2,000,868 2012 1,362,159 0 485,442 0 1,847,601 5,538 1,507 1,840,556 2013 1,223,094 0 459,226 0 1,682,320 4,416 1,424 1,676,480 2014 1,079,248 0 436,840 0 1,516,088 3,647 1,350 1,511,091 2015 908,696 0 411,518 0 1,320,214 2,413 1,277 1,316,524 SUB-TOT 33,063,500 0 10,055,135 0 43,118,635 253,265 31,169 42,834,201 REMAIN 7,349,470 0 5,250,952 0 12,600,422 14,276 16,279 12,569,867 TOTAL 40,412,970 0 15,306,087 0 55,719,057 267,541 47,448 55,404,068
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 1,282,376 0 0 0 1,282,376 3,915,009 3,915,009 3,731,135 2002 1,280,496 0 0 0 1,280,496 3,362,678 7,277,687 2,900,814 2003 1,277,729 0 0 0 1,277,729 2,906,596 10,184,283 2,269,624 2004 1,273,282 0 0 0 1,273,282 2,525,107 12,709,390 1,784,741 2005 1,267,364 0 0 0 1,267,364 2,203,369 14,912,759 1,409,697 2006 1,203,730 0 0 0 1,203,730 1,928,281 16,841,040 1,116,726 2007 1,166,135 0 0 0 1,166,135 1,689,671 18,530,711 885,788 2008 1,137,032 0 0 0 1,137,032 1,485,820 20,016,531 705,063 2009 1,093,795 0 0 0 1,093,795 1,309,127 21,325,658 562,321 2010 1,013,773 0 11,213 0 1,024,986 1,156,099 22,481,757 449,397 2011 961,022 0 0 0 961,022 1,039,846 23,521,603 365,979 2012 917,704 0 0 0 917,704 922,852 24,444,455 294,006 2013 858,531 0 0 0 858,531 817,949 25,262,404 235,919 2014 788,244 0 0 0 788,244 722,847 25,985,251 188,699 2015 675,340 0 0 0 675,340 641,184 26,626,435 151,500 SUBTOT 16,196,553 0 11,213 0 16,207,766 26,626,435 17,051,409 REMAIN 7,377,895 0 0 0 7,377,895 5,191,972 31,818,407 648,971 TOTAL 23,574,448 0 11,213 0 23,585,661 31,818,407 17,700,380 LIFE OF SUMMARY IS 39.33 YEARS.
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 3 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
GRAND SUMMARY PROVED TOTAL PROPERTIES SHUT-IN REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 5.00% - 142,811,185 FINAL - 10.00% - 122,351,353 REMARKS - 15.00% - 107,494,485 20.00% - 96,159,510 25.00% - 87,179,018
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 17 0 0 6,133 0 0 4,608.793 0.00 9.77 2002 17 0 0 4,404 0 0 3,295.015 0.00 9.77 2003 15 0 0 2,893 0 0 2,165.955 0.00 9.77 2004 14 0 0 2,030 0 0 1,517.339 0.00 9.77 2005 13 0 0 1,492 0 0 1,118.943 0.00 9.77 2006 13 0 0 1,289 0 0 960.358 0.00 9.77 2007 12 0 0 1,148 0 0 855.809 0.00 9.77 2008 12 0 0 962 0 0 716.757 0.00 9.77 2009 10 0 0 749 0 0 562.769 0.00 9.77 2010 8 0 0 630 0 0 471.620 0.00 9.77 2011 7 0 0 490 0 0 370.449 0.00 9.77 2012 6 0 0 384 0 0 284.016 0.00 9.77 2013 5 0 0 339 0 0 248.619 0.00 9.77 2014 5 0 0 306 0 0 225.254 0.00 9.77 2015 5 0 0 280 0 0 205.100 0.00 9.77 SUB-TOTAL 0 0 23,529 0 0 17,606.796 0.00 9.77 REMAINDER 0 0 1,053 0 0 785.285 0.00 9.77 TOTAL 0 0 24,582 0 0 18,392.081 0.00 9.77 CUMULATIVE 0 0 48 ULTIMATE 0 0 24,630
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 45,027,906 0 45,027,906 0 1,350,836 43,677,070 2002 0 0 32,192,295 0 32,192,295 0 965,769 31,226,526 2003 0 0 21,161,380 0 21,161,380 0 634,842 20,526,538 2004 0 0 14,824,399 0 14,824,399 0 444,732 14,379,667 2005 0 0 10,932,077 0 10,932,077 0 327,962 10,604,115 2006 0 0 9,382,702 0 9,382,702 0 281,480 9,101,222 2007 0 0 8,361,256 0 8,361,256 0 250,839 8,110,417 2008 0 0 7,002,717 0 7,002,717 0 210,081 6,792,636 2009 0 0 5,498,251 0 5,498,251 0 164,950 5,333,301 2010 0 0 4,607,729 0 4,607,729 0 138,230 4,469,499 2011 0 0 3,619,292 0 3,619,292 0 108,579 3,510,713 2012 0 0 2,774,838 0 2,774,838 0 83,245 2,691,593 2013 0 0 2,429,008 0 2,429,008 0 72,870 2,356,138 2014 0 0 2,200,729 0 2,200,729 0 66,022 2,134,707 2015 0 0 2,003,822 0 2,003,822 0 60,115 1,943,707 SUB-TOT 0 0 172,018,401 0 172,018,401 0 5,160,552 166,857,849 REMAIN 0 0 7,672,235 0 7,672,235 0 230,166 7,442,069 TOTAL 0 0 179,690,636 0 179,690,636 0 5,390,718 174,299,918
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 82,500 0 330,000 0 412,500 43,264,570 43,264,570 41,026,488 2002 97,620 0 0 0 97,620 31,128,906 74,393,476 26,920,801 2003 84,440 0 0 0 84,440 20,442,098 94,835,574 15,993,438 2004 76,335 0 0 0 76,335 14,303,332 109,138,906 10,125,629 2005 75,000 0 0 0 75,000 10,529,115 119,668,021 6,744,900 2006 83,871 0 0 0 83,871 9,017,351 128,685,372 5,215,439 2007 82,800 0 0 0 82,800 8,027,617 136,712,989 4,209,387 2008 77,093 0 0 0 77,093 6,715,543 143,428,532 3,189,456 2009 58,420 0 0 0 58,420 5,274,881 148,703,413 2,268,128 2010 53,896 0 0 0 53,896 4,415,603 153,119,016 1,717,987 2011 45,396 0 0 0 45,396 3,465,317 156,584,333 1,220,444 2012 34,199 0 0 0 34,199 2,657,394 159,241,727 847,428 2013 32,400 0 0 0 32,400 2,323,738 161,565,465 670,060 2014 32,400 0 0 0 32,400 2,102,307 163,667,772 548,726 2015 32,400 0 0 0 32,400 1,911,307 165,579,079 451,569 SUBTOT 948,770 0 330,000 0 1,278,770 165,579,079 121,149,880 REMAIN 144,527 0 0 0 144,527 7,297,542 172,876,621 1,201,473 TOTAL 1,093,297 0 330,000 0 1,423,297 172,876,621 122,351,353 LIFE OF SUMMARY IS 26.14 YEARS.
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 4 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
GRAND SUMMARY PROVED TOTAL PROPERTIES BEHIND PIPE REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 5.00% - 7,277,445 FINAL - 10.00% - 5,170,213 REMARKS - 15.00% - 3,790,519 20.00% - 2,865,703 25.00% - 2,231,208
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 5 3,446 0 88 2,330 0 63.015 26.46 7.00 2002 5 3,157 0 75 2,134 0 54.733 26.46 7.16 2003 5 2,892 0 61 1,955 0 42.467 26.46 7.16 2004 5 2,648 0 45 1,790 0 33.601 26.46 7.12 2005 6 2,426 0 58 1,640 0 40.162 26.46 6.48 2006 13 7,041 0 238 5,718 0 181.012 24.72 9.32 2007 12 4,001 0 172 3,097 0 129.617 25.15 9.35 2008 11 8,806 0 136 5,992 0 102.166 24.60 9.31 2009 11 8,373 0 118 5,536 0 87.170 24.59 9.40 2010 11 35,239 0 147 25,597 0 104.834 24.20 9.58 2011 9 19,758 0 118 14,058 0 80.059 24.26 9.66 2012 7 17,188 0 76 13,175 0 54.338 24.26 9.77 2013 5 11,266 0 49 8,659 0 33.845 24.32 9.77 2014 5 6,414 0 32 4,817 0 22.175 24.46 9.77 2015 4 3,836 0 20 2,801 0 14.954 24.67 9.77 SUB-TOTAL 136,491 0 1,433 99,299 0 1,044.148 24.58 8.91 REMAINDER 4,484 0 17 3,153 0 10.787 25.51 9.77 TOTAL 140,975 0 1,450 102,452 0 1,054.935 24.61 8.92 CUMULATIVE 0 0 0 ULTIMATE 140,975 0 1,450
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 61,649 0 441,059 0 502,708 99 7,666 494,943 2002 56,467 0 391,932 0 448,399 90 7,206 441,103 2003 51,721 0 304,042 0 355,763 83 5,588 350,092 2004 47,372 0 239,301 0 286,673 76 4,343 282,254 2005 43,391 0 260,299 0 303,690 69 3,599 300,022 2006 141,357 0 1,687,073 0 1,828,430 3,112 48,017 1,777,301 2007 77,876 0 1,211,598 0 1,289,474 1,303 34,603 1,253,568 2008 147,369 0 951,135 0 1,098,504 3,473 27,034 1,067,997 2009 136,166 0 819,617 0 955,783 3,218 23,569 928,996 2010 619,370 0 1,004,239 0 1,623,609 17,788 29,489 1,576,332 2011 341,115 0 773,434 0 1,114,549 9,505 22,925 1,082,119 2012 319,578 0 530,880 0 850,458 8,920 15,926 825,612 2013 210,576 0 330,666 0 541,242 5,709 9,920 525,613 2014 117,856 0 216,646 0 334,502 2,974 6,501 325,027 2015 69,133 0 146,104 0 215,237 1,563 4,383 209,291 SUB-TOT 2,440,996 0 9,308,025 0 11,749,021 57,982 250,769 11,440,270 REMAIN 80,403 0 105,387 0 185,790 998 3,161 181,631 TOTAL 2,521,399 0 9,413,412 0 11,934,811 58,980 253,930 11,621,901
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 13,653 0 61,750 0 75,403 419,540 419,540 395,545 2002 14,853 0 0 0 14,853 426,250 845,790 368,036 2003 14,853 0 0 0 14,853 335,239 1,181,029 261,959 2004 14,853 0 0 0 14,853 267,401 1,448,430 189,132 2005 18,897 0 12,000 0 30,897 269,125 1,717,555 172,398 2006 78,897 0 165,000 0 243,897 1,533,404 3,250,959 885,151 2007 69,983 0 0 0 69,983 1,183,585 4,434,544 621,822 2008 68,618 0 20,000 0 88,618 979,379 5,413,923 464,471 2009 58,475 0 25,000 0 83,475 845,521 6,259,444 362,459 2010 65,686 0 75,000 0 140,686 1,435,646 7,695,090 557,358 2011 55,888 0 0 0 55,888 1,026,231 8,721,321 362,756 2012 42,911 0 25,000 0 67,911 757,701 9,479,022 241,298 2013 40,641 0 0 0 40,641 484,972 9,963,994 140,332 2014 36,836 0 0 0 36,836 288,191 10,252,185 75,484 2015 31,041 0 0 0 31,041 178,250 10,430,435 42,236 SUBTOT 626,085 0 383,750 0 1,009,835 10,430,435 5,140,437 REMAIN 39,070 0 0 0 39,070 142,561 10,572,996 29,776 TOTAL 665,155 0 383,750 0 1,048,905 10,572,996 5,170,213 LIFE OF SUMMARY IS 18.33 YEARS.
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 5 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
GRAND SUMMARY PROVED TOTAL PROPERTIES UNDEVELOPED REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 5.00% - 197,193,706 FINAL - 10.00% - 169,979,312 REMARKS - 15.00% - 148,526,840 20.00% - 131,246,998 25.00% - 117,068,400
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 23 12,103 0 4,773 10,276 0 4,176.880 26.46 9.77 2002 33 15,475 0 7,031 13,246 0 6,151.769 26.46 9.77 2003 33 11,905 0 4,820 10,180 0 4,215.387 26.46 9.77 2004 33 11,218 0 3,334 9,590 0 2,918.650 26.46 9.77 2005 33 10,604 0 2,254 9,066 0 1,972.655 26.46 9.77 2006 28 10,028 0 1,815 8,572 0 1,588.732 26.46 9.77 2007 27 9,485 0 1,519 8,107 0 1,330.158 26.46 9.77 2008 25 8,970 0 1,078 7,669 0 943.468 26.46 9.77 2009 19 8,489 0 740 7,255 0 646.709 26.46 9.77 2010 14 8,032 0 493 6,867 0 431.050 26.46 9.77 2011 13 7,604 0 363 6,499 0 319.286 26.46 9.77 2012 12 7,199 0 292 6,153 0 253.765 26.46 9.77 2013 10 6,815 0 139 5,825 0 122.986 26.46 9.77 2014 7 6,455 0 87 5,518 0 76.368 26.46 9.77 2015 7 6,115 0 64 5,227 0 56.234 26.46 9.77 SUB-TOTAL 140,497 0 28,802 120,050 0 25,204.097 26.46 9.77 REMAINDER 45,298 0 0 38,644 0 0.000 26.46 0.00 TOTAL 185,795 0 28,802 158,694 0 25,204.097 26.46 9.77 CUMULATIVE 0 0 0 ULTIMATE 185,795 0 28,802
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 271,909 0 40,808,120 0 41,080,029 434 1,224,242 39,855,353 2002 350,485 0 60,102,787 0 60,453,272 563 1,803,085 58,649,624 2003 269,353 0 41,184,333 0 41,453,686 430 1,235,530 40,217,726 2004 253,750 0 28,515,201 0 28,768,951 407 855,457 27,913,087 2005 239,881 0 19,272,837 0 19,512,718 383 578,183 18,934,152 2006 226,820 0 15,521,912 0 15,748,732 363 465,661 15,282,708 2007 214,514 0 12,995,644 0 13,210,158 342 389,865 12,819,951 2008 202,916 0 9,217,681 0 9,420,597 327 276,529 9,143,741 2009 191,988 0 6,318,346 0 6,510,334 306 189,552 6,320,476 2010 181,682 0 4,211,354 0 4,393,036 291 126,342 4,266,403 2011 171,966 0 3,119,422 0 3,291,388 275 93,582 3,197,531 2012 162,798 0 2,479,289 0 2,642,087 260 74,379 2,567,448 2013 154,154 0 1,201,569 0 1,355,723 247 36,048 1,319,428 2014 145,995 0 746,115 0 892,110 233 22,382 869,495 2015 138,292 0 549,409 0 687,701 220 16,483 670,998 SUB-TOT 3,176,503 0 246,244,019 0 249,420,522 5,081 7,387,320 242,028,121 REMAIN 1,022,507 0 0 0 1,022,507 1,637 0 1,020,870 TOTAL 4,199,010 0 246,244,019 0 250,443,029 6,718 7,387,320 243,048,991
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 78,441 0 5,000,000 0 5,078,441 34,776,912 34,776,912 32,347,636 2002 214,148 0 2,500,000 0 2,714,148 55,935,476 90,712,388 48,248,093 2003 231,648 0 0 0 231,648 39,986,078 130,698,466 31,286,913 2004 231,648 0 0 0 231,648 27,681,439 158,379,905 19,598,307 2005 203,383 0 0 0 203,383 18,730,769 177,110,674 12,003,811 2006 222,093 0 0 0 222,093 15,060,615 192,171,289 8,712,012 2007 215,834 0 0 0 215,834 12,604,117 204,775,406 6,615,646 2008 187,517 0 0 0 187,517 8,956,224 213,731,630 4,262,128 2009 155,627 0 0 0 155,627 6,164,849 219,896,479 2,653,610 2010 127,094 0 0 0 127,094 4,139,309 224,035,788 1,610,730 2011 114,499 0 0 0 114,499 3,083,032 227,118,820 1,085,625 2012 108,987 0 0 0 108,987 2,458,461 229,577,281 784,380 2013 85,666 0 0 0 85,666 1,233,762 230,811,043 358,499 2014 78,048 0 0 0 78,048 791,447 231,602,490 206,645 2015 75,640 0 0 0 75,640 595,358 232,197,848 141,562 SUBTOT 2,330,273 0 7,500,000 0 9,830,273 232,197,848 169,915,597 REMAIN 613,267 0 0 0 613,267 407,603 232,605,451 63,715 TOTAL 2,943,540 0 7,500,000 0 10,443,540 232,605,451 169,979,312 LIFE OF SUMMARY IS 29.11 YEARS.
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 6 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
GRAND SUMMARY TOTAL PROBABLE TOTAL PROPERTIES UNDEVELOPED REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 5.00% - 91,653,358 FINAL - 10.00% - 75,436,619 REMARKS - 15.00% - 62,960,973 20.00% - 53,172,179 25.00% - 45,354,631
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 2 5,158 0 0 3,933 0 0.000 26.46 0.00 2002 12 5,700 0 2,537 4,329 0 2,220.294 26.46 9.77 2003 12 4,910 0 3,233 3,725 0 2,828.251 26.46 9.77 2004 12 4,621 0 2,101 3,504 0 1,838.375 26.46 9.77 2005 12 4,349 0 1,444 3,299 0 1,263.798 26.46 9.77 2006 12 4,092 0 1,037 3,105 0 907.028 26.46 9.77 2007 12 3,852 0 770 2,923 0 673.586 26.46 9.77 2008 12 3,625 0 587 2,751 0 514.300 26.46 9.77 2009 12 3,411 0 698 2,590 0 610.551 26.46 9.77 2010 12 3,211 0 617 2,437 0 539.494 26.46 9.77 2011 12 3,022 0 466 2,295 0 407.657 26.46 9.77 2012 12 2,844 0 207 2,160 0 181.607 26.46 9.77 2013 2 2,678 0 0 2,034 0 0.000 26.46 0.00 2014 2 2,520 0 0 1,914 0 0.000 26.46 0.00 2015 2 2,372 0 0 1,803 0 0.000 26.46 0.00 SUB-TOTAL 56,365 0 13,697 42,802 0 11,984.941 26.46 9.77 REMAINDER 10,893 0 0 8,147 0 0.000 26.46 0.00 TOTAL 67,258 0 13,697 50,949 0 11,984.941 26.46 9.77 CUMULATIVE 0 0 0 ULTIMATE 67,258 0 13,697
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 104,065 0 0 0 104,065 166 0 103,899 2002 114,562 0 21,692,276 0 21,806,838 184 650,768 21,155,886 2003 98,534 0 27,632,016 0 27,730,550 157 828,961 26,901,432 2004 92,739 0 17,960,921 0 18,053,660 149 538,827 17,514,684 2005 87,287 0 12,347,309 0 12,434,596 140 370,420 12,064,036 2006 82,159 0 8,861,666 0 8,943,825 131 265,850 8,677,844 2007 77,333 0 6,580,932 0 6,658,265 123 197,428 6,460,714 2008 72,792 0 5,024,707 0 5,097,499 117 150,741 4,946,641 2009 68,521 0 5,965,084 0 6,033,605 109 178,952 5,854,544 2010 64,500 0 5,270,854 0 5,335,354 104 158,126 5,177,124 2011 60,718 0 3,982,814 0 4,043,532 97 119,484 3,923,951 2012 57,160 0 1,774,301 0 1,831,461 92 53,229 1,778,140 2013 53,810 0 0 0 53,810 86 0 53,724 2014 50,660 0 0 0 50,660 81 0 50,579 2015 47,693 0 0 0 47,693 76 0 47,617 SUB-TOT 1,132,533 0 117,092,880 0 118,225,413 1,812 3,512,786 114,710,815 REMAIN 215,588 0 0 0 215,588 345 0 215,243 TOTAL 1,348,121 0 117,092,880 0 118,441,001 2,157 3,512,786 114,926,058
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 15,501 0 185,313 0 200,814 -96,915 -96,915 -93,337 2002 61,001 0 250,000 0 311,001 20,844,885 20,747,970 17,552,547 2003 91,001 0 0 0 91,001 26,810,431 47,558,401 20,989,705 2004 91,001 0 0 0 91,001 17,423,683 64,982,084 12,341,508 2005 91,001 0 0 0 91,001 11,973,035 76,955,119 7,673,841 2006 103,001 0 0 0 103,001 8,574,843 85,529,962 4,973,403 2007 103,001 0 0 0 103,001 6,357,713 91,887,675 3,337,123 2008 103,001 0 0 0 103,001 4,843,640 96,731,315 2,300,949 2009 103,001 0 0 0 103,001 5,751,543 102,482,858 2,458,112 2010 103,001 0 0 0 103,001 5,074,123 107,556,981 1,975,855 2011 103,001 0 0 0 103,001 3,820,950 111,377,931 1,346,393 2012 69,910 0 0 0 69,910 1,708,230 113,086,161 556,169 2013 31,002 0 0 0 31,002 22,722 113,108,883 6,554 2014 31,001 0 0 0 31,001 19,578 113,128,461 5,113 2015 31,001 0 0 0 31,001 16,616 113,145,077 3,928 SUBTOT 1,130,425 0 435,313 0 1,565,738 113,145,077 75,427,863 REMAIN 166,340 0 0 0 166,340 48,903 113,193,980 8,756 TOTAL 1,296,765 0 435,313 0 1,732,078 113,193,980 75,436,619 LIFE OF SUMMARY IS 23.17 YEARS.
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 7 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
GRAND SUMMARY TOTAL POSSIBLE TOTAL PROPERTIES UNDEVELOPED REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 5.00% - 53,825,724 FINAL - 10.00% - 43,252,319 REMARKS - 15.00% - 35,019,134 20.00% - 28,549,812 25.00% - 23,422,959
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 13 0 0 1,726 0 0 1,510.593 0.00 9.77 2004 13 0 0 2,200 0 0 1,924.953 0.00 9.77 2005 13 0 0 1,430 0 0 1,251.313 0.00 9.77 2006 13 0 0 984 0 0 860.265 0.00 9.77 2007 13 0 0 717 0 0 627.712 0.00 9.77 2008 13 0 0 660 0 0 577.760 0.00 9.77 2009 13 0 0 526 0 0 460.133 0.00 9.77 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 8,243 0 0 7,212.729 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 8,243 0 0 7,212.729 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 8,243
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 14,758,492 0 14,758,492 0 442,755 14,315,737 2004 0 0 18,806,791 0 18,806,791 0 564,203 18,242,588 2005 0 0 12,225,327 0 12,225,327 0 366,760 11,858,567 2006 0 0 8,404,787 0 8,404,787 0 252,144 8,152,643 2007 0 0 6,132,744 0 6,132,744 0 183,982 5,948,762 2008 0 0 5,644,714 0 5,644,714 0 169,342 5,475,372 2009 0 0 4,495,497 0 4,495,497 0 134,865 4,360,632 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 70,468,352 0 70,468,352 0 2,114,051 68,354,301 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 70,468,352 0 70,468,352 0 2,114,051 68,354,301
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 39,000 0 250,000 0 289,000 14,026,737 14,026,737 10,687,250 2004 78,000 0 0 0 78,000 18,164,588 32,191,325 12,873,157 2005 78,000 0 0 0 78,000 11,780,567 43,971,892 7,553,585 2006 93,600 0 0 0 93,600 8,059,043 52,030,935 4,675,789 2007 93,600 0 0 0 93,600 5,855,162 57,886,097 3,071,757 2008 93,600 0 0 0 93,600 5,381,772 63,267,869 2,556,234 2009 93,362 0 0 0 93,362 4,267,270 67,535,139 1,834,547 2010 0 0 0 0 0 0 67,535,139 0 2011 0 0 0 0 0 0 67,535,139 0 2012 0 0 0 0 0 0 67,535,139 0 2013 0 0 0 0 0 0 67,535,139 0 2014 0 0 0 0 0 0 67,535,139 0 2015 0 0 0 0 0 0 67,535,139 0 SUBTOT 569,162 0 250,000 0 819,162 67,535,139 43,252,319 REMAIN 0 0 0 0 0 0 67,535,139 0 TOTAL 569,162 0 250,000 0 819,162 67,535,139 43,252,319 LIFE OF SUMMARY IS 9.00 YEARS.
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. FIELD AND LEASE PROJECTIONS [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 8 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
STATE SUMMARY TOTAL PROVED KANSAS PROPERTIES ALL CATEGORIES REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 5.00% - 19,912,833 FINAL - 10.00% - 14,993,222 REMARKS - AD VALOREM TAXES ARE INCLUDED IN OPERATING COSTS. 15.00% - 11,978,904 20.00% - 9,954,098 25.00% - 8,503,695
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 192 139,793 0 371 114,756 0 232.491 26.46 5.30 2002 192 134,843 0 340 110,948 0 211.656 26.46 5.30 2003 190 123,859 0 312 101,821 0 193.072 26.46 5.30 2004 190 116,587 0 283 95,866 0 177.798 26.46 5.30 2005 190 110,057 0 293 90,490 0 178.223 26.46 5.30 2006 182 101,200 0 249 83,192 0 158.794 26.46 5.30 2007 181 94,503 0 233 77,678 0 143.096 26.46 5.30 2008 174 89,210 0 210 73,325 0 130.474 26.46 5.30 2009 172 82,899 0 193 68,066 0 120.403 26.46 5.30 2010 161 75,789 0 178 62,194 0 111.564 26.46 5.30 2011 158 70,474 0 165 57,832 0 101.539 26.46 5.30 2012 150 65,848 0 150 54,045 0 91.618 26.46 5.30 2013 145 60,476 0 141 49,595 0 86.673 26.46 5.30 2014 134 54,337 0 130 44,491 0 82.445 26.46 5.30 2015 125 47,605 0 131 38,975 0 77.667 26.46 5.30 SUB-TOTAL 1,367,480 0 3,379 1,123,274 0 2,097.513 26.46 5.30 REMAINDER 387,397 0 1,618 314,935 0 991.029 26.46 5.30 TOTAL 1,754,877 0 4,997 1,438,209 0 3,088.542 26.46 5.30 CUMULATIVE 6,653,459 0 24,545 ULTIMATE 8,408,336 0 29,542
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 3,036,520 0 1,231,847 0 4,268,367 4,860 3,820 4,259,687 2002 2,935,615 0 1,121,455 0 4,057,070 4,695 3,471 4,048,904 2003 2,694,258 0 1,022,988 0 3,717,246 4,313 3,176 3,709,757 2004 2,536,382 0 942,060 0 3,478,442 4,060 2,915 3,471,467 2005 2,394,512 0 944,310 0 3,338,822 3,824 2,932 3,332,066 2006 2,201,267 0 841,368 0 3,042,635 3,528 2,610 3,036,497 2007 2,055,333 0 758,195 0 2,813,528 3,285 2,347 2,807,896 2008 1,940,100 0 691,313 0 2,631,413 3,108 2,142 2,626,163 2009 1,801,112 0 637,958 0 2,439,070 2,880 1,980 2,434,210 2010 1,645,709 0 591,116 0 2,236,825 2,630 1,832 2,232,363 2011 1,530,235 0 538,003 0 2,068,238 2,453 1,667 2,064,118 2012 1,430,132 0 485,442 0 1,915,574 2,287 1,507 1,911,780 2013 1,312,150 0 459,226 0 1,771,376 2,099 1,424 1,767,853 2014 1,177,197 0 436,840 0 1,614,037 1,880 1,350 1,610,807 2015 1,031,260 0 411,518 0 1,442,778 1,650 1,277 1,439,851 SUB-TOT 29,721,782 0 11,113,639 0 40,835,421 47,552 34,450 40,753,419 REMAIN 8,333,236 0 5,250,952 0 13,584,188 13,336 16,279 13,554,573 TOTAL 38,055,018 0 16,364,591 0 54,419,609 60,888 50,729 54,307,992
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 1,275,770 0 541,750 0 1,817,520 2,442,167 2,442,167 2,324,024 2002 1,308,597 0 0 0 1,308,597 2,740,307 5,182,474 2,364,397 2003 1,305,830 0 0 0 1,305,830 2,403,927 7,586,401 1,876,542 2004 1,302,583 0 0 0 1,302,583 2,168,884 9,755,285 1,532,494 2005 1,304,309 0 12,000 0 1,316,309 2,015,757 11,771,042 1,289,431 2006 1,240,675 0 0 0 1,240,675 1,795,822 13,566,864 1,039,773 2007 1,203,080 0 0 0 1,203,080 1,604,816 15,171,680 841,097 2008 1,173,977 0 0 0 1,173,977 1,452,186 16,623,866 688,949 2009 1,128,718 0 0 0 1,128,718 1,305,492 17,929,358 560,729 2010 1,046,674 0 11,213 0 1,057,887 1,174,476 19,103,834 456,451 2011 992,369 0 0 0 992,369 1,071,749 20,175,583 377,216 2012 947,593 0 0 0 947,593 964,187 21,139,770 307,121 2013 896,420 0 0 0 896,420 871,433 22,011,203 251,309 2014 827,733 0 0 0 827,733 783,074 22,794,277 204,394 2015 732,240 0 0 0 732,240 707,611 23,501,888 167,181 SUBTOT 16,686,568 0 564,963 0 17,251,531 23,501,888 14,281,108 REMAIN 7,957,815 0 0 0 7,957,815 5,596,758 29,098,646 712,114 TOTAL 24,644,383 0 564,963 0 25,209,346 29,098,646 14,993,222 LIFE OF SUMMARY IS 39.33 YEARS.
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 9 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
STATE SUMMARY PROVED KANSAS PROPERTIES PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 5.00% - 17,350,693 FINAL - 10.00% - 13,068,086 REMARKS - AD VALOREM TAXES ARE INCLUDED IN OPERATING COSTS. 15.00% - 10,471,548 20.00% - 8,738,008 25.00% - 7,500,528
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 183 124,244 0 310 102,150 0 193.444 26.46 5.30 2002 183 116,211 0 291 95,568 0 179.719 26.46 5.30 2003 181 109,062 0 272 89,686 0 168.278 26.46 5.30 2004 181 102,721 0 253 84,486 0 157.900 26.46 5.30 2005 180 97,027 0 247 79,784 0 148.685 26.46 5.30 2006 173 88,950 0 221 73,118 0 140.586 26.46 5.30 2007 173 82,983 0 214 68,195 0 130.850 26.46 5.30 2008 166 78,376 0 194 64,396 0 119.957 26.46 5.30 2009 164 72,703 0 182 59,657 0 113.240 26.46 5.30 2010 154 66,193 0 171 54,270 0 107.093 26.46 5.30 2011 151 61,438 0 162 50,365 0 99.585 26.46 5.30 2012 144 57,337 0 150 47,005 0 91.618 26.46 5.30 2013 139 52,459 0 141 42,957 0 86.673 26.46 5.30 2014 128 46,782 0 130 38,229 0 82.445 26.46 5.30 2015 119 40,482 0 131 33,067 0 77.667 26.46 5.30 SUB-TOTAL 1,196,968 0 3,069 982,933 0 1,897.740 26.46 5.30 REMAINDER 339,314 0 1,618 274,408 0 991.029 26.46 5.30 TOTAL 1,536,282 0 4,687 1,257,341 0 2,888.769 26.46 5.30 CUMULATIVE 6,653,459 0 24,545 ULTIMATE 8,189,741 0 29,232
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 2,702,962 0 1,024,960 0 3,727,922 4,327 3,179 3,720,416 2002 2,528,663 0 952,239 0 3,480,902 4,042 2,947 3,473,913 2003 2,373,184 0 891,617 0 3,264,801 3,800 2,768 3,258,233 2004 2,235,260 0 836,629 0 3,071,889 3,577 2,588 3,065,724 2005 2,111,240 0 787,801 0 2,899,041 3,372 2,447 2,893,222 2006 1,934,704 0 744,893 0 2,679,597 3,101 2,311 2,674,185 2007 1,804,417 0 693,308 0 2,497,725 2,885 2,146 2,492,694 2008 1,703,841 0 635,587 0 2,339,428 2,728 1,969 2,334,731 2009 1,578,585 0 600,000 0 2,178,585 2,525 1,862 2,174,198 2010 1,436,054 0 567,426 0 2,003,480 2,294 1,759 1,999,427 2011 1,332,648 0 527,649 0 1,860,297 2,137 1,635 1,856,525 2012 1,243,867 0 485,442 0 1,729,309 1,990 1,507 1,725,812 2013 1,136,501 0 459,226 0 1,595,727 1,817 1,424 1,592,486 2014 1,011,515 0 436,840 0 1,448,355 1,616 1,350 1,445,389 2015 874,935 0 411,518 0 1,286,453 1,401 1,277 1,283,775 SUB-TOT 26,008,376 0 10,055,135 0 36,063,511 41,612 31,169 35,990,730 REMAIN 7,260,918 0 5,250,952 0 12,511,870 11,619 16,279 12,483,972 TOTAL 33,269,294 0 15,306,087 0 48,575,381 53,231 47,448 48,474,702
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 1,239,176 0 0 0 1,239,176 2,481,240 2,481,240 2,363,741 2002 1,237,296 0 0 0 1,237,296 2,236,617 4,717,857 1,928,669 2003 1,234,529 0 0 0 1,234,529 2,023,704 6,741,561 1,579,645 2004 1,231,282 0 0 0 1,231,282 1,834,442 8,576,003 1,296,142 2005 1,228,964 0 0 0 1,228,964 1,664,258 10,240,261 1,064,454 2006 1,165,330 0 0 0 1,165,330 1,508,855 11,749,116 873,581 2007 1,127,735 0 0 0 1,127,735 1,364,959 13,114,075 715,383 2008 1,098,632 0 0 0 1,098,632 1,236,099 14,350,174 586,428 2009 1,055,395 0 0 0 1,055,395 1,118,803 15,468,977 480,467 2010 975,373 0 11,213 0 986,586 1,012,841 16,481,818 393,618 2011 922,622 0 0 0 922,622 933,903 17,415,721 328,633 2012 879,304 0 0 0 879,304 846,508 18,262,229 269,638 2013 828,131 0 0 0 828,131 764,355 19,026,584 220,433 2014 759,444 0 0 0 759,444 685,945 19,712,529 179,043 2015 663,951 0 0 0 663,951 619,824 20,332,353 146,439 SUBTOT 15,647,164 0 11,213 0 15,658,377 20,332,353 12,426,314 REMAIN 7,329,095 0 0 0 7,329,095 5,154,877 25,487,230 641,772 TOTAL 22,976,259 0 11,213 0 22,987,472 25,487,230 13,068,086 LIFE OF SUMMARY IS 39.33 YEARS.
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 10 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
STATE SUMMARY PROVED KANSAS PROPERTIES BEHIND PIPE REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 5.00% - 1,175,515 FINAL - 10.00% - 978,538 REMARKS - AD VALOREM TAXES ARE INCLUDED IN OPERATING COSTS. 15.00% - 832,944 20.00% - 721,850 25.00% - 634,814
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 4 3,446 0 61 2,330 0 39.046 26.46 5.30 2002 4 3,157 0 49 2,134 0 31.937 26.46 5.30 2003 4 2,892 0 40 1,955 0 24.794 26.46 5.30 2004 4 2,648 0 30 1,790 0 19.898 26.46 5.30 2005 5 2,426 0 46 1,640 0 29.538 26.46 5.30 2006 4 2,222 0 28 1,502 0 18.208 26.46 5.30 2007 3 2,035 0 19 1,376 0 12.246 26.46 5.30 2008 3 1,864 0 16 1,260 0 10.518 26.46 5.30 2009 3 1,707 0 11 1,154 0 7.164 26.46 5.30 2010 2 1,564 0 7 1,057 0 4.471 26.46 5.30 2011 2 1,432 0 3 968 0 1.954 26.46 5.30 2012 1 1,312 0 0 887 0 0.000 26.46 0.00 2013 1 1,202 0 0 813 0 0.000 26.46 0.00 2014 1 1,100 0 0 744 0 0.000 26.46 0.00 2015 1 1,008 0 0 681 0 0.000 26.46 0.00 SUB-TOTAL 30,015 0 310 20,291 0 199.774 26.46 5.30 REMAINDER 2,785 0 0 1,883 0 0.000 26.46 0.00 TOTAL 32,800 0 310 22,174 0 199.774 26.46 5.30 CUMULATIVE 0 0 0 ULTIMATE 32,800 0 310
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 61,649 0 206,887 0 268,536 99 641 267,796 2002 56,467 0 169,216 0 225,683 90 524 225,069 2003 51,721 0 131,371 0 183,092 83 408 182,601 2004 47,372 0 105,431 0 152,803 76 327 152,400 2005 43,391 0 156,509 0 199,900 69 485 199,346 2006 39,743 0 96,475 0 136,218 64 299 135,855 2007 36,402 0 64,887 0 101,289 58 201 101,030 2008 33,343 0 55,726 0 89,069 53 173 88,843 2009 30,539 0 37,958 0 68,497 49 118 68,330 2010 27,973 0 23,690 0 51,663 45 73 51,545 2011 25,621 0 10,354 0 35,975 41 32 35,902 2012 23,467 0 0 0 23,467 37 0 23,430 2013 21,495 0 0 0 21,495 35 0 21,460 2014 19,687 0 0 0 19,687 31 0 19,656 2015 18,033 0 0 0 18,033 29 0 18,004 SUB-TOT 536,903 0 1,058,504 0 1,595,407 859 3,281 1,591,267 REMAIN 49,811 0 0 0 49,811 80 0 49,731 TOTAL 586,714 0 1,058,504 0 1,645,218 939 3,281 1,640,998
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 7,653 0 41,750 0 49,403 218,393 218,393 206,426 2002 7,653 0 0 0 7,653 217,416 435,809 187,715 2003 7,653 0 0 0 7,653 174,948 610,757 136,670 2004 7,653 0 0 0 7,653 144,747 755,504 102,346 2005 11,697 0 12,000 0 23,697 175,649 931,153 112,524 2006 11,697 0 0 0 11,697 124,158 1,055,311 71,946 2007 11,697 0 0 0 11,697 89,333 1,144,644 46,838 2008 11,697 0 0 0 11,697 77,146 1,221,790 36,614 2009 9,675 0 0 0 9,675 58,655 1,280,445 25,286 2010 7,653 0 0 0 7,653 43,892 1,324,337 17,067 2011 6,099 0 0 0 6,099 29,803 1,354,140 10,566 2012 4,641 0 0 0 4,641 18,789 1,372,929 5,985 2013 4,641 0 0 0 4,641 16,819 1,389,748 4,851 2014 4,641 0 0 0 4,641 15,015 1,404,763 3,919 2015 4,641 0 0 0 4,641 13,363 1,418,126 3,158 SUBTOT 119,391 0 53,750 0 173,141 1,418,126 971,911 REMAIN 15,453 0 0 0 15,453 34,278 1,452,404 6,627 TOTAL 134,844 0 53,750 0 188,594 1,452,404 978,538 LIFE OF SUMMARY IS 18.33 YEARS.
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 11 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
STATE SUMMARY PROVED KANSAS PROPERTIES UNDEVELOPED REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 5.00% - 1,386,625 FINAL - 10.00% - 946,598 REMARKS - AD VALOREM TAXES ARE INCLUDED IN OPERATING COSTS. 15.00% - 674,412 20.00% - 494,240 25.00% - 368,353
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 5 12,103 0 0 10,276 0 0.000 26.46 0.00 2002 5 15,475 0 0 13,246 0 0.000 26.46 0.00 2003 5 11,905 0 0 10,180 0 0.000 26.46 0.00 2004 5 11,218 0 0 9,590 0 0.000 26.46 0.00 2005 5 10,604 0 0 9,066 0 0.000 26.46 0.00 2006 5 10,028 0 0 8,572 0 0.000 26.46 0.00 2007 5 9,485 0 0 8,107 0 0.000 26.46 0.00 2008 5 8,970 0 0 7,669 0 0.000 26.46 0.00 2009 5 8,489 0 0 7,255 0 0.000 26.46 0.00 2010 5 8,032 0 0 6,867 0 0.000 26.46 0.00 2011 5 7,604 0 0 6,499 0 0.000 26.46 0.00 2012 5 7,199 0 0 6,153 0 0.000 26.46 0.00 2013 5 6,815 0 0 5,825 0 0.000 26.46 0.00 2014 5 6,455 0 0 5,518 0 0.000 26.46 0.00 2015 5 6,115 0 0 5,227 0 0.000 26.46 0.00 SUB-TOTAL 140,497 0 0 120,050 0 0.000 26.46 0.00 REMAINDER 45,298 0 0 38,644 0 0.000 26.46 0.00 TOTAL 185,795 0 0 158,694 0 0.000 26.46 0.00 CUMULATIVE 0 0 0 ULTIMATE 185,795 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 271,909 0 0 0 271,909 434 0 271,475 2002 350,485 0 0 0 350,485 563 0 349,922 2003 269,353 0 0 0 269,353 430 0 268,923 2004 253,750 0 0 0 253,750 407 0 253,343 2005 239,881 0 0 0 239,881 383 0 239,498 2006 226,820 0 0 0 226,820 363 0 226,457 2007 214,514 0 0 0 214,514 342 0 214,172 2008 202,916 0 0 0 202,916 327 0 202,589 2009 191,988 0 0 0 191,988 306 0 191,682 2010 181,682 0 0 0 181,682 291 0 181,391 2011 171,966 0 0 0 171,966 275 0 171,691 2012 162,798 0 0 0 162,798 260 0 162,538 2013 154,154 0 0 0 154,154 247 0 153,907 2014 145,995 0 0 0 145,995 233 0 145,762 2015 138,292 0 0 0 138,292 220 0 138,072 SUB-TOT 3,176,503 0 0 0 3,176,503 5,081 0 3,171,422 REMAIN 1,022,507 0 0 0 1,022,507 1,637 0 1,020,870 TOTAL 4,199,010 0 0 0 4,199,010 6,718 0 4,192,292
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 28,941 0 500,000 0 528,941 -257,466 -257,466 -246,143 2002 63,648 0 0 0 63,648 286,274 28,808 248,013 2003 63,648 0 0 0 63,648 205,275 234,083 160,227 2004 63,648 0 0 0 63,648 189,695 423,778 134,006 2005 63,648 0 0 0 63,648 175,850 599,628 112,453 2006 63,648 0 0 0 63,648 162,809 762,437 94,246 2007 63,648 0 0 0 63,648 150,524 912,961 78,876 2008 63,648 0 0 0 63,648 138,941 1,051,902 65,907 2009 63,648 0 0 0 63,648 128,034 1,179,936 54,976 2010 63,648 0 0 0 63,648 117,743 1,297,679 45,766 2011 63,648 0 0 0 63,648 108,043 1,405,722 38,017 2012 63,648 0 0 0 63,648 98,890 1,504,612 31,498 2013 63,648 0 0 0 63,648 90,259 1,594,871 26,025 2014 63,648 0 0 0 63,648 82,114 1,676,985 21,432 2015 63,648 0 0 0 63,648 74,424 1,751,409 17,584 SUBTOT 920,013 0 500,000 0 1,420,013 1,751,409 882,883 REMAIN 613,267 0 0 0 613,267 407,603 2,159,012 63,715 TOTAL 1,533,280 0 500,000 0 2,033,280 2,159,012 946,598 LIFE OF SUMMARY IS 29.11 YEARS.
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 12 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
STATE SUMMARY TOTAL PROBABLE KANSAS PROPERTIES UNDEVELOPED REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 5.00% - 367,835 FINAL - 10.00% - 256,528 REMARKS - AD VALOREM TAXES ARE INCLUDED IN OPERATING COSTS. 15.00% - 182,733 20.00% - 131,538 25.00% - 94,647
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 2 5,158 0 0 3,933 0 0.000 26.46 0.00 2002 2 5,700 0 0 4,329 0 0.000 26.46 0.00 2003 2 4,910 0 0 3,725 0 0.000 26.46 0.00 2004 2 4,621 0 0 3,504 0 0.000 26.46 0.00 2005 2 4,349 0 0 3,299 0 0.000 26.46 0.00 2006 2 4,092 0 0 3,105 0 0.000 26.46 0.00 2007 2 3,852 0 0 2,923 0 0.000 26.46 0.00 2008 2 3,625 0 0 2,751 0 0.000 26.46 0.00 2009 2 3,411 0 0 2,590 0 0.000 26.46 0.00 2010 2 3,211 0 0 2,437 0 0.000 26.46 0.00 2011 2 3,022 0 0 2,295 0 0.000 26.46 0.00 2012 2 2,844 0 0 2,160 0 0.000 26.46 0.00 2013 2 2,678 0 0 2,034 0 0.000 26.46 0.00 2014 2 2,520 0 0 1,914 0 0.000 26.46 0.00 2015 2 2,372 0 0 1,803 0 0.000 26.46 0.00 SUB-TOTAL 56,365 0 0 42,802 0 0.000 26.46 0.00 REMAINDER 10,893 0 0 8,147 0 0.000 26.46 0.00 TOTAL 67,258 0 0 50,949 0 0.000 26.46 0.00 CUMULATIVE 0 0 0 ULTIMATE 67,258 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 104,065 0 0 0 104,065 166 0 103,899 2002 114,562 0 0 0 114,562 184 0 114,378 2003 98,534 0 0 0 98,534 157 0 98,377 2004 92,739 0 0 0 92,739 149 0 92,590 2005 87,287 0 0 0 87,287 140 0 87,147 2006 82,159 0 0 0 82,159 131 0 82,028 2007 77,333 0 0 0 77,333 123 0 77,210 2008 72,792 0 0 0 72,792 117 0 72,675 2009 68,521 0 0 0 68,521 109 0 68,412 2010 64,500 0 0 0 64,500 104 0 64,396 2011 60,718 0 0 0 60,718 97 0 60,621 2012 57,160 0 0 0 57,160 92 0 57,068 2013 53,810 0 0 0 53,810 86 0 53,724 2014 50,660 0 0 0 50,660 81 0 50,579 2015 47,693 0 0 0 47,693 76 0 47,617 SUB-TOT 1,132,533 0 0 0 1,132,533 1,812 0 1,130,721 REMAIN 215,588 0 0 0 215,588 345 0 215,243 TOTAL 1,348,121 0 0 0 1,348,121 2,157 0 1,345,964
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 15,501 0 185,313 0 200,814 -96,915 -96,915 -93,337 2002 31,001 0 0 0 31,001 83,377 -13,538 72,188 2003 31,001 0 0 0 31,001 67,376 53,838 52,586 2004 31,001 0 0 0 31,001 61,589 115,427 43,515 2005 31,001 0 0 0 31,001 56,146 171,573 35,910 2006 31,001 0 0 0 31,001 51,027 222,600 29,543 2007 31,001 0 0 0 31,001 46,209 268,809 24,217 2008 31,001 0 0 0 31,001 41,674 310,483 19,772 2009 31,001 0 0 0 31,001 37,411 347,894 16,068 2010 31,001 0 0 0 31,001 33,395 381,289 12,984 2011 31,001 0 0 0 31,001 29,620 410,909 10,425 2012 31,001 0 0 0 31,001 26,067 436,976 8,306 2013 31,002 0 0 0 31,002 22,722 459,698 6,554 2014 31,001 0 0 0 31,001 19,578 479,276 5,113 2015 31,001 0 0 0 31,001 16,616 495,892 3,928 SUBTOT 449,516 0 185,313 0 634,829 495,892 247,772 REMAIN 166,340 0 0 0 166,340 48,903 544,795 8,756 TOTAL 615,856 0 185,313 0 801,169 544,795 256,528 LIFE OF SUMMARY IS 23.17 YEARS.
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 13 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
ARPIN SOUTH FIELD, ROOKS COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 8-T9S-R20W PROVED THYFAULT (ARBUCKLE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.820313 26.46 5.00% - 107,738 FINAL - 1.000000 0.820313 26.46 10.00% - 95,792 REMARKS - 15.00% - 85,915 20.00% - 77,669 25.00% - 70,721
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 2,241 0 0 1,838 0 0.000 26.46 0.00 2002 1 1,984 0 0 1,627 0 0.000 26.46 0.00 2003 1 1,755 0 0 1,440 0 0.000 26.46 0.00 2004 1 1,553 0 0 1,275 0 0.000 26.46 0.00 2005 1 1,375 0 0 1,127 0 0.000 26.46 0.00 2006 1 1,217 0 0 998 0 0.000 26.46 0.00 2007 1 1,077 0 0 884 0 0.000 26.46 0.00 2008 1 952 0 0 781 0 0.000 26.46 0.00 2009 1 643 0 0 527 0 0.000 26.46 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 12,797 0 0 10,497 0 0.000 26.46 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 12,797 0 0 10,497 0 0.000 26.46 0.00 CUMULATIVE 23,326 0 0 ULTIMATE 36,123 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 48,645 0 0 0 48,645 78 0 48,567 2002 43,050 0 0 0 43,050 69 0 42,981 2003 38,100 0 0 0 38,100 61 0 38,039 2004 33,718 0 0 0 33,718 54 0 33,664 2005 29,840 0 0 0 29,840 47 0 29,793 2006 26,409 0 0 0 26,409 43 0 26,366 2007 23,372 0 0 0 23,372 37 0 23,335 2008 20,684 0 0 0 20,684 33 0 20,651 2009 13,937 0 0 0 13,937 22 0 13,915 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 277,755 0 0 0 277,755 444 0 277,311 REMAIN 0 0 0 0 0 0 0 0 TOTAL 277,755 0 0 0 277,755 444 0 277,311
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 17,712 0 0 0 17,712 30,855 30,855 29,415 2002 17,712 0 0 0 17,712 25,269 56,124 21,809 2003 17,712 0 0 0 17,712 20,327 76,451 15,883 2004 17,712 0 0 0 17,712 15,952 92,403 11,286 2005 17,712 0 0 0 17,712 12,081 104,484 7,740 2006 17,712 0 0 0 17,712 8,654 113,138 5,022 2007 17,712 0 0 0 17,712 5,623 118,761 2,957 2008 17,712 0 0 0 17,712 2,939 121,700 1,403 2009 13,284 0 0 0 13,284 631 122,331 277 2010 0 0 0 0 0 0 122,331 0 2011 0 0 0 0 0 0 122,331 0 2012 0 0 0 0 0 0 122,331 0 2013 0 0 0 0 0 0 122,331 0 2014 0 0 0 0 0 0 122,331 0 2015 0 0 0 0 0 0 122,331 0 SUBTOT 154,980 0 0 0 154,980 122,331 95,792 REMAIN 0 0 0 0 0 0 122,331 0 TOTAL 154,980 0 0 0 154,980 122,331 95,792 LIFE OF EVALUATION IS 8.75 YEARS. FINAL PRODUCTION RATE: 68 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 14 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
ASH CREEK FIELD, BARTON COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 30-T20S-R15W PROVED UNRUH (ARBUCKLE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 0.812500 5.00% - 0 FINAL - 0.812500 10.00% - 0 REMARKS - 15.00% - 0 20.00% - 0 25.00% - 0
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 0 0 0 0.000 0.00 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 0 0 0 0.000 0.00 0.00 CUMULATIVE 29,045 0 0 ULTIMATE 29,045 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 0
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUBTOT 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 LIFE OF EVALUATION IS 0.00 YEARS. FINAL PRODUCTION RATE: 0 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 15 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
AXELSON FIELD, ROOKS COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 24-T7S-R19W PROVED AXELSON #1 (LANSING) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.792969 26.46 5.00% - 256,258 FINAL - 1.000000 0.792969 26.46 10.00% - 186,241 REMARKS - 15.00% - 144,695 20.00% - 117,820 25.00% - 99,219
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 2 2,103 0 0 1,668 0 0.000 26.46 0.00 2002 2 2,030 0 0 1,609 0 0.000 26.46 0.00 2003 2 1,958 0 0 1,553 0 0.000 26.46 0.00 2004 2 1,890 0 0 1,499 0 0.000 26.46 0.00 2005 2 1,824 0 0 1,446 0 0.000 26.46 0.00 2006 2 1,760 0 0 1,395 0 0.000 26.46 0.00 2007 2 1,698 0 0 1,347 0 0.000 26.46 0.00 2008 2 1,639 0 0 1,300 0 0.000 26.46 0.00 2009 2 1,582 0 0 1,254 0 0.000 26.46 0.00 2010 2 1,526 0 0 1,210 0 0.000 26.46 0.00 2011 2 1,472 0 0 1,168 0 0.000 26.46 0.00 2012 2 1,422 0 0 1,127 0 0.000 26.46 0.00 2013 2 1,371 0 0 1,088 0 0.000 26.46 0.00 2014 2 1,324 0 0 1,049 0 0.000 26.46 0.00 2015 2 1,277 0 0 1,013 0 0.000 26.46 0.00 SUB-TOTAL 24,876 0 0 19,726 0 0.000 26.46 0.00 REMAINDER 15,593 0 0 12,365 0 0.000 26.46 0.00 TOTAL 40,469 0 0 32,091 0 0.000 26.46 0.00 CUMULATIVE 57,708 0 0 ULTIMATE 98,177 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 44,127 0 0 0 44,127 71 0 44,056 2002 42,583 0 0 0 42,583 68 0 42,515 2003 41,093 0 0 0 41,093 65 0 41,028 2004 39,654 0 0 0 39,654 64 0 39,590 2005 38,267 0 0 0 38,267 61 0 38,206 2006 36,927 0 0 0 36,927 59 0 36,868 2007 35,635 0 0 0 35,635 57 0 35,578 2008 34,387 0 0 0 34,387 55 0 34,332 2009 33,184 0 0 0 33,184 53 0 33,131 2010 32,022 0 0 0 32,022 52 0 31,970 2011 30,902 0 0 0 30,902 49 0 30,853 2012 29,820 0 0 0 29,820 48 0 29,772 2013 28,777 0 0 0 28,777 46 0 28,731 2014 27,769 0 0 0 27,769 44 0 27,725 2015 26,797 0 0 0 26,797 43 0 26,754 SUB-TOT 521,944 0 0 0 521,944 835 0 521,109 REMAIN 327,178 0 0 0 327,178 524 0 326,654 TOTAL 849,122 0 0 0 849,122 1,359 0 847,763
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 14,652 0 0 0 14,652 29,404 29,404 28,000 2002 14,652 0 0 0 14,652 27,863 57,267 24,017 2003 14,652 0 0 0 14,652 26,376 83,643 20,581 2004 14,652 0 0 0 14,652 24,938 108,581 17,614 2005 14,652 0 0 0 14,652 23,554 132,135 15,060 2006 14,652 0 0 0 14,652 22,216 154,351 12,859 2007 14,652 0 0 0 14,652 20,926 175,277 10,963 2008 14,652 0 0 0 14,652 19,680 194,957 9,334 2009 14,652 0 0 0 14,652 18,479 213,436 7,934 2010 14,652 0 0 0 14,652 17,318 230,754 6,730 2011 14,652 0 0 0 14,652 16,201 246,955 5,700 2012 14,652 0 0 0 14,652 15,120 262,075 4,815 2013 14,652 0 0 0 14,652 14,079 276,154 4,058 2014 14,652 0 0 0 14,652 13,073 289,227 3,412 2015 14,652 0 0 0 14,652 12,102 301,329 2,859 SUBTOT 219,780 0 0 0 219,780 301,329 173,936 REMAIN 240,537 0 0 0 240,537 86,117 387,446 12,305 TOTAL 460,317 0 0 0 460,317 387,446 186,241 LIFE OF EVALUATION IS 31.42 YEARS. FINAL PRODUCTION RATE: 58 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 16 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
BEISEL FIELD, RUSSELL COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 15-T14S-R12W PROVED BEISEL (ARBUCKLE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 26.46 5.00% - 114,834 FINAL - 1.000000 0.875000 26.46 10.00% - 96,638 REMARKS - 15.00% - 82,793 20.00% - 72,050 25.00% - 63,559
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 4 2,764 0 0 2,419 0 0.000 26.46 0.00 2002 4 2,668 0 0 2,334 0 0.000 26.46 0.00 2003 4 2,574 0 0 2,252 0 0.000 26.46 0.00 2004 4 2,484 0 0 2,174 0 0.000 26.46 0.00 2005 4 2,397 0 0 2,097 0 0.000 26.46 0.00 2006 4 2,313 0 0 2,024 0 0.000 26.46 0.00 2007 4 2,232 0 0 1,953 0 0.000 26.46 0.00 2008 4 2,154 0 0 1,885 0 0.000 26.46 0.00 2009 4 2,079 0 0 1,819 0 0.000 26.46 0.00 2010 4 2,006 0 0 1,755 0 0.000 26.46 0.00 2011 4 1,936 0 0 1,694 0 0.000 26.46 0.00 2012 4 1,868 0 0 1,634 0 0.000 26.46 0.00 2013 4 1,358 0 0 1,189 0 0.000 26.46 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 28,833 0 0 25,229 0 0.000 26.46 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 28,833 0 0 25,229 0 0.000 26.46 0.00 CUMULATIVE 164,532 0 0 ULTIMATE 193,365 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 63,999 0 0 0 63,999 102 0 63,897 2002 61,759 0 0 0 61,759 99 0 61,660 2003 59,597 0 0 0 59,597 96 0 59,501 2004 57,511 0 0 0 57,511 92 0 57,419 2005 55,499 0 0 0 55,499 88 0 55,411 2006 53,556 0 0 0 53,556 86 0 53,470 2007 51,681 0 0 0 51,681 83 0 51,598 2008 49,873 0 0 0 49,873 80 0 49,793 2009 48,127 0 0 0 48,127 77 0 48,050 2010 46,443 0 0 0 46,443 74 0 46,369 2011 44,817 0 0 0 44,817 72 0 44,745 2012 43,248 0 0 0 43,248 69 0 43,179 2013 31,441 0 0 0 31,441 50 0 31,391 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 667,551 0 0 0 667,551 1,068 0 666,483 REMAIN 0 0 0 0 0 0 0 0 TOTAL 667,551 0 0 0 667,551 1,068 0 666,483
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 41,352 0 0 0 41,352 22,545 22,545 21,477 2002 41,352 0 0 0 41,352 20,308 42,853 17,512 2003 41,352 0 0 0 41,352 18,149 61,002 14,169 2004 41,352 0 0 0 41,352 16,067 77,069 11,355 2005 41,352 0 0 0 41,352 14,059 91,128 8,995 2006 41,352 0 0 0 41,352 12,118 103,246 7,020 2007 41,352 0 0 0 41,352 10,246 113,492 5,373 2008 41,352 0 0 0 41,352 8,441 121,933 4,008 2009 41,352 0 0 0 41,352 6,698 128,631 2,881 2010 41,352 0 0 0 41,352 5,017 133,648 1,954 2011 41,352 0 0 0 41,352 3,393 137,041 1,197 2012 41,352 0 0 0 41,352 1,827 138,868 586 2013 31,014 0 0 0 31,014 377 139,245 111 2014 0 0 0 0 0 0 139,245 0 2015 0 0 0 0 0 0 139,245 0 SUBTOT 527,238 0 0 0 527,238 139,245 96,638 REMAIN 0 0 0 0 0 0 139,245 0 TOTAL 527,238 0 0 0 527,238 139,245 96,638 LIFE OF EVALUATION IS 12.75 YEARS. FINAL PRODUCTION RATE: 149 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 17 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
BEISEL FIELD, RUSSELL COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 15-T14S-R12W PROVED BEISEL #9 PUD (ARBUCKLE) UNDEVELOPED REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 26.46 5.00% - 362,803 FINAL - 1.000000 0.875000 26.46 10.00% - 252,794 REMARKS - 15.00% - 182,435 20.00% - 134,751 25.00% - 100,887
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 1,765 0 0 1,544 0 0.000 26.46 0.00 2002 1 3,327 0 0 2,912 0 0.000 26.46 0.00 2003 1 3,075 0 0 2,690 0 0.000 26.46 0.00 2004 1 2,842 0 0 2,487 0 0.000 26.46 0.00 2005 1 2,625 0 0 2,297 0 0.000 26.46 0.00 2006 1 2,427 0 0 2,123 0 0.000 26.46 0.00 2007 1 2,242 0 0 1,962 0 0.000 26.46 0.00 2008 1 2,071 0 0 1,813 0 0.000 26.46 0.00 2009 1 1,915 0 0 1,675 0 0.000 26.46 0.00 2010 1 1,769 0 0 1,548 0 0.000 26.46 0.00 2011 1 1,635 0 0 1,430 0 0.000 26.46 0.00 2012 1 1,511 0 0 1,322 0 0.000 26.46 0.00 2013 1 1,395 0 0 1,222 0 0.000 26.46 0.00 2014 1 1,290 0 0 1,128 0 0.000 26.46 0.00 2015 1 1,192 0 0 1,043 0 0.000 26.46 0.00 SUB-TOTAL 31,081 0 0 27,196 0 0.000 26.46 0.00 REMAINDER 7,669 0 0 6,710 0 0.000 26.46 0.00 TOTAL 38,750 0 0 33,906 0 0.000 26.46 0.00 CUMULATIVE 0 0 0 ULTIMATE 38,750 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 40,862 0 0 0 40,862 65 0 40,797 2002 77,041 0 0 0 77,041 124 0 76,917 2003 71,190 0 0 0 71,190 114 0 71,076 2004 65,785 0 0 0 65,785 105 0 65,680 2005 60,790 0 0 0 60,790 97 0 60,693 2006 56,175 0 0 0 56,175 90 0 56,085 2007 51,909 0 0 0 51,909 83 0 51,826 2008 47,967 0 0 0 47,967 77 0 47,890 2009 44,325 0 0 0 44,325 71 0 44,254 2010 40,960 0 0 0 40,960 65 0 40,895 2011 37,849 0 0 0 37,849 61 0 37,788 2012 34,976 0 0 0 34,976 56 0 34,920 2013 32,320 0 0 0 32,320 51 0 32,269 2014 29,866 0 0 0 29,866 48 0 29,818 2015 27,598 0 0 0 27,598 44 0 27,554 SUB-TOT 719,613 0 0 0 719,613 1,151 0 718,462 REMAIN 177,546 0 0 0 177,546 284 0 177,262 TOTAL 897,159 0 0 0 897,159 1,435 0 895,724
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 5,172 0 100,000 0 105,172 -64,375 -64,375 -61,678 2002 10,344 0 0 0 10,344 66,573 2,198 57,402 2003 10,344 0 0 0 10,344 60,732 62,930 47,403 2004 10,344 0 0 0 10,344 55,336 118,266 39,097 2005 10,344 0 0 0 10,344 50,349 168,615 32,202 2006 10,344 0 0 0 10,344 45,741 214,356 26,483 2007 10,344 0 0 0 10,344 41,482 255,838 21,740 2008 10,344 0 0 0 10,344 37,546 293,384 17,813 2009 10,344 0 0 0 10,344 33,910 327,294 14,563 2010 10,344 0 0 0 10,344 30,551 357,845 11,877 2011 10,344 0 0 0 10,344 27,444 385,289 9,659 2012 10,344 0 0 0 10,344 24,576 409,865 7,829 2013 10,344 0 0 0 10,344 21,925 431,790 6,323 2014 10,344 0 0 0 10,344 19,474 451,264 5,084 2015 10,344 0 0 0 10,344 17,210 468,474 4,067 SUBTOT 149,988 0 100,000 0 249,988 468,474 239,864 REMAIN 98,516 0 0 0 98,516 78,746 547,220 12,930 TOTAL 248,504 0 100,000 0 348,504 547,220 252,794 LIFE OF EVALUATION IS 24.52 YEARS. FINAL PRODUCTION RATE: 45 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 18 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
BIELMAN FIELD, ELLIS COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 24-T15S-R18W PROVED GRASS (ARBUCKLE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 26.46 5.00% - 289,103 FINAL - 1.000000 0.875000 26.46 10.00% - 201,072 REMARKS - 15.00% - 152,479 20.00% - 122,393 25.00% - 102,127
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 1,952 0 0 1,708 0 0.000 26.46 0.00 2002 1 1,900 0 0 1,663 0 0.000 26.46 0.00 2003 1 1,848 0 0 1,617 0 0.000 26.46 0.00 2004 1 1,798 0 0 1,573 0 0.000 26.46 0.00 2005 1 1,749 0 0 1,530 0 0.000 26.46 0.00 2006 1 1,702 0 0 1,490 0 0.000 26.46 0.00 2007 1 1,656 0 0 1,448 0 0.000 26.46 0.00 2008 1 1,611 0 0 1,410 0 0.000 26.46 0.00 2009 1 1,567 0 0 1,371 0 0.000 26.46 0.00 2010 1 1,525 0 0 1,334 0 0.000 26.46 0.00 2011 1 1,483 0 0 1,298 0 0.000 26.46 0.00 2012 1 1,443 0 0 1,263 0 0.000 26.46 0.00 2013 1 1,404 0 0 1,229 0 0.000 26.46 0.00 2014 1 1,367 0 0 1,195 0 0.000 26.46 0.00 2015 1 1,329 0 0 1,163 0 0.000 26.46 0.00 SUB-TOTAL 24,334 0 0 21,292 0 0.000 26.46 0.00 REMAINDER 22,638 0 0 19,808 0 0.000 26.46 0.00 TOTAL 46,972 0 0 41,100 0 0.000 26.46 0.00 CUMULATIVE 118,670 0 0 ULTIMATE 165,642 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 45,204 0 0 0 45,204 72 0 45,132 2002 43,979 0 0 0 43,979 71 0 43,908 2003 42,788 0 0 0 42,788 68 0 42,720 2004 41,628 0 0 0 41,628 67 0 41,561 2005 40,499 0 0 0 40,499 65 0 40,434 2006 39,403 0 0 0 39,403 63 0 39,340 2007 38,334 0 0 0 38,334 61 0 38,273 2008 37,295 0 0 0 37,295 60 0 37,235 2009 36,285 0 0 0 36,285 58 0 36,227 2010 35,302 0 0 0 35,302 56 0 35,246 2011 34,345 0 0 0 34,345 55 0 34,290 2012 33,414 0 0 0 33,414 54 0 33,360 2013 32,508 0 0 0 32,508 52 0 32,456 2014 31,628 0 0 0 31,628 50 0 31,578 2015 30,770 0 0 0 30,770 49 0 30,721 SUB-TOT 563,382 0 0 0 563,382 901 0 562,481 REMAIN 524,134 0 0 0 524,134 839 0 523,295 TOTAL 1,087,516 0 0 0 1,087,516 1,740 0 1,085,776
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 15,912 0 0 0 15,912 29,220 29,220 27,822 2002 15,912 0 0 0 15,912 27,996 57,216 24,130 2003 15,912 0 0 0 15,912 26,808 84,024 20,916 2004 15,912 0 0 0 15,912 25,649 109,673 18,114 2005 15,912 0 0 0 15,912 24,522 134,195 15,678 2006 15,912 0 0 0 15,912 23,428 157,623 13,558 2007 15,912 0 0 0 15,912 22,361 179,984 11,714 2008 15,912 0 0 0 15,912 21,323 201,307 10,112 2009 15,912 0 0 0 15,912 20,315 221,622 8,721 2010 15,912 0 0 0 15,912 19,334 240,956 7,513 2011 15,912 0 0 0 15,912 18,378 259,334 6,464 2012 15,912 0 0 0 15,912 17,448 276,782 5,556 2013 15,912 0 0 0 15,912 16,544 293,326 4,769 2014 15,912 0 0 0 15,912 15,666 308,992 4,087 2015 15,912 0 0 0 15,912 14,809 323,801 3,498 SUBTOT 238,680 0 0 0 238,680 323,801 182,652 REMAIN 372,606 0 0 0 372,606 150,689 474,490 18,420 TOTAL 611,286 0 0 0 611,286 474,490 201,072
LIFE OF EVALUATION IS 38.42 YEARS. FINAL PRODUCTION RATE: 57 BBLS/MO THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 19 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
CARPENTER FIELD, EDWARDS COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 1-T24S-R17W PROVED HENNING (LNSG-PSLV) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 0.875000 0.708801 26.46 5.00% - 23,826 FINAL - 0.875000 0.708801 26.46 10.00% - 19,936 REMARKS - 15.00% - 17,006 20.00% - 14,752 25.00% - 12,982
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 597 0 0 423 0 0.000 26.46 0.00 2002 1 573 0 0 406 0 0.000 26.46 0.00 2003 1 550 0 0 390 0 0.000 26.46 0.00 2004 1 528 0 0 375 0 0.000 26.46 0.00 2005 1 508 0 0 359 0 0.000 26.46 0.00 2006 1 486 0 0 345 0 0.000 26.46 0.00 2007 1 468 0 0 331 0 0.000 26.46 0.00 2008 1 448 0 0 318 0 0.000 26.46 0.00 2009 1 431 0 0 306 0 0.000 26.46 0.00 2010 1 413 0 0 293 0 0.000 26.46 0.00 2011 1 397 0 0 281 0 0.000 26.46 0.00 2012 1 381 0 0 270 0 0.000 26.46 0.00 2013 1 366 0 0 259 0 0.000 26.46 0.00 2014 1 119 0 0 84 0 0.000 26.46 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 6,265 0 0 4,440 0 0.000 26.46 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 6,265 0 0 4,440 0 0.000 26.46 0.00 CUMULATIVE 16,620 0 0 ULTIMATE 22,885 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 11,197 0 0 0 11,197 18 0 11,179 2002 10,748 0 0 0 10,748 17 0 10,731 2003 10,319 0 0 0 10,319 17 0 10,302 2004 9,906 0 0 0 9,906 15 0 9,891 2005 9,510 0 0 0 9,510 16 0 9,494 2006 9,129 0 0 0 9,129 14 0 9,115 2007 8,764 0 0 0 8,764 14 0 8,750 2008 8,414 0 0 0 8,414 14 0 8,400 2009 8,077 0 0 0 8,077 13 0 8,064 2010 7,754 0 0 0 7,754 12 0 7,742 2011 7,444 0 0 0 7,444 12 0 7,432 2012 7,146 0 0 0 7,146 11 0 7,135 2013 6,860 0 0 0 6,860 11 0 6,849 2014 2,226 0 0 0 2,226 4 0 2,222 2015 0 0 0 0 0 0 0 0 SUB-TOT 117,494 0 0 0 117,494 188 0 117,306 REMAIN 0 0 0 0 0 0 0 0 TOTAL 117,494 0 0 0 117,494 188 0 117,306
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 6,615 0 0 0 6,615 4,564 4,564 4,348 2002 6,615 0 0 0 6,615 4,116 8,680 3,549 2003 6,615 0 0 0 6,615 3,687 12,367 2,878 2004 6,615 0 0 0 6,615 3,276 15,643 2,316 2005 6,615 0 0 0 6,615 2,879 18,522 1,842 2006 6,615 0 0 0 6,615 2,500 21,022 1,448 2007 6,615 0 0 0 6,615 2,135 23,157 1,119 2008 6,615 0 0 0 6,615 1,785 24,942 848 2009 6,615 0 0 0 6,615 1,449 26,391 623 2010 6,615 0 0 0 6,615 1,127 27,518 438 2011 6,615 0 0 0 6,615 817 28,335 288 2012 6,615 0 0 0 6,615 520 28,855 167 2013 6,615 0 0 0 6,615 234 29,089 68 2014 2,205 0 0 0 2,205 17 29,106 4 2015 0 0 0 0 0 0 29,106 0 SUBTOT 88,200 0 0 0 88,200 29,106 19,936 REMAIN 0 0 0 0 0 0 29,106 0 TOTAL 88,200 0 0 0 88,200 29,106 19,936
LIFE OF EVALUATION IS 13.33 YEARS. FINAL PRODUCTION RATE: 30 BBLS/MO THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 20 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
CARROLL FIELD, BARTON COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 21-T17S-R14W PROVED KEENAN -B- (ABCK-KSSC-LNSG) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 0.992754 5.00% - 0 FINAL - 0.992754 10.00% - 0 REMARKS - 15.00% - 0 20.00% - 0 25.00% - 0
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 0 0 0 0.000 0.00 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 0 0 0 0.000 0.00 0.00 CUMULATIVE 112,731 0 0 ULTIMATE 112,731 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 0
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUBTOT 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0
LIFE OF EVALUATION IS 0.00 YEARS. FINAL PRODUCTION RATE: 0 BBLS/MO THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 21 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
CENTERVIEW FIELD, STAFFORD COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 21-T24S-R13W PROVED BECKERDITE #1 (ARBUCKLE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 0.937500 0.807495 26.46 5.00% - 58,295 FINAL - 0.937500 0.807495 26.46 10.00% - 51,184 REMARKS - 15.00% - 45,410 20.00% - 40,668 25.00% - 36,732
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 1,334 0 0 1,077 0 0.000 26.46 0.00 2002 1 1,228 0 0 992 0 0.000 26.46 0.00 2003 1 1,129 0 0 912 0 0.000 26.46 0.00 2004 1 1,039 0 0 839 0 0.000 26.46 0.00 2005 1 956 0 0 771 0 0.000 26.46 0.00 2006 1 879 0 0 711 0 0.000 26.46 0.00 2007 1 809 0 0 653 0 0.000 26.46 0.00 2008 1 745 0 0 601 0 0.000 26.46 0.00 2009 1 685 0 0 553 0 0.000 26.46 0.00 2010 1 321 0 0 259 0 0.000 26.46 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 9,125 0 0 7,368 0 0.000 26.46 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 9,125 0 0 7,368 0 0.000 26.46 0.00 CUMULATIVE 24,603 0 0 ULTIMATE 33,728 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 28,509 0 0 0 28,509 46 0 28,463 2002 26,228 0 0 0 26,228 42 0 26,186 2003 24,129 0 0 0 24,129 38 0 24,091 2004 22,200 0 0 0 22,200 36 0 22,164 2005 20,423 0 0 0 20,423 32 0 20,391 2006 18,790 0 0 0 18,790 30 0 18,760 2007 17,286 0 0 0 17,286 28 0 17,258 2008 15,903 0 0 0 15,903 26 0 15,877 2009 14,632 0 0 0 14,632 23 0 14,609 2010 6,870 0 0 0 6,870 11 0 6,859 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 194,970 0 0 0 194,970 312 0 194,658 REMAIN 0 0 0 0 0 0 0 0 TOTAL 194,970 0 0 0 194,970 312 0 194,658
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 13,421 0 0 0 13,421 15,042 15,042 14,336 2002 13,422 0 0 0 13,422 12,764 27,806 11,013 2003 13,421 0 0 0 13,421 10,670 38,476 8,335 2004 13,421 0 0 0 13,421 8,743 47,219 6,183 2005 13,421 0 0 0 13,421 6,970 54,189 4,463 2006 13,422 0 0 0 13,422 5,338 59,527 3,096 2007 13,421 0 0 0 13,421 3,837 63,364 2,015 2008 13,421 0 0 0 13,421 2,456 65,820 1,170 2009 13,421 0 0 0 13,421 1,188 67,008 514 2010 6,711 0 0 0 6,711 148 67,156 59 2011 0 0 0 0 0 0 67,156 0 2012 0 0 0 0 0 0 67,156 0 2013 0 0 0 0 0 0 67,156 0 2014 0 0 0 0 0 0 67,156 0 2015 0 0 0 0 0 0 67,156 0 SUBTOT 127,502 0 0 0 127,502 67,156 51,184 REMAIN 0 0 0 0 0 0 67,156 0 TOTAL 127,502 0 0 0 127,502 67,156 51,184
LIFE OF EVALUATION IS 9.50 YEARS. FINAL PRODUCTION RATE: 53 BBLS/MO THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 22 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
CHASE-SILICA FIELD, BARTON COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 10-T20S-R11W PROVED LANDER #1 PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 0.915630 0.741803 26.46 5.00% - 9,969 FINAL - 0.915630 0.741803 26.46 10.00% - 9,237 REMARKS - 15.00% - 8,588 20.00% - 8,011 25.00% - 7,496
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 1,102 0 0 817 0 0.000 26.46 0.00 2002 1 1,052 0 0 781 0 0.000 26.46 0.00 2003 1 1,006 0 0 746 0 0.000 26.46 0.00 2004 1 961 0 0 713 0 0.000 26.46 0.00 2005 1 918 0 0 681 0 0.000 26.46 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 5,039 0 0 3,738 0 0.000 26.46 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 5,039 0 0 3,738 0 0.000 26.46 0.00 CUMULATIVE 21,470 0 0 ULTIMATE 26,509 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 21,623 0 0 0 21,623 35 0 21,588 2002 20,660 0 0 0 20,660 33 0 20,627 2003 19,741 0 0 0 19,741 31 0 19,710 2004 18,863 0 0 0 18,863 30 0 18,833 2005 18,023 0 0 0 18,023 29 0 17,994 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 98,910 0 0 0 98,910 158 0 98,752 REMAIN 0 0 0 0 0 0 0 0 TOTAL 98,910 0 0 0 98,910 158 0 98,752
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 17,591 0 0 0 17,591 3,997 3,997 3,812 2002 17,591 0 0 0 17,591 3,036 7,033 2,623 2003 17,591 0 0 0 17,591 2,119 9,152 1,658 2004 17,591 0 0 0 17,591 1,242 10,394 882 2005 17,591 0 0 0 17,591 403 10,797 262 2006 0 0 0 0 0 0 10,797 0 2007 0 0 0 0 0 0 10,797 0 2008 0 0 0 0 0 0 10,797 0 2009 0 0 0 0 0 0 10,797 0 2010 0 0 0 0 0 0 10,797 0 2011 0 0 0 0 0 0 10,797 0 2012 0 0 0 0 0 0 10,797 0 2013 0 0 0 0 0 0 10,797 0 2014 0 0 0 0 0 0 10,797 0 2015 0 0 0 0 0 0 10,797 0 SUBTOT 87,955 0 0 0 87,955 10,797 9,237 REMAIN 0 0 0 0 0 0 10,797 0 TOTAL 87,955 0 0 0 87,955 10,797 9,237
LIFE OF EVALUATION IS 5.00 YEARS. FINAL PRODUCTION RATE: 75 BBLS/MO THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 23 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
CHASE-SILICA FIELD, BARTON COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 10-T20S-R11W PROBABLE LANDER #3 PBUD (ARBUCKLE) UNDEVELOPED REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 0.915630 0.741803 26.46 5.00% - 299,427 FINAL - 0.915630 0.741803 26.46 10.00% - 214,922 REMARKS - 15.00% - 159,446 20.00% - 121,164 25.00% - 93,620
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 3,129 0 0 2,321 0 0.000 26.46 0.00 2002 1 3,790 0 0 2,811 0 0.000 26.46 0.00 2003 1 3,374 0 0 2,504 0 0.000 26.46 0.00 2004 1 3,165 0 0 2,347 0 0.000 26.46 0.00 2005 1 2,969 0 0 2,202 0 0.000 26.46 0.00 2006 1 2,783 0 0 2,065 0 0.000 26.46 0.00 2007 1 2,611 0 0 1,937 0 0.000 26.46 0.00 2008 1 2,449 0 0 1,816 0 0.000 26.46 0.00 2009 1 2,296 0 0 1,704 0 0.000 26.46 0.00 2010 1 2,154 0 0 1,597 0 0.000 26.46 0.00 2011 1 2,020 0 0 1,499 0 0.000 26.46 0.00 2012 1 1,894 0 0 1,405 0 0.000 26.46 0.00 2013 1 1,777 0 0 1,318 0 0.000 26.46 0.00 2014 1 1,666 0 0 1,236 0 0.000 26.46 0.00 2015 1 1,563 0 0 1,159 0 0.000 26.46 0.00 SUB-TOTAL 37,640 0 0 27,921 0 0.000 26.46 0.00 REMAINDER 9,618 0 0 7,135 0 0.000 26.46 0.00 TOTAL 47,258 0 0 35,056 0 0.000 26.46 0.00 CUMULATIVE 0 0 0 ULTIMATE 47,258 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 61,411 0 0 0 61,411 98 0 61,313 2002 74,392 0 0 0 74,392 119 0 74,273 2003 66,237 0 0 0 66,237 106 0 66,131 2004 62,121 0 0 0 62,121 100 0 62,021 2005 58,260 0 0 0 58,260 93 0 58,167 2006 54,641 0 0 0 54,641 87 0 54,554 2007 51,245 0 0 0 51,245 82 0 51,163 2008 48,060 0 0 0 48,060 77 0 47,983 2009 45,075 0 0 0 45,075 72 0 45,003 2010 42,273 0 0 0 42,273 68 0 42,205 2011 39,646 0 0 0 39,646 63 0 39,583 2012 37,183 0 0 0 37,183 60 0 37,123 2013 34,872 0 0 0 34,872 56 0 34,816 2014 32,706 0 0 0 32,706 52 0 32,654 2015 30,673 0 0 0 30,673 49 0 30,624 SUB-TOT 738,795 0 0 0 738,795 1,182 0 737,613 REMAIN 188,791 0 0 0 188,791 302 0 188,489 TOTAL 927,586 0 0 0 927,586 1,484 0 926,102
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 8,796 0 91,563 0 100,359 -39,046 -39,046 -37,908 2002 17,591 0 0 0 17,591 56,682 17,636 48,996 2003 17,591 0 0 0 17,591 48,540 66,176 37,885 2004 17,591 0 0 0 17,591 44,430 110,606 31,391 2005 17,591 0 0 0 17,591 40,576 151,182 25,951 2006 17,591 0 0 0 17,591 36,963 188,145 21,400 2007 17,591 0 0 0 17,591 33,572 221,717 17,594 2008 17,591 0 0 0 17,591 30,392 252,109 14,419 2009 17,591 0 0 0 17,591 27,412 279,521 11,773 2010 17,591 0 0 0 17,591 24,614 304,135 9,569 2011 17,591 0 0 0 17,591 21,992 326,127 7,740 2012 17,591 0 0 0 17,591 19,532 345,659 6,223 2013 17,592 0 0 0 17,592 17,224 362,883 4,968 2014 17,591 0 0 0 17,591 15,063 377,946 3,933 2015 17,591 0 0 0 17,591 13,033 390,979 3,080 SUBTOT 255,071 0 91,563 0 346,634 390,979 207,014 REMAIN 143,660 0 0 0 143,660 44,829 435,808 7,908 TOTAL 398,731 0 91,563 0 490,294 435,808 214,922
LIFE OF EVALUATION IS 23.17 YEARS. FINAL PRODUCTION RATE: 75 BBLS/MO THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 24 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
CHASE-SILICA FIELD, BARTON COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 3-T20S-R11W PROVED ROSE, CHARLES PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 26.46 5.00% - 276,507 FINAL - 1.000000 0.875000 26.46 10.00% - 201,099 REMARKS - 15.00% - 156,552 20.00% - 127,744 25.00% - 107,777
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 3 1,815 0 0 1,588 0 0.000 26.46 0.00 2002 3 1,735 0 0 1,518 0 0.000 26.46 0.00 2003 3 1,659 0 0 1,452 0 0.000 26.46 0.00 2004 3 1,586 0 0 1,387 0 0.000 26.46 0.00 2005 3 1,516 0 0 1,327 0 0.000 26.46 0.00 2006 3 1,449 0 0 1,268 0 0.000 26.46 0.00 2007 3 1,386 0 0 1,213 0 0.000 26.46 0.00 2008 3 1,324 0 0 1,159 0 0.000 26.46 0.00 2009 3 1,267 0 0 1,108 0 0.000 26.46 0.00 2010 3 1,210 0 0 1,059 0 0.000 26.46 0.00 2011 3 1,158 0 0 1,013 0 0.000 26.46 0.00 2012 3 1,106 0 0 968 0 0.000 26.46 0.00 2013 3 1,058 0 0 925 0 0.000 26.46 0.00 2014 3 1,011 0 0 885 0 0.000 26.46 0.00 2015 3 967 0 0 846 0 0.000 26.46 0.00 SUB-TOTAL 20,247 0 0 17,716 0 0.000 26.46 0.00 REMAINDER 11,729 0 0 10,263 0 0.000 26.46 0.00 TOTAL 31,976 0 0 27,979 0 0.000 26.46 0.00 CUMULATIVE 91,213 0 0 ULTIMATE 123,189 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 42,022 0 0 0 42,022 67 0 41,955 2002 40,173 0 0 0 40,173 65 0 40,108 2003 38,406 0 0 0 38,406 61 0 38,345 2004 36,716 0 0 0 36,716 59 0 36,657 2005 35,100 0 0 0 35,100 56 0 35,044 2006 33,556 0 0 0 33,556 54 0 33,502 2007 32,079 0 0 0 32,079 51 0 32,028 2008 30,668 0 0 0 30,668 49 0 30,619 2009 29,319 0 0 0 29,319 47 0 29,272 2010 28,028 0 0 0 28,028 45 0 27,983 2011 26,796 0 0 0 26,796 43 0 26,753 2012 25,616 0 0 0 25,616 41 0 25,575 2013 24,489 0 0 0 24,489 39 0 24,450 2014 23,412 0 0 0 23,412 37 0 23,375 2015 22,381 0 0 0 22,381 36 0 22,345 SUB-TOT 468,761 0 0 0 468,761 750 0 468,011 REMAIN 271,566 0 0 0 271,566 435 0 271,131 TOTAL 740,327 0 0 0 740,327 1,185 0 739,142
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 9,636 0 0 0 9,636 32,319 32,319 30,777 2002 9,636 0 0 0 9,636 30,472 62,791 26,267 2003 9,636 0 0 0 9,636 28,709 91,500 22,402 2004 9,636 0 0 0 9,636 27,021 118,521 19,086 2005 9,636 0 0 0 9,636 25,408 143,929 16,247 2006 9,636 0 0 0 9,636 23,866 167,795 13,813 2007 9,636 0 0 0 9,636 22,392 190,187 11,733 2008 9,636 0 0 0 9,636 20,983 211,170 9,952 2009 9,636 0 0 0 9,636 19,636 230,806 8,430 2010 9,636 0 0 0 9,636 18,347 249,153 7,130 2011 9,636 0 0 0 9,636 17,117 266,270 6,022 2012 9,636 0 0 0 9,636 15,939 282,209 5,077 2013 9,636 0 0 0 9,636 14,814 297,023 4,270 2014 9,636 0 0 0 9,636 13,739 310,762 3,586 2015 9,636 0 0 0 9,636 12,709 323,471 3,002 SUBTOT 144,540 0 0 0 144,540 323,471 187,794 REMAIN 175,054 0 0 0 175,054 96,077 419,548 13,305 TOTAL 319,594 0 0 0 319,594 419,548 201,099
LIFE OF EVALUATION IS 33.17 YEARS. FINAL PRODUCTION RATE: 35 BBLS/MO THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 25 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
CHEYENNE FIELD, BARTON COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 2-T19S-R12W PROVED HAMMEKE (SIMPSON) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.833984 26.46 5.00% - 92,457 FINAL - 1.000000 0.833984 26.46 10.00% - 73,363 REMARKS - 15.00% - 60,216 20.00% - 50,792 25.00% - 43,793
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 1,124 0 0 937 0 0.000 26.46 0.00 2002 1 1,073 0 0 895 0 0.000 26.46 0.00 2003 1 1,026 0 0 856 0 0.000 26.46 0.00 2004 1 981 0 0 818 0 0.000 26.46 0.00 2005 1 937 0 0 781 0 0.000 26.46 0.00 2006 1 895 0 0 747 0 0.000 26.46 0.00 2007 1 856 0 0 713 0 0.000 26.46 0.00 2008 1 817 0 0 682 0 0.000 26.46 0.00 2009 1 781 0 0 652 0 0.000 26.46 0.00 2010 1 747 0 0 623 0 0.000 26.46 0.00 2011 1 714 0 0 595 0 0.000 26.46 0.00 2012 1 681 0 0 568 0 0.000 26.46 0.00 2013 1 652 0 0 544 0 0.000 26.46 0.00 2014 1 622 0 0 519 0 0.000 26.46 0.00 2015 1 595 0 0 496 0 0.000 26.46 0.00 SUB-TOTAL 12,501 0 0 10,426 0 0.000 26.46 0.00 REMAINDER 2,248 0 0 1,874 0 0.000 26.46 0.00 TOTAL 14,749 0 0 12,300 0 0.000 26.46 0.00 CUMULATIVE 34,465 0 0 ULTIMATE 49,214 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 24,794 0 0 0 24,794 40 0 24,754 2002 23,694 0 0 0 23,694 38 0 23,656 2003 22,641 0 0 0 22,641 36 0 22,605 2004 21,636 0 0 0 21,636 34 0 21,602 2005 20,676 0 0 0 20,676 34 0 20,642 2006 19,757 0 0 0 19,757 31 0 19,726 2007 18,881 0 0 0 18,881 30 0 18,851 2008 18,042 0 0 0 18,042 29 0 18,013 2009 17,241 0 0 0 17,241 28 0 17,213 2010 16,475 0 0 0 16,475 26 0 16,449 2011 15,744 0 0 0 15,744 25 0 15,719 2012 15,045 0 0 0 15,045 24 0 15,021 2013 14,377 0 0 0 14,377 23 0 14,354 2014 13,738 0 0 0 13,738 22 0 13,716 2015 13,129 0 0 0 13,129 21 0 13,108 SUB-TOT 275,870 0 0 0 275,870 441 0 275,429 REMAIN 49,598 0 0 0 49,598 80 0 49,518 TOTAL 325,468 0 0 0 325,468 521 0 324,947
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 10,572 0 0 0 10,572 14,182 14,182 13,508 2002 10,572 0 0 0 10,572 13,084 27,266 11,280 2003 10,572 0 0 0 10,572 12,033 39,299 9,392 2004 10,572 0 0 0 10,572 11,030 50,329 7,793 2005 10,572 0 0 0 10,572 10,070 60,399 6,440 2006 10,572 0 0 0 10,572 9,154 69,553 5,300 2007 10,572 0 0 0 10,572 8,279 77,832 4,339 2008 10,572 0 0 0 10,572 7,441 85,273 3,531 2009 10,572 0 0 0 10,572 6,641 91,914 2,852 2010 10,572 0 0 0 10,572 5,877 97,791 2,285 2011 10,572 0 0 0 10,572 5,147 102,938 1,812 2012 10,572 0 0 0 10,572 4,449 107,387 1,418 2013 10,572 0 0 0 10,572 3,782 111,169 1,091 2014 10,572 0 0 0 10,572 3,144 114,313 821 2015 10,572 0 0 0 10,572 2,536 116,849 600 SUBTOT 158,580 0 0 0 158,580 116,849 72,462 REMAIN 44,931 0 0 0 44,931 4,587 121,436 901 TOTAL 203,511 0 0 0 203,511 121,436 73,363
LIFE OF EVALUATION IS 19.25 YEARS. FINAL PRODUCTION RATE: 40 BBLS/MO THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 26 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
CONVERSE FIELD, BARTON COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 19-T20S-R15W PROVED IANNITTI (ARBUCKLE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 26.46 5.00% - 47,810 FINAL - 1.000000 0.875000 26.46 10.00% - 44,399 REMARKS - 15.00% - 41,369 20.00% - 38,669 25.00% - 36,254
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 6 2,855 0 0 2,498 0 0.000 26.46 0.00 2002 6 2,622 0 0 2,294 0 0.000 26.46 0.00 2003 6 2,415 0 0 2,114 0 0.000 26.46 0.00 2004 6 2,233 0 0 1,953 0 0.000 26.46 0.00 2005 6 2,070 0 0 1,811 0 0.000 26.46 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 12,195 0 0 10,670 0 0.000 26.46 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 12,195 0 0 10,670 0 0.000 26.46 0.00 CUMULATIVE 112,945 0 0 ULTIMATE 125,140 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 66,103 0 0 0 66,103 106 0 65,997 2002 60,694 0 0 0 60,694 97 0 60,597 2003 55,923 0 0 0 55,923 89 0 55,834 2004 51,692 0 0 0 51,692 83 0 51,609 2005 47,924 0 0 0 47,924 77 0 47,847 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 282,336 0 0 0 282,336 452 0 281,884 REMAIN 0 0 0 0 0 0 0 0 TOTAL 282,336 0 0 0 282,336 452 0 281,884
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 46,044 0 0 0 46,044 19,953 19,953 19,037 2002 46,044 0 0 0 46,044 14,553 34,506 12,575 2003 46,044 0 0 0 46,044 9,790 44,296 7,664 2004 46,044 0 0 0 46,044 5,565 49,861 3,952 2005 46,044 0 0 0 46,044 1,803 51,664 1,171 2006 0 0 0 0 0 0 51,664 0 2007 0 0 0 0 0 0 51,664 0 2008 0 0 0 0 0 0 51,664 0 2009 0 0 0 0 0 0 51,664 0 2010 0 0 0 0 0 0 51,664 0 2011 0 0 0 0 0 0 51,664 0 2012 0 0 0 0 0 0 51,664 0 2013 0 0 0 0 0 0 51,664 0 2014 0 0 0 0 0 0 51,664 0 2015 0 0 0 0 0 0 51,664 0 SUBTOT 230,220 0 0 0 230,220 51,664 44,399 REMAIN 0 0 0 0 0 0 51,664 0 TOTAL 230,220 0 0 0 230,220 51,664 44,399
LIFE OF EVALUATION IS 5.00 YEARS. FINAL PRODUCTION RATE: 167 BBLS/MO THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 27 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
CONVERSE FIELD, BARTON COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 19-T20S-R15W PROVED IANNITTI #9 PUD (ARBUCKLE) UNDEVELOPED REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 5.00% - 0 FINAL - 1.000000 10.00% - 0 REMARKS - 15.00% - 0 20.00% - 0 25.00% - 0
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 0 0 0 0.000 0.00 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 0 0 0 0.000 0.00 0.00 CUMULATIVE 0 0 0 ULTIMATE 0 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 0
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUBTOT 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0
LIFE OF EVALUATION IS 0.00 YEARS. FINAL PRODUCTION RATE: 0 BBLS/MO THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 28 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
COOPER FIELD, GRAHAM COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 4-T10S-R21W PROVED DEYOUNG (ABCK-TOPK) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 26.46 5.00% - 117,200 FINAL - 1.000000 0.875000 26.46 10.00% - 98,122 REMARKS - 15.00% - 83,757 20.00% - 72,705 25.00% - 64,027
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 2 2,014 0 0 1,762 0 0.000 26.46 0.00 2002 2 1,913 0 0 1,674 0 0.000 26.46 0.00 2003 2 1,817 0 0 1,590 0 0.000 26.46 0.00 2004 2 1,727 0 0 1,511 0 0.000 26.46 0.00 2005 2 1,640 0 0 1,435 0 0.000 26.46 0.00 2006 2 1,559 0 0 1,364 0 0.000 26.46 0.00 2007 2 1,480 0 0 1,295 0 0.000 26.46 0.00 2008 2 1,406 0 0 1,231 0 0.000 26.46 0.00 2009 2 1,336 0 0 1,169 0 0.000 26.46 0.00 2010 2 1,270 0 0 1,110 0 0.000 26.46 0.00 2011 2 1,205 0 0 1,055 0 0.000 26.46 0.00 2012 2 1,146 0 0 1,003 0 0.000 26.46 0.00 2013 2 1,088 0 0 952 0 0.000 26.46 0.00 2014 2 523 0 0 458 0 0.000 26.46 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 20,124 0 0 17,609 0 0.000 26.46 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 20,124 0 0 17,609 0 0.000 26.46 0.00 CUMULATIVE 57,338 0 0 ULTIMATE 77,462 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 46,625 0 0 0 46,625 75 0 46,550 2002 44,294 0 0 0 44,294 70 0 44,224 2003 42,079 0 0 0 42,079 68 0 42,011 2004 39,976 0 0 0 39,976 64 0 39,912 2005 37,976 0 0 0 37,976 61 0 37,915 2006 36,078 0 0 0 36,078 57 0 36,021 2007 34,274 0 0 0 34,274 55 0 34,219 2008 32,560 0 0 0 32,560 52 0 32,508 2009 30,932 0 0 0 30,932 50 0 30,882 2010 29,385 0 0 0 29,385 47 0 29,338 2011 27,917 0 0 0 27,917 44 0 27,873 2012 26,520 0 0 0 26,520 43 0 26,477 2013 25,195 0 0 0 25,195 40 0 25,155 2014 12,120 0 0 0 12,120 19 0 12,101 2015 0 0 0 0 0 0 0 0 SUB-TOT 465,931 0 0 0 465,931 745 0 465,186 REMAIN 0 0 0 0 0 0 0 0 TOTAL 465,931 0 0 0 465,931 745 0 465,186
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 23,856 0 0 0 23,856 22,694 22,694 21,619 2002 23,856 0 0 0 23,856 20,368 43,062 17,565 2003 23,856 0 0 0 23,856 18,155 61,217 14,174 2004 23,856 0 0 0 23,856 16,056 77,273 11,347 2005 23,856 0 0 0 23,856 14,059 91,332 8,995 2006 23,856 0 0 0 23,856 12,165 103,497 7,047 2007 23,856 0 0 0 23,856 10,363 113,860 5,434 2008 23,856 0 0 0 23,856 8,652 122,512 4,108 2009 23,856 0 0 0 23,856 7,026 129,538 3,020 2010 23,856 0 0 0 23,856 5,482 135,020 2,134 2011 23,856 0 0 0 23,856 4,017 139,037 1,417 2012 23,856 0 0 0 23,856 2,621 141,658 838 2013 23,856 0 0 0 23,856 1,299 142,957 377 2014 11,928 0 0 0 11,928 173 143,130 47 2015 0 0 0 0 0 0 143,130 0 SUBTOT 322,056 0 0 0 322,056 143,130 98,122 REMAIN 0 0 0 0 0 0 143,130 0 TOTAL 322,056 0 0 0 322,056 143,130 98,122
LIFE OF EVALUATION IS 13.50 YEARS. FINAL PRODUCTION RATE: 86 BBLS/MO THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 29 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
COOPER FIELD, GRAHAM COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 9-T10S-R21W PROVED LEWIS -A- (LANSING) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 26.46 5.00% - 159,383 FINAL - 1.000000 0.875000 26.46 10.00% - 119,116 REMARKS - 15.00% - 94,084 20.00% - 77,394 25.00% - 65,611
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 2 1,297 0 0 1,135 0 0.000 26.46 0.00 2002 2 1,245 0 0 1,089 0 0.000 26.46 0.00 2003 2 1,196 0 0 1,046 0 0.000 26.46 0.00 2004 2 1,147 0 0 1,005 0 0.000 26.46 0.00 2005 2 1,102 0 0 963 0 0.000 26.46 0.00 2006 2 1,057 0 0 926 0 0.000 26.46 0.00 2007 2 1,016 0 0 888 0 0.000 26.46 0.00 2008 2 974 0 0 853 0 0.000 26.46 0.00 2009 2 936 0 0 819 0 0.000 26.46 0.00 2010 2 898 0 0 786 0 0.000 26.46 0.00 2011 2 863 0 0 754 0 0.000 26.46 0.00 2012 2 828 0 0 725 0 0.000 26.46 0.00 2013 2 794 0 0 695 0 0.000 26.46 0.00 2014 2 763 0 0 668 0 0.000 26.46 0.00 2015 2 733 0 0 641 0 0.000 26.46 0.00 SUB-TOTAL 14,849 0 0 12,993 0 0.000 26.46 0.00 REMAINDER 6,953 0 0 6,084 0 0.000 26.46 0.00 TOTAL 21,802 0 0 19,077 0 0.000 26.46 0.00 CUMULATIVE 79,601 0 0 ULTIMATE 101,403 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 30,030 0 0 0 30,030 48 0 29,982 2002 28,829 0 0 0 28,829 46 0 28,783 2003 27,676 0 0 0 27,676 44 0 27,632 2004 26,569 0 0 0 26,569 43 0 26,526 2005 25,506 0 0 0 25,506 41 0 25,465 2006 24,486 0 0 0 24,486 39 0 24,447 2007 23,507 0 0 0 23,507 38 0 23,469 2008 22,566 0 0 0 22,566 36 0 22,530 2009 21,663 0 0 0 21,663 34 0 21,629 2010 20,797 0 0 0 20,797 34 0 20,763 2011 19,966 0 0 0 19,966 32 0 19,934 2012 19,166 0 0 0 19,166 30 0 19,136 2013 18,400 0 0 0 18,400 30 0 18,370 2014 17,664 0 0 0 17,664 28 0 17,636 2015 16,957 0 0 0 16,957 27 0 16,930 SUB-TOT 343,782 0 0 0 343,782 550 0 343,232 REMAIN 160,988 0 0 0 160,988 258 0 160,730 TOTAL 504,770 0 0 0 504,770 808 0 503,962
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 10,032 0 0 0 10,032 19,950 19,950 18,998 2002 10,032 0 0 0 10,032 18,751 38,701 16,165 2003 10,032 0 0 0 10,032 17,600 56,301 13,734 2004 10,032 0 0 0 10,032 16,494 72,795 11,651 2005 10,032 0 0 0 10,032 15,433 88,228 9,868 2006 10,032 0 0 0 10,032 14,415 102,643 8,344 2007 10,032 0 0 0 10,032 13,437 116,080 7,041 2008 10,032 0 0 0 10,032 12,498 128,578 5,928 2009 10,032 0 0 0 10,032 11,597 140,175 4,979 2010 10,032 0 0 0 10,032 10,731 150,906 4,171 2011 10,032 0 0 0 10,032 9,902 160,808 3,484 2012 10,032 0 0 0 10,032 9,104 169,912 2,900 2013 10,032 0 0 0 10,032 8,338 178,250 2,404 2014 10,032 0 0 0 10,032 7,604 185,854 1,984 2015 10,032 0 0 0 10,032 6,898 192,752 1,630 SUBTOT 150,480 0 0 0 150,480 192,752 113,281 REMAIN 123,728 0 0 0 123,728 37,002 229,754 5,835 TOTAL 274,208 0 0 0 274,208 229,754 119,116
LIFE OF EVALUATION IS 27.33 YEARS. FINAL PRODUCTION RATE: 36 BBLS/MO THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 30 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
DAVIDSON FIELD, RUSSELL COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 33-T15S-R11W PROVED FOSTER (ARBUCKLE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.847656 26.46 5.00% - 139,770 FINAL - 1.000000 0.847656 26.46 10.00% - 123,669 REMARKS - 15.00% - 110,438 20.00% - 99,455 25.00% - 90,250
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 4 3,121 0 0 2,645 0 0.000 26.46 0.00 2002 4 2,841 0 0 2,409 0 0.000 26.46 0.00 2003 4 2,587 0 0 2,192 0 0.000 26.46 0.00 2004 4 2,355 0 0 1,997 0 0.000 26.46 0.00 2005 4 2,145 0 0 1,818 0 0.000 26.46 0.00 2006 4 1,953 0 0 1,655 0 0.000 26.46 0.00 2007 4 1,778 0 0 1,507 0 0.000 26.46 0.00 2008 4 1,618 0 0 1,373 0 0.000 26.46 0.00 2009 4 1,357 0 0 1,149 0 0.000 26.46 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 19,755 0 0 16,745 0 0.000 26.46 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 19,755 0 0 16,745 0 0.000 26.46 0.00 CUMULATIVE 147,699 0 0 ULTIMATE 167,454 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 69,991 0 0 0 69,991 112 0 69,879 2002 63,728 0 0 0 63,728 102 0 63,626 2003 58,023 0 0 0 58,023 93 0 57,930 2004 52,831 0 0 0 52,831 84 0 52,747 2005 48,102 0 0 0 48,102 77 0 48,025 2006 43,797 0 0 0 43,797 70 0 43,727 2007 39,877 0 0 0 39,877 64 0 39,813 2008 36,308 0 0 0 36,308 58 0 36,250 2009 30,421 0 0 0 30,421 49 0 30,372 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 443,078 0 0 0 443,078 709 0 442,369 REMAIN 0 0 0 0 0 0 0 0 TOTAL 443,078 0 0 0 443,078 709 0 442,369
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 31,716 0 0 0 31,716 38,163 38,163 36,376 2002 31,716 0 0 0 31,716 31,910 70,073 27,536 2003 31,716 0 0 0 31,716 26,214 96,287 20,479 2004 31,716 0 0 0 31,716 21,031 117,318 14,877 2005 31,716 0 0 0 31,716 16,309 133,627 10,447 2006 31,716 0 0 0 31,716 12,011 145,638 6,967 2007 31,716 0 0 0 31,716 8,097 153,735 4,257 2008 31,716 0 0 0 31,716 4,534 158,269 2,162 2009 29,073 0 0 0 29,073 1,299 159,568 568 2010 0 0 0 0 0 0 159,568 0 2011 0 0 0 0 0 0 159,568 0 2012 0 0 0 0 0 0 159,568 0 2013 0 0 0 0 0 0 159,568 0 2014 0 0 0 0 0 0 159,568 0 2015 0 0 0 0 0 0 159,568 0 SUBTOT 282,801 0 0 0 282,801 159,568 123,669 REMAIN 0 0 0 0 0 0 159,568 0 TOTAL 282,801 0 0 0 282,801 159,568 123,669
LIFE OF EVALUATION IS 8.92 YEARS. FINAL PRODUCTION RATE: 119 BBLS/MO THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 31 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
DISTRICT 57 FIELD, ELLIS COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 28-T12S-R20W PROVED FLAX -F- (KSSC-LNSG) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 26.46 5.00% - 79,451 FINAL - 1.000000 0.875000 26.46 10.00% - 58,452 REMARKS - 15.00% - 45,670 20.00% - 37,283 25.00% - 31,433
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 757 0 0 663 0 0.000 26.46 0.00 2002 1 737 0 0 644 0 0.000 26.46 0.00 2003 1 717 0 0 627 0 0.000 26.46 0.00 2004 1 697 0 0 611 0 0.000 26.46 0.00 2005 1 679 0 0 593 0 0.000 26.46 0.00 2006 1 660 0 0 578 0 0.000 26.46 0.00 2007 1 642 0 0 562 0 0.000 26.46 0.00 2008 1 625 0 0 547 0 0.000 26.46 0.00 2009 1 608 0 0 531 0 0.000 26.46 0.00 2010 1 591 0 0 518 0 0.000 26.46 0.00 2011 1 575 0 0 503 0 0.000 26.46 0.00 2012 1 560 0 0 490 0 0.000 26.46 0.00 2013 1 545 0 0 477 0 0.000 26.46 0.00 2014 1 530 0 0 463 0 0.000 26.46 0.00 2015 1 515 0 0 451 0 0.000 26.46 0.00 SUB-TOTAL 9,438 0 0 8,258 0 0.000 26.46 0.00 REMAINDER 5,588 0 0 4,890 0 0.000 26.46 0.00 TOTAL 15,026 0 0 13,148 0 0.000 26.46 0.00 CUMULATIVE 45,199 0 0 ULTIMATE 60,225 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 17,533 0 0 0 17,533 28 0 17,505 2002 17,058 0 0 0 17,058 27 0 17,031 2003 16,596 0 0 0 16,596 27 0 16,569 2004 16,145 0 0 0 16,145 26 0 16,119 2005 15,709 0 0 0 15,709 25 0 15,684 2006 15,282 0 0 0 15,282 24 0 15,258 2007 14,869 0 0 0 14,869 24 0 14,845 2008 14,466 0 0 0 14,466 23 0 14,443 2009 14,073 0 0 0 14,073 23 0 14,050 2010 13,692 0 0 0 13,692 22 0 13,670 2011 13,321 0 0 0 13,321 21 0 13,300 2012 12,960 0 0 0 12,960 21 0 12,939 2013 12,609 0 0 0 12,609 20 0 12,589 2014 12,267 0 0 0 12,267 20 0 12,247 2015 11,935 0 0 0 11,935 19 0 11,916 SUB-TOT 218,515 0 0 0 218,515 350 0 218,165 REMAIN 129,370 0 0 0 129,370 207 0 129,163 TOTAL 347,885 0 0 0 347,885 557 0 347,328
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 8,196 0 0 0 8,196 9,309 9,309 8,864 2002 8,196 0 0 0 8,196 8,835 18,144 7,616 2003 8,196 0 0 0 8,196 8,373 26,517 6,533 2004 8,196 0 0 0 8,196 7,923 34,440 5,596 2005 8,196 0 0 0 8,196 7,488 41,928 4,788 2006 8,196 0 0 0 8,196 7,062 48,990 4,087 2007 8,196 0 0 0 8,196 6,649 55,639 3,484 2008 8,196 0 0 0 8,196 6,247 61,886 2,963 2009 8,196 0 0 0 8,196 5,854 67,740 2,513 2010 8,196 0 0 0 8,196 5,474 73,214 2,128 2011 8,196 0 0 0 8,196 5,104 78,318 1,795 2012 8,196 0 0 0 8,196 4,743 83,061 1,511 2013 8,196 0 0 0 8,196 4,393 87,454 1,266 2014 8,196 0 0 0 8,196 4,051 91,505 1,058 2015 8,196 0 0 0 8,196 3,720 95,225 878 SUBTOT 122,940 0 0 0 122,940 95,225 55,080 REMAIN 107,231 0 0 0 107,231 21,932 117,157 3,372 TOTAL 230,171 0 0 0 230,171 117,157 58,452
LIFE OF EVALUATION IS 28.08 YEARS. FINAL PRODUCTION RATE: 30 BBLS/MO THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 32 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
DUNES NORTH FIELD, PAWNEE COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 14-T22S-R15W PROVED BARSTOW (KSSC-LNSG) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 0.937500 0.769043 26.46 5.00% - 19,415 FINAL - 0.937500 0.769043 26.46 10.00% - 16,007 REMARKS - 15.00% - 13,498 20.00% - 11,605 25.00% - 10,142
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 455 0 0 350 0 0.000 26.46 0.00 2002 1 441 0 0 339 0 0.000 26.46 0.00 2003 1 426 0 0 328 0 0.000 26.46 0.00 2004 1 412 0 0 317 0 0.000 26.46 0.00 2005 1 399 0 0 307 0 0.000 26.46 0.00 2006 1 386 0 0 296 0 0.000 26.46 0.00 2007 1 374 0 0 288 0 0.000 26.46 0.00 2008 1 361 0 0 277 0 0.000 26.46 0.00 2009 1 350 0 0 269 0 0.000 26.46 0.00 2010 1 338 0 0 260 0 0.000 26.46 0.00 2011 1 327 0 0 252 0 0.000 26.46 0.00 2012 1 317 0 0 243 0 0.000 26.46 0.00 2013 1 306 0 0 236 0 0.000 26.46 0.00 2014 1 296 0 0 228 0 0.000 26.46 0.00 2015 1 169 0 0 129 0 0.000 26.46 0.00 SUB-TOTAL 5,357 0 0 4,119 0 0.000 26.46 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 5,357 0 0 4,119 0 0.000 26.46 0.00 CUMULATIVE 74,209 0 0 ULTIMATE 79,566 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 9,265 0 0 0 9,265 15 0 9,250 2002 8,964 0 0 0 8,964 14 0 8,950 2003 8,673 0 0 0 8,673 14 0 8,659 2004 8,390 0 0 0 8,390 13 0 8,377 2005 8,118 0 0 0 8,118 13 0 8,105 2006 7,855 0 0 0 7,855 13 0 7,842 2007 7,599 0 0 0 7,599 12 0 7,587 2008 7,352 0 0 0 7,352 12 0 7,340 2009 7,113 0 0 0 7,113 11 0 7,102 2010 6,882 0 0 0 6,882 11 0 6,871 2011 6,658 0 0 0 6,658 11 0 6,647 2012 6,442 0 0 0 6,442 10 0 6,432 2013 6,232 0 0 0 6,232 10 0 6,222 2014 6,030 0 0 0 6,030 10 0 6,020 2015 3,427 0 0 0 3,427 5 0 3,422 SUB-TOT 109,000 0 0 0 109,000 174 0 108,826 REMAIN 0 0 0 0 0 0 0 0 TOTAL 109,000 0 0 0 109,000 174 0 108,826
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 5,805 0 0 0 5,805 3,445 3,445 3,281 2002 5,805 0 0 0 5,805 3,145 6,590 2,712 2003 5,805 0 0 0 5,805 2,854 9,444 2,228 2004 5,805 0 0 0 5,805 2,572 12,016 1,817 2005 5,805 0 0 0 5,805 2,300 14,316 1,472 2006 5,805 0 0 0 5,805 2,037 16,353 1,179 2007 5,805 0 0 0 5,805 1,782 18,135 935 2008 5,805 0 0 0 5,805 1,535 19,670 728 2009 5,805 0 0 0 5,805 1,297 20,967 557 2010 5,805 0 0 0 5,805 1,066 22,033 415 2011 5,805 0 0 0 5,805 842 22,875 297 2012 5,805 0 0 0 5,805 627 23,502 200 2013 5,805 0 0 0 5,805 417 23,919 121 2014 5,805 0 0 0 5,805 215 24,134 56 2015 3,386 0 0 0 3,386 36 24,170 9 SUBTOT 84,656 0 0 0 84,656 24,170 16,007 REMAIN 0 0 0 0 0 0 24,170 0 TOTAL 84,656 0 0 0 84,656 24,170 16,007
LIFE OF EVALUATION IS 14.58 YEARS. FINAL PRODUCTION RATE: 24 BBLS/MO THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 33 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
DUNES NORTH FIELD, PAWNEE COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 15-T22S-R15W PROVED LOVETT (LANSING) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 0.937000 0.768633 26.46 5.00% - 47,739 FINAL - 0.937000 0.768633 26.46 10.00% - 38,575 REMARKS - 15.00% - 32,048 20.00% - 27,248 25.00% - 23,618
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 986 0 0 758 0 0.000 26.46 0.00 2002 1 956 0 0 735 0 0.000 26.46 0.00 2003 1 928 0 0 713 0 0.000 26.46 0.00 2004 1 900 0 0 692 0 0.000 26.46 0.00 2005 1 873 0 0 671 0 0.000 26.46 0.00 2006 1 847 0 0 651 0 0.000 26.46 0.00 2007 1 821 0 0 631 0 0.000 26.46 0.00 2008 1 797 0 0 612 0 0.000 26.46 0.00 2009 1 773 0 0 594 0 0.000 26.46 0.00 2010 1 749 0 0 576 0 0.000 26.46 0.00 2011 1 727 0 0 559 0 0.000 26.46 0.00 2012 1 706 0 0 542 0 0.000 26.46 0.00 2013 1 684 0 0 526 0 0.000 26.46 0.00 2014 1 663 0 0 510 0 0.000 26.46 0.00 2015 1 644 0 0 495 0 0.000 26.46 0.00 SUB-TOTAL 12,054 0 0 9,265 0 0.000 26.46 0.00 REMAINDER 980 0 0 753 0 0.000 26.46 0.00 TOTAL 13,034 0 0 10,018 0 0.000 26.46 0.00 CUMULATIVE 106,287 0 0 ULTIMATE 119,321 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 20,054 0 0 0 20,054 32 0 20,022 2002 19,452 0 0 0 19,452 31 0 19,421 2003 18,868 0 0 0 18,868 30 0 18,838 2004 18,303 0 0 0 18,303 30 0 18,273 2005 17,753 0 0 0 17,753 28 0 17,725 2006 17,221 0 0 0 17,221 28 0 17,193 2007 16,704 0 0 0 16,704 26 0 16,678 2008 16,203 0 0 0 16,203 26 0 16,177 2009 15,717 0 0 0 15,717 25 0 15,692 2010 15,245 0 0 0 15,245 25 0 15,220 2011 14,789 0 0 0 14,789 23 0 14,766 2012 14,344 0 0 0 14,344 23 0 14,321 2013 13,914 0 0 0 13,914 23 0 13,891 2014 13,497 0 0 0 13,497 21 0 13,476 2015 13,092 0 0 0 13,092 21 0 13,071 SUB-TOT 245,156 0 0 0 245,156 392 0 244,764 REMAIN 19,930 0 0 0 19,930 32 0 19,898 TOTAL 265,086 0 0 0 265,086 424 0 264,662
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 12,278 0 0 0 12,278 7,744 7,744 7,376 2002 12,279 0 0 0 12,279 7,142 14,886 6,157 2003 12,278 0 0 0 12,278 6,560 21,446 5,120 2004 12,279 0 0 0 12,279 5,994 27,440 4,235 2005 12,278 0 0 0 12,278 5,447 32,887 3,484 2006 12,279 0 0 0 12,279 4,914 37,801 2,846 2007 12,278 0 0 0 12,278 4,400 42,201 2,306 2008 12,279 0 0 0 12,279 3,898 46,099 1,850 2009 12,278 0 0 0 12,278 3,414 49,513 1,466 2010 12,278 0 0 0 12,278 2,942 52,455 1,144 2011 12,279 0 0 0 12,279 2,487 54,942 876 2012 12,278 0 0 0 12,278 2,043 56,985 651 2013 12,279 0 0 0 12,279 1,612 58,597 466 2014 12,278 0 0 0 12,278 1,198 59,795 313 2015 12,279 0 0 0 12,279 792 60,587 188 SUBTOT 184,177 0 0 0 184,177 60,587 38,478 REMAIN 19,441 0 0 0 19,441 457 61,044 97 TOTAL 203,618 0 0 0 203,618 61,044 38,575
LIFE OF EVALUATION IS 16.58 YEARS. FINAL PRODUCTION RATE: 50 BBLS/MO THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 34 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
ELLIS NW FIELD, TREGO COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 23-T12S-R21W PROVED BAUGHER #1 (ARBUCKLE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.765630 26.46 5.00% - 44,289 FINAL - 1.000000 0.765630 26.46 10.00% - 37,873 REMARKS - 15.00% - 32,869 20.00% - 28,903 25.00% - 25,711
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 1,142 0 0 875 0 0.000 26.46 0.00 2002 1 1,088 0 0 833 0 0.000 26.46 0.00 2003 1 1,037 0 0 793 0 0.000 26.46 0.00 2004 1 987 0 0 756 0 0.000 26.46 0.00 2005 1 940 0 0 720 0 0.000 26.46 0.00 2006 1 895 0 0 685 0 0.000 26.46 0.00 2007 1 853 0 0 653 0 0.000 26.46 0.00 2008 1 813 0 0 622 0 0.000 26.46 0.00 2009 1 774 0 0 593 0 0.000 26.46 0.00 2010 1 737 0 0 564 0 0.000 26.46 0.00 2011 1 702 0 0 538 0 0.000 26.46 0.00 2012 1 338 0 0 259 0 0.000 26.46 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 10,306 0 0 7,891 0 0.000 26.46 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 10,306 0 0 7,891 0 0.000 26.46 0.00 CUMULATIVE 74,666 0 0 ULTIMATE 84,972 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 23,140 0 0 0 23,140 37 0 23,103 2002 22,041 0 0 0 22,041 35 0 22,006 2003 20,994 0 0 0 20,994 34 0 20,960 2004 19,996 0 0 0 19,996 32 0 19,964 2005 19,047 0 0 0 19,047 30 0 19,017 2006 18,142 0 0 0 18,142 29 0 18,113 2007 17,281 0 0 0 17,281 28 0 17,253 2008 16,459 0 0 0 16,459 26 0 16,433 2009 15,678 0 0 0 15,678 25 0 15,653 2010 14,933 0 0 0 14,933 24 0 14,909 2011 14,224 0 0 0 14,224 23 0 14,201 2012 6,856 0 0 0 6,856 11 0 6,845 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 208,791 0 0 0 208,791 334 0 208,457 REMAIN 0 0 0 0 0 0 0 0 TOTAL 208,791 0 0 0 208,791 334 0 208,457
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 13,548 0 0 0 13,548 9,555 9,555 9,103 2002 13,548 0 0 0 13,548 8,458 18,013 7,295 2003 13,548 0 0 0 13,548 7,412 25,425 5,788 2004 13,548 0 0 0 13,548 6,416 31,841 4,535 2005 13,548 0 0 0 13,548 5,469 37,310 3,500 2006 13,548 0 0 0 13,548 4,565 41,875 2,645 2007 13,548 0 0 0 13,548 3,705 45,580 1,944 2008 13,548 0 0 0 13,548 2,885 48,465 1,371 2009 13,548 0 0 0 13,548 2,105 50,570 906 2010 13,548 0 0 0 13,548 1,361 51,931 531 2011 13,548 0 0 0 13,548 653 52,584 231 2012 6,774 0 0 0 6,774 71 52,655 24 2013 0 0 0 0 0 0 52,655 0 2014 0 0 0 0 0 0 52,655 0 2015 0 0 0 0 0 0 52,655 0 SUBTOT 155,802 0 0 0 155,802 52,655 37,873 REMAIN 0 0 0 0 0 0 52,655 0 TOTAL 155,802 0 0 0 155,802 52,655 37,873
LIFE OF EVALUATION IS 11.50 YEARS. FINAL PRODUCTION RATE: 56 BBLS/MO THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 35 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
FICKEN FIELD, RUSH COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 23-T17S-R18W PROVED SCHWINDT FARMS (LANSING) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 5.00% - 0 FINAL - 1.000000 10.00% - 0 REMARKS - 15.00% - 0 20.00% - 0 25.00% - 0
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 0 0 0 0.000 0.00 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 0 0 0 0.000 0.00 0.00 CUMULATIVE 19,117 0 0 ULTIMATE 19,117 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 0
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUBTOT 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0
LIFE OF EVALUATION IS 0.00 YEARS. FINAL PRODUCTION RATE: 0 BBLS/MO THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 36 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
GATES NORTH FIELD, STAFFORD COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 22-T21S-R13W PROVED HOFFMAN (ARBUCKLE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 0.687500 0.556915 26.46 5.00% - 93,958 FINAL - 0.687500 0.556915 26.46 10.00% - 68,661 REMARKS - 15.00% - 53,549 20.00% - 43,721 25.00% - 36,892
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 1,048 0 0 584 0 0.000 26.46 0.00 2002 1 1,006 0 0 560 0 0.000 26.46 0.00 2003 1 966 0 0 538 0 0.000 26.46 0.00 2004 1 928 0 0 517 0 0.000 26.46 0.00 2005 1 890 0 0 495 0 0.000 26.46 0.00 2006 1 855 0 0 476 0 0.000 26.46 0.00 2007 1 820 0 0 457 0 0.000 26.46 0.00 2008 1 788 0 0 439 0 0.000 26.46 0.00 2009 1 756 0 0 421 0 0.000 26.46 0.00 2010 1 726 0 0 404 0 0.000 26.46 0.00 2011 1 697 0 0 388 0 0.000 26.46 0.00 2012 1 668 0 0 373 0 0.000 26.46 0.00 2013 1 643 0 0 357 0 0.000 26.46 0.00 2014 1 616 0 0 344 0 0.000 26.46 0.00 2015 1 592 0 0 329 0 0.000 26.46 0.00 SUB-TOTAL 11,999 0 0 6,682 0 0.000 26.46 0.00 REMAINDER 6,913 0 0 3,850 0 0.000 26.46 0.00 TOTAL 18,912 0 0 10,532 0 0.000 26.46 0.00 CUMULATIVE 54,446 0 0 ULTIMATE 73,358 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 15,446 0 0 0 15,446 25 0 15,421 2002 14,827 0 0 0 14,827 23 0 14,804 2003 14,235 0 0 0 14,235 23 0 14,212 2004 13,665 0 0 0 13,665 22 0 13,643 2005 13,119 0 0 0 13,119 21 0 13,098 2006 12,594 0 0 0 12,594 20 0 12,574 2007 12,090 0 0 0 12,090 20 0 12,070 2008 11,606 0 0 0 11,606 18 0 11,588 2009 11,143 0 0 0 11,143 18 0 11,125 2010 10,696 0 0 0 10,696 17 0 10,679 2011 10,269 0 0 0 10,269 17 0 10,252 2012 9,858 0 0 0 9,858 15 0 9,843 2013 9,463 0 0 0 9,463 15 0 9,448 2014 9,085 0 0 0 9,085 15 0 9,070 2015 8,722 0 0 0 8,722 14 0 8,708 SUB-TOT 176,818 0 0 0 176,818 283 0 176,535 REMAIN 101,862 0 0 0 101,862 163 0 101,699 TOTAL 278,680 0 0 0 278,680 446 0 278,234
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 4,381 0 0 0 4,381 11,040 11,040 10,513 2002 4,381 0 0 0 4,381 10,423 21,463 8,985 2003 4,380 0 0 0 4,380 9,832 31,295 7,672 2004 4,381 0 0 0 4,381 9,262 40,557 6,542 2005 4,381 0 0 0 4,381 8,717 49,274 5,574 2006 4,381 0 0 0 4,381 8,193 57,467 4,742 2007 4,380 0 0 0 4,380 7,690 65,157 4,029 2008 4,381 0 0 0 4,381 7,207 72,364 3,418 2009 4,381 0 0 0 4,381 6,744 79,108 2,895 2010 4,381 0 0 0 4,381 6,298 85,406 2,448 2011 4,380 0 0 0 4,380 5,872 91,278 2,066 2012 4,381 0 0 0 4,381 5,462 96,740 1,740 2013 4,381 0 0 0 4,381 5,067 101,807 1,460 2014 4,381 0 0 0 4,381 4,689 106,496 1,224 2015 4,380 0 0 0 4,380 4,328 110,824 1,022 SUBTOT 65,711 0 0 0 65,711 110,824 64,330 REMAIN 71,552 0 0 0 71,552 30,147 140,971 4,331 TOTAL 137,263 0 0 0 137,263 140,971 68,661
LIFE OF EVALUATION IS 31.33 YEARS. FINAL PRODUCTION RATE: 25 BBLS/MO THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 37 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
GATES NORTH FIELD, STAFFORD COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 22-T21S-R13W PROVED SCHULZ (ARBUCKLE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 0.687500 0.554449 26.46 5.00% - 190,066 FINAL - 0.687500 0.554449 26.46 10.00% - 137,073 REMARKS - 15.00% - 106,156 20.00% - 86,330 25.00% - 72,667
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 2 1,975 0 0 1,095 0 0.000 26.46 0.00 2002 2 1,896 0 0 1,051 0 0.000 26.46 0.00 2003 2 1,820 0 0 1,009 0 0.000 26.46 0.00 2004 2 1,747 0 0 969 0 0.000 26.46 0.00 2005 2 1,677 0 0 930 0 0.000 26.46 0.00 2006 2 1,610 0 0 893 0 0.000 26.46 0.00 2007 2 1,546 0 0 857 0 0.000 26.46 0.00 2008 2 1,484 0 0 823 0 0.000 26.46 0.00 2009 2 1,425 0 0 789 0 0.000 26.46 0.00 2010 2 1,367 0 0 759 0 0.000 26.46 0.00 2011 2 1,313 0 0 728 0 0.000 26.46 0.00 2012 2 1,261 0 0 698 0 0.000 26.46 0.00 2013 2 1,210 0 0 671 0 0.000 26.46 0.00 2014 2 1,161 0 0 644 0 0.000 26.46 0.00 2015 2 1,115 0 0 619 0 0.000 26.46 0.00 SUB-TOTAL 22,607 0 0 12,535 0 0.000 26.46 0.00 REMAINDER 14,441 0 0 8,006 0 0.000 26.46 0.00 TOTAL 37,048 0 0 20,541 0 0.000 26.46 0.00 CUMULATIVE 261,244 0 0 ULTIMATE 298,292 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 28,972 0 0 0 28,972 46 0 28,926 2002 27,813 0 0 0 27,813 45 0 27,768 2003 26,701 0 0 0 26,701 43 0 26,658 2004 25,632 0 0 0 25,632 41 0 25,591 2005 24,608 0 0 0 24,608 39 0 24,569 2006 23,623 0 0 0 23,623 38 0 23,585 2007 22,678 0 0 0 22,678 36 0 22,642 2008 21,771 0 0 0 21,771 35 0 21,736 2009 20,900 0 0 0 20,900 33 0 20,867 2010 20,064 0 0 0 20,064 32 0 20,032 2011 19,261 0 0 0 19,261 31 0 19,230 2012 18,491 0 0 0 18,491 30 0 18,461 2013 17,752 0 0 0 17,752 28 0 17,724 2014 17,041 0 0 0 17,041 27 0 17,014 2015 16,360 0 0 0 16,360 27 0 16,333 SUB-TOT 331,667 0 0 0 331,667 531 0 331,136 REMAIN 211,857 0 0 0 211,857 339 0 211,518 TOTAL 543,524 0 0 0 543,524 870 0 542,654
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 7,359 0 0 0 7,359 21,567 21,567 20,537 2002 7,359 0 0 0 7,359 20,409 41,976 17,592 2003 7,359 0 0 0 7,359 19,299 61,275 15,059 2004 7,359 0 0 0 7,359 18,232 79,507 12,878 2005 7,359 0 0 0 7,359 17,210 96,717 11,004 2006 7,359 0 0 0 7,359 16,226 112,943 9,391 2007 7,359 0 0 0 7,359 15,283 128,226 8,008 2008 7,359 0 0 0 7,359 14,377 142,603 6,818 2009 7,359 0 0 0 7,359 13,508 156,111 5,799 2010 7,359 0 0 0 7,359 12,673 168,784 4,925 2011 7,359 0 0 0 7,359 11,871 180,655 4,177 2012 7,359 0 0 0 7,359 11,102 191,757 3,535 2013 7,359 0 0 0 7,359 10,365 202,122 2,988 2014 7,359 0 0 0 7,359 9,655 211,777 2,520 2015 7,359 0 0 0 7,359 8,974 220,751 2,120 SUBTOT 110,385 0 0 0 110,385 220,751 127,351 REMAIN 139,821 0 0 0 139,821 71,697 292,448 9,722 TOTAL 250,206 0 0 0 250,206 292,448 137,073
LIFE OF EVALUATION IS 34.00 YEARS. FINAL PRODUCTION RATE: 42 BBLS/MO THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 38 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
GIESICK FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 19-T17S-R17W PROVED GIESICK #2 (TOPEKA) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 5.30 5.00% - 42,829 FINAL - 1.000000 0.875000 5.30 10.00% - 35,938 REMARKS - 15.00% - 30,738 20.00% - 26,729 25.00% - 23,574
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 4 0 0 2.889 0.00 5.30 2002 1 0 0 5 0 0 2.716 0.00 5.30 2003 1 0 0 4 0 0 2.553 0.00 5.30 2004 1 0 0 3 0 0 2.400 0.00 5.30 2005 1 0 0 4 0 0 2.256 0.00 5.30 2006 1 0 0 3 0 0 2.120 0.00 5.30 2007 1 0 0 3 0 0 1.993 0.00 5.30 2008 1 0 0 3 0 0 1.874 0.00 5.30 2009 1 0 0 3 0 0 1.761 0.00 5.30 2010 1 0 0 2 0 0 1.655 0.00 5.30 2011 1 0 0 3 0 0 1.556 0.00 5.30 2012 1 0 0 2 0 0 1.463 0.00 5.30 2013 1 0 0 2 0 0 1.375 0.00 5.30 2014 1 0 0 1 0 0 0.764 0.00 5.30 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 42 0 0 27.375 0.00 5.30 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 42 0 0 27.375 0.00 5.30 CUMULATIVE 0 0 428 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 470 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 15,308 0 15,308 0 47 15,261 2002 0 0 14,390 0 14,390 0 45 14,345 2003 0 0 13,527 0 13,527 0 42 13,485 2004 0 0 12,714 0 12,714 0 39 12,675 2005 0 0 11,952 0 11,952 0 37 11,915 2006 0 0 11,235 0 11,235 0 35 11,200 2007 0 0 10,561 0 10,561 0 33 10,528 2008 0 0 9,927 0 9,927 0 31 9,896 2009 0 0 9,332 0 9,332 0 29 9,303 2010 0 0 8,771 0 8,771 0 27 8,744 2011 0 0 8,245 0 8,245 0 25 8,220 2012 0 0 7,751 0 7,751 0 25 7,726 2013 0 0 7,285 0 7,285 0 22 7,263 2014 0 0 4,047 0 4,047 0 13 4,034 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 145,045 0 145,045 0 450 144,595 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 145,045 0 145,045 0 450 144,595
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 6,804 0 0 0 6,804 8,457 8,457 8,057 2002 6,804 0 0 0 6,804 7,541 15,998 6,504 2003 6,804 0 0 0 6,804 6,681 22,679 5,216 2004 6,804 0 0 0 6,804 5,871 28,550 4,149 2005 6,804 0 0 0 6,804 5,111 33,661 3,270 2006 6,804 0 0 0 6,804 4,396 38,057 2,547 2007 6,804 0 0 0 6,804 3,724 41,781 1,953 2008 6,804 0 0 0 6,804 3,092 44,873 1,468 2009 6,804 0 0 0 6,804 2,499 47,372 1,074 2010 6,804 0 0 0 6,804 1,940 49,312 755 2011 6,804 0 0 0 6,804 1,416 50,728 500 2012 6,804 0 0 0 6,804 922 51,650 294 2013 6,804 0 0 0 6,804 459 52,109 134 2014 3,969 0 0 0 3,969 65 52,174 17 2015 0 0 0 0 0 0 52,174 0 SUBTOT 92,421 0 0 0 92,421 52,174 35,938 REMAIN 0 0 0 0 0 0 52,174 0 TOTAL 92,421 0 0 0 92,421 52,174 35,938
LIFE OF EVALUATION IS 13.58 YEARS. FINAL PRODUCTION RATE: 0.2 MMCF/MO THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 39 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
GOTTSCHALK FIELD, ELLIS COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 36-T15S-R18W PROVED WERTH #1 (OREAD & TOPEKA) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 5.30 5.00% - 14,280 FINAL - 1.000000 0.875000 5.30 10.00% - 12,853 REMARKS - 15.00% - 11,645 20.00% - 10,615 25.00% - 9,732
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 4 0 0 2.424 0.00 5.30 2002 1 0 0 3 0 0 2.279 0.00 5.30 2003 1 0 0 4 0 0 2.142 0.00 5.30 2004 1 0 0 3 0 0 2.013 0.00 5.30 2005 1 0 0 3 0 0 1.893 0.00 5.30 2006 1 0 0 2 0 0 1.779 0.00 5.30 2007 1 0 0 3 0 0 1.672 0.00 5.30 2008 1 0 0 0 0 0 0.402 0.00 5.30 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 22 0 0 14.604 0.00 5.30 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 22 0 0 14.604 0.00 5.30 CUMULATIVE 0 0 179 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 201 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 12,844 0 12,844 0 40 12,804 2002 0 0 12,073 0 12,073 0 37 12,036 2003 0 0 11,349 0 11,349 0 35 11,314 2004 0 0 10,668 0 10,668 0 33 10,635 2005 0 0 10,028 0 10,028 0 32 9,996 2006 0 0 9,426 0 9,426 0 29 9,397 2007 0 0 8,861 0 8,861 0 27 8,834 2008 0 0 2,130 0 2,130 0 7 2,123 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 77,379 0 77,379 0 240 77,139 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 77,379 0 77,379 0 240 77,139
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 8,436 0 0 0 8,436 4,368 4,368 4,164 2002 8,436 0 0 0 8,436 3,600 7,968 3,107 2003 8,436 0 0 0 8,436 2,878 10,846 2,249 2004 8,436 0 0 0 8,436 2,199 13,045 1,556 2005 8,436 0 0 0 8,436 1,560 14,605 1,000 2006 8,436 0 0 0 8,436 961 15,566 559 2007 8,436 0 0 0 8,436 398 15,964 211 2008 2,109 0 0 0 2,109 14 15,978 7 2009 0 0 0 0 0 0 15,978 0 2010 0 0 0 0 0 0 15,978 0 2011 0 0 0 0 0 0 15,978 0 2012 0 0 0 0 0 0 15,978 0 2013 0 0 0 0 0 0 15,978 0 2014 0 0 0 0 0 0 15,978 0 2015 0 0 0 0 0 0 15,978 0 SUBTOT 61,161 0 0 0 61,161 15,978 12,853 REMAIN 0 0 0 0 0 0 15,978 0 TOTAL 61,161 0 0 0 61,161 15,978 12,853
LIFE OF EVALUATION IS 7.25 YEARS. FINAL PRODUCTION RATE: 0.2 MMCF/MO THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 40 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
HERMAN FIELD, BARTON COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 18-T16S-R14W PROVED KARST (LANSING) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 0.812500 0.702051 26.46 5.00% - 84,177 FINAL - 0.812500 0.702051 26.46 10.00% - 64,399 REMARKS - 15.00% - 51,592 20.00% - 42,814 25.00% - 36,503
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 2 996 0 0 699 0 0.000 26.46 0.00 2002 2 957 0 0 672 0 0.000 26.46 0.00 2003 2 918 0 0 644 0 0.000 26.46 0.00 2004 2 881 0 0 619 0 0.000 26.46 0.00 2005 2 846 0 0 594 0 0.000 26.46 0.00 2006 2 813 0 0 570 0 0.000 26.46 0.00 2007 2 779 0 0 548 0 0.000 26.46 0.00 2008 2 749 0 0 526 0 0.000 26.46 0.00 2009 2 719 0 0 504 0 0.000 26.46 0.00 2010 2 690 0 0 484 0 0.000 26.46 0.00 2011 2 662 0 0 465 0 0.000 26.46 0.00 2012 2 636 0 0 447 0 0.000 26.46 0.00 2013 2 610 0 0 428 0 0.000 26.46 0.00 2014 2 586 0 0 412 0 0.000 26.46 0.00 2015 2 563 0 0 395 0 0.000 26.46 0.00 SUB-TOTAL 11,405 0 0 8,007 0 0.000 26.46 0.00 REMAINDER 4,055 0 0 2,847 0 0.000 26.46 0.00 TOTAL 15,460 0 0 10,854 0 0.000 26.46 0.00 CUMULATIVE 30,520 0 0 ULTIMATE 45,980 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 18,506 0 0 0 18,506 30 0 18,476 2002 17,766 0 0 0 17,766 28 0 17,738 2003 17,055 0 0 0 17,055 27 0 17,028 2004 16,374 0 0 0 16,374 27 0 16,347 2005 15,718 0 0 0 15,718 25 0 15,693 2006 15,089 0 0 0 15,089 24 0 15,065 2007 14,486 0 0 0 14,486 23 0 14,463 2008 13,906 0 0 0 13,906 22 0 13,884 2009 13,351 0 0 0 13,351 22 0 13,329 2010 12,816 0 0 0 12,816 20 0 12,796 2011 12,303 0 0 0 12,303 20 0 12,283 2012 11,812 0 0 0 11,812 19 0 11,793 2013 11,339 0 0 0 11,339 18 0 11,321 2014 10,885 0 0 0 10,885 17 0 10,868 2015 10,450 0 0 0 10,450 17 0 10,433 SUB-TOT 211,856 0 0 0 211,856 339 0 211,517 REMAIN 75,330 0 0 0 75,330 120 0 75,210 TOTAL 287,186 0 0 0 287,186 459 0 286,727
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 7,157 0 0 0 7,157 11,319 11,319 10,780 2002 7,156 0 0 0 7,156 10,582 21,901 9,122 2003 7,157 0 0 0 7,157 9,871 31,772 7,703 2004 7,156 0 0 0 7,156 9,191 40,963 6,493 2005 7,157 0 0 0 7,157 8,536 49,499 5,459 2006 7,156 0 0 0 7,156 7,909 57,408 4,578 2007 7,157 0 0 0 7,157 7,306 64,714 3,829 2008 7,156 0 0 0 7,156 6,728 71,442 3,191 2009 7,157 0 0 0 7,157 6,172 77,614 2,650 2010 7,156 0 0 0 7,156 5,640 83,254 2,193 2011 7,157 0 0 0 7,157 5,126 88,380 1,804 2012 7,156 0 0 0 7,156 4,637 93,017 1,477 2013 7,157 0 0 0 7,157 4,164 97,181 1,200 2014 7,156 0 0 0 7,156 3,712 100,893 970 2015 7,157 0 0 0 7,157 3,276 104,169 774 SUBTOT 107,348 0 0 0 107,348 104,169 62,223 REMAIN 62,619 0 0 0 62,619 12,591 116,760 2,176 TOTAL 169,967 0 0 0 169,967 116,760 64,399
LIFE OF EVALUATION IS 23.75 YEARS. FINAL PRODUCTION RATE: 32 BBLS/MO THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 41 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
HOBROCK FIELD, OSBORNE COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 3-T10S-R15W PROVED HOBROCK (PENNSYLVANIAN) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 0.593750 0.481947 26.46 5.00% - 80,824 FINAL - 0.593750 0.481947 26.46 10.00% - 60,600 REMARKS - 15.00% - 47,956 20.00% - 39,510 25.00% - 33,544
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 920 0 0 443 0 0.000 26.46 0.00 2002 1 864 0 0 417 0 0.000 26.46 0.00 2003 1 812 0 0 391 0 0.000 26.46 0.00 2004 1 764 0 0 368 0 0.000 26.46 0.00 2005 1 718 0 0 346 0 0.000 26.46 0.00 2006 1 675 0 0 326 0 0.000 26.46 0.00 2007 1 634 0 0 305 0 0.000 26.46 0.00 2008 1 597 0 0 288 0 0.000 26.46 0.00 2009 1 560 0 0 270 0 0.000 26.46 0.00 2010 1 527 0 0 254 0 0.000 26.46 0.00 2011 1 495 0 0 239 0 0.000 26.46 0.00 2012 1 466 0 0 224 0 0.000 26.46 0.00 2013 1 438 0 0 211 0 0.000 26.46 0.00 2014 1 411 0 0 198 0 0.000 26.46 0.00 2015 1 387 0 0 187 0 0.000 26.46 0.00 SUB-TOTAL 9,268 0 0 4,467 0 0.000 26.46 0.00 REMAINDER 2,181 0 0 1,051 0 0.000 26.46 0.00 TOTAL 11,449 0 0 5,518 0 0.000 26.46 0.00 CUMULATIVE 56,925 0 0 ULTIMATE 68,374 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 11,726 0 0 0 11,726 19 0 11,707 2002 11,023 0 0 0 11,023 17 0 11,006 2003 10,362 0 0 0 10,362 17 0 10,345 2004 9,739 0 0 0 9,739 16 0 9,723 2005 9,156 0 0 0 9,156 14 0 9,142 2006 8,606 0 0 0 8,606 14 0 8,592 2007 8,089 0 0 0 8,089 13 0 8,076 2008 7,604 0 0 0 7,604 12 0 7,592 2009 7,148 0 0 0 7,148 12 0 7,136 2010 6,720 0 0 0 6,720 10 0 6,710 2011 6,316 0 0 0 6,316 10 0 6,306 2012 5,937 0 0 0 5,937 10 0 5,927 2013 5,580 0 0 0 5,580 9 0 5,571 2014 5,246 0 0 0 5,246 8 0 5,238 2015 4,932 0 0 0 4,932 8 0 4,924 SUB-TOT 118,184 0 0 0 118,184 189 0 117,995 REMAIN 27,817 0 0 0 27,817 45 0 27,772 TOTAL 146,001 0 0 0 146,001 234 0 145,767
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 1,354 0 0 0 1,354 10,353 10,353 9,860 2002 1,354 0 0 0 1,354 9,652 20,005 8,321 2003 1,353 0 0 0 1,353 8,992 28,997 7,017 2004 1,354 0 0 0 1,354 8,369 37,366 5,912 2005 1,354 0 0 0 1,354 7,788 45,154 4,980 2006 1,354 0 0 0 1,354 7,238 52,392 4,190 2007 1,353 0 0 0 1,353 6,723 59,115 3,523 2008 1,354 0 0 0 1,354 6,238 65,353 2,959 2009 1,354 0 0 0 1,354 5,782 71,135 2,482 2010 1,354 0 0 0 1,354 5,356 76,491 2,082 2011 1,353 0 0 0 1,353 4,953 81,444 1,743 2012 1,354 0 0 0 1,354 4,573 86,017 1,456 2013 1,354 0 0 0 1,354 4,217 90,234 1,216 2014 1,354 0 0 0 1,354 3,884 94,118 1,013 2015 1,353 0 0 0 1,353 3,571 97,689 844 SUBTOT 20,306 0 0 0 20,306 97,689 57,598 REMAIN 9,767 0 0 0 9,767 18,005 115,694 3,002 TOTAL 30,073 0 0 0 30,073 115,694 60,600
LIFE OF EVALUATION IS 22.21 YEARS. FINAL PRODUCTION RATE: 20 BBLS/MO THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 42 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
HOBROCK FIELD, OSBORNE COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 10-T10S-R15W PROVED HOGAN (PENNSYLVANIAN) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 0.593750 5.00% - 0 FINAL - 0.593750 10.00% - 0 REMARKS - 15.00% - 0 20.00% - 0 25.00% - 0
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 0 0 0 0.000 0.00 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 0 0 0 0.000 0.00 0.00 CUMULATIVE 188,056 0 0 ULTIMATE 188,056 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 0
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUBTOT 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0
LIFE OF EVALUATION IS 0.00 YEARS. FINAL PRODUCTION RATE: 0 BBLS/MO THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 43 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
IRVIN FIELD, ELLIS COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 8-T14S-R19W PROVED KINDERKNECHT -B- (ARBUCKLE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 26.46 5.00% - 95,520 FINAL - 1.000000 0.875000 26.46 10.00% - 76,732 REMARKS - 15.00% - 63,493 20.00% - 53,839 25.00% - 46,580
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 2 1,456 0 0 1,274 0 0.000 26.46 0.00 2002 2 1,405 0 0 1,230 0 0.000 26.46 0.00 2003 2 1,356 0 0 1,186 0 0.000 26.46 0.00 2004 2 1,309 0 0 1,145 0 0.000 26.46 0.00 2005 2 1,263 0 0 1,105 0 0.000 26.46 0.00 2006 2 1,218 0 0 1,066 0 0.000 26.46 0.00 2007 2 1,176 0 0 1,029 0 0.000 26.46 0.00 2008 2 1,135 0 0 993 0 0.000 26.46 0.00 2009 2 1,095 0 0 958 0 0.000 26.46 0.00 2010 2 1,057 0 0 925 0 0.000 26.46 0.00 2011 2 1,019 0 0 892 0 0.000 26.46 0.00 2012 2 984 0 0 861 0 0.000 26.46 0.00 2013 2 950 0 0 831 0 0.000 26.46 0.00 2014 2 916 0 0 802 0 0.000 26.46 0.00 2015 2 884 0 0 774 0 0.000 26.46 0.00 SUB-TOTAL 17,223 0 0 15,071 0 0.000 26.46 0.00 REMAINDER 1,945 0 0 1,701 0 0.000 26.46 0.00 TOTAL 19,168 0 0 16,772 0 0.000 26.46 0.00 CUMULATIVE 134,095 0 0 ULTIMATE 153,263 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 33,713 0 0 0 33,713 54 0 33,659 2002 32,534 0 0 0 32,534 52 0 32,482 2003 31,395 0 0 0 31,395 50 0 31,345 2004 30,296 0 0 0 30,296 49 0 30,247 2005 29,235 0 0 0 29,235 46 0 29,189 2006 28,213 0 0 0 28,213 46 0 28,167 2007 27,225 0 0 0 27,225 43 0 27,182 2008 26,272 0 0 0 26,272 42 0 26,230 2009 25,352 0 0 0 25,352 41 0 25,311 2010 24,465 0 0 0 24,465 39 0 24,426 2011 23,609 0 0 0 23,609 38 0 23,571 2012 22,783 0 0 0 22,783 36 0 22,747 2013 21,985 0 0 0 21,985 35 0 21,950 2014 21,216 0 0 0 21,216 34 0 21,182 2015 20,473 0 0 0 20,473 33 0 20,440 SUB-TOT 398,766 0 0 0 398,766 638 0 398,128 REMAIN 45,027 0 0 0 45,027 72 0 44,955 TOTAL 443,793 0 0 0 443,793 710 0 443,083
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 18,456 0 0 0 18,456 15,203 15,203 14,480 2002 18,456 0 0 0 18,456 14,026 29,229 12,093 2003 18,456 0 0 0 18,456 12,889 42,118 10,060 2004 18,456 0 0 0 18,456 11,791 53,909 8,330 2005 18,456 0 0 0 18,456 10,733 64,642 6,865 2006 18,456 0 0 0 18,456 9,711 74,353 5,623 2007 18,456 0 0 0 18,456 8,726 83,079 4,573 2008 18,456 0 0 0 18,456 7,774 90,853 3,689 2009 18,456 0 0 0 18,456 6,855 97,708 2,945 2010 18,456 0 0 0 18,456 5,970 103,678 2,321 2011 18,456 0 0 0 18,456 5,115 108,793 1,801 2012 18,456 0 0 0 18,456 4,291 113,084 1,368 2013 18,456 0 0 0 18,456 3,494 116,578 1,009 2014 18,456 0 0 0 18,456 2,726 119,304 712 2015 18,456 0 0 0 18,456 1,984 121,288 470 SUBTOT 276,840 0 0 0 276,840 121,288 76,339 REMAIN 43,064 0 0 0 43,064 1,891 123,179 393 TOTAL 319,904 0 0 0 319,904 123,179 76,732
LIFE OF EVALUATION IS 17.33 YEARS. FINAL PRODUCTION RATE: 67 BBLS/MO THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 44 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
KRAUS FIELD, ELLIS COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 22-T14S-R19W PROVED KRAUS -A- PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.820310 26.46 5.00% - 248,630 FINAL - 1.000000 0.820310 26.46 10.00% - 219,697 REMARKS - 15.00% - 196,162 20.00% - 176,782 25.00% - 160,635
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 3 4,970 0 0 4,077 0 0.000 26.46 0.00 2002 3 4,283 0 0 3,513 0 0.000 26.46 0.00 2003 3 3,733 0 0 3,063 0 0.000 26.46 0.00 2004 3 3,286 0 0 2,695 0 0.000 26.46 0.00 2005 3 2,917 0 0 2,393 0 0.000 26.46 0.00 2006 3 2,609 0 0 2,140 0 0.000 26.46 0.00 2007 3 2,348 0 0 1,927 0 0.000 26.46 0.00 2008 3 2,127 0 0 1,744 0 0.000 26.46 0.00 2009 3 1,936 0 0 1,588 0 0.000 26.46 0.00 2010 3 1,771 0 0 1,453 0 0.000 26.46 0.00 2011 3 141 0 0 116 0 0.000 26.46 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 30,121 0 0 24,709 0 0.000 26.46 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 30,121 0 0 24,709 0 0.000 26.46 0.00 CUMULATIVE 334,867 0 0 ULTIMATE 364,988 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 107,885 0 0 0 107,885 173 0 107,712 2002 92,959 0 0 0 92,959 148 0 92,811 2003 81,024 0 0 0 81,024 130 0 80,894 2004 71,319 0 0 0 71,319 114 0 71,205 2005 63,313 0 0 0 63,313 101 0 63,212 2006 56,626 0 0 0 56,626 91 0 56,535 2007 50,981 0 0 0 50,981 82 0 50,899 2008 46,166 0 0 0 46,166 73 0 46,093 2009 42,025 0 0 0 42,025 68 0 41,957 2010 38,436 0 0 0 38,436 61 0 38,375 2011 3,055 0 0 0 3,055 5 0 3,050 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 653,789 0 0 0 653,789 1,046 0 652,743 REMAIN 0 0 0 0 0 0 0 0 TOTAL 653,789 0 0 0 653,789 1,046 0 652,743
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 36,504 0 0 0 36,504 71,208 71,208 67,908 2002 36,504 0 0 0 36,504 56,307 127,515 48,608 2003 36,504 0 0 0 36,504 44,390 171,905 34,690 2004 36,504 0 0 0 36,504 34,701 206,606 24,550 2005 36,504 0 0 0 36,504 26,708 233,314 17,106 2006 36,504 0 0 0 36,504 20,031 253,345 11,618 2007 36,504 0 0 0 36,504 14,395 267,740 7,560 2008 36,504 0 0 0 36,504 9,589 277,329 4,563 2009 36,504 0 0 0 36,504 5,453 282,782 2,353 2010 36,504 0 0 0 36,504 1,871 284,653 738 2011 3,042 0 0 0 3,042 8 284,661 3 2012 0 0 0 0 0 0 284,661 0 2013 0 0 0 0 0 0 284,661 0 2014 0 0 0 0 0 0 284,661 0 2015 0 0 0 0 0 0 284,661 0 SUBTOT 368,082 0 0 0 368,082 284,661 219,697 REMAIN 0 0 0 0 0 0 284,661 0 TOTAL 368,082 0 0 0 368,082 284,661 219,697
LIFE OF EVALUATION IS 10.08 YEARS. FINAL PRODUCTION RATE: 141 BBLS/MO THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 45 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
KRAUS FIELD, ELLIS COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 16-T14S-R19W PROVED KRAUS -B- (ARBUCKLE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 26.46 5.00% - 102,804 FINAL - 1.000000 0.875000 26.46 10.00% - 83,989 REMARKS - 15.00% - 70,379 20.00% - 60,244 25.00% - 52,493
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 2 1,509 0 0 1,320 0 0.000 26.46 0.00 2002 2 1,440 0 0 1,261 0 0.000 26.46 0.00 2003 2 1,376 0 0 1,204 0 0.000 26.46 0.00 2004 2 1,314 0 0 1,150 0 0.000 26.46 0.00 2005 2 1,255 0 0 1,098 0 0.000 26.46 0.00 2006 2 1,199 0 0 1,048 0 0.000 26.46 0.00 2007 2 1,144 0 0 1,002 0 0.000 26.46 0.00 2008 2 1,093 0 0 956 0 0.000 26.46 0.00 2009 2 1,044 0 0 913 0 0.000 26.46 0.00 2010 2 997 0 0 873 0 0.000 26.46 0.00 2011 2 952 0 0 833 0 0.000 26.46 0.00 2012 2 909 0 0 795 0 0.000 26.46 0.00 2013 2 868 0 0 760 0 0.000 26.46 0.00 2014 2 830 0 0 725 0 0.000 26.46 0.00 2015 2 791 0 0 693 0 0.000 26.46 0.00 SUB-TOTAL 16,721 0 0 14,631 0 0.000 26.46 0.00 REMAINDER 695 0 0 608 0 0.000 26.46 0.00 TOTAL 17,416 0 0 15,239 0 0.000 26.46 0.00 CUMULATIVE 95,968 0 0 ULTIMATE 113,384 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 34,930 0 0 0 34,930 56 0 34,874 2002 33,358 0 0 0 33,358 53 0 33,305 2003 31,856 0 0 0 31,856 51 0 31,805 2004 30,424 0 0 0 30,424 49 0 30,375 2005 29,054 0 0 0 29,054 46 0 29,008 2006 27,747 0 0 0 27,747 45 0 27,702 2007 26,498 0 0 0 26,498 42 0 26,456 2008 25,305 0 0 0 25,305 41 0 25,264 2009 24,167 0 0 0 24,167 38 0 24,129 2010 23,080 0 0 0 23,080 37 0 23,043 2011 22,041 0 0 0 22,041 36 0 22,005 2012 21,049 0 0 0 21,049 33 0 21,016 2013 20,102 0 0 0 20,102 32 0 20,070 2014 19,197 0 0 0 19,197 31 0 19,166 2015 18,333 0 0 0 18,333 29 0 18,304 SUB-TOT 387,141 0 0 0 387,141 619 0 386,522 REMAIN 16,080 0 0 0 16,080 26 0 16,054 TOTAL 403,221 0 0 0 403,221 645 0 402,576
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 17,148 0 0 0 17,148 17,726 17,726 16,884 2002 17,148 0 0 0 17,148 16,157 33,883 13,932 2003 17,148 0 0 0 17,148 14,657 48,540 11,441 2004 17,148 0 0 0 17,148 13,227 61,767 9,346 2005 17,148 0 0 0 17,148 11,860 73,627 7,587 2006 17,148 0 0 0 17,148 10,554 84,181 6,111 2007 17,148 0 0 0 17,148 9,308 93,489 4,880 2008 17,148 0 0 0 17,148 8,116 101,605 3,852 2009 17,148 0 0 0 17,148 6,981 108,586 2,999 2010 17,148 0 0 0 17,148 5,895 114,481 2,293 2011 17,148 0 0 0 17,148 4,857 119,338 1,711 2012 17,148 0 0 0 17,148 3,868 123,206 1,234 2013 17,148 0 0 0 17,148 2,922 126,128 844 2014 17,148 0 0 0 17,148 2,018 128,146 528 2015 17,148 0 0 0 17,148 1,156 129,302 275 SUBTOT 257,220 0 0 0 257,220 129,302 83,917 REMAIN 15,719 0 0 0 15,719 335 129,637 72 TOTAL 272,939 0 0 0 272,939 129,637 83,989
LIFE OF EVALUATION IS 15.92 YEARS. FINAL PRODUCTION RATE: 62 BBLS/MO THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 46 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
KRAUS FIELD, ELLIS COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 27-T14S-R19W PROVED KRAUS -I- (ABCK-KSSC-LNSG) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.820313 26.46 5.00% - 334,947 FINAL - 1.000000 0.820313 26.46 10.00% - 263,734 REMARKS - 15.00% - 215,989 20.00% - 182,294 25.00% - 157,468
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 2 2,847 0 0 2,336 0 0.000 26.46 0.00 2002 2 2,620 0 0 2,148 0 0.000 26.46 0.00 2003 2 2,410 0 0 1,977 0 0.000 26.46 0.00 2004 2 2,217 0 0 1,819 0 0.000 26.46 0.00 2005 2 2,039 0 0 1,673 0 0.000 26.46 0.00 2006 2 1,877 0 0 1,540 0 0.000 26.46 0.00 2007 2 1,726 0 0 1,416 0 0.000 26.46 0.00 2008 2 1,589 0 0 1,303 0 0.000 26.46 0.00 2009 2 1,461 0 0 1,198 0 0.000 26.46 0.00 2010 2 1,344 0 0 1,103 0 0.000 26.46 0.00 2011 2 1,237 0 0 1,015 0 0.000 26.46 0.00 2012 2 1,138 0 0 933 0 0.000 26.46 0.00 2013 2 1,047 0 0 859 0 0.000 26.46 0.00 2014 2 963 0 0 790 0 0.000 26.46 0.00 2015 2 886 0 0 727 0 0.000 26.46 0.00 SUB-TOTAL 25,401 0 0 20,837 0 0.000 26.46 0.00 REMAINDER 5,139 0 0 4,215 0 0.000 26.46 0.00 TOTAL 30,540 0 0 25,052 0 0.000 26.46 0.00 CUMULATIVE 204,562 0 0 ULTIMATE 235,102 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 61,801 0 0 0 61,801 99 0 61,702 2002 56,857 0 0 0 56,857 91 0 56,766 2003 52,308 0 0 0 52,308 84 0 52,224 2004 48,123 0 0 0 48,123 77 0 48,046 2005 44,274 0 0 0 44,274 70 0 44,204 2006 40,732 0 0 0 40,732 66 0 40,666 2007 37,473 0 0 0 37,473 60 0 37,413 2008 34,476 0 0 0 34,476 55 0 34,421 2009 31,717 0 0 0 31,717 50 0 31,667 2010 29,180 0 0 0 29,180 47 0 29,133 2011 26,846 0 0 0 26,846 43 0 26,803 2012 24,697 0 0 0 24,697 40 0 24,657 2013 22,723 0 0 0 22,723 36 0 22,687 2014 20,904 0 0 0 20,904 33 0 20,871 2015 19,232 0 0 0 19,232 31 0 19,201 SUB-TOT 551,343 0 0 0 551,343 882 0 550,461 REMAIN 111,536 0 0 0 111,536 179 0 111,357 TOTAL 662,879 0 0 0 662,879 1,061 0 661,818
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 9,144 0 0 0 9,144 52,558 52,558 50,066 2002 9,144 0 0 0 9,144 47,622 100,180 41,064 2003 9,144 0 0 0 9,144 43,080 143,260 33,628 2004 9,144 0 0 0 9,144 38,902 182,162 27,488 2005 9,144 0 0 0 9,144 35,060 217,222 22,426 2006 9,144 0 0 0 9,144 31,522 248,744 18,251 2007 9,144 0 0 0 9,144 28,269 277,013 14,817 2008 9,144 0 0 0 9,144 25,277 302,290 11,994 2009 9,144 0 0 0 9,144 22,523 324,813 9,674 2010 9,144 0 0 0 9,144 19,989 344,802 7,772 2011 9,144 0 0 0 9,144 17,659 362,461 6,215 2012 9,144 0 0 0 9,144 15,513 377,974 4,943 2013 9,144 0 0 0 9,144 13,543 391,517 3,906 2014 9,144 0 0 0 9,144 11,727 403,244 3,063 2015 9,144 0 0 0 9,144 10,057 413,301 2,377 SUBTOT 137,160 0 0 0 137,160 413,301 257,684 REMAIN 76,962 0 0 0 76,962 34,395 447,696 6,050 TOTAL 214,122 0 0 0 214,122 447,696 263,734
LIFE OF EVALUATION IS 23.42 YEARS. FINAL PRODUCTION RATE: 35 BBLS/MO THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 47 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
LEIKER EAST FIELD, ELLIS COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 14-T15S-R18W PROVED LEIKER (KSSC-LNSG) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 0.416670 0.364590 26.46 5.00% - 100,560 FINAL - 0.416670 0.364590 26.46 10.00% - 65,747 REMARKS - 15.00% - 48,364 20.00% - 38,196 25.00% - 31,565
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 1,016 0 0 370 0 0.000 26.46 0.00 2002 1 985 0 0 360 0 0.000 26.46 0.00 2003 1 956 0 0 348 0 0.000 26.46 0.00 2004 1 927 0 0 338 0 0.000 26.46 0.00 2005 1 900 0 0 328 0 0.000 26.46 0.00 2006 1 872 0 0 318 0 0.000 26.46 0.00 2007 1 846 0 0 309 0 0.000 26.46 0.00 2008 1 821 0 0 299 0 0.000 26.46 0.00 2009 1 796 0 0 290 0 0.000 26.46 0.00 2010 1 773 0 0 282 0 0.000 26.46 0.00 2011 1 749 0 0 273 0 0.000 26.46 0.00 2012 1 726 0 0 265 0 0.000 26.46 0.00 2013 1 705 0 0 257 0 0.000 26.46 0.00 2014 1 684 0 0 249 0 0.000 26.46 0.00 2015 1 663 0 0 242 0 0.000 26.46 0.00 SUB-TOTAL 12,419 0 0 4,528 0 0.000 26.46 0.00 REMAINDER 11,225 0 0 4,092 0 0.000 26.46 0.00 TOTAL 23,644 0 0 8,620 0 0.000 26.46 0.00 CUMULATIVE 25,066 0 0 ULTIMATE 48,710 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 9,800 0 0 0 9,800 16 0 9,784 2002 9,507 0 0 0 9,507 15 0 9,492 2003 9,221 0 0 0 9,221 15 0 9,206 2004 8,944 0 0 0 8,944 14 0 8,930 2005 8,676 0 0 0 8,676 14 0 8,662 2006 8,416 0 0 0 8,416 13 0 8,403 2007 8,164 0 0 0 8,164 13 0 8,151 2008 7,918 0 0 0 7,918 13 0 7,905 2009 7,681 0 0 0 7,681 12 0 7,669 2010 7,450 0 0 0 7,450 12 0 7,438 2011 7,227 0 0 0 7,227 12 0 7,215 2012 7,011 0 0 0 7,011 11 0 7,000 2013 6,799 0 0 0 6,799 11 0 6,788 2014 6,596 0 0 0 6,596 10 0 6,586 2015 6,398 0 0 0 6,398 11 0 6,387 SUB-TOT 119,808 0 0 0 119,808 192 0 119,616 REMAIN 108,285 0 0 0 108,285 173 0 108,112 TOTAL 228,093 0 0 0 228,093 365 0 227,728
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 1,035 0 0 0 1,035 8,749 8,749 8,330 2002 1,035 0 0 0 1,035 8,457 17,206 7,288 2003 1,035 0 0 0 1,035 8,171 25,377 6,375 2004 1,035 0 0 0 1,035 7,895 33,272 5,575 2005 1,035 0 0 0 1,035 7,627 40,899 4,876 2006 1,035 0 0 0 1,035 7,368 48,267 4,264 2007 1,035 0 0 0 1,035 7,116 55,383 3,727 2008 1,035 0 0 0 1,035 6,870 62,253 3,258 2009 1,035 0 0 0 1,035 6,634 68,887 2,847 2010 1,035 0 0 0 1,035 6,403 75,290 2,488 2011 1,035 0 0 0 1,035 6,180 81,470 2,174 2012 1,035 0 0 0 1,035 5,965 87,435 1,899 2013 1,035 0 0 0 1,035 5,753 93,188 1,658 2014 1,035 0 0 0 1,035 5,551 98,739 1,448 2015 1,035 0 0 0 1,035 5,352 104,091 1,264 SUBTOT 15,525 0 0 0 15,525 104,091 57,471 REMAIN 25,185 0 0 0 25,185 82,927 187,018 8,276 TOTAL 40,710 0 0 0 40,710 187,018 65,747
LIFE OF EVALUATION IS 39.33 YEARS. FINAL PRODUCTION RATE: 26 BBLS/MO THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 48 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
LEONHARDT SOUTHEAST FIELD, ELLIS COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 28-T14S-R18W PROVED KRAUS #1 (KSSC-LNSG) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 5.00% - 0 FINAL - 1.000000 10.00% - 0 REMARKS - 15.00% - 0 20.00% - 0 25.00% - 0
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 0 0 0 0.000 0.00 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 0 0 0 0.000 0.00 0.00 CUMULATIVE 51,088 0 0 ULTIMATE 51,088 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 0
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUBTOT 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0
LIFE OF EVALUATION IS 0.00 YEARS. FINAL PRODUCTION RATE: 0 BBLS/MO THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 49 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
LIEBENTHAL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 23-T16S-R18W PROVED DECHANT -B- #2 (KANSAS CITY) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 5.00% - 0 FINAL - 1.000000 10.00% - 0 REMARKS - 15.00% - 0 20.00% - 0 25.00% - 0
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 0 0 0 0.000 0.00 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 0 0 0 0.000 0.00 0.00 CUMULATIVE 0 0 45 ULTIMATE 0 0 45
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 0
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUBTOT 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0
LIFE OF EVALUATION IS 0.00 YEARS. FINAL PRODUCTION RATE: 0.0 MMCF/MO THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 50 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
LIEBENTHAL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 23-T16S-R18W PROVED GRAHAM #1 (KC-LANSING) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 5.00% - 0 FINAL - 1.000000 10.00% - 0 REMARKS - 15.00% - 0 20.00% - 0 25.00% - 0
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 0 0 0 0.000 0.00 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 0 0 0 0.000 0.00 0.00 CUMULATIVE 0 0 127 ULTIMATE 0 0 127
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 0
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUBTOT 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0
LIFE OF EVALUATION IS 0.00 YEARS. FINAL PRODUCTION RATE: 0.0 MMCF/MO THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 51 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
LIEBENTHAL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 26-T16S-R18W PROVED LEGLEITER -B- #1 (KSSC-LNSG) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 5.00% - 0 FINAL - 1.000000 10.00% - 0 REMARKS - 15.00% - 0 20.00% - 0 25.00% - 0
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 0 0 0 0.000 0.00 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 0 0 0 0.000 0.00 0.00 CUMULATIVE 0 0 30 ULTIMATE 0 0 30
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 0
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUBTOT 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0
LIFE OF EVALUATION IS 0.00 YEARS. FINAL PRODUCTION RATE: 0.0 MMCF/MO THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 52 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
LIEBENTHAL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 24-T16S-R18W PROVED LEGLEITER -C- #1 (PLEASONTON) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 5.00% - 0 FINAL - 1.000000 10.00% - 0 REMARKS - 15.00% - 0 20.00% - 0 25.00% - 0
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 0 0 0 0.000 0.00 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 0 0 0 0.000 0.00 0.00 CUMULATIVE 0 0 15 ULTIMATE 0 0 15
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 0
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUBTOT 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0
LIFE OF EVALUATION IS 0.00 YEARS. FINAL PRODUCTION RATE: 0.0 MMCF/MO THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 53 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
LITTLE RIO FIELD, RICE COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 19-T19S-R6W PROVED WHITEMAN-HOLLAND (KSSC-LNSG-MSSP) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.820313 26.46 5.00% - 227,387 FINAL - 1.000000 0.820313 26.46 10.00% - 170,467 REMARKS - 15.00% - 134,941 20.00% - 111,180 25.00% - 94,365
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 3 1,928 0 0 1,581 0 0.000 26.46 0.00 2002 3 1,845 0 0 1,514 0 0.000 26.46 0.00 2003 3 1,765 0 0 1,448 0 0.000 26.46 0.00 2004 3 1,690 0 0 1,386 0 0.000 26.46 0.00 2005 3 1,617 0 0 1,326 0 0.000 26.46 0.00 2006 3 1,547 0 0 1,270 0 0.000 26.46 0.00 2007 3 1,481 0 0 1,214 0 0.000 26.46 0.00 2008 3 1,417 0 0 1,163 0 0.000 26.46 0.00 2009 3 1,356 0 0 1,113 0 0.000 26.46 0.00 2010 3 1,298 0 0 1,064 0 0.000 26.46 0.00 2011 3 1,242 0 0 1,019 0 0.000 26.46 0.00 2012 3 1,189 0 0 975 0 0.000 26.46 0.00 2013 3 1,138 0 0 934 0 0.000 26.46 0.00 2014 3 1,088 0 0 893 0 0.000 26.46 0.00 2015 3 1,042 0 0 854 0 0.000 26.46 0.00 SUB-TOTAL 21,643 0 0 17,754 0 0.000 26.46 0.00 REMAINDER 9,654 0 0 7,919 0 0.000 26.46 0.00 TOTAL 31,297 0 0 25,673 0 0.000 26.46 0.00 CUMULATIVE 58,174 0 0 ULTIMATE 89,471 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 41,842 0 0 0 41,842 67 0 41,775 2002 40,043 0 0 0 40,043 64 0 39,979 2003 38,321 0 0 0 38,321 61 0 38,260 2004 36,674 0 0 0 36,674 59 0 36,615 2005 35,096 0 0 0 35,096 56 0 35,040 2006 33,587 0 0 0 33,587 54 0 33,533 2007 32,143 0 0 0 32,143 51 0 32,092 2008 30,761 0 0 0 30,761 50 0 30,711 2009 29,438 0 0 0 29,438 47 0 29,391 2010 28,173 0 0 0 28,173 45 0 28,128 2011 26,961 0 0 0 26,961 43 0 26,918 2012 25,801 0 0 0 25,801 41 0 25,760 2013 24,692 0 0 0 24,692 40 0 24,652 2014 23,631 0 0 0 23,631 37 0 23,594 2015 22,614 0 0 0 22,614 37 0 22,577 SUB-TOT 469,777 0 0 0 469,777 752 0 469,025 REMAIN 209,535 0 0 0 209,535 335 0 209,200 TOTAL 679,312 0 0 0 679,312 1,087 0 678,225
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 12,912 0 0 0 12,912 28,863 28,863 27,487 2002 12,912 0 0 0 12,912 27,067 55,930 23,333 2003 12,912 0 0 0 12,912 25,348 81,278 19,780 2004 12,912 0 0 0 12,912 23,703 104,981 16,744 2005 12,912 0 0 0 12,912 22,128 127,109 14,150 2006 12,912 0 0 0 12,912 20,621 147,730 11,936 2007 12,912 0 0 0 12,912 19,180 166,910 10,050 2008 12,912 0 0 0 12,912 17,799 184,709 8,443 2009 12,912 0 0 0 12,912 16,479 201,188 7,076 2010 12,912 0 0 0 12,912 15,216 216,404 5,914 2011 12,912 0 0 0 12,912 14,006 230,410 4,928 2012 12,912 0 0 0 12,912 12,848 243,258 4,092 2013 12,912 0 0 0 12,912 11,740 254,998 3,385 2014 12,912 0 0 0 12,912 10,682 265,680 2,788 2015 12,912 0 0 0 12,912 9,665 275,345 2,284 SUBTOT 193,680 0 0 0 193,680 275,345 162,390 REMAIN 158,172 0 0 0 158,172 51,028 326,373 8,077 TOTAL 351,852 0 0 0 351,852 326,373 170,467
LIFE OF EVALUATION IS 27.25 YEARS. FINAL PRODUCTION RATE: 50 BBLS/MO THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 54 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
MARCOTTE FIELD, ROOKS COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 11-T10S-R20W PROVED CROFFOOT (ARBUCKLE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.861328 26.46 5.00% - 399,138 FINAL - 1.000000 0.861328 26.46 10.00% - 277,375 REMARKS - 15.00% - 211,039 20.00% - 170,033 25.00% - 142,343
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 5 2,120 0 0 1,826 0 0.000 26.46 0.00 2002 5 2,029 0 0 1,748 0 0.000 26.46 0.00 2003 5 1,944 0 0 1,674 0 0.000 26.46 0.00 2004 5 1,861 0 0 1,603 0 0.000 26.46 0.00 2005 5 1,781 0 0 1,534 0 0.000 26.46 0.00 2006 5 1,706 0 0 1,470 0 0.000 26.46 0.00 2007 5 1,634 0 0 1,407 0 0.000 26.46 0.00 2008 5 1,564 0 0 1,347 0 0.000 26.46 0.00 2009 5 1,498 0 0 1,290 0 0.000 26.46 0.00 2010 5 1,434 0 0 1,235 0 0.000 26.46 0.00 2011 5 1,373 0 0 1,183 0 0.000 26.46 0.00 2012 5 1,314 0 0 1,132 0 0.000 26.46 0.00 2013 5 1,259 0 0 1,084 0 0.000 26.46 0.00 2014 5 1,205 0 0 1,038 0 0.000 26.46 0.00 2015 5 1,154 0 0 994 0 0.000 26.46 0.00 SUB-TOTAL 23,876 0 0 20,565 0 0.000 26.46 0.00 REMAINDER 16,964 0 0 14,611 0 0.000 26.46 0.00 TOTAL 40,840 0 0 35,176 0 0.000 26.46 0.00 CUMULATIVE 218,717 0 0 ULTIMATE 259,557 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 48,311 0 0 0 48,311 77 0 48,234 2002 46,257 0 0 0 46,257 74 0 46,183 2003 44,292 0 0 0 44,292 71 0 44,221 2004 42,409 0 0 0 42,409 68 0 42,341 2005 40,607 0 0 0 40,607 65 0 40,542 2006 38,881 0 0 0 38,881 62 0 38,819 2007 37,229 0 0 0 37,229 60 0 37,169 2008 35,646 0 0 0 35,646 57 0 35,589 2009 34,132 0 0 0 34,132 54 0 34,078 2010 32,681 0 0 0 32,681 53 0 32,628 2011 31,292 0 0 0 31,292 50 0 31,242 2012 29,962 0 0 0 29,962 48 0 29,914 2013 28,688 0 0 0 28,688 46 0 28,642 2014 27,470 0 0 0 27,470 44 0 27,426 2015 26,302 0 0 0 26,302 42 0 26,260 SUB-TOT 544,159 0 0 0 544,159 871 0 543,288 REMAIN 386,607 0 0 0 386,607 618 0 385,989 TOTAL 930,766 0 0 0 930,766 1,489 0 929,277
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 6,708 0 0 0 6,708 41,526 41,526 39,542 2002 6,708 0 0 0 6,708 39,475 81,001 34,025 2003 6,708 0 0 0 6,708 37,513 118,514 29,270 2004 6,708 0 0 0 6,708 35,633 154,147 25,168 2005 6,708 0 0 0 6,708 33,834 187,981 21,632 2006 6,708 0 0 0 6,708 32,111 220,092 18,584 2007 6,708 0 0 0 6,708 30,461 250,553 15,958 2008 6,708 0 0 0 6,708 28,881 279,434 13,697 2009 6,708 0 0 0 6,708 27,370 306,804 11,750 2010 6,708 0 0 0 6,708 25,920 332,724 10,072 2011 6,708 0 0 0 6,708 24,534 357,258 8,631 2012 6,708 0 0 0 6,708 23,206 380,464 7,389 2013 6,708 0 0 0 6,708 21,934 402,398 6,322 2014 6,708 0 0 0 6,708 20,718 423,116 5,406 2015 6,708 0 0 0 6,708 19,552 442,668 4,618 SUBTOT 100,620 0 0 0 100,620 442,668 252,064 REMAIN 163,228 0 0 0 163,228 222,761 665,429 25,311 TOTAL 263,848 0 0 0 263,848 665,429 277,375
LIFE OF EVALUATION IS 39.33 YEARS. FINAL PRODUCTION RATE: 33 BBLS/MO THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 55 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
MARCOTTE FIELD, ROOKS COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 11-T10S-R20W PROVED CROFFOOT -A- (ARBUCKLE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.860369 26.46 5.00% - 46,495 FINAL - 1.000000 0.860369 26.46 10.00% - 38,880 REMARKS - 15.00% - 33,151 20.00% - 28,746 25.00% - 25,292
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 4 917 0 0 789 0 0.000 26.46 0.00 2002 4 879 0 0 756 0 0.000 26.46 0.00 2003 4 841 0 0 724 0 0.000 26.46 0.00 2004 4 807 0 0 694 0 0.000 26.46 0.00 2005 4 772 0 0 664 0 0.000 26.46 0.00 2006 4 740 0 0 637 0 0.000 26.46 0.00 2007 4 709 0 0 610 0 0.000 26.46 0.00 2008 4 679 0 0 584 0 0.000 26.46 0.00 2009 4 651 0 0 560 0 0.000 26.46 0.00 2010 4 623 0 0 536 0 0.000 26.46 0.00 2011 4 597 0 0 514 0 0.000 26.46 0.00 2012 4 572 0 0 492 0 0.000 26.46 0.00 2013 4 548 0 0 471 0 0.000 26.46 0.00 2014 4 265 0 0 229 0 0.000 26.46 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 9,600 0 0 8,260 0 0.000 26.46 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 9,600 0 0 8,260 0 0.000 26.46 0.00 CUMULATIVE 217,569 0 0 ULTIMATE 227,169 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 20,877 0 0 0 20,877 33 0 20,844 2002 20,000 0 0 0 20,000 32 0 19,968 2003 19,160 0 0 0 19,160 31 0 19,129 2004 18,356 0 0 0 18,356 29 0 18,327 2005 17,584 0 0 0 17,584 29 0 17,555 2006 16,846 0 0 0 16,846 27 0 16,819 2007 16,138 0 0 0 16,138 25 0 16,113 2008 15,461 0 0 0 15,461 25 0 15,436 2009 14,811 0 0 0 14,811 24 0 14,787 2010 14,189 0 0 0 14,189 22 0 14,167 2011 13,593 0 0 0 13,593 22 0 13,571 2012 13,023 0 0 0 13,023 21 0 13,002 2013 12,475 0 0 0 12,475 20 0 12,455 2014 6,040 0 0 0 6,040 10 0 6,030 2015 0 0 0 0 0 0 0 0 SUB-TOT 218,553 0 0 0 218,553 350 0 218,203 REMAIN 0 0 0 0 0 0 0 0 TOTAL 218,553 0 0 0 218,553 350 0 218,203
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 11,952 0 0 0 11,952 8,892 8,892 8,471 2002 11,952 0 0 0 11,952 8,016 16,908 6,912 2003 11,952 0 0 0 11,952 7,177 24,085 5,603 2004 11,952 0 0 0 11,952 6,375 30,460 4,505 2005 11,952 0 0 0 11,952 5,603 36,063 3,585 2006 11,952 0 0 0 11,952 4,867 40,930 2,819 2007 11,952 0 0 0 11,952 4,161 45,091 2,182 2008 11,952 0 0 0 11,952 3,484 48,575 1,654 2009 11,952 0 0 0 11,952 2,835 51,410 1,219 2010 11,952 0 0 0 11,952 2,215 53,625 862 2011 11,952 0 0 0 11,952 1,619 55,244 571 2012 11,952 0 0 0 11,952 1,050 56,294 336 2013 11,952 0 0 0 11,952 503 56,797 146 2014 5,976 0 0 0 5,976 54 56,851 15 2015 0 0 0 0 0 0 56,851 0 SUBTOT 161,352 0 0 0 161,352 56,851 38,880 REMAIN 0 0 0 0 0 0 56,851 0 TOTAL 161,352 0 0 0 161,352 56,851 38,880
LIFE OF EVALUATION IS 13.50 YEARS. FINAL PRODUCTION RATE: 44 BBLS/MO THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 56 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
MARCOTTE FIELD, ROOKS COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 11-T10S-R20W PROVED CROFFOOT -B- (ARBUCKLE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.820313 26.46 5.00% - 383,404 FINAL - 1.000000 0.820313 26.46 10.00% - 318,295 REMARKS - 15.00% - 269,930 20.00% - 233,130 25.00% - 204,501
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 6 6,838 0 0 5,609 0 0.000 26.46 0.00 2002 6 6,521 0 0 5,350 0 0.000 26.46 0.00 2003 6 6,220 0 0 5,102 0 0.000 26.46 0.00 2004 6 5,931 0 0 4,865 0 0.000 26.46 0.00 2005 6 5,657 0 0 4,641 0 0.000 26.46 0.00 2006 6 5,395 0 0 4,425 0 0.000 26.46 0.00 2007 6 5,145 0 0 4,221 0 0.000 26.46 0.00 2008 6 4,907 0 0 4,025 0 0.000 26.46 0.00 2009 6 4,679 0 0 3,839 0 0.000 26.46 0.00 2010 6 4,463 0 0 3,661 0 0.000 26.46 0.00 2011 6 4,257 0 0 3,491 0 0.000 26.46 0.00 2012 6 4,059 0 0 3,330 0 0.000 26.46 0.00 2013 6 3,872 0 0 3,176 0 0.000 26.46 0.00 2014 6 3,692 0 0 3,029 0 0.000 26.46 0.00 2015 6 896 0 0 735 0 0.000 26.46 0.00 SUB-TOTAL 72,532 0 0 59,499 0 0.000 26.46 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 72,532 0 0 59,499 0 0.000 26.46 0.00 CUMULATIVE 495,518 0 0 ULTIMATE 568,050 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 148,420 0 0 0 148,420 237 0 148,183 2002 141,549 0 0 0 141,549 227 0 141,322 2003 134,995 0 0 0 134,995 216 0 134,779 2004 128,744 0 0 0 128,744 206 0 128,538 2005 122,784 0 0 0 122,784 196 0 122,588 2006 117,099 0 0 0 117,099 188 0 116,911 2007 111,677 0 0 0 111,677 178 0 111,499 2008 106,506 0 0 0 106,506 171 0 106,335 2009 101,575 0 0 0 101,575 162 0 101,413 2010 96,873 0 0 0 96,873 155 0 96,718 2011 92,387 0 0 0 92,387 148 0 92,239 2012 88,109 0 0 0 88,109 141 0 87,968 2013 84,030 0 0 0 84,030 135 0 83,895 2014 80,140 0 0 0 80,140 128 0 80,012 2015 19,448 0 0 0 19,448 31 0 19,417 SUB-TOT 1,574,336 0 0 0 1,574,336 2,519 0 1,571,817 REMAIN 0 0 0 0 0 0 0 0 TOTAL 1,574,336 0 0 0 1,574,336 2,519 0 1,571,817
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 77,088 0 0 0 77,088 71,095 71,095 67,725 2002 77,088 0 0 0 77,088 64,234 135,329 55,391 2003 77,088 0 0 0 77,088 57,691 193,020 45,036 2004 77,088 0 0 0 77,088 51,450 244,470 36,359 2005 77,088 0 0 0 77,088 45,500 289,970 29,109 2006 77,088 0 0 0 77,088 39,823 329,793 23,064 2007 77,088 0 0 0 77,088 34,411 364,204 18,043 2008 77,088 0 0 0 77,088 29,247 393,451 13,883 2009 77,088 0 0 0 77,088 24,325 417,776 10,455 2010 77,088 0 0 0 77,088 19,630 437,406 7,640 2011 77,088 0 0 0 77,088 15,151 452,557 5,339 2012 77,088 0 0 0 77,088 10,880 463,437 3,474 2013 77,088 0 0 0 77,088 6,807 470,244 1,971 2014 77,088 0 0 0 77,088 2,924 473,168 771 2015 19,272 0 0 0 19,272 145 473,313 35 SUBTOT 1,098,504 0 0 0 1,098,504 473,313 318,295 REMAIN 0 0 0 0 0 0 473,313 0 TOTAL 1,098,504 0 0 0 1,098,504 473,313 318,295
LIFE OF EVALUATION IS 14.25 YEARS. FINAL PRODUCTION RATE: 297 BBLS/MO THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 57 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
MARCOTTE FIELD, ROOKS COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 11-T10S-R20W PROVED CROFFOOT -C- (ARBUCKLE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.806641 26.46 5.00% - 10,629 FINAL - 1.000000 0.806641 26.46 10.00% - 9,703 REMARKS - 15.00% - 8,900 20.00% - 8,201 25.00% - 7,590
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 2 806 0 0 650 0 0.000 26.46 0.00 2002 2 771 0 0 622 0 0.000 26.46 0.00 2003 2 740 0 0 597 0 0.000 26.46 0.00 2004 2 708 0 0 571 0 0.000 26.46 0.00 2005 2 679 0 0 547 0 0.000 26.46 0.00 2006 2 650 0 0 525 0 0.000 26.46 0.00 2007 2 53 0 0 43 0 0.000 26.46 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 4,407 0 0 3,555 0 0.000 26.46 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 4,407 0 0 3,555 0 0.000 26.46 0.00 CUMULATIVE 121,706 0 0 ULTIMATE 126,113 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 17,195 0 0 0 17,195 28 0 17,167 2002 16,472 0 0 0 16,472 26 0 16,446 2003 15,781 0 0 0 15,781 25 0 15,756 2004 15,118 0 0 0 15,118 24 0 15,094 2005 14,483 0 0 0 14,483 23 0 14,460 2006 13,875 0 0 0 13,875 23 0 13,852 2007 1,129 0 0 0 1,129 1 0 1,128 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 94,053 0 0 0 94,053 150 0 93,903 REMAIN 0 0 0 0 0 0 0 0 TOTAL 94,053 0 0 0 94,053 150 0 93,903
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 13,512 0 0 0 13,512 3,655 3,655 3,485 2002 13,512 0 0 0 13,512 2,934 6,589 2,533 2003 13,512 0 0 0 13,512 2,244 8,833 1,754 2004 13,512 0 0 0 13,512 1,582 10,415 1,121 2005 13,512 0 0 0 13,512 948 11,363 609 2006 13,512 0 0 0 13,512 340 11,703 199 2007 1,126 0 0 0 1,126 2 11,705 2 2008 0 0 0 0 0 0 11,705 0 2009 0 0 0 0 0 0 11,705 0 2010 0 0 0 0 0 0 11,705 0 2011 0 0 0 0 0 0 11,705 0 2012 0 0 0 0 0 0 11,705 0 2013 0 0 0 0 0 0 11,705 0 2014 0 0 0 0 0 0 11,705 0 2015 0 0 0 0 0 0 11,705 0 SUBTOT 82,198 0 0 0 82,198 11,705 9,703 REMAIN 0 0 0 0 0 0 11,705 0 TOTAL 82,198 0 0 0 82,198 11,705 9,703
LIFE OF EVALUATION IS 6.08 YEARS. FINAL PRODUCTION RATE: 53 BBLS/MO THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 58 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
MARCOTTE FIELD, ROOKS COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 17-T10S-R19W PROVED DICK (ARBUCKLE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL. $/BBL. $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 26.46 5.00% - 285,812 FINAL - 1.000000 0.875000 26.46 10.00% - 209,550 REMARKS - 15.00% - 163,778 20.00% - 133,915 25.00% - 113,112
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 2 2,013 0 0 1,762 0 0.000 26.46 0.00 2002 2 1,929 0 0 1,687 0 0.000 26.46 0.00 2003 2 1,847 0 0 1,617 0 0.000 26.46 0.00 2004 2 1,770 0 0 1,549 0 0.000 26.46 0.00 2005 2 1,696 0 0 1,483 0 0.000 26.46 0.00 2006 2 1,625 0 0 1,422 0 0.000 26.46 0.00 2007 2 1,556 0 0 1,361 0 0.000 26.46 0.00 2008 2 1,491 0 0 1,305 0 0.000 26.46 0.00 2009 2 1,428 0 0 1,250 0 0.000 26.46 0.00 2010 2 1,368 0 0 1,197 0 0.000 26.46 0.00 2011 2 1,311 0 0 1,147 0 0.000 26.46 0.00 2012 2 1,256 0 0 1,099 0 0.000 26.46 0.00 2013 2 1,203 0 0 1,052 0 0.000 26.46 0.00 2014 2 1,152 0 0 1,009 0 0.000 26.46 0.00 2015 2 1,104 0 0 966 0 0.000 26.46 0.00 SUB-TOTAL 22,749 0 0 19,906 0 0.000 26.46 0.00 REMAINDER 12,554 0 0 10,984 0 0.000 26.46 0.00 TOTAL 35,303 0 0 30,890 0 0.000 26.46 0.00 CUMULATIVE 54,507 0 0 ULTIMATE 89,810 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 46,610 0 0 0 46,610 75 0 46,535 2002 44,653 0 0 0 44,653 71 0 44,582 2003 42,777 0 0 0 42,777 68 0 42,709 2004 40,980 0 0 0 40,980 66 0 40,914 2005 39,260 0 0 0 39,260 63 0 39,197 2006 37,610 0 0 0 37,610 60 0 37,550 2007 36,031 0 0 0 36,031 58 0 35,973 2008 34,517 0 0 0 34,517 55 0 34,462 2009 33,068 0 0 0 33,068 53 0 33,015 2010 31,679 0 0 0 31,679 50 0 31,629 2011 30,348 0 0 0 30,348 49 0 30,299 2012 29,074 0 0 0 29,074 47 0 29,027 2013 27,853 0 0 0 27,853 44 0 27,809 2014 26,683 0 0 0 26,683 43 0 26,640 2015 25,562 0 0 0 25,562 41 0 25,521 SUB-TOT 526,705 0 0 0 526,705 843 0 525,862 REMAIN 290,639 0 0 0 290,639 465 0 290,174 TOTAL 817,344 0 0 0 817,344 1,308 0 816,036
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 12,528 0 0 0 12,528 34,007 34,007 32,384 2002 12,528 0 0 0 12,528 32,054 66,061 27,631 2003 12,528 0 0 0 12,528 30,181 96,242 23,551 2004 12,528 0 0 0 12,528 28,386 124,628 20,051 2005 12,528 0 0 0 12,528 26,669 151,297 17,052 2006 12,528 0 0 0 12,528 25,022 176,319 14,483 2007 12,528 0 0 0 12,528 23,445 199,764 12,284 2008 12,528 0 0 0 12,528 21,934 221,698 10,404 2009 12,528 0 0 0 12,528 20,487 242,185 8,796 2010 12,528 0 0 0 12,528 19,101 261,286 7,423 2011 12,528 0 0 0 12,528 17,771 279,057 6,252 2012 12,528 0 0 0 12,528 16,499 295,556 5,255 2013 12,528 0 0 0 12,528 15,281 310,837 4,405 2014 12,528 0 0 0 12,528 14,112 324,949 3,683 2015 12,528 0 0 0 12,528 12,993 337,942 3,070 Subtot 187,920 0 0 0 187,920 337,942 196,724 Remain 201,492 0 0 0 201,492 88,682 426,624 12,826 Total 389,412 0 0 0 389,412 426,624 209,550 LIFE OF EVALUATION IS 31.08 YEARS. FINAL PRODUCTION RATE: 45 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 59 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
MCHALE FIELD, ROOKS COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 17-T9S-R18W PROVED HARRISON -A- (ARBUCKLE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 26.46 5.00% - 1,073,723 FINAL - 1.000000 0.875000 26.46 10.00% - 795,182 REMARKS - 15.00% - 626,328 20.00% - 515,128 25.00% - 437,045
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 5 7,011 0 0 6,135 0 0.000 26.46 0.00 2002 5 6,626 0 0 5,798 0 0.000 26.46 0.00 2003 5 6,262 0 0 5,478 0 0.000 26.46 0.00 2004 5 5,917 0 0 5,178 0 0.000 26.46 0.00 2005 5 5,591 0 0 4,892 0 0.000 26.46 0.00 2006 5 5,284 0 0 4,624 0 0.000 26.46 0.00 2007 5 4,994 0 0 4,369 0 0.000 26.46 0.00 2008 5 4,719 0 0 4,129 0 0.000 26.46 0.00 2009 5 4,459 0 0 3,902 0 0.000 26.46 0.00 2010 5 4,214 0 0 3,687 0 0.000 26.46 0.00 2011 5 3,982 0 0 3,485 0 0.000 26.46 0.00 2012 5 3,763 0 0 3,292 0 0.000 26.46 0.00 2013 5 3,556 0 0 3,112 0 0.000 26.46 0.00 2014 5 3,361 0 0 2,941 0 0.000 26.46 0.00 2015 5 3,176 0 0 2,779 0 0.000 26.46 0.00 SUB-TOTAL 72,915 0 0 63,801 0 0.000 26.46 0.00 REMAINDER 33,511 0 0 29,322 0 0.000 26.46 0.00 TOTAL 106,426 0 0 93,123 0 0.000 26.46 0.00 CUMULATIVE 244,822 0 0 ULTIMATE 351,248 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 162,333 0 0 0 162,333 260 0 162,073 2002 153,404 0 0 0 153,404 245 0 153,159 2003 144,967 0 0 0 144,967 232 0 144,735 2004 136,994 0 0 0 136,994 219 0 136,775 2005 129,459 0 0 0 129,459 207 0 129,252 2006 122,339 0 0 0 122,339 196 0 122,143 2007 115,610 0 0 0 115,610 185 0 115,425 2008 109,252 0 0 0 109,252 175 0 109,077 2009 103,243 0 0 0 103,243 165 0 103,078 2010 97,565 0 0 0 97,565 156 0 97,409 2011 92,198 0 0 0 92,198 148 0 92,050 2012 87,128 0 0 0 87,128 139 0 86,989 2013 82,335 0 0 0 82,335 132 0 82,203 2014 77,807 0 0 0 77,807 124 0 77,683 2015 73,528 0 0 0 73,528 118 0 73,410 SUB-TOT 1,688,162 0 0 0 1,688,162 2,701 0 1,685,461 REMAIN 775,861 0 0 0 775,861 1,241 0 774,620 TOTAL 2,464,023 0 0 0 2,464,023 3,942 0 2,460,081
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 27,540 0 0 0 27,540 134,533 134,533 128,123 2002 27,540 0 0 0 27,540 125,619 260,152 108,294 2003 27,540 0 0 0 27,540 117,195 377,347 91,456 2004 27,540 0 0 0 27,540 109,235 486,582 77,165 2005 27,540 0 0 0 27,540 101,712 588,294 65,041 2006 27,540 0 0 0 27,540 94,603 682,897 54,761 2007 27,540 0 0 0 27,540 87,885 770,782 46,051 2008 27,540 0 0 0 27,540 81,537 852,319 38,675 2009 27,540 0 0 0 27,540 75,538 927,857 32,434 2010 27,540 0 0 0 27,540 69,869 997,726 27,156 2011 27,540 0 0 0 27,540 64,510 1,062,236 22,698 2012 27,540 0 0 0 27,540 59,449 1,121,685 18,934 2013 27,540 0 0 0 27,540 54,663 1,176,348 15,760 2014 27,540 0 0 0 27,540 50,143 1,226,491 13,087 2015 27,540 0 0 0 27,540 45,870 1,272,361 10,837 SUBTOT 413,100 0 0 0 413,100 1,272,361 750,472 REMAIN 463,590 0 0 0 463,590 311,030 1,583,391 44,710 TOTAL 876,690 0 0 0 876,690 1,583,391 795,182 LIFE OF EVALUATION IS 31.83 YEARS. FINAL PRODUCTION RATE: 99 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 60 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
MCHALE FIELD, ROOKS COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 17-T9S-R18W PROVED HILGERS -B- (ARBUCKLE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 26.46 5.00% - 94,977 FINAL - 1.000000 0.875000 26.46 10.00% - 81,414 REMARKS - 15.00% - 70,876 20.00% - 62,540 25.00% - 55,834
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 3 1,652 0 0 1,446 0 0.000 26.46 0.00 2002 3 1,513 0 0 1,323 0 0.000 26.46 0.00 2003 3 1,390 0 0 1,216 0 0.000 26.46 0.00 2004 3 1,282 0 0 1,122 0 0.000 26.46 0.00 2005 3 1,187 0 0 1,039 0 0.000 26.46 0.00 2006 3 1,102 0 0 964 0 0.000 26.46 0.00 2007 3 1,025 0 0 897 0 0.000 26.46 0.00 2008 3 958 0 0 838 0 0.000 26.46 0.00 2009 3 896 0 0 785 0 0.000 26.46 0.00 2010 3 841 0 0 735 0 0.000 26.46 0.00 2011 3 790 0 0 691 0 0.000 26.46 0.00 2012 3 744 0 0 651 0 0.000 26.46 0.00 2013 3 238 0 0 209 0 0.000 26.46 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 13,618 0 0 11,916 0 0.000 26.46 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 13,618 0 0 11,916 0 0.000 26.46 0.00 CUMULATIVE 214,967 0 0 ULTIMATE 228,585 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 38,251 0 0 0 38,251 61 0 38,190 2002 35,017 0 0 0 35,017 56 0 34,961 2003 32,183 0 0 0 32,183 52 0 32,131 2004 29,688 0 0 0 29,688 47 0 29,641 2005 27,478 0 0 0 27,478 44 0 27,434 2006 25,510 0 0 0 25,510 41 0 25,469 2007 23,751 0 0 0 23,751 38 0 23,713 2008 22,172 0 0 0 22,172 35 0 22,137 2009 20,747 0 0 0 20,747 34 0 20,713 2010 19,459 0 0 0 19,459 31 0 19,428 2011 18,290 0 0 0 18,290 29 0 18,261 2012 17,226 0 0 0 17,226 28 0 17,198 2013 5,521 0 0 0 5,521 8 0 5,513 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 315,293 0 0 0 315,293 504 0 314,789 REMAIN 0 0 0 0 0 0 0 0 TOTAL 315,293 0 0 0 315,293 504 0 314,789
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 16,380 0 0 0 16,380 21,810 21,810 20,786 2002 16,380 0 0 0 16,380 18,581 40,391 16,031 2003 16,380 0 0 0 16,380 15,751 56,142 12,302 2004 16,380 0 0 0 16,380 13,261 69,403 9,376 2005 16,380 0 0 0 16,380 11,054 80,457 7,075 2006 16,380 0 0 0 16,380 9,089 89,546 5,267 2007 16,380 0 0 0 16,380 7,333 96,879 3,847 2008 16,380 0 0 0 16,380 5,757 102,636 2,735 2009 16,380 0 0 0 16,380 4,333 106,969 1,864 2010 16,380 0 0 0 16,380 3,048 110,017 1,188 2011 16,380 0 0 0 16,380 1,881 111,898 664 2012 16,380 0 0 0 16,380 818 112,716 263 2013 5,460 0 0 0 5,460 53 112,769 16 2014 0 0 0 0 0 0 112,769 0 2015 0 0 0 0 0 0 112,769 0 SUBTOT 202,020 0 0 0 202,020 112,769 81,414 REMAIN 0 0 0 0 0 0 112,769 0 TOTAL 202,020 0 0 0 202,020 112,769 81,414 LIFE OF EVALUATION IS 12.33 YEARS. FINAL PRODUCTION RATE: 59 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 61 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
MCHALE FIELD, ROOKS COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 16-T9S-R18W PROVED KABA #1 (ARBUCKLE-LANSING-T) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 5.00% - 0 FINAL - 1.000000 10.00% - 0 REMARKS - 15.00% - 0 20.00% - 0 25.00% - 0
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 0 0 0 0.000 0.00 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 0 0 0 0.000 0.00 0.00 CUMULATIVE 23,555 0 0 ULTIMATE 23,555 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 0
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUBTOT 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 LIFE OF EVALUATION IS 0.00 YEARS. FINAL PRODUCTION RATE: 0 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 62 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
OMLOR FIELD, STAFFORD COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 11-T22S-R14W PROVED MILLER (KSSC-LNSG) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 0.875000 0.708801 26.46 5.00% - 26,556 FINAL - 0.875000 0.708801 26.46 10.00% - 21,641 REMARKS - 15.00% - 18,091 20.00% - 15,451 25.00% - 13,437
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 644 0 0 456 0 0.000 26.46 0.00 2002 1 624 0 0 443 0 0.000 26.46 0.00 2003 1 606 0 0 429 0 0.000 26.46 0.00 2004 1 588 0 0 417 0 0.000 26.46 0.00 2005 1 570 0 0 404 0 0.000 26.46 0.00 2006 1 553 0 0 392 0 0.000 26.46 0.00 2007 1 536 0 0 380 0 0.000 26.46 0.00 2008 1 520 0 0 369 0 0.000 26.46 0.00 2009 1 505 0 0 357 0 0.000 26.46 0.00 2010 1 489 0 0 347 0 0.000 26.46 0.00 2011 1 475 0 0 337 0 0.000 26.46 0.00 2012 1 461 0 0 326 0 0.000 26.46 0.00 2013 1 447 0 0 317 0 0.000 26.46 0.00 2014 1 433 0 0 307 0 0.000 26.46 0.00 2015 1 420 0 0 298 0 0.000 26.46 0.00 SUB-TOTAL 7,871 0 0 5,579 0 0.000 26.46 0.00 REMAINDER 273 0 0 194 0 0.000 26.46 0.00 TOTAL 8,144 0 0 5,773 0 0.000 26.46 0.00 CUMULATIVE 32,594 0 0 ULTIMATE 40,738 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 12,076 0 0 0 12,076 19 0 12,057 2002 11,713 0 0 0 11,713 19 0 11,694 2003 11,362 0 0 0 11,362 18 0 11,344 2004 11,021 0 0 0 11,021 18 0 11,003 2005 10,691 0 0 0 10,691 17 0 10,674 2006 10,369 0 0 0 10,369 17 0 10,352 2007 10,059 0 0 0 10,059 16 0 10,043 2008 9,757 0 0 0 9,757 15 0 9,742 2009 9,464 0 0 0 9,464 15 0 9,449 2010 9,181 0 0 0 9,181 15 0 9,166 2011 8,905 0 0 0 8,905 14 0 8,891 2012 8,637 0 0 0 8,637 14 0 8,623 2013 8,379 0 0 0 8,379 14 0 8,365 2014 8,127 0 0 0 8,127 13 0 8,114 2015 7,884 0 0 0 7,884 12 0 7,872 SUB-TOT 147,625 0 0 0 147,625 236 0 147,389 REMAIN 5,123 0 0 0 5,123 8 0 5,115 TOTAL 152,748 0 0 0 152,748 244 0 152,504
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 7,592 0 0 0 7,592 4,465 4,465 4,253 2002 7,591 0 0 0 7,591 4,103 8,568 3,537 2003 7,592 0 0 0 7,592 3,752 12,320 2,929 2004 7,591 0 0 0 7,591 3,412 15,732 2,411 2005 7,592 0 0 0 7,592 3,082 18,814 1,971 2006 7,591 0 0 0 7,591 2,761 21,575 1,599 2007 7,592 0 0 0 7,592 2,451 24,026 1,285 2008 7,591 0 0 0 7,591 2,151 26,177 1,021 2009 7,592 0 0 0 7,592 1,857 28,034 797 2010 7,591 0 0 0 7,591 1,575 29,609 613 2011 7,592 0 0 0 7,592 1,299 30,908 458 2012 7,591 0 0 0 7,591 1,032 31,940 329 2013 7,592 0 0 0 7,592 773 32,713 223 2014 7,591 0 0 0 7,591 523 33,236 137 2015 7,592 0 0 0 7,592 280 33,516 67 SUBTOT 113,873 0 0 0 113,873 33,516 21,630 REMAIN 5,061 0 0 0 5,061 54 33,570 11 TOTAL 118,934 0 0 0 118,934 33,570 21,641 LIFE OF EVALUATION IS 15.67 YEARS. FINAL PRODUCTION RATE: 34 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 63 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
OMLOR FIELD, STAFFORD COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 11-T22S-R14W PROVED WILLIAMS (KSSC-LNSG) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 0.875000 0.715210 26.46 5.00% - 221,620 FINAL - 0.875000 0.715210 26.46 10.00% - 157,556 REMARKS - 15.00% - 120,924 20.00% - 97,758 25.00% - 81,948
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 2 1,872 0 0 1,339 0 0.000 26.46 0.00 2002 2 1,811 0 0 1,295 0 0.000 26.46 0.00 2003 2 1,754 0 0 1,254 0 0.000 26.46 0.00 2004 2 1,697 0 0 1,215 0 0.000 26.46 0.00 2005 2 1,644 0 0 1,175 0 0.000 26.46 0.00 2006 2 1,590 0 0 1,137 0 0.000 26.46 0.00 2007 2 1,540 0 0 1,102 0 0.000 26.46 0.00 2008 2 1,490 0 0 1,066 0 0.000 26.46 0.00 2009 2 1,443 0 0 1,032 0 0.000 26.46 0.00 2010 2 1,397 0 0 998 0 0.000 26.46 0.00 2011 2 1,352 0 0 967 0 0.000 26.46 0.00 2012 2 1,308 0 0 936 0 0.000 26.46 0.00 2013 2 1,267 0 0 906 0 0.000 26.46 0.00 2014 2 1,226 0 0 877 0 0.000 26.46 0.00 2015 2 1,187 0 0 849 0 0.000 26.46 0.00 SUB-TOTAL 22,578 0 0 16,148 0 0.000 26.46 0.00 REMAINDER 17,222 0 0 12,317 0 0.000 26.46 0.00 TOTAL 39,800 0 0 28,465 0 0.000 26.46 0.00 CUMULATIVE 112,808 0 0 ULTIMATE 152,608 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 35,418 0 0 0 35,418 57 0 35,361 2002 34,284 0 0 0 34,284 55 0 34,229 2003 33,187 0 0 0 33,187 53 0 33,134 2004 32,125 0 0 0 32,125 51 0 32,074 2005 31,097 0 0 0 31,097 50 0 31,047 2006 30,102 0 0 0 30,102 48 0 30,054 2007 29,139 0 0 0 29,139 47 0 29,092 2008 28,206 0 0 0 28,206 45 0 28,161 2009 27,304 0 0 0 27,304 43 0 27,261 2010 26,429 0 0 0 26,429 43 0 26,386 2011 25,585 0 0 0 25,585 41 0 25,544 2012 24,765 0 0 0 24,765 39 0 24,726 2013 23,973 0 0 0 23,973 39 0 23,934 2014 23,206 0 0 0 23,206 37 0 23,169 2015 22,463 0 0 0 22,463 36 0 22,427 SUB-TOT 427,283 0 0 0 427,283 684 0 426,599 REMAIN 325,901 0 0 0 325,901 521 0 325,380 TOTAL 753,184 0 0 0 753,184 1,205 0 751,979
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 11,487 0 0 0 11,487 23,874 23,874 22,733 2002 11,487 0 0 0 11,487 22,742 46,616 19,602 2003 11,487 0 0 0 11,487 21,647 68,263 16,890 2004 11,487 0 0 0 11,487 20,587 88,850 14,540 2005 11,487 0 0 0 11,487 19,560 108,410 12,506 2006 11,487 0 0 0 11,487 18,567 126,977 10,746 2007 11,487 0 0 0 11,487 17,605 144,582 9,223 2008 11,487 0 0 0 11,487 16,674 161,256 7,908 2009 11,487 0 0 0 11,487 15,774 177,030 6,771 2010 11,487 0 0 0 11,487 14,899 191,929 5,790 2011 11,487 0 0 0 11,487 14,057 205,986 4,945 2012 11,487 0 0 0 11,487 13,239 219,225 4,216 2013 11,487 0 0 0 11,487 12,447 231,672 3,588 2014 11,487 0 0 0 11,487 11,682 243,354 3,048 2015 11,487 0 0 0 11,487 10,940 254,294 2,585 SUBTOT 172,305 0 0 0 172,305 254,294 145,091 REMAIN 230,697 0 0 0 230,697 94,683 348,977 12,465 TOTAL 403,002 0 0 0 403,002 348,977 157,556 LIFE OF EVALUATION IS 35.08 YEARS. FINAL PRODUCTION RATE: 51 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 64 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
OTIS-ALBERT FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 2-T18S-R16W PROVED HARTMAN #1-C (PENNSYLVANIAN) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 5.00% - 0 FINAL - 1.000000 10.00% - 0 REMARKS - 15.00% - 0 20.00% - 0 25.00% - 0
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 0 0 0 0.000 0.00 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 0 0 0 0.000 0.00 0.00 CUMULATIVE 0 0 73 ULTIMATE 0 0 73
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 0
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUBTOT 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 LIFE OF EVALUATION IS 0.00 YEARS. FINAL PRODUCTION RATE: 0.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 65 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
PARADISE CREEK FIELD, ROOKS COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 21-T9S-R18W PROVED STAHL (ARBUCKLE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.843750 26.46 5.00% - 615,213 FINAL - 1.000000 0.843750 26.46 10.00% - 464,980 REMARKS - 15.00% - 369,649 20.00% - 305,236 25.00% - 259,374
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 4 5,758 0 0 4,858 0 0.000 26.46 0.00 2002 4 5,539 0 0 4,674 0 0.000 26.46 0.00 2003 4 5,328 0 0 4,495 0 0.000 26.46 0.00 2004 4 5,125 0 0 4,324 0 0.000 26.46 0.00 2005 4 4,929 0 0 4,160 0 0.000 26.46 0.00 2006 4 4,742 0 0 4,000 0 0.000 26.46 0.00 2007 4 4,561 0 0 3,849 0 0.000 26.46 0.00 2008 4 4,387 0 0 3,702 0 0.000 26.46 0.00 2009 4 4,220 0 0 3,560 0 0.000 26.46 0.00 2010 4 4,060 0 0 3,425 0 0.000 26.46 0.00 2011 4 3,904 0 0 3,295 0 0.000 26.46 0.00 2012 4 3,756 0 0 3,169 0 0.000 26.46 0.00 2013 4 3,613 0 0 3,048 0 0.000 26.46 0.00 2014 4 3,475 0 0 2,932 0 0.000 26.46 0.00 2015 4 3,343 0 0 2,821 0 0.000 26.46 0.00 SUB-TOTAL 66,740 0 0 56,312 0 0.000 26.46 0.00 REMAINDER 27,902 0 0 23,542 0 0.000 26.46 0.00 TOTAL 94,642 0 0 79,854 0 0.000 26.46 0.00 CUMULATIVE 126,990 0 0 ULTIMATE 221,632 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 128,555 0 0 0 128,555 206 0 128,349 2002 123,658 0 0 0 123,658 198 0 123,460 2003 118,946 0 0 0 118,946 190 0 118,756 2004 114,414 0 0 0 114,414 183 0 114,231 2005 110,055 0 0 0 110,055 176 0 109,879 2006 105,862 0 0 0 105,862 169 0 105,693 2007 101,829 0 0 0 101,829 163 0 101,666 2008 97,949 0 0 0 97,949 157 0 97,792 2009 94,217 0 0 0 94,217 151 0 94,066 2010 90,627 0 0 0 90,627 145 0 90,482 2011 87,175 0 0 0 87,175 139 0 87,036 2012 83,853 0 0 0 83,853 134 0 83,719 2013 80,658 0 0 0 80,658 129 0 80,529 2014 77,585 0 0 0 77,585 125 0 77,460 2015 74,630 0 0 0 74,630 119 0 74,511 SUB-TOT 1,490,013 0 0 0 1,490,013 2,384 0 1,487,629 REMAIN 622,926 0 0 0 622,926 997 0 621,929 TOTAL 2,112,939 0 0 0 2,112,939 3,381 0 2,109,558
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 48,936 0 0 0 48,936 79,413 79,413 75,626 2002 48,936 0 0 0 48,936 74,524 153,937 64,243 2003 48,936 0 0 0 48,936 69,820 223,757 54,485 2004 48,936 0 0 0 48,936 65,295 289,052 46,124 2005 48,936 0 0 0 48,936 60,943 349,995 38,970 2006 48,936 0 0 0 48,936 56,757 406,752 32,853 2007 48,936 0 0 0 48,936 52,730 459,482 27,630 2008 48,936 0 0 0 48,936 48,856 508,338 23,175 2009 48,936 0 0 0 48,936 45,130 553,468 19,378 2010 48,936 0 0 0 48,936 41,546 595,014 16,149 2011 48,936 0 0 0 48,936 38,100 633,114 13,406 2012 48,936 0 0 0 48,936 34,783 667,897 11,079 2013 48,936 0 0 0 48,936 31,593 699,490 9,110 2014 48,936 0 0 0 48,936 28,524 728,014 7,445 2015 48,936 0 0 0 48,936 25,575 753,589 6,043 SUBTOT 734,040 0 0 0 734,040 753,589 445,716 REMAIN 505,672 0 0 0 505,672 116,257 869,846 19,264 TOTAL 1,239,712 0 0 0 1,239,712 869,846 464,980 LIFE OF EVALUATION IS 25.33 YEARS. FINAL PRODUCTION RATE: 183 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 66 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
PARADISE CREEK FIELD, ROOKS COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 21-T9S-R18W PROVED STAHL #7 PUD (ARBUCKLE) UNDEVELOPED REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.843750 26.46 5.00% - 371,550 FINAL - 1.000000 0.843750 26.46 10.00% - 252,216 REMARKS - 15.00% - 181,966 20.00% - 136,840 25.00% - 105,833
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 3,426 0 0 2,891 0 0.000 26.46 0.00 2002 1 3,228 0 0 2,723 0 0.000 26.46 0.00 2003 1 2,607 0 0 2,200 0 0.000 26.46 0.00 2004 1 2,484 0 0 2,096 0 0.000 26.46 0.00 2005 1 2,367 0 0 1,997 0 0.000 26.46 0.00 2006 1 2,255 0 0 1,903 0 0.000 26.46 0.00 2007 1 2,149 0 0 1,813 0 0.000 26.46 0.00 2008 1 2,047 0 0 1,727 0 0.000 26.46 0.00 2009 1 1,951 0 0 1,646 0 0.000 26.46 0.00 2010 1 1,858 0 0 1,568 0 0.000 26.46 0.00 2011 1 1,771 0 0 1,494 0 0.000 26.46 0.00 2012 1 1,687 0 0 1,424 0 0.000 26.46 0.00 2013 1 1,608 0 0 1,356 0 0.000 26.46 0.00 2014 1 1,532 0 0 1,293 0 0.000 26.46 0.00 2015 1 1,459 0 0 1,231 0 0.000 26.46 0.00 SUB-TOTAL 32,429 0 0 27,362 0 0.000 26.46 0.00 REMAINDER 14,571 0 0 12,295 0 0.000 26.46 0.00 TOTAL 47,000 0 0 39,657 0 0.000 26.46 0.00 CUMULATIVE 0 0 0 ULTIMATE 47,000 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 76,487 0 0 0 76,487 122 0 76,365 2002 72,069 0 0 0 72,069 116 0 71,953 2003 58,205 0 0 0 58,205 93 0 58,112 2004 55,458 0 0 0 55,458 89 0 55,369 2005 52,841 0 0 0 52,841 84 0 52,757 2006 50,346 0 0 0 50,346 81 0 50,265 2007 47,970 0 0 0 47,970 76 0 47,894 2008 45,706 0 0 0 45,706 74 0 45,632 2009 43,549 0 0 0 43,549 69 0 43,480 2010 41,493 0 0 0 41,493 67 0 41,426 2011 39,535 0 0 0 39,535 63 0 39,472 2012 37,668 0 0 0 37,668 60 0 37,608 2013 35,891 0 0 0 35,891 58 0 35,833 2014 34,197 0 0 0 34,197 54 0 34,143 2015 32,582 0 0 0 32,582 52 0 32,530 SUB-TOT 723,997 0 0 0 723,997 1,158 0 722,839 REMAIN 325,317 0 0 0 325,317 521 0 324,796 TOTAL 1,049,314 0 0 0 1,049,314 1,679 0 1,047,635
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 6,120 0 100,000 0 106,120 -29,755 -29,755 -29,381 2002 12,240 0 0 0 12,240 59,713 29,958 51,791 2003 12,240 0 0 0 12,240 45,872 75,830 35,795 2004 12,240 0 0 0 12,240 43,129 118,959 30,464 2005 12,240 0 0 0 12,240 40,517 159,476 25,907 2006 12,240 0 0 0 12,240 38,025 197,501 22,009 2007 12,240 0 0 0 12,240 35,654 233,155 18,681 2008 12,240 0 0 0 12,240 33,392 266,547 15,838 2009 12,240 0 0 0 12,240 31,240 297,787 13,412 2010 12,240 0 0 0 12,240 29,186 326,973 11,343 2011 12,240 0 0 0 12,240 27,232 354,205 9,581 2012 12,240 0 0 0 12,240 25,368 379,573 8,079 2013 12,240 0 0 0 12,240 23,593 403,166 6,801 2014 12,240 0 0 0 12,240 21,903 425,069 5,716 2015 12,240 0 0 0 12,240 20,290 445,359 4,793 SUBTOT 177,480 0 100,000 0 277,480 445,359 230,829 REMAIN 172,758 0 0 0 172,758 152,038 597,397 21,387 TOTAL 350,238 0 100,000 0 450,238 597,397 252,216 LIFE OF EVALUATION IS 29.11 YEARS. FINAL PRODUCTION RATE: 60 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 67 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
PAWNEE ROCK FIELD, PAWNEE COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 13-T20S-R16W PROVED O'SCHULTZ #1 (ARBUCKLE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 0.937500 0.820313 26.46 5.00% - 108,148 FINAL - 0.937500 0.820313 26.46 10.00% - 93,723 REMARKS - 15.00% - 82,293 20.00% - 73,100 25.00% - 65,603
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 2 2,001 0 0 1,642 0 0.000 26.46 0.00 2002 2 1,818 0 0 1,491 0 0.000 26.46 0.00 2003 2 1,655 0 0 1,357 0 0.000 26.46 0.00 2004 2 1,508 0 0 1,238 0 0.000 26.46 0.00 2005 2 1,379 0 0 1,131 0 0.000 26.46 0.00 2006 2 1,262 0 0 1,035 0 0.000 26.46 0.00 2007 2 1,157 0 0 949 0 0.000 26.46 0.00 2008 2 1,062 0 0 871 0 0.000 26.46 0.00 2009 2 978 0 0 802 0 0.000 26.46 0.00 2010 2 901 0 0 739 0 0.000 26.46 0.00 2011 2 831 0 0 682 0 0.000 26.46 0.00 2012 2 66 0 0 55 0 0.000 26.46 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 14,618 0 0 11,992 0 0.000 26.46 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 14,618 0 0 11,992 0 0.000 26.46 0.00 CUMULATIVE 44,234 0 0 ULTIMATE 58,852 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 43,443 0 0 0 43,443 70 0 43,373 2002 39,457 0 0 0 39,457 63 0 39,394 2003 35,910 0 0 0 35,910 57 0 35,853 2004 32,747 0 0 0 32,747 52 0 32,695 2005 29,919 0 0 0 29,919 48 0 29,871 2006 27,387 0 0 0 27,387 44 0 27,343 2007 25,112 0 0 0 25,112 40 0 25,072 2008 23,066 0 0 0 23,066 37 0 23,029 2009 21,220 0 0 0 21,220 34 0 21,186 2010 19,553 0 0 0 19,553 32 0 19,521 2011 18,044 0 0 0 18,044 28 0 18,016 2012 1,440 0 0 0 1,440 3 0 1,437 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 317,298 0 0 0 317,298 508 0 316,790 REMAIN 0 0 0 0 0 0 0 0 TOTAL 317,298 0 0 0 317,298 508 0 316,790
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 17,156 0 0 0 17,156 26,217 26,217 24,987 2002 17,157 0 0 0 17,157 22,237 48,454 19,186 2003 17,156 0 0 0 17,156 18,697 67,151 14,604 2004 17,156 0 0 0 17,156 15,539 82,690 10,988 2005 17,156 0 0 0 17,156 12,715 95,405 8,139 2006 17,157 0 0 0 17,157 10,186 105,591 5,905 2007 17,156 0 0 0 17,156 7,916 113,507 4,154 2008 17,156 0 0 0 17,156 5,873 119,380 2,792 2009 17,156 0 0 0 17,156 4,030 123,410 1,735 2010 17,157 0 0 0 17,157 2,364 125,774 924 2011 17,156 0 0 0 17,156 860 126,634 306 2012 1,429 0 0 0 1,429 8 126,642 3 2013 0 0 0 0 0 0 126,642 0 2014 0 0 0 0 0 0 126,642 0 2015 0 0 0 0 0 0 126,642 0 SUBTOT 190,148 0 0 0 190,148 126,642 93,723 REMAIN 0 0 0 0 0 0 126,642 0 TOTAL 190,148 0 0 0 190,148 126,642 93,723 LIFE OF EVALUATION IS 11.08 YEARS. FINAL PRODUCTION RATE: 66 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 68 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
PAWNEE ROCK FIELD, PAWNEE COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 24-T20S-R16W PROVED OETKIN (ARBUCKLE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 0.937500 0.794678 26.46 5.00% - 84,680 FINAL - 0.937500 0.794678 26.46 10.00% - 74,768 REMARKS - 15.00% - 66,640 20.00% - 59,905 25.00% - 54,272
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 2 2,352 0 0 1,869 0 0.000 26.46 0.00 2002 2 2,187 0 0 1,738 0 0.000 26.46 0.00 2003 2 2,034 0 0 1,616 0 0.000 26.46 0.00 2004 2 1,892 0 0 1,504 0 0.000 26.46 0.00 2005 2 1,759 0 0 1,398 0 0.000 26.46 0.00 2006 2 1,636 0 0 1,300 0 0.000 26.46 0.00 2007 2 1,522 0 0 1,209 0 0.000 26.46 0.00 2008 2 1,415 0 0 1,125 0 0.000 26.46 0.00 2009 2 1,210 0 0 961 0 0.000 26.46 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 16,007 0 0 12,720 0 0.000 26.46 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 16,007 0 0 12,720 0 0.000 26.46 0.00 CUMULATIVE 116,991 0 0 ULTIMATE 132,998 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 49,452 0 0 0 49,452 79 0 49,373 2002 45,990 0 0 0 45,990 74 0 45,916 2003 42,770 0 0 0 42,770 68 0 42,702 2004 39,777 0 0 0 39,777 64 0 39,713 2005 36,992 0 0 0 36,992 59 0 36,933 2006 34,403 0 0 0 34,403 55 0 34,348 2007 31,995 0 0 0 31,995 51 0 31,944 2008 29,755 0 0 0 29,755 48 0 29,707 2009 25,442 0 0 0 25,442 41 0 25,401 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 336,576 0 0 0 336,576 539 0 336,037 REMAIN 0 0 0 0 0 0 0 0 TOTAL 336,576 0 0 0 336,576 539 0 336,037
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 26,820 0 0 0 26,820 22,553 22,553 21,494 2002 26,820 0 0 0 26,820 19,096 41,649 16,477 2003 26,820 0 0 0 26,820 15,882 57,531 12,407 2004 26,820 0 0 0 26,820 12,893 70,424 9,119 2005 26,820 0 0 0 26,820 10,113 80,537 6,477 2006 26,820 0 0 0 26,820 7,528 88,065 4,367 2007 26,820 0 0 0 26,820 5,124 93,189 2,693 2008 26,820 0 0 0 26,820 2,887 96,076 1,377 2009 24,585 0 0 0 24,585 816 96,892 357 2010 0 0 0 0 0 0 96,892 0 2011 0 0 0 0 0 0 96,892 0 2012 0 0 0 0 0 0 96,892 0 2013 0 0 0 0 0 0 96,892 0 2014 0 0 0 0 0 0 96,892 0 2015 0 0 0 0 0 0 96,892 0 SUBTOT 239,145 0 0 0 239,145 96,892 74,768 REMAIN 0 0 0 0 0 0 96,892 0 TOTAL 239,145 0 0 0 239,145 96,892 74,768 LIFE OF EVALUATION IS 8.92 YEARS. FINAL PRODUCTION RATE: 107 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 69 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
PAWNEE ROCK FIELD, PAWNEE COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 24-T20S-R16W PROBABLE OETKIN #8 PBUD (ARBUCKLE) UNDEVELOPED REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 0.937500 0.794678 26.46 5.00% - 68,408 FINAL - 0.937500 0.794678 26.46 10.00% - 41,606 REMARKS - 15.00% - 23,287 20.00% - 10,374 25.00% - 1,027
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 2,029 0 0 1,612 0 0.000 26.46 0.00 2002 1 1,910 0 0 1,518 0 0.000 26.46 0.00 2003 1 1,536 0 0 1,221 0 0.000 26.46 0.00 2004 1 1,456 0 0 1,157 0 0.000 26.46 0.00 2005 1 1,380 0 0 1,097 0 0.000 26.46 0.00 2006 1 1,309 0 0 1,040 0 0.000 26.46 0.00 2007 1 1,241 0 0 986 0 0.000 26.46 0.00 2008 1 1,176 0 0 935 0 0.000 26.46 0.00 2009 1 1,115 0 0 886 0 0.000 26.46 0.00 2010 1 1,057 0 0 840 0 0.000 26.46 0.00 2011 1 1,002 0 0 796 0 0.000 26.46 0.00 2012 1 950 0 0 755 0 0.000 26.46 0.00 2013 1 901 0 0 716 0 0.000 26.46 0.00 2014 1 854 0 0 678 0 0.000 26.46 0.00 2015 1 809 0 0 644 0 0.000 26.46 0.00 SUB-TOTAL 18,725 0 0 14,881 0 0.000 26.46 0.00 REMAINDER 1,275 0 0 1,012 0 0.000 26.46 0.00 TOTAL 20,000 0 0 15,893 0 0.000 26.46 0.00 CUMULATIVE 0 0 0 ULTIMATE 20,000 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 42,654 0 0 0 42,654 68 0 42,586 2002 40,170 0 0 0 40,170 65 0 40,105 2003 32,297 0 0 0 32,297 51 0 32,246 2004 30,618 0 0 0 30,618 49 0 30,569 2005 29,027 0 0 0 29,027 47 0 28,980 2006 27,518 0 0 0 27,518 44 0 27,474 2007 26,088 0 0 0 26,088 41 0 26,047 2008 24,732 0 0 0 24,732 40 0 24,692 2009 23,446 0 0 0 23,446 37 0 23,409 2010 22,227 0 0 0 22,227 36 0 22,191 2011 21,072 0 0 0 21,072 34 0 21,038 2012 19,977 0 0 0 19,977 32 0 19,945 2013 18,938 0 0 0 18,938 30 0 18,908 2014 17,954 0 0 0 17,954 29 0 17,925 2015 17,020 0 0 0 17,020 27 0 16,993 SUB-TOT 393,738 0 0 0 393,738 630 0 393,108 REMAIN 26,797 0 0 0 26,797 43 0 26,754 TOTAL 420,535 0 0 0 420,535 673 0 419,862
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 6,705 0 93,750 0 100,455 -57,869 -57,869 -55,429 2002 13,410 0 0 0 13,410 26,695 -31,174 23,192 2003 13,410 0 0 0 13,410 18,836 -12,338 14,701 2004 13,410 0 0 0 13,410 17,159 4,821 12,124 2005 13,410 0 0 0 13,410 15,570 20,391 9,959 2006 13,410 0 0 0 13,410 14,064 34,455 8,143 2007 13,410 0 0 0 13,410 12,637 47,092 6,623 2008 13,410 0 0 0 13,410 11,282 58,374 5,353 2009 13,410 0 0 0 13,410 9,999 68,373 4,295 2010 13,410 0 0 0 13,410 8,781 77,154 3,415 2011 13,410 0 0 0 13,410 7,628 84,782 2,685 2012 13,410 0 0 0 13,410 6,535 91,317 2,083 2013 13,410 0 0 0 13,410 5,498 96,815 1,586 2014 13,410 0 0 0 13,410 4,515 101,330 1,180 2015 13,410 0 0 0 13,410 3,583 104,913 848 SUBTOT 194,445 0 93,750 0 288,195 104,913 40,758 REMAIN 22,680 0 0 0 22,680 4,074 108,987 848 TOTAL 217,125 0 93,750 0 310,875 108,987 41,606 LIFE OF EVALUATION IS 16.69 YEARS. FINAL PRODUCTION RATE: 60 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 70 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
PLAINVILLE FIELD, ROOKS COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 12-T10S-R18W PROVED ANDERSON -A- (LANSING) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 26.46 5.00% - 40,523 FINAL - 1.000000 0.875000 26.46 10.00% - 31,000 REMARKS - 15.00% - 24,683 20.00% - 20,318 25.00% - 17,183
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 373 0 0 327 0 0.000 26.46 0.00 2002 1 363 0 0 317 0 0.000 26.46 0.00 2003 1 353 0 0 309 0 0.000 26.46 0.00 2004 1 343 0 0 300 0 0.000 26.46 0.00 2005 1 334 0 0 292 0 0.000 26.46 0.00 2006 1 324 0 0 283 0 0.000 26.46 0.00 2007 1 314 0 0 276 0 0.000 26.46 0.00 2008 1 307 0 0 268 0 0.000 26.46 0.00 2009 1 297 0 0 260 0 0.000 26.46 0.00 2010 1 289 0 0 253 0 0.000 26.46 0.00 2011 1 281 0 0 246 0 0.000 26.46 0.00 2012 1 274 0 0 239 0 0.000 26.46 0.00 2013 1 265 0 0 233 0 0.000 26.46 0.00 2014 1 258 0 0 226 0 0.000 26.46 0.00 2015 1 251 0 0 219 0 0.000 26.46 0.00 SUB-TOTAL 4,626 0 0 4,048 0 0.000 26.46 0.00 REMAINDER 261 0 0 228 0 0.000 26.46 0.00 TOTAL 4,887 0 0 4,276 0 0.000 26.46 0.00 CUMULATIVE 12,127 0 0 ULTIMATE 17,014 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 8,646 0 0 0 8,646 14 0 8,632 2002 8,404 0 0 0 8,404 13 0 8,391 2003 8,169 0 0 0 8,169 13 0 8,156 2004 7,940 0 0 0 7,940 13 0 7,927 2005 7,717 0 0 0 7,717 12 0 7,705 2006 7,502 0 0 0 7,502 12 0 7,490 2007 7,291 0 0 0 7,291 12 0 7,279 2008 7,088 0 0 0 7,088 11 0 7,077 2009 6,889 0 0 0 6,889 11 0 6,878 2010 6,696 0 0 0 6,696 11 0 6,685 2011 6,508 0 0 0 6,508 11 0 6,497 2012 6,326 0 0 0 6,326 10 0 6,316 2013 6,149 0 0 0 6,149 10 0 6,139 2014 5,977 0 0 0 5,977 9 0 5,968 2015 5,810 0 0 0 5,810 9 0 5,801 SUB-TOT 107,112 0 0 0 107,112 171 0 106,941 REMAIN 6,034 0 0 0 6,034 10 0 6,024 TOTAL 113,146 0 0 0 113,146 181 0 112,965
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 3,576 0 0 0 3,576 5,056 5,056 4,814 2002 3,576 0 0 0 3,576 4,815 9,871 4,151 2003 3,576 0 0 0 3,576 4,580 14,451 3,573 2004 3,576 0 0 0 3,576 4,351 18,802 3,073 2005 3,576 0 0 0 3,576 4,129 22,931 2,640 2006 3,576 0 0 0 3,576 3,914 26,845 2,265 2007 3,576 0 0 0 3,576 3,703 30,548 1,940 2008 3,576 0 0 0 3,576 3,501 34,049 1,661 2009 3,576 0 0 0 3,576 3,302 37,351 1,417 2010 3,576 0 0 0 3,576 3,109 40,460 1,209 2011 3,576 0 0 0 3,576 2,921 43,381 1,027 2012 3,576 0 0 0 3,576 2,740 46,121 873 2013 3,576 0 0 0 3,576 2,563 48,684 739 2014 3,576 0 0 0 3,576 2,392 51,076 624 2015 3,576 0 0 0 3,576 2,225 53,301 525 SUBTOT 53,640 0 0 0 53,640 53,301 30,531 REMAIN 3,825 0 0 0 3,825 2,199 55,500 469 TOTAL 57,465 0 0 0 57,465 55,500 31,000 LIFE OF EVALUATION IS 16.07 YEARS. FINAL PRODUCTION RATE: 20 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 71 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
PLAINVILLE FIELD, ROOKS COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 12-T10S-R18W PROVED BARDOT #2 (KSSC-LNSG) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 5.00% - 0 FINAL - 1.000000 10.00% - 0 REMARKS - 15.00% - 0 20.00% - 0 25.00% - 0
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 0 0 0 0.000 0.00 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 0 0 0 0.000 0.00 0.00 CUMULATIVE 25,414 0 0 ULTIMATE 25,414 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 0
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUBTOT 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 LIFE OF EVALUATION IS 0.00 YEARS. FINAL PRODUCTION RATE: 0 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 72 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
PLAINVILLE FIELD, ROOKS COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 18-T10S-R17W PROVED GARVERT #1-A (KANSAS CITY) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 26.46 5.00% - 217,266 FINAL - 1.000000 0.875000 26.46 10.00% - 146,806 REMARKS - 15.00% - 109,898 20.00% - 87,659 25.00% - 72,893
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 1,102 0 0 964 0 0.000 26.46 0.00 2002 1 1,066 0 0 933 0 0.000 26.46 0.00 2003 1 1,031 0 0 902 0 0.000 26.46 0.00 2004 1 998 0 0 873 0 0.000 26.46 0.00 2005 1 965 0 0 845 0 0.000 26.46 0.00 2006 1 933 0 0 817 0 0.000 26.46 0.00 2007 1 904 0 0 790 0 0.000 26.46 0.00 2008 1 873 0 0 764 0 0.000 26.46 0.00 2009 1 846 0 0 740 0 0.000 26.46 0.00 2010 1 817 0 0 715 0 0.000 26.46 0.00 2011 1 791 0 0 693 0 0.000 26.46 0.00 2012 1 766 0 0 669 0 0.000 26.46 0.00 2013 1 740 0 0 648 0 0.000 26.46 0.00 2014 1 716 0 0 627 0 0.000 26.46 0.00 2015 1 693 0 0 606 0 0.000 26.46 0.00 SUB-TOTAL 13,241 0 0 11,586 0 0.000 26.46 0.00 REMAINDER 11,382 0 0 9,959 0 0.000 26.46 0.00 TOTAL 24,623 0 0 21,545 0 0.000 26.46 0.00 CUMULATIVE 28,913 0 0 ULTIMATE 53,536 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 25,512 0 0 0 25,512 41 0 25,471 2002 24,680 0 0 0 24,680 39 0 24,641 2003 23,876 0 0 0 23,876 39 0 23,837 2004 23,097 0 0 0 23,097 36 0 23,061 2005 22,345 0 0 0 22,345 36 0 22,309 2006 21,616 0 0 0 21,616 35 0 21,581 2007 20,911 0 0 0 20,911 33 0 20,878 2008 20,230 0 0 0 20,230 33 0 20,197 2009 19,570 0 0 0 19,570 31 0 19,539 2010 18,932 0 0 0 18,932 30 0 18,902 2011 18,315 0 0 0 18,315 30 0 18,285 2012 17,718 0 0 0 17,718 28 0 17,690 2013 17,140 0 0 0 17,140 27 0 17,113 2014 16,581 0 0 0 16,581 27 0 16,554 2015 16,041 0 0 0 16,041 26 0 16,015 SUB-TOT 306,564 0 0 0 306,564 491 0 306,073 REMAIN 263,509 0 0 0 263,509 421 0 263,088 TOTAL 570,073 0 0 0 570,073 912 0 569,161
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 4,800 0 0 0 4,800 20,671 20,671 19,682 2002 4,800 0 0 0 4,800 19,841 40,512 17,100 2003 4,800 0 0 0 4,800 19,037 59,549 14,853 2004 4,800 0 0 0 4,800 18,261 77,810 12,897 2005 4,800 0 0 0 4,800 17,509 95,319 11,193 2006 4,800 0 0 0 4,800 16,781 112,100 9,712 2007 4,800 0 0 0 4,800 16,078 128,178 8,422 2008 4,800 0 0 0 4,800 15,397 143,575 7,301 2009 4,800 0 0 0 4,800 14,739 158,314 6,327 2010 4,800 0 0 0 4,800 14,102 172,416 5,480 2011 4,800 0 0 0 4,800 13,485 185,901 4,743 2012 4,800 0 0 0 4,800 12,890 198,791 4,104 2013 4,800 0 0 0 4,800 12,313 211,104 3,549 2014 4,800 0 0 0 4,800 11,754 222,858 3,066 2015 4,800 0 0 0 4,800 11,215 234,073 2,649 SUBTOT 72,000 0 0 0 72,000 234,073 131,078 REMAIN 116,800 0 0 0 116,800 146,288 380,361 15,728 TOTAL 188,800 0 0 0 188,800 380,361 146,806 LIFE OF EVALUATION IS 39.33 YEARS. FINAL PRODUCTION RATE: 25 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 73 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
PLAINVILLE FIELD, ROOKS COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 13-T10S-R18W PROVED GARVERT -B- #1 (CNGL-LNSG-PLSN) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 26.46 5.00% - 110,541 FINAL - 1.000000 0.875000 26.46 10.00% - 74,989 REMARKS - 15.00% - 56,106 20.00% - 44,693 25.00% - 37,119
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 627 0 0 548 0 0.000 26.46 0.00 2002 1 609 0 0 534 0 0.000 26.46 0.00 2003 1 593 0 0 519 0 0.000 26.46 0.00 2004 1 577 0 0 505 0 0.000 26.46 0.00 2005 1 562 0 0 491 0 0.000 26.46 0.00 2006 1 546 0 0 478 0 0.000 26.46 0.00 2007 1 531 0 0 465 0 0.000 26.46 0.00 2008 1 517 0 0 452 0 0.000 26.46 0.00 2009 1 503 0 0 440 0 0.000 26.46 0.00 2010 1 490 0 0 428 0 0.000 26.46 0.00 2011 1 476 0 0 417 0 0.000 26.46 0.00 2012 1 463 0 0 405 0 0.000 26.46 0.00 2013 1 451 0 0 394 0 0.000 26.46 0.00 2014 1 438 0 0 384 0 0.000 26.46 0.00 2015 1 426 0 0 373 0 0.000 26.46 0.00 SUB-TOTAL 7,809 0 0 6,833 0 0.000 26.46 0.00 REMAINDER 6,580 0 0 5,757 0 0.000 26.46 0.00 TOTAL 14,389 0 0 12,590 0 0.000 26.46 0.00 CUMULATIVE 45,627 0 0 ULTIMATE 60,016 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 14,508 0 0 0 14,508 23 0 14,485 2002 14,114 0 0 0 14,114 23 0 14,091 2003 13,732 0 0 0 13,732 22 0 13,710 2004 13,360 0 0 0 13,360 21 0 13,339 2005 12,997 0 0 0 12,997 21 0 12,976 2006 12,646 0 0 0 12,646 20 0 12,626 2007 12,303 0 0 0 12,303 20 0 12,283 2008 11,969 0 0 0 11,969 19 0 11,950 2009 11,645 0 0 0 11,645 19 0 11,626 2010 11,329 0 0 0 11,329 18 0 11,311 2011 11,023 0 0 0 11,023 17 0 11,006 2012 10,724 0 0 0 10,724 18 0 10,706 2013 10,433 0 0 0 10,433 16 0 10,417 2014 10,150 0 0 0 10,150 16 0 10,134 2015 9,875 0 0 0 9,875 16 0 9,859 SUB-TOT 180,808 0 0 0 180,808 289 0 180,519 REMAIN 152,333 0 0 0 152,333 244 0 152,089 TOTAL 333,141 0 0 0 333,141 533 0 332,608
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 4,032 0 0 0 4,032 10,453 10,453 9,952 2002 4,032 0 0 0 4,032 10,059 20,512 8,670 2003 4,032 0 0 0 4,032 9,678 30,190 7,551 2004 4,032 0 0 0 4,032 9,307 39,497 6,572 2005 4,032 0 0 0 4,032 8,944 48,441 5,718 2006 4,032 0 0 0 4,032 8,594 57,035 4,974 2007 4,032 0 0 0 4,032 8,251 65,286 4,322 2008 4,032 0 0 0 4,032 7,918 73,204 3,754 2009 4,032 0 0 0 4,032 7,594 80,798 3,260 2010 4,032 0 0 0 4,032 7,279 88,077 2,828 2011 4,032 0 0 0 4,032 6,974 95,051 2,453 2012 4,032 0 0 0 4,032 6,674 101,725 2,125 2013 4,032 0 0 0 4,032 6,385 108,110 1,841 2014 4,032 0 0 0 4,032 6,102 114,212 1,592 2015 4,032 0 0 0 4,032 5,827 120,039 1,376 SUBTOT 60,480 0 0 0 60,480 120,039 66,988 REMAIN 82,413 0 0 0 82,413 69,676 189,715 8,001 TOTAL 142,893 0 0 0 142,893 189,715 74,989 LIFE OF EVALUATION IS 35.44 YEARS. FINAL PRODUCTION RATE: 20 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 74 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
PLAINVILLE FIELD, ROOKS COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 12-T10S-R18W PROVED HARRISON -C- (LANSING) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 26.46 5.00% - 12,366 FINAL - 1.000000 0.875000 26.46 10.00% - 11,254 REMARKS - 15.00% - 10,295 20.00% - 9,465 25.00% - 8,742
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 2 669 0 0 585 0 0.000 26.46 0.00 2002 2 634 0 0 555 0 0.000 26.46 0.00 2003 2 601 0 0 526 0 0.000 26.46 0.00 2004 2 570 0 0 499 0 0.000 26.46 0.00 2005 2 541 0 0 473 0 0.000 26.46 0.00 2006 2 512 0 0 448 0 0.000 26.46 0.00 2007 2 165 0 0 144 0 0.000 26.46 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 3,692 0 0 3,230 0 0.000 26.46 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 3,692 0 0 3,230 0 0.000 26.46 0.00 CUMULATIVE 25,531 0 0 ULTIMATE 29,223 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 15,488 0 0 0 15,488 25 0 15,463 2002 14,683 0 0 0 14,683 23 0 14,660 2003 13,920 0 0 0 13,920 23 0 13,897 2004 13,195 0 0 0 13,195 21 0 13,174 2005 12,509 0 0 0 12,509 20 0 12,489 2006 11,859 0 0 0 11,859 19 0 11,840 2007 3,815 0 0 0 3,815 6 0 3,809 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 85,469 0 0 0 85,469 137 0 85,332 REMAIN 0 0 0 0 0 0 0 0 TOTAL 85,469 0 0 0 85,469 137 0 85,332
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 11,316 0 0 0 11,316 4,147 4,147 3,954 2002 11,316 0 0 0 11,316 3,344 7,491 2,886 2003 11,316 0 0 0 11,316 2,581 10,072 2,018 2004 11,316 0 0 0 11,316 1,858 11,930 1,316 2005 11,316 0 0 0 11,316 1,173 13,103 753 2006 11,316 0 0 0 11,316 524 13,627 306 2007 3,772 0 0 0 3,772 37 13,664 21 2008 0 0 0 0 0 0 13,664 0 2009 0 0 0 0 0 0 13,664 0 2010 0 0 0 0 0 0 13,664 0 2011 0 0 0 0 0 0 13,664 0 2012 0 0 0 0 0 0 13,664 0 2013 0 0 0 0 0 0 13,664 0 2014 0 0 0 0 0 0 13,664 0 2015 0 0 0 0 0 0 13,664 0 SUBTOT 71,668 0 0 0 71,668 13,664 11,254 REMAIN 0 0 0 0 0 0 13,664 0 TOTAL 71,668 0 0 0 71,668 13,664 11,254 LIFE OF EVALUATION IS 6.33 YEARS. FINAL PRODUCTION RATE: 41 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 75 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
PLAINVILLE FIELD, ROOKS COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 13-T10S-R18W PROVED JACO (LANSING) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 26.46 5.00% - 488,450 FINAL - 1.000000 0.875000 26.46 10.00% - 361,850 REMARKS - 15.00% - 285,029 20.00% - 234,416 25.00% - 198,871
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 4 3,210 0 0 2,809 0 0.000 26.46 0.00 2002 4 3,035 0 0 2,656 0 0.000 26.46 0.00 2003 4 2,871 0 0 2,511 0 0.000 26.46 0.00 2004 4 2,714 0 0 2,375 0 0.000 26.46 0.00 2005 4 2,566 0 0 2,246 0 0.000 26.46 0.00 2006 4 2,427 0 0 2,123 0 0.000 26.46 0.00 2007 4 2,295 0 0 2,008 0 0.000 26.46 0.00 2008 4 2,170 0 0 1,899 0 0.000 26.46 0.00 2009 4 2,052 0 0 1,795 0 0.000 26.46 0.00 2010 4 1,940 0 0 1,698 0 0.000 26.46 0.00 2011 4 1,835 0 0 1,605 0 0.000 26.46 0.00 2012 4 1,735 0 0 1,518 0 0.000 26.46 0.00 2013 4 1,640 0 0 1,436 0 0.000 26.46 0.00 2014 4 1,552 0 0 1,357 0 0.000 26.46 0.00 2015 4 1,467 0 0 1,284 0 0.000 26.46 0.00 SUB-TOTAL 33,509 0 0 29,320 0 0.000 26.46 0.00 REMAINDER 15,413 0 0 13,487 0 0.000 26.46 0.00 TOTAL 48,922 0 0 42,807 0 0.000 26.46 0.00 CUMULATIVE 113,713 0 0 ULTIMATE 162,635 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 74,319 0 0 0 74,319 119 0 74,200 2002 70,276 0 0 0 70,276 112 0 70,164 2003 66,454 0 0 0 66,454 107 0 66,347 2004 62,838 0 0 0 62,838 100 0 62,738 2005 59,420 0 0 0 59,420 95 0 59,325 2006 56,187 0 0 0 56,187 90 0 56,097 2007 53,131 0 0 0 53,131 85 0 53,046 2008 50,240 0 0 0 50,240 81 0 50,159 2009 47,508 0 0 0 47,508 76 0 47,432 2010 44,922 0 0 0 44,922 71 0 44,851 2011 42,480 0 0 0 42,480 68 0 42,412 2012 40,168 0 0 0 40,168 65 0 40,103 2013 37,983 0 0 0 37,983 60 0 37,923 2014 35,917 0 0 0 35,917 58 0 35,859 2015 33,963 0 0 0 33,963 54 0 33,909 SUB-TOT 775,806 0 0 0 775,806 1,241 0 774,565 REMAIN 356,869 0 0 0 356,869 571 0 356,298 TOTAL 1,132,675 0 0 0 1,132,675 1,812 0 1,130,863
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 13,020 0 0 0 13,020 61,180 61,180 58,265 2002 13,020 0 0 0 13,020 57,144 118,324 49,263 2003 13,020 0 0 0 13,020 53,327 171,651 41,615 2004 13,020 0 0 0 13,020 49,718 221,369 35,121 2005 13,020 0 0 0 13,020 46,305 267,674 29,610 2006 13,020 0 0 0 13,020 43,077 310,751 24,935 2007 13,020 0 0 0 13,020 40,026 350,777 20,973 2008 13,020 0 0 0 13,020 37,139 387,916 17,616 2009 13,020 0 0 0 13,020 34,412 422,328 14,776 2010 13,020 0 0 0 13,020 31,831 454,159 12,372 2011 13,020 0 0 0 13,020 29,392 483,551 10,341 2012 13,020 0 0 0 13,020 27,083 510,634 8,626 2013 13,020 0 0 0 13,020 24,903 535,537 7,180 2014 13,020 0 0 0 13,020 22,839 558,376 5,961 2015 13,020 0 0 0 13,020 20,889 579,265 4,935 SUBTOT 195,300 0 0 0 195,300 579,265 341,589 REMAIN 215,915 0 0 0 215,915 140,383 719,648 20,261 TOTAL 411,215 0 0 0 411,215 719,648 361,850 LIFE OF EVALUATION IS 31.58 YEARS. FINAL PRODUCTION RATE: 47 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 76 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
PLAINVILLE FIELD, ROOKS COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 12-T10S-R18W PROVED ROSS (LANSING) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 26.46 5.00% - 164,667 FINAL - 1.000000 0.875000 26.46 10.00% - 132,907 REMARKS - 15.00% - 110,518 20.00% - 94,158 25.00% - 81,815
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 2 1,701 0 0 1,488 0 0.000 26.46 0.00 2002 2 1,589 0 0 1,391 0 0.000 26.46 0.00 2003 2 1,484 0 0 1,298 0 0.000 26.46 0.00 2004 2 1,386 0 0 1,213 0 0.000 26.46 0.00 2005 2 1,294 0 0 1,133 0 0.000 26.46 0.00 2006 2 1,209 0 0 1,057 0 0.000 26.46 0.00 2007 2 1,130 0 0 989 0 0.000 26.46 0.00 2008 2 1,054 0 0 922 0 0.000 26.46 0.00 2009 2 986 0 0 862 0 0.000 26.46 0.00 2010 2 920 0 0 806 0 0.000 26.46 0.00 2011 2 859 0 0 752 0 0.000 26.46 0.00 2012 2 803 0 0 702 0 0.000 26.46 0.00 2013 2 749 0 0 656 0 0.000 26.46 0.00 2014 2 701 0 0 613 0 0.000 26.46 0.00 2015 2 654 0 0 572 0 0.000 26.46 0.00 SUB-TOTAL 16,519 0 0 14,454 0 0.000 26.46 0.00 REMAINDER 1,884 0 0 1,648 0 0.000 26.46 0.00 TOTAL 18,403 0 0 16,102 0 0.000 26.46 0.00 CUMULATIVE 69,256 0 0 ULTIMATE 87,659 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 39,384 0 0 0 39,384 63 0 39,321 2002 36,785 0 0 0 36,785 59 0 36,726 2003 34,356 0 0 0 34,356 55 0 34,301 2004 32,090 0 0 0 32,090 51 0 32,039 2005 29,971 0 0 0 29,971 48 0 29,923 2006 27,993 0 0 0 27,993 45 0 27,948 2007 26,146 0 0 0 26,146 42 0 26,104 2008 24,420 0 0 0 24,420 39 0 24,381 2009 22,808 0 0 0 22,808 36 0 22,772 2010 21,303 0 0 0 21,303 34 0 21,269 2011 19,897 0 0 0 19,897 32 0 19,865 2012 18,584 0 0 0 18,584 30 0 18,554 2013 17,357 0 0 0 17,357 28 0 17,329 2014 16,212 0 0 0 16,212 26 0 16,186 2015 15,142 0 0 0 15,142 24 0 15,118 SUB-TOT 382,448 0 0 0 382,448 612 0 381,836 REMAIN 43,617 0 0 0 43,617 70 0 43,547 TOTAL 426,065 0 0 0 426,065 682 0 425,383
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 11,664 0 0 0 11,664 27,657 27,657 26,345 2002 11,664 0 0 0 11,664 25,062 52,719 21,612 2003 11,664 0 0 0 11,664 22,637 75,356 17,670 2004 11,664 0 0 0 11,664 20,375 95,731 14,397 2005 11,664 0 0 0 11,664 18,259 113,990 11,680 2006 11,664 0 0 0 11,664 16,284 130,274 9,429 2007 11,664 0 0 0 11,664 14,440 144,714 7,570 2008 11,664 0 0 0 11,664 12,717 157,431 6,035 2009 11,664 0 0 0 11,664 11,108 168,539 4,772 2010 11,664 0 0 0 11,664 9,605 178,144 3,735 2011 11,664 0 0 0 11,664 8,201 186,345 2,888 2012 11,664 0 0 0 11,664 6,890 193,235 2,196 2013 11,664 0 0 0 11,664 5,665 198,900 1,635 2014 11,664 0 0 0 11,664 4,522 203,422 1,182 2015 11,664 0 0 0 11,664 3,454 206,876 817 SUBTOT 174,960 0 0 0 174,960 206,876 131,963 REMAIN 38,880 0 0 0 38,880 4,667 211,543 944 TOTAL 213,840 0 0 0 213,840 211,543 132,907 LIFE OF EVALUATION IS 18.33 YEARS. FINAL PRODUCTION RATE: 42 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 77 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
PLEASANT FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 10-T16S-R17W PROVED BASGALL -C- #4 (DOVER) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 5.00% - 0 FINAL - 1.000000 10.00% - 0 REMARKS - 15.00% - 0 20.00% - 0 25.00% - 0
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 0 0 0 0.000 0.00 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 0 0 0 0.000 0.00 0.00 CUMULATIVE 0 0 13 ULTIMATE 0 0 13
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 0
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUBTOT 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 LIFE OF EVALUATION IS 0.00 YEARS. FINAL PRODUCTION RATE: 0.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 78 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
PLEASANT FIELD, ELLIS COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 22-T13S-R20W PROVED HONAS #1-A (ARBUCKLE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 5.00% - 0 FINAL - 1.000000 10.00% - 0 REMARKS - 15.00% - 0 20.00% - 0 25.00% - 0
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 0 0 0 0.000 0.00 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 0 0 0 0.000 0.00 0.00 CUMULATIVE 65,165 0 0 ULTIMATE 65,165 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 0
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUBTOT 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 LIFE OF EVALUATION IS 0.00 YEARS. FINAL PRODUCTION RATE: 0 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 79 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
PLEASANT VIEW FIELD, RUSH COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 10-T16S-R17W PROVED URBAN -K- (KSSC-LNSG) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 26.46 5.00% - 56,745 FINAL - 1.000000 0.875000 26.46 10.00% - 43,756 REMARKS - 15.00% - 35,160 20.00% - 29,199 25.00% - 24,890
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 507 0 0 444 0 0.000 26.46 0.00 2002 1 486 0 0 425 0 0.000 26.46 0.00 2003 1 466 0 0 408 0 0.000 26.46 0.00 2004 1 446 0 0 390 0 0.000 26.46 0.00 2005 1 427 0 0 374 0 0.000 26.46 0.00 2006 1 410 0 0 358 0 0.000 26.46 0.00 2007 1 392 0 0 343 0 0.000 26.46 0.00 2008 1 376 0 0 329 0 0.000 26.46 0.00 2009 1 360 0 0 315 0 0.000 26.46 0.00 2010 1 345 0 0 302 0 0.000 26.46 0.00 2011 1 330 0 0 289 0 0.000 26.46 0.00 2012 1 316 0 0 277 0 0.000 26.46 0.00 2013 1 304 0 0 265 0 0.000 26.46 0.00 2014 1 290 0 0 254 0 0.000 26.46 0.00 2015 1 278 0 0 244 0 0.000 26.46 0.00 SUB-TOTAL 5,733 0 0 5,017 0 0.000 26.46 0.00 REMAINDER 754 0 0 659 0 0.000 26.46 0.00 TOTAL 6,487 0 0 5,676 0 0.000 26.46 0.00 CUMULATIVE 23,447 0 0 ULTIMATE 29,934 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 11,747 0 0 0 11,747 19 0 11,728 2002 11,253 0 0 0 11,253 18 0 11,235 2003 10,781 0 0 0 10,781 17 0 10,764 2004 10,328 0 0 0 10,328 17 0 10,311 2005 9,894 0 0 0 9,894 15 0 9,879 2006 9,479 0 0 0 9,479 16 0 9,463 2007 9,080 0 0 0 9,080 14 0 9,066 2008 8,699 0 0 0 8,699 14 0 8,685 2009 8,334 0 0 0 8,334 13 0 8,321 2010 7,984 0 0 0 7,984 13 0 7,971 2011 7,648 0 0 0 7,648 12 0 7,636 2012 7,328 0 0 0 7,328 12 0 7,316 2013 7,019 0 0 0 7,019 11 0 7,008 2014 6,725 0 0 0 6,725 11 0 6,714 2015 6,442 0 0 0 6,442 10 0 6,432 SUB-TOT 132,741 0 0 0 132,741 212 0 132,529 REMAIN 17,449 0 0 0 17,449 28 0 17,421 TOTAL 150,190 0 0 0 150,190 240 0 149,950
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 4,044 0 0 0 4,044 7,684 7,684 7,318 2002 4,044 0 0 0 4,044 7,191 14,875 6,199 2003 4,044 0 0 0 4,044 6,720 21,595 5,244 2004 4,044 0 0 0 4,044 6,267 27,862 4,427 2005 4,044 0 0 0 4,044 5,835 33,697 3,731 2006 4,044 0 0 0 4,044 5,419 39,116 3,137 2007 4,044 0 0 0 4,044 5,022 44,138 2,632 2008 4,044 0 0 0 4,044 4,641 48,779 2,201 2009 4,044 0 0 0 4,044 4,277 53,056 1,837 2010 4,044 0 0 0 4,044 3,927 56,983 1,526 2011 4,044 0 0 0 4,044 3,592 60,575 1,264 2012 4,044 0 0 0 4,044 3,272 63,847 1,042 2013 4,044 0 0 0 4,044 2,964 66,811 855 2014 4,044 0 0 0 4,044 2,670 69,481 697 2015 4,044 0 0 0 4,044 2,388 71,869 564 SUBTOT 60,660 0 0 0 60,660 71,869 42,674 REMAIN 11,914 0 0 0 11,914 5,507 77,376 1,082 TOTAL 72,574 0 0 0 72,574 77,376 43,756 LIFE OF EVALUATION IS 17.95 YEARS. FINAL PRODUCTION RATE: 20 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 80 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
PLEASANT VIEW FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 10-T16S-R17W PROVED URBAN -K- #5 BP (DOVER) BEHIND PIPE REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 5.30 5.00% - 106,790 FINAL - 1.000000 0.875000 5.30 10.00% - 80,875 REMARKS - 15.00% - 61,550 20.00% - 47,062 25.00% - 36,146
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 1 0 0 21 0 0 13.808 0.00 5.30 2006 1 0 0 10 0 0 6.546 0.00 5.30 2007 1 0 0 9 0 0 5.513 0.00 5.30 2008 1 0 0 7 0 0 4.643 0.00 5.30 2009 1 0 0 3 0 0 2.039 0.00 5.30 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 50 0 0 32.549 0.00 5.30 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 50 0 0 32.549 0.00 5.30 CUMULATIVE 0 0 0 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 50 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 73,159 0 73,159 0 227 72,932 2006 0 0 34,686 0 34,686 0 107 34,579 2007 0 0 29,213 0 29,213 0 91 29,122 2008 0 0 24,603 0 24,603 0 76 24,527 2009 0 0 10,804 0 10,804 0 34 10,770 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 172,465 0 172,465 0 535 171,930 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 172,465 0 172,465 0 535 171,930
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 4,044 0 12,000 0 16,044 56,888 56,888 36,454 2006 4,044 0 0 0 4,044 30,535 87,423 17,692 2007 4,044 0 0 0 4,044 25,078 112,501 13,155 2008 4,044 0 0 0 4,044 20,483 132,984 9,726 2009 2,022 0 0 0 2,022 8,748 141,732 3,848 2010 0 0 0 0 0 0 141,732 0 2011 0 0 0 0 0 0 141,732 0 2012 0 0 0 0 0 0 141,732 0 2013 0 0 0 0 0 0 141,732 0 2014 0 0 0 0 0 0 141,732 0 2015 0 0 0 0 0 0 141,732 0 SUBTOT 18,198 0 12,000 0 30,198 141,732 80,875 REMAIN 0 0 0 0 0 0 141,732 0 TOTAL 18,198 0 12,000 0 30,198 141,732 80,875 LIFE OF EVALUATION IS 8.50 YEARS. FINAL PRODUCTION RATE: 0.5 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 81 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
PLEASANT VIEW NW FIELD, RUSH COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 10-T16S-R17W PROVED URBAN (KSSC-LNSG) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 26.46 5.00% - 72,117 FINAL - 1.000000 0.875000 26.46 10.00% - 64,151 REMARKS - 15.00% - 57,534 20.00% - 51,989 25.00% - 47,304
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 3 2,367 0 0 2,071 0 0.000 26.46 0.00 2002 3 2,229 0 0 1,951 0 0.000 26.46 0.00 2003 3 2,101 0 0 1,838 0 0.000 26.46 0.00 2004 3 1,978 0 0 1,731 0 0.000 26.46 0.00 2005 3 1,864 0 0 1,631 0 0.000 26.46 0.00 2006 3 1,755 0 0 1,536 0 0.000 26.46 0.00 2007 3 1,654 0 0 1,447 0 0.000 26.46 0.00 2008 3 1,558 0 0 1,363 0 0.000 26.46 0.00 2009 3 251 0 0 219 0 0.000 26.46 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 15,757 0 0 13,787 0 0.000 26.46 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 15,757 0 0 13,787 0 0.000 26.46 0.00 CUMULATIVE 74,403 0 0 ULTIMATE 90,160 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 54,799 0 0 0 54,799 88 0 54,711 2002 51,620 0 0 0 51,620 82 0 51,538 2003 48,627 0 0 0 48,627 78 0 48,549 2004 45,806 0 0 0 45,806 73 0 45,733 2005 43,150 0 0 0 43,150 69 0 43,081 2006 40,646 0 0 0 40,646 65 0 40,581 2007 38,290 0 0 0 38,290 62 0 38,228 2008 36,068 0 0 0 36,068 57 0 36,011 2009 5,805 0 0 0 5,805 10 0 5,795 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 364,811 0 0 0 364,811 584 0 364,227 REMAIN 0 0 0 0 0 0 0 0 TOTAL 364,811 0 0 0 364,811 584 0 364,227
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 34,584 0 0 0 34,584 20,127 20,127 19,183 2002 34,584 0 0 0 34,584 16,954 37,081 14,629 2003 34,584 0 0 0 34,584 13,965 51,046 10,911 2004 34,584 0 0 0 34,584 11,149 62,195 7,887 2005 34,584 0 0 0 34,584 8,497 70,692 5,443 2006 34,584 0 0 0 34,584 5,997 76,689 3,481 2007 34,584 0 0 0 34,584 3,644 80,333 1,918 2008 34,584 0 0 0 34,584 1,427 81,760 685 2009 5,764 0 0 0 5,764 31 81,791 14 2010 0 0 0 0 0 0 81,791 0 2011 0 0 0 0 0 0 81,791 0 2012 0 0 0 0 0 0 81,791 0 2013 0 0 0 0 0 0 81,791 0 2014 0 0 0 0 0 0 81,791 0 2015 0 0 0 0 0 0 81,791 0 SUBTOT 282,436 0 0 0 282,436 81,791 64,151 REMAIN 0 0 0 0 0 0 81,791 0 TOTAL 282,436 0 0 0 282,436 81,791 64,151 LIFE OF EVALUATION IS 8.17 YEARS. FINAL PRODUCTION RATE: 125 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 82 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
PLEASANT VIEW NW FIELD, RUSH COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 10-T16S-R17W PROVED URBAN #6 PUD (KSSC-LNSG) UNDEVELOPED REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 26.46 5.00% - 178,846 FINAL - 1.000000 0.875000 26.46 10.00% - 114,893 REMARKS - 15.00% - 75,786 20.00% - 50,271 25.00% - 32,702
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 2,028 0 0 1,775 0 0.000 26.46 0.00 2002 1 2,449 0 0 2,142 0 0.000 26.46 0.00 2003 1 1,657 0 0 1,451 0 0.000 26.46 0.00 2004 1 1,591 0 0 1,391 0 0.000 26.46 0.00 2005 1 1,526 0 0 1,336 0 0.000 26.46 0.00 2006 1 1,464 0 0 1,281 0 0.000 26.46 0.00 2007 1 1,406 0 0 1,229 0 0.000 26.46 0.00 2008 1 1,348 0 0 1,180 0 0.000 26.46 0.00 2009 1 1,293 0 0 1,132 0 0.000 26.46 0.00 2010 1 1,241 0 0 1,086 0 0.000 26.46 0.00 2011 1 1,191 0 0 1,042 0 0.000 26.46 0.00 2012 1 1,143 0 0 1,000 0 0.000 26.46 0.00 2013 1 1,096 0 0 959 0 0.000 26.46 0.00 2014 1 1,052 0 0 921 0 0.000 26.46 0.00 2015 1 1,010 0 0 883 0 0.000 26.46 0.00 SUB-TOTAL 21,495 0 0 18,808 0 0.000 26.46 0.00 REMAINDER 6,505 0 0 5,692 0 0.000 26.46 0.00 TOTAL 28,000 0 0 24,500 0 0.000 26.46 0.00 CUMULATIVE 0 0 0 ULTIMATE 28,000 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 46,959 0 0 0 46,959 75 0 46,884 2002 56,686 0 0 0 56,686 91 0 56,595 2003 38,380 0 0 0 38,380 61 0 38,319 2004 36,827 0 0 0 36,827 59 0 36,768 2005 35,334 0 0 0 35,334 57 0 35,277 2006 33,904 0 0 0 33,904 54 0 33,850 2007 32,531 0 0 0 32,531 52 0 32,479 2008 31,213 0 0 0 31,213 50 0 31,163 2009 29,949 0 0 0 29,949 48 0 29,901 2010 28,736 0 0 0 28,736 46 0 28,690 2011 27,573 0 0 0 27,573 44 0 27,529 2012 26,455 0 0 0 26,455 42 0 26,413 2013 25,384 0 0 0 25,384 41 0 25,343 2014 24,356 0 0 0 24,356 39 0 24,317 2015 23,370 0 0 0 23,370 37 0 23,333 SUB-TOT 497,657 0 0 0 497,657 796 0 496,861 REMAIN 150,604 0 0 0 150,604 241 0 150,363 TOTAL 648,261 0 0 0 648,261 1,037 0 647,224
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 5,766 0 100,000 0 105,766 -58,882 -58,882 -56,525 2002 11,532 0 0 0 11,532 45,063 -13,819 39,102 2003 11,532 0 0 0 11,532 26,787 12,968 20,903 2004 11,532 0 0 0 11,532 25,236 38,204 17,825 2005 11,532 0 0 0 11,532 23,745 61,949 15,183 2006 11,532 0 0 0 11,532 22,318 84,267 12,917 2007 11,532 0 0 0 11,532 20,947 105,214 10,975 2008 11,532 0 0 0 11,532 19,631 124,845 9,311 2009 11,532 0 0 0 11,532 18,369 143,214 7,887 2010 11,532 0 0 0 11,532 17,158 160,372 6,668 2011 11,532 0 0 0 11,532 15,997 176,369 5,628 2012 11,532 0 0 0 11,532 14,881 191,250 4,739 2013 11,532 0 0 0 11,532 13,811 205,061 3,982 2014 11,532 0 0 0 11,532 12,785 217,846 3,336 2015 11,532 0 0 0 11,532 11,801 229,647 2,788 SUBTOT 167,214 0 100,000 0 267,214 229,647 104,719 REMAIN 88,555 0 0 0 88,555 61,808 291,455 10,174 TOTAL 255,769 0 100,000 0 355,769 291,455 114,893 LIFE OF EVALUATION IS 22.68 YEARS. FINAL PRODUCTION RATE: 60 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 83 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
PLEASANT VIEW NW FIELD, RUSH COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 10-T16S-R17W PROVED URBAN #7 PUD (KSSC-LNSG) UNDEVELOPED REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 26.46 5.00% - 176,629 FINAL - 1.000000 0.875000 26.46 10.00% - 112,068 REMARKS - 15.00% - 73,014 20.00% - 47,839 25.00% - 30,740
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 1,102 0 0 964 0 0.000 26.46 0.00 2002 1 2,911 0 0 2,548 0 0.000 26.46 0.00 2003 1 1,713 0 0 1,499 0 0.000 26.46 0.00 2004 1 1,607 0 0 1,406 0 0.000 26.46 0.00 2005 1 1,542 0 0 1,349 0 0.000 26.46 0.00 2006 1 1,480 0 0 1,295 0 0.000 26.46 0.00 2007 1 1,420 0 0 1,242 0 0.000 26.46 0.00 2008 1 1,362 0 0 1,192 0 0.000 26.46 0.00 2009 1 1,307 0 0 1,143 0 0.000 26.46 0.00 2010 1 1,254 0 0 1,098 0 0.000 26.46 0.00 2011 1 1,203 0 0 1,053 0 0.000 26.46 0.00 2012 1 1,155 0 0 1,010 0 0.000 26.46 0.00 2013 1 1,108 0 0 969 0 0.000 26.46 0.00 2014 1 1,062 0 0 930 0 0.000 26.46 0.00 2015 1 1,020 0 0 893 0 0.000 26.46 0.00 SUB-TOTAL 21,246 0 0 18,591 0 0.000 26.46 0.00 REMAINDER 6,754 0 0 5,909 0 0.000 26.46 0.00 TOTAL 28,000 0 0 24,500 0 0.000 26.46 0.00 CUMULATIVE 0 0 0 ULTIMATE 28,000 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 25,509 0 0 0 25,509 41 0 25,468 2002 67,410 0 0 0 67,410 108 0 67,302 2003 39,659 0 0 0 39,659 63 0 39,596 2004 37,209 0 0 0 37,209 60 0 37,149 2005 35,702 0 0 0 35,702 57 0 35,645 2006 34,256 0 0 0 34,256 55 0 34,201 2007 32,869 0 0 0 32,869 52 0 32,817 2008 31,537 0 0 0 31,537 51 0 31,486 2009 30,261 0 0 0 30,261 48 0 30,213 2010 29,034 0 0 0 29,034 47 0 28,987 2011 27,859 0 0 0 27,859 44 0 27,815 2012 26,730 0 0 0 26,730 43 0 26,687 2013 25,648 0 0 0 25,648 41 0 25,607 2014 24,610 0 0 0 24,610 39 0 24,571 2015 23,612 0 0 0 23,612 38 0 23,574 SUB-TOT 491,905 0 0 0 491,905 787 0 491,118 REMAIN 156,356 0 0 0 156,356 250 0 156,106 TOTAL 648,261 0 0 0 648,261 1,037 0 647,224
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 2,883 0 100,000 0 102,883 -77,415 -77,415 -71,711 2002 11,532 0 0 0 11,532 55,770 -21,645 48,381 2003 11,532 0 0 0 11,532 28,064 6,419 21,926 2004 11,532 0 0 0 11,532 25,617 32,036 18,095 2005 11,532 0 0 0 11,532 24,113 56,149 15,418 2006 11,532 0 0 0 11,532 22,669 78,818 13,121 2007 11,532 0 0 0 11,532 21,285 100,103 11,152 2008 11,532 0 0 0 11,532 19,954 120,057 9,464 2009 11,532 0 0 0 11,532 18,681 138,738 8,020 2010 11,532 0 0 0 11,532 17,455 156,193 6,784 2011 11,532 0 0 0 11,532 16,283 172,476 5,728 2012 11,532 0 0 0 11,532 15,155 187,631 4,827 2013 11,532 0 0 0 11,532 14,075 201,706 4,058 2014 11,532 0 0 0 11,532 13,039 214,745 3,402 2015 11,532 0 0 0 11,532 12,042 226,787 2,845 SUBTOT 164,331 0 100,000 0 264,331 226,787 101,510 REMAIN 91,438 0 0 0 91,438 64,668 291,455 10,558 TOTAL 255,769 0 100,000 0 355,769 291,455 112,068 LIFE OF EVALUATION IS 22.93 YEARS. FINAL PRODUCTION RATE: 60 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 84 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 33-T16S-R16W PROVED ALLEN #1 A&D (SHAWNEE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 5.30 5.00% - 559,169 FINAL - 1.000000 0.875000 5.30 10.00% - 346,253 REMARKS - 15.00% - 246,935 20.00% - 191,463 25.00% - 156,376
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 12 0 0 7.844 0.00 5.30 2002 1 0 0 12 0 0 7.687 0.00 5.30 2003 1 0 0 11 0 0 7.534 0.00 5.30 2004 1 0 0 12 0 0 7.383 0.00 5.30 2005 1 0 0 11 0 0 7.235 0.00 5.30 2006 1 0 0 11 0 0 7.091 0.00 5.30 2007 1 0 0 10 0 0 6.949 0.00 5.30 2008 1 0 0 11 0 0 6.810 0.00 5.30 2009 1 0 0 10 0 0 6.674 0.00 5.30 2010 1 0 0 10 0 0 6.540 0.00 5.30 2011 1 0 0 10 0 0 6.409 0.00 5.30 2012 1 0 0 10 0 0 6.281 0.00 5.30 2013 1 0 0 9 0 0 6.155 0.00 5.30 2014 1 0 0 9 0 0 6.032 0.00 5.30 2015 1 0 0 10 0 0 5.912 0.00 5.30 SUB-TOTAL 0 0 158 0 0 102.536 0.00 5.30 REMAINDER 0 0 172 0 0 112.496 0.00 5.30 TOTAL 0 0 330 0 0 215.032 0.00 5.30 CUMULATIVE 0 0 147 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 477 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 41,562 0 41,562 0 129 41,433 2002 0 0 40,732 0 40,732 0 126 40,606 2003 0 0 39,916 0 39,916 0 124 39,792 2004 0 0 39,118 0 39,118 0 121 38,997 2005 0 0 38,336 0 38,336 0 119 38,217 2006 0 0 37,569 0 37,569 0 116 37,453 2007 0 0 36,818 0 36,818 0 115 36,703 2008 0 0 36,081 0 36,081 0 111 35,970 2009 0 0 35,360 0 35,360 0 110 35,250 2010 0 0 34,652 0 34,652 0 107 34,545 2011 0 0 33,960 0 33,960 0 106 33,854 2012 0 0 33,280 0 33,280 0 103 33,177 2013 0 0 32,615 0 32,615 0 101 32,514 2014 0 0 31,962 0 31,962 0 99 31,863 2015 0 0 31,323 0 31,323 0 97 31,226 SUB-TOT 0 0 543,284 0 543,284 0 1,684 541,600 REMAIN 0 0 596,057 0 596,057 0 1,848 594,209 TOTAL 0 0 1,139,341 0 1,139,341 0 3,532 1,135,809
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 41,433 41,433 39,443 2002 0 0 0 0 0 40,606 82,039 34,992 2003 0 0 0 0 0 39,792 121,831 31,040 2004 0 0 0 0 0 38,997 160,828 27,537 2005 0 0 0 0 0 38,217 199,045 24,427 2006 0 0 0 0 0 37,453 236,498 21,671 2007 0 0 0 0 0 36,703 273,201 19,223 2008 0 0 0 0 0 35,970 309,171 17,054 2009 0 0 0 0 0 35,250 344,421 15,128 2010 0 0 0 0 0 34,545 378,966 13,420 2011 0 0 0 0 0 33,854 412,820 11,906 2012 0 0 0 0 0 33,177 445,997 10,561 2013 0 0 0 0 0 32,514 478,511 9,369 2014 0 0 0 0 0 31,863 510,374 8,312 2015 0 0 0 0 0 31,226 541,600 7,373 SUBTOT 0 0 0 0 0 541,600 291,456 REMAIN 0 0 0 0 0 594,209 1,135,809 54,797 TOTAL 0 0 0 0 0 1,135,809 346,253 LIFE OF EVALUATION IS 39.33 YEARS. FINAL PRODUCTION RATE: 0.5 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 85 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 10-T17S-R17W PROVED APPL #1 (TOPEKA) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 5.30 5.00% - 37,856 FINAL - 1.000000 0.875000 5.30 10.00% - 28,250 REMARKS - 15.00% - 22,258 20.00% - 18,264 25.00% - 15,449
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 2 0 0 1.600 0.00 5.30 2002 1 0 0 3 0 0 1.552 0.00 5.30 2003 1 0 0 2 0 0 1.505 0.00 5.30 2004 1 0 0 2 0 0 1.460 0.00 5.30 2005 1 0 0 3 0 0 1.416 0.00 5.30 2006 1 0 0 2 0 0 1.374 0.00 5.30 2007 1 0 0 2 0 0 1.332 0.00 5.30 2008 1 0 0 2 0 0 1.292 0.00 5.30 2009 1 0 0 2 0 0 1.254 0.00 5.30 2010 1 0 0 2 0 0 1.216 0.00 5.30 2011 1 0 0 1 0 0 1.180 0.00 5.30 2012 1 0 0 2 0 0 1.144 0.00 5.30 2013 1 0 0 2 0 0 1.110 0.00 5.30 2014 1 0 0 1 0 0 1.077 0.00 5.30 2015 1 0 0 2 0 0 1.044 0.00 5.30 SUB-TOTAL 0 0 30 0 0 19.556 0.00 5.30 REMAINDER 0 0 13 0 0 8.113 0.00 5.30 TOTAL 0 0 43 0 0 27.669 0.00 5.30 CUMULATIVE 0 0 817 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 860 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 8,476 0 8,476 0 26 8,450 2002 0 0 8,221 0 8,221 0 26 8,195 2003 0 0 7,975 0 7,975 0 24 7,951 2004 0 0 7,735 0 7,735 0 24 7,711 2005 0 0 7,503 0 7,503 0 24 7,479 2006 0 0 7,279 0 7,279 0 22 7,257 2007 0 0 7,060 0 7,060 0 22 7,038 2008 0 0 6,848 0 6,848 0 21 6,827 2009 0 0 6,643 0 6,643 0 21 6,622 2010 0 0 6,443 0 6,443 0 20 6,423 2011 0 0 6,250 0 6,250 0 19 6,231 2012 0 0 6,063 0 6,063 0 19 6,044 2013 0 0 5,880 0 5,880 0 18 5,862 2014 0 0 5,705 0 5,705 0 18 5,687 2015 0 0 5,533 0 5,533 0 17 5,516 SUB-TOT 0 0 103,614 0 103,614 0 321 103,293 REMAIN 0 0 42,985 0 42,985 0 133 42,852 TOTAL 0 0 146,599 0 146,599 0 454 146,145
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 3,816 0 0 0 3,816 4,634 4,634 4,413 2002 3,816 0 0 0 3,816 4,379 9,013 3,774 2003 3,816 0 0 0 3,816 4,135 13,148 3,227 2004 3,816 0 0 0 3,816 3,895 17,043 2,751 2005 3,816 0 0 0 3,816 3,663 20,706 2,342 2006 3,816 0 0 0 3,816 3,441 24,147 1,992 2007 3,816 0 0 0 3,816 3,222 27,369 1,688 2008 3,816 0 0 0 3,816 3,011 30,380 1,428 2009 3,816 0 0 0 3,816 2,806 33,186 1,205 2010 3,816 0 0 0 3,816 2,607 35,793 1,013 2011 3,816 0 0 0 3,816 2,415 38,208 850 2012 3,816 0 0 0 3,816 2,228 40,436 709 2013 3,816 0 0 0 3,816 2,046 42,482 590 2014 3,816 0 0 0 3,816 1,871 44,353 489 2015 3,816 0 0 0 3,816 1,700 46,053 401 SUBTOT 57,240 0 0 0 57,240 46,053 26,872 REMAIN 34,426 0 0 0 34,426 8,426 54,479 1,378 TOTAL 91,666 0 0 0 91,666 54,479 28,250 LIFE OF EVALUATION IS 24.02 YEARS. FINAL PRODUCTION RATE: 0.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 86 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 10-T17S-R17W PROVED APPL #2 (TOPEKA) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.820313 5.30 5.00% - 12,925 FINAL - 1.000000 0.820313 5.30 10.00% - 12,296 REMARKS - 15.00% - 11,717 20.00% - 11,183 25.00% - 10,688
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 4 0 0 2.468 0.00 5.30 2002 1 0 0 3 0 0 1.851 0.00 5.30 2003 1 0 0 2 0 0 1.388 0.00 5.30 2004 1 0 0 1 0 0 0.470 0.00 5.30 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 10 0 0 6.177 0.00 5.30 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 10 0 0 6.177 0.00 5.30 CUMULATIVE 0 0 444 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 454 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 13,077 0 13,077 0 41 13,036 2002 0 0 9,808 0 9,808 0 30 9,778 2003 0 0 7,356 0 7,356 0 23 7,333 2004 0 0 2,493 0 2,493 0 7 2,486 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 32,734 0 32,734 0 101 32,633 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 32,734 0 32,734 0 101 32,633
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 5,568 0 0 0 5,568 7,468 7,468 7,138 2002 5,568 0 0 0 5,568 4,210 11,678 3,647 2003 5,568 0 0 0 5,568 1,765 13,443 1,390 2004 2,320 0 0 0 2,320 166 13,609 121 2005 0 0 0 0 0 0 13,609 0 2006 0 0 0 0 0 0 13,609 0 2007 0 0 0 0 0 0 13,609 0 2008 0 0 0 0 0 0 13,609 0 2009 0 0 0 0 0 0 13,609 0 2010 0 0 0 0 0 0 13,609 0 2011 0 0 0 0 0 0 13,609 0 2012 0 0 0 0 0 0 13,609 0 2013 0 0 0 0 0 0 13,609 0 2014 0 0 0 0 0 0 13,609 0 2015 0 0 0 0 0 0 13,609 0 SUBTOT 19,024 0 0 0 19,024 13,609 12,296 REMAIN 0 0 0 0 0 0 13,609 0 TOTAL 19,024 0 0 0 19,024 13,609 12,296 LIFE OF EVALUATION IS 3.42 YEARS. FINAL PRODUCTION RATE: 0.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 87 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 36-T17S-R17W PROVED BEAHM #1 (LANSING) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.820313 5.30 5.00% - 100,481 FINAL - 1.000000 0.820313 5.30 10.00% - 73,863 REMARKS - 15.00% - 57,646 20.00% - 47,026 25.00% - 39,637
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 5 0 0 2.911 0.00 5.30 2002 1 0 0 4 0 0 2.789 0.00 5.30 2003 1 0 0 5 0 0 2.672 0.00 5.30 2004 1 0 0 4 0 0 2.560 0.00 5.30 2005 1 0 0 4 0 0 2.452 0.00 5.30 2006 1 0 0 4 0 0 2.349 0.00 5.30 2007 1 0 0 3 0 0 2.250 0.00 5.30 2008 1 0 0 4 0 0 2.156 0.00 5.30 2009 1 0 0 3 0 0 2.065 0.00 5.30 2010 1 0 0 4 0 0 1.979 0.00 5.30 2011 1 0 0 3 0 0 1.896 0.00 5.30 2012 1 0 0 3 0 0 1.816 0.00 5.30 2013 1 0 0 3 0 0 1.740 0.00 5.30 2014 1 0 0 2 0 0 1.667 0.00 5.30 2015 1 0 0 3 0 0 1.597 0.00 5.30 SUB-TOTAL 0 0 54 0 0 32.899 0.00 5.30 REMAINDER 0 0 18 0 0 10.814 0.00 5.30 TOTAL 0 0 72 0 0 43.713 0.00 5.30 CUMULATIVE 0 0 433 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 505 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 15,425 0 15,425 0 48 15,377 2002 0 0 14,778 0 14,778 0 46 14,732 2003 0 0 14,157 0 14,157 0 44 14,113 2004 0 0 13,562 0 13,562 0 42 13,520 2005 0 0 12,992 0 12,992 0 40 12,952 2006 0 0 12,447 0 12,447 0 38 12,409 2007 0 0 11,924 0 11,924 0 37 11,887 2008 0 0 11,424 0 11,424 0 36 11,388 2009 0 0 10,943 0 10,943 0 34 10,909 2010 0 0 10,484 0 10,484 0 32 10,452 2011 0 0 10,044 0 10,044 0 31 10,013 2012 0 0 9,622 0 9,622 0 30 9,592 2013 0 0 9,217 0 9,217 0 29 9,188 2014 0 0 8,831 0 8,831 0 27 8,804 2015 0 0 8,459 0 8,459 0 26 8,433 SUB-TOT 0 0 174,309 0 174,309 0 540 173,769 REMAIN 0 0 57,300 0 57,300 0 178 57,122 TOTAL 0 0 231,609 0 231,609 0 718 230,891
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 3,576 0 0 0 3,576 11,801 11,801 11,238 2002 3,576 0 0 0 3,576 11,156 22,957 9,616 2003 3,576 0 0 0 3,576 10,537 33,494 8,222 2004 3,576 0 0 0 3,576 9,944 43,438 7,024 2005 3,576 0 0 0 3,576 9,376 52,814 5,995 2006 3,576 0 0 0 3,576 8,833 61,647 5,112 2007 3,576 0 0 0 3,576 8,311 69,958 4,355 2008 3,576 0 0 0 3,576 7,812 77,770 3,705 2009 3,576 0 0 0 3,576 7,333 85,103 3,148 2010 3,576 0 0 0 3,576 6,876 91,979 2,672 2011 3,576 0 0 0 3,576 6,437 98,416 2,265 2012 3,576 0 0 0 3,576 6,016 104,432 1,916 2013 3,576 0 0 0 3,576 5,612 110,044 1,618 2014 3,576 0 0 0 3,576 5,228 115,272 1,364 2015 3,576 0 0 0 3,576 4,857 120,129 1,147 SUBTOT 53,640 0 0 0 53,640 120,129 69,397 REMAIN 29,364 0 0 0 29,364 27,758 147,887 4,466 TOTAL 83,004 0 0 0 83,004 147,887 73,863 LIFE OF EVALUATION IS 23.21 YEARS. FINAL PRODUCTION RATE: 0.2 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 88 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 15-T17S-R17W PROVED BIEBER #1 (TOPEKA) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.820313 5.30 5.00% - 164,204 FINAL - 1.000000 0.820313 5.30 10.00% - 104,957 REMARKS - 15.00% - 76,161 20.00% - 59,636 25.00% - 49,004
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 5 0 0 3.263 0.00 5.30 2002 1 0 0 6 0 0 3.198 0.00 5.30 2003 1 0 0 5 0 0 3.134 0.00 5.30 2004 1 0 0 5 0 0 3.071 0.00 5.30 2005 1 0 0 5 0 0 3.010 0.00 5.30 2006 1 0 0 5 0 0 2.950 0.00 5.30 2007 1 0 0 4 0 0 2.891 0.00 5.30 2008 1 0 0 5 0 0 2.833 0.00 5.30 2009 1 0 0 4 0 0 2.776 0.00 5.30 2010 1 0 0 5 0 0 2.721 0.00 5.30 2011 1 0 0 4 0 0 2.666 0.00 5.30 2012 1 0 0 5 0 0 2.613 0.00 5.30 2013 1 0 0 4 0 0 2.561 0.00 5.30 2014 1 0 0 4 0 0 2.510 0.00 5.30 2015 1 0 0 4 0 0 2.459 0.00 5.30 SUB-TOTAL 0 0 70 0 0 42.656 0.00 5.30 REMAINDER 0 0 77 0 0 46.801 0.00 5.30 TOTAL 0 0 147 0 0 89.457 0.00 5.30 CUMULATIVE 0 0 73 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 220 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 17,291 0 17,291 0 54 17,237 2002 0 0 16,945 0 16,945 0 52 16,893 2003 0 0 16,606 0 16,606 0 52 16,554 2004 0 0 16,274 0 16,274 0 50 16,224 2005 0 0 15,948 0 15,948 0 49 15,899 2006 0 0 15,630 0 15,630 0 49 15,581 2007 0 0 15,317 0 15,317 0 47 15,270 2008 0 0 15,010 0 15,010 0 47 14,963 2009 0 0 14,711 0 14,711 0 46 14,665 2010 0 0 14,416 0 14,416 0 44 14,372 2011 0 0 14,127 0 14,127 0 44 14,083 2012 0 0 13,846 0 13,846 0 43 13,803 2013 0 0 13,568 0 13,568 0 42 13,526 2014 0 0 13,297 0 13,297 0 41 13,256 2015 0 0 13,031 0 13,031 0 41 12,990 SUB-TOT 0 0 226,017 0 226,017 0 701 225,316 REMAIN 0 0 247,972 0 247,972 0 768 247,204 TOTAL 0 0 473,989 0 473,989 0 1,469 472,520
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 3,972 0 0 0 3,972 13,265 13,265 12,629 2002 3,972 0 0 0 3,972 12,921 26,186 11,135 2003 3,972 0 0 0 3,972 12,582 38,768 9,815 2004 3,972 0 0 0 3,972 12,252 51,020 8,652 2005 3,972 0 0 0 3,972 11,927 62,947 7,624 2006 3,972 0 0 0 3,972 11,609 74,556 6,717 2007 3,972 0 0 0 3,972 11,298 85,854 5,918 2008 3,972 0 0 0 3,972 10,991 96,845 5,211 2009 3,972 0 0 0 3,972 10,693 107,538 4,589 2010 3,972 0 0 0 3,972 10,400 117,938 4,041 2011 3,972 0 0 0 3,972 10,111 128,049 3,556 2012 3,972 0 0 0 3,972 9,831 137,880 3,130 2013 3,972 0 0 0 3,972 9,554 147,434 2,753 2014 3,972 0 0 0 3,972 9,284 156,718 2,422 2015 3,972 0 0 0 3,972 9,018 165,736 2,129 SUBTOT 59,580 0 0 0 59,580 165,736 90,321 REMAIN 96,652 0 0 0 96,652 150,552 316,288 14,636 TOTAL 156,232 0 0 0 156,232 316,288 104,957 LIFE OF EVALUATION IS 39.33 YEARS. FINAL PRODUCTION RATE: 0.2 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 89 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 15-T17S-R17W PROVED BIEBER -A- #1 (TOPEKA) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.820313 5.30 5.00% - 148,316 FINAL - 1.000000 0.820313 5.30 10.00% - 99,283 REMARKS - 15.00% - 73,598 20.00% - 58,284 25.00% - 48,226
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 5 0 0 2.921 0.00 5.30 2002 1 0 0 4 0 0 2.834 0.00 5.30 2003 1 0 0 5 0 0 2.749 0.00 5.30 2004 1 0 0 4 0 0 2.666 0.00 5.30 2005 1 0 0 5 0 0 2.586 0.00 5.30 2006 1 0 0 4 0 0 2.509 0.00 5.30 2007 1 0 0 4 0 0 2.433 0.00 5.30 2008 1 0 0 4 0 0 2.360 0.00 5.30 2009 1 0 0 3 0 0 2.290 0.00 5.30 2010 1 0 0 4 0 0 2.221 0.00 5.30 2011 1 0 0 3 0 0 2.154 0.00 5.30 2012 1 0 0 4 0 0 2.090 0.00 5.30 2013 1 0 0 3 0 0 2.027 0.00 5.30 2014 1 0 0 3 0 0 1.966 0.00 5.30 2015 1 0 0 4 0 0 1.907 0.00 5.30 SUB-TOTAL 0 0 59 0 0 35.713 0.00 5.30 REMAINDER 0 0 41 0 0 25.594 0.00 5.30 TOTAL 0 0 100 0 0 61.307 0.00 5.30 CUMULATIVE 0 0 71 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 171 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 15,479 0 15,479 0 48 15,431 2002 0 0 15,015 0 15,015 0 47 14,968 2003 0 0 14,564 0 14,564 0 45 14,519 2004 0 0 14,127 0 14,127 0 43 14,084 2005 0 0 13,704 0 13,704 0 43 13,661 2006 0 0 13,292 0 13,292 0 41 13,251 2007 0 0 12,893 0 12,893 0 40 12,853 2008 0 0 12,507 0 12,507 0 39 12,468 2009 0 0 12,132 0 12,132 0 38 12,094 2010 0 0 11,767 0 11,767 0 36 11,731 2011 0 0 11,415 0 11,415 0 35 11,380 2012 0 0 11,072 0 11,072 0 35 11,037 2013 0 0 10,740 0 10,740 0 33 10,707 2014 0 0 10,418 0 10,418 0 32 10,386 2015 0 0 10,105 0 10,105 0 32 10,073 SUB-TOT 0 0 189,230 0 189,230 0 587 188,643 REMAIN 0 0 135,611 0 135,611 0 420 135,191 TOTAL 0 0 324,841 0 324,841 0 1,007 323,834
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 2,016 0 0 0 2,016 13,415 13,415 12,772 2002 2,016 0 0 0 2,016 12,952 26,367 11,163 2003 2,016 0 0 0 2,016 12,503 38,870 9,754 2004 2,016 0 0 0 2,016 12,068 50,938 8,523 2005 2,016 0 0 0 2,016 11,645 62,583 7,444 2006 2,016 0 0 0 2,016 11,235 73,818 6,501 2007 2,016 0 0 0 2,016 10,837 84,655 5,677 2008 2,016 0 0 0 2,016 10,452 95,107 4,956 2009 2,016 0 0 0 2,016 10,078 105,185 4,326 2010 2,016 0 0 0 2,016 9,715 114,900 3,775 2011 2,016 0 0 0 2,016 9,364 124,264 3,293 2012 2,016 0 0 0 2,016 9,021 133,285 2,872 2013 2,016 0 0 0 2,016 8,691 141,976 2,505 2014 2,016 0 0 0 2,016 8,370 150,346 2,184 2015 2,016 0 0 0 2,016 8,057 158,403 1,902 SUBTOT 30,240 0 0 0 30,240 158,403 87,647 REMAIN 35,491 0 0 0 35,491 99,700 258,103 11,636 TOTAL 65,731 0 0 0 65,731 258,103 99,283 LIFE OF EVALUATION IS 32.60 YEARS. FINAL PRODUCTION RATE: 0.2 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 90 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 34-T17S-R16W PROVED BRACK -A- #3 (GRANITE WASH) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 5.30 5.00% - 18,372 FINAL - 1.000000 0.875000 5.30 10.00% - 15,058 REMARKS - 15.00% - 12,577 20.00% - 10,689 25.00% - 9,229
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 1 0 0 0.959 0.00 5.30 2002 1 0 0 2 0 0 0.938 0.00 5.30 2003 1 0 0 1 0 0 0.918 0.00 5.30 2004 1 0 0 2 0 0 0.898 0.00 5.30 2005 1 0 0 1 0 0 0.879 0.00 5.30 2006 1 0 0 1 0 0 0.860 0.00 5.30 2007 1 0 0 2 0 0 0.841 0.00 5.30 2008 1 0 0 1 0 0 0.823 0.00 5.30 2009 1 0 0 1 0 0 0.805 0.00 5.30 2010 1 0 0 1 0 0 0.698 0.00 5.30 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 13 0 0 8.619 0.00 5.30 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 13 0 0 8.619 0.00 5.30 CUMULATIVE 0 0 28 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 41 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 5,081 0 5,081 0 16 5,065 2002 0 0 4,971 0 4,971 0 15 4,956 2003 0 0 4,864 0 4,864 0 15 4,849 2004 0 0 4,759 0 4,759 0 15 4,744 2005 0 0 4,656 0 4,656 0 14 4,642 2006 0 0 4,556 0 4,556 0 15 4,541 2007 0 0 4,457 0 4,457 0 13 4,444 2008 0 0 4,360 0 4,360 0 14 4,346 2009 0 0 4,267 0 4,267 0 13 4,254 2010 0 0 3,698 0 3,698 0 12 3,686 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 45,669 0 45,669 0 142 45,527 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 45,669 0 45,669 0 142 45,527
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 2,292 0 0 0 2,292 2,773 2,773 2,640 2002 2,292 0 0 0 2,292 2,664 5,437 2,296 2003 2,292 0 0 0 2,292 2,557 7,994 1,995 2004 2,292 0 0 0 2,292 2,452 10,446 1,732 2005 2,292 0 0 0 2,292 2,350 12,796 1,502 2006 2,292 0 0 0 2,292 2,249 15,045 1,302 2007 2,292 0 0 0 2,292 2,152 17,197 1,127 2008 2,292 0 0 0 2,292 2,054 19,251 974 2009 2,292 0 0 0 2,292 1,962 21,213 843 2010 2,028 0 0 0 2,028 1,658 22,871 647 2011 0 0 0 0 0 0 22,871 0 2012 0 0 0 0 0 0 22,871 0 2013 0 0 0 0 0 0 22,871 0 2014 0 0 0 0 0 0 22,871 0 2015 0 0 0 0 0 0 22,871 0 SUBTOT 22,656 0 0 0 22,656 22,871 15,058 REMAIN 0 0 0 0 0 0 22,871 0 TOTAL 22,656 0 0 0 22,656 22,871 15,058 LIFE OF EVALUATION IS 9.88 YEARS. FINAL PRODUCTION RATE: 0.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 91 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 7-T16S-R17W PROVED BREIT #1 (TOPEKA) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 5.00% - 0 FINAL - 1.000000 10.00% - 0 REMARKS - 15.00% - 0 20.00% - 0 25.00% - 0
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 0 0 0 0.000 0.00 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 0 0 0 0.000 0.00 0.00 CUMULATIVE 0 0 28 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 28 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 0
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUBTOT 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 LIFE OF EVALUATION IS 0.00 YEARS. FINAL PRODUCTION RATE: 0.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 92 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 7-T16S-R17W PROVED BREIT-HOLZMEISTER -B- (TOPEKA) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.861328 26.46 5.00% - 20,622 FINAL - 1.000000 0.861328 26.46 10.00% - 16,588 REMARKS - 15.00% - 13,734 20.00% - 11,647 25.00% - 10,075
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 407 0 0 351 0 0.000 26.46 0.00 2002 1 397 0 0 342 0 0.000 26.46 0.00 2003 1 387 0 0 332 0 0.000 26.46 0.00 2004 1 376 0 0 325 0 0.000 26.46 0.00 2005 1 366 0 0 315 0 0.000 26.46 0.00 2006 1 357 0 0 307 0 0.000 26.46 0.00 2007 1 347 0 0 300 0 0.000 26.46 0.00 2008 1 339 0 0 291 0 0.000 26.46 0.00 2009 1 329 0 0 284 0 0.000 26.46 0.00 2010 1 321 0 0 276 0 0.000 26.46 0.00 2011 1 312 0 0 269 0 0.000 26.46 0.00 2012 1 305 0 0 262 0 0.000 26.46 0.00 2013 1 296 0 0 256 0 0.000 26.46 0.00 2014 1 288 0 0 248 0 0.000 26.46 0.00 2015 1 281 0 0 242 0 0.000 26.46 0.00 SUB-TOTAL 5,108 0 0 4,400 0 0.000 26.46 0.00 REMAINDER 518 0 0 446 0 0.000 26.46 0.00 TOTAL 5,626 0 0 4,846 0 0.000 26.46 0.00 CUMULATIVE 13,699 0 0 ULTIMATE 19,325 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 9,286 0 0 0 9,286 15 0 9,271 2002 9,042 0 0 0 9,042 14 0 9,028 2003 8,805 0 0 0 8,805 14 0 8,791 2004 8,575 0 0 0 8,575 14 0 8,561 2005 8,350 0 0 0 8,350 13 0 8,337 2006 8,131 0 0 0 8,131 14 0 8,117 2007 7,918 0 0 0 7,918 12 0 7,906 2008 7,711 0 0 0 7,711 13 0 7,698 2009 7,509 0 0 0 7,509 12 0 7,497 2010 7,312 0 0 0 7,312 11 0 7,301 2011 7,120 0 0 0 7,120 12 0 7,108 2012 6,934 0 0 0 6,934 11 0 6,923 2013 6,752 0 0 0 6,752 11 0 6,741 2014 6,576 0 0 0 6,576 10 0 6,566 2015 6,403 0 0 0 6,403 10 0 6,393 SUB-TOT 116,424 0 0 0 116,424 186 0 116,238 REMAIN 11,807 0 0 0 11,807 19 0 11,788 TOTAL 128,231 0 0 0 128,231 205 0 128,026
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 6,000 0 0 0 6,000 3,271 3,271 3,115 2002 6,000 0 0 0 6,000 3,028 6,299 2,611 2003 6,000 0 0 0 6,000 2,791 9,090 2,178 2004 6,000 0 0 0 6,000 2,561 11,651 1,810 2005 6,000 0 0 0 6,000 2,337 13,988 1,494 2006 6,000 0 0 0 6,000 2,117 16,105 1,226 2007 6,000 0 0 0 6,000 1,906 18,011 999 2008 6,000 0 0 0 6,000 1,698 19,709 806 2009 6,000 0 0 0 6,000 1,497 21,206 643 2010 6,000 0 0 0 6,000 1,301 22,507 506 2011 6,000 0 0 0 6,000 1,108 23,615 390 2012 6,000 0 0 0 6,000 923 24,538 294 2013 6,000 0 0 0 6,000 741 25,279 214 2014 6,000 0 0 0 6,000 566 25,845 148 2015 6,000 0 0 0 6,000 393 26,238 93 SUBTOT 90,000 0 0 0 90,000 26,238 16,527 REMAIN 11,500 0 0 0 11,500 288 26,526 61 TOTAL 101,500 0 0 0 101,500 26,526 16,588 LIFE OF EVALUATION IS 16.92 YEARS. FINAL PRODUCTION RATE: 22 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 93 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 8-T17S-R16W PROVED DECKER -A- #1 (SHAWNEE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.868164 5.30 5.00% - 447,225 FINAL - 1.000000 0.868164 5.30 10.00% - 295,392 REMARKS - 15.00% - 218,374 20.00% - 172,879 25.00% - 143,043
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 14 0 0 8.836 0.00 5.30 2002 1 0 0 13 0 0 8.703 0.00 5.30 2003 1 0 0 13 0 0 8.442 0.00 5.30 2004 1 0 0 13 0 0 8.189 0.00 5.30 2005 1 0 0 12 0 0 7.943 0.00 5.30 2006 1 0 0 12 0 0 7.705 0.00 5.30 2007 1 0 0 12 0 0 7.473 0.00 5.30 2008 1 0 0 11 0 0 7.249 0.00 5.30 2009 1 0 0 11 0 0 7.032 0.00 5.30 2010 1 0 0 10 0 0 6.821 0.00 5.30 2011 1 0 0 11 0 0 6.616 0.00 5.30 2012 1 0 0 10 0 0 6.418 0.00 5.30 2013 1 0 0 9 0 0 6.225 0.00 5.30 2014 1 0 0 10 0 0 6.038 0.00 5.30 2015 1 0 0 9 0 0 5.857 0.00 5.30 SUB-TOTAL 0 0 170 0 0 109.547 0.00 5.30 REMAINDER 0 0 153 0 0 99.133 0.00 5.30 TOTAL 0 0 323 0 0 208.680 0.00 5.30 CUMULATIVE 0 0 531 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 854 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 46,818 0 46,818 0 145 46,673 2002 0 0 46,112 0 46,112 0 143 45,969 2003 0 0 44,729 0 44,729 0 139 44,590 2004 0 0 43,387 0 43,387 0 134 43,253 2005 0 0 42,085 0 42,085 0 131 41,954 2006 0 0 40,823 0 40,823 0 126 40,697 2007 0 0 39,598 0 39,598 0 123 39,475 2008 0 0 38,410 0 38,410 0 119 38,291 2009 0 0 37,257 0 37,257 0 116 37,141 2010 0 0 36,140 0 36,140 0 112 36,028 2011 0 0 35,056 0 35,056 0 108 34,948 2012 0 0 34,004 0 34,004 0 106 33,898 2013 0 0 32,984 0 32,984 0 102 32,882 2014 0 0 31,995 0 31,995 0 99 31,896 2015 0 0 31,035 0 31,035 0 96 30,939 SUB-TOT 0 0 580,433 0 580,433 0 1,799 578,634 REMAIN 0 0 525,254 0 525,254 0 1,629 523,625 TOTAL 0 0 1,105,687 0 1,105,687 0 3,428 1,102,259
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 7,284 0 0 0 7,284 39,389 39,389 37,491 2002 7,284 0 0 0 7,284 38,685 78,074 33,341 2003 7,284 0 0 0 7,284 37,306 115,380 29,105 2004 7,284 0 0 0 7,284 35,969 151,349 25,401 2005 7,284 0 0 0 7,284 34,670 186,019 22,164 2006 7,284 0 0 0 7,284 33,413 219,432 19,335 2007 7,284 0 0 0 7,284 32,191 251,623 16,863 2008 7,284 0 0 0 7,284 31,007 282,630 14,703 2009 7,284 0 0 0 7,284 29,857 312,487 12,815 2010 7,284 0 0 0 7,284 28,744 341,231 11,169 2011 7,284 0 0 0 7,284 27,664 368,895 9,730 2012 7,284 0 0 0 7,284 26,614 395,509 8,473 2013 7,284 0 0 0 7,284 25,598 421,107 7,378 2014 7,284 0 0 0 7,284 24,612 445,719 6,421 2015 7,284 0 0 0 7,284 23,655 469,374 5,586 SUBTOT 109,260 0 0 0 109,260 469,374 259,975 REMAIN 177,244 0 0 0 177,244 346,381 815,755 35,417 TOTAL 286,504 0 0 0 286,504 815,755 295,392 LIFE OF EVALUATION IS 39.33 YEARS. FINAL PRODUCTION RATE: 0.4 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 94 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 35-T16S-R17W PROVED EDWARDS #1 (LANSING) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 5.30 5.00% - 156,076 FINAL - 1.000000 0.875000 5.30 10.00% - 102,581 REMARKS - 15.00% - 75,615 20.00% - 59,763 25.00% - 49,402
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 5 0 0 3.263 0.00 5.30 2002 1 0 0 5 0 0 3.178 0.00 5.30 2003 1 0 0 5 0 0 3.095 0.00 5.30 2004 1 0 0 4 0 0 3.014 0.00 5.30 2005 1 0 0 5 0 0 2.935 0.00 5.30 2006 1 0 0 4 0 0 2.858 0.00 5.30 2007 1 0 0 4 0 0 2.783 0.00 5.30 2008 1 0 0 5 0 0 2.710 0.00 5.30 2009 1 0 0 4 0 0 2.640 0.00 5.30 2010 1 0 0 4 0 0 2.570 0.00 5.30 2011 1 0 0 3 0 0 2.503 0.00 5.30 2012 1 0 0 4 0 0 2.438 0.00 5.30 2013 1 0 0 4 0 0 2.374 0.00 5.30 2014 1 0 0 3 0 0 2.312 0.00 5.30 2015 1 0 0 4 0 0 2.251 0.00 5.30 SUB-TOTAL 0 0 63 0 0 40.924 0.00 5.30 REMAINDER 0 0 61 0 0 39.833 0.00 5.30 TOTAL 0 0 124 0 0 80.757 0.00 5.30 CUMULATIVE 0 0 86 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 210 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 17,291 0 17,291 0 54 17,237 2002 0 0 16,838 0 16,838 0 52 16,786 2003 0 0 16,398 0 16,398 0 51 16,347 2004 0 0 15,968 0 15,968 0 49 15,919 2005 0 0 15,551 0 15,551 0 48 15,503 2006 0 0 15,144 0 15,144 0 47 15,097 2007 0 0 14,747 0 14,747 0 46 14,701 2008 0 0 14,362 0 14,362 0 45 14,317 2009 0 0 13,985 0 13,985 0 43 13,942 2010 0 0 13,620 0 13,620 0 42 13,578 2011 0 0 13,263 0 13,263 0 41 13,222 2012 0 0 12,916 0 12,916 0 40 12,876 2013 0 0 12,578 0 12,578 0 39 12,539 2014 0 0 12,249 0 12,249 0 38 12,211 2015 0 0 11,928 0 11,928 0 37 11,891 SUB-TOT 0 0 216,838 0 216,838 0 672 216,166 REMAIN 0 0 211,056 0 211,056 0 654 210,402 TOTAL 0 0 427,894 0 427,894 0 1,326 426,568
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 3,552 0 0 0 3,552 13,685 13,685 13,029 2002 3,552 0 0 0 3,552 13,234 26,919 11,406 2003 3,552 0 0 0 3,552 12,795 39,714 9,982 2004 3,552 0 0 0 3,552 12,367 52,081 8,733 2005 3,552 0 0 0 3,552 11,951 64,032 7,640 2006 3,552 0 0 0 3,552 11,545 75,577 6,681 2007 3,552 0 0 0 3,552 11,149 86,726 5,840 2008 3,552 0 0 0 3,552 10,765 97,491 5,104 2009 3,552 0 0 0 3,552 10,390 107,881 4,460 2010 3,552 0 0 0 3,552 10,026 117,907 3,895 2011 3,552 0 0 0 3,552 9,670 127,577 3,402 2012 3,552 0 0 0 3,552 9,324 136,901 2,968 2013 3,552 0 0 0 3,552 8,987 145,888 2,590 2014 3,552 0 0 0 3,552 8,659 154,547 2,259 2015 3,552 0 0 0 3,552 8,339 162,886 1,969 SUBTOT 53,280 0 0 0 53,280 162,886 89,958 REMAIN 86,432 0 0 0 86,432 123,970 286,856 12,623 TOTAL 139,712 0 0 0 139,712 286,856 102,581 LIFE OF EVALUATION IS 39.33 YEARS. FINAL PRODUCTION RATE: 0.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 95 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 19-T17S-R16W PROVED ELDER #1 (TOPEKA) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 5.30 5.00% - 27,889 FINAL - 1.000000 0.875000 5.30 10.00% - 22,504 REMARKS - 15.00% - 18,600 20.00% - 15,705 25.00% - 13,511
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 2 0 0 1.592 0.00 5.30 2002 1 0 0 3 0 0 1.549 0.00 5.30 2003 1 0 0 2 0 0 1.507 0.00 5.30 2004 1 0 0 2 0 0 1.467 0.00 5.30 2005 1 0 0 3 0 0 1.427 0.00 5.30 2006 1 0 0 2 0 0 1.388 0.00 5.30 2007 1 0 0 2 0 0 1.351 0.00 5.30 2008 1 0 0 2 0 0 1.314 0.00 5.30 2009 1 0 0 2 0 0 1.279 0.00 5.30 2010 1 0 0 2 0 0 1.244 0.00 5.30 2011 1 0 0 2 0 0 1.211 0.00 5.30 2012 1 0 0 1 0 0 0.817 0.00 5.30 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 25 0 0 16.146 0.00 5.30 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 25 0 0 16.146 0.00 5.30 CUMULATIVE 0 0 51 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 76 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 8,436 0 8,436 0 26 8,410 2002 0 0 8,207 0 8,207 0 26 8,181 2003 0 0 7,987 0 7,987 0 24 7,963 2004 0 0 7,770 0 7,770 0 24 7,746 2005 0 0 7,561 0 7,561 0 24 7,537 2006 0 0 7,356 0 7,356 0 23 7,333 2007 0 0 7,158 0 7,158 0 22 7,136 2008 0 0 6,965 0 6,965 0 21 6,944 2009 0 0 6,777 0 6,777 0 21 6,756 2010 0 0 6,594 0 6,594 0 21 6,573 2011 0 0 6,415 0 6,415 0 20 6,395 2012 0 0 4,327 0 4,327 0 13 4,314 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 85,553 0 85,553 0 265 85,288 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 85,553 0 85,553 0 265 85,288
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 4,260 0 0 0 4,260 4,150 4,150 3,952 2002 4,260 0 0 0 4,260 3,921 8,071 3,380 2003 4,260 0 0 0 4,260 3,703 11,774 2,889 2004 4,260 0 0 0 4,260 3,486 15,260 2,463 2005 4,260 0 0 0 4,260 3,277 18,537 2,095 2006 4,260 0 0 0 4,260 3,073 21,610 1,779 2007 4,260 0 0 0 4,260 2,876 24,486 1,507 2008 4,260 0 0 0 4,260 2,684 27,170 1,273 2009 4,260 0 0 0 4,260 2,496 29,666 1,071 2010 4,260 0 0 0 4,260 2,313 31,979 899 2011 4,260 0 0 0 4,260 2,135 34,114 751 2012 2,940 0 0 0 2,940 1,374 35,488 445 2013 0 0 0 0 0 0 35,488 0 2014 0 0 0 0 0 0 35,488 0 2015 0 0 0 0 0 0 35,488 0 SUBTOT 49,800 0 0 0 49,800 35,488 22,504 REMAIN 0 0 0 0 0 0 35,488 0 TOTAL 49,800 0 0 0 49,800 35,488 22,504 LIFE OF EVALUATION IS 11.69 YEARS. FINAL PRODUCTION RATE: 0.2 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 96 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 25-T17S-R17W PROVED FOOS #1 (LANSING) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.820313 5.30 5.00% - 191,323 FINAL - 1.000000 0.820313 5.30 10.00% - 140,051 REMARKS - 15.00% - 109,527 20.00% - 89,665 25.00% - 75,832
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 9 0 0 5.354 0.00 5.30 2002 1 0 0 8 0 0 5.087 0.00 5.30 2003 1 0 0 8 0 0 4.832 0.00 5.30 2004 1 0 0 8 0 0 4.591 0.00 5.30 2005 1 0 0 7 0 0 4.361 0.00 5.30 2006 1 0 0 6 0 0 4.143 0.00 5.30 2007 1 0 0 7 0 0 3.936 0.00 5.30 2008 1 0 0 6 0 0 3.739 0.00 5.30 2009 1 0 0 6 0 0 3.552 0.00 5.30 2010 1 0 0 5 0 0 3.375 0.00 5.30 2011 1 0 0 6 0 0 3.206 0.00 5.30 2012 1 0 0 5 0 0 3.046 0.00 5.30 2013 1 0 0 4 0 0 2.893 0.00 5.30 2014 1 0 0 5 0 0 2.749 0.00 5.30 2015 1 0 0 4 0 0 2.611 0.00 5.30 SUB-TOTAL 0 0 94 0 0 57.475 0.00 5.30 REMAINDER 0 0 50 0 0 30.157 0.00 5.30 TOTAL 0 0 144 0 0 87.632 0.00 5.30 CUMULATIVE 0 0 90 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 234 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 28,370 0 28,370 0 88 28,282 2002 0 0 26,951 0 26,951 0 83 26,868 2003 0 0 25,604 0 25,604 0 80 25,524 2004 0 0 24,323 0 24,323 0 75 24,248 2005 0 0 23,108 0 23,108 0 72 23,036 2006 0 0 21,952 0 21,952 0 68 21,884 2007 0 0 20,854 0 20,854 0 65 20,789 2008 0 0 19,812 0 19,812 0 61 19,751 2009 0 0 18,821 0 18,821 0 58 18,763 2010 0 0 17,880 0 17,880 0 56 17,824 2011 0 0 16,986 0 16,986 0 52 16,934 2012 0 0 16,137 0 16,137 0 50 16,087 2013 0 0 15,329 0 15,329 0 48 15,281 2014 0 0 14,564 0 14,564 0 45 14,519 2015 0 0 13,835 0 13,835 0 43 13,792 SUB-TOT 0 0 304,526 0 304,526 0 944 303,582 REMAIN 0 0 159,784 0 159,784 0 495 159,289 TOTAL 0 0 464,310 0 464,310 0 1,439 462,871
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 5,268 0 0 0 5,268 23,014 23,014 21,916 2002 5,268 0 0 0 5,268 21,600 44,614 18,621 2003 5,268 0 0 0 5,268 20,256 64,870 15,806 2004 5,268 0 0 0 5,268 18,980 83,850 13,407 2005 5,268 0 0 0 5,268 17,768 101,618 11,362 2006 5,268 0 0 0 5,268 16,616 118,234 9,618 2007 5,268 0 0 0 5,268 15,521 133,755 8,132 2008 5,268 0 0 0 5,268 14,483 148,238 6,869 2009 5,268 0 0 0 5,268 13,495 161,733 5,795 2010 5,268 0 0 0 5,268 12,556 174,289 4,880 2011 5,268 0 0 0 5,268 11,666 185,955 4,104 2012 5,268 0 0 0 5,268 10,819 196,774 3,445 2013 5,268 0 0 0 5,268 10,013 206,787 2,887 2014 5,268 0 0 0 5,268 9,251 216,038 2,414 2015 5,268 0 0 0 5,268 8,524 224,562 2,014 SUBTOT 79,020 0 0 0 79,020 224,562 131,270 REMAIN 96,141 0 0 0 96,141 63,148 287,710 8,781 TOTAL 175,161 0 0 0 175,161 287,710 140,051 LIFE OF EVALUATION IS 33.25 YEARS. FINAL PRODUCTION RATE: 0.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 97 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 22-T17S-R17W PROVED FOOS -A- #1 (LANSING) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.820313 5.30 5.00% - 61,942 FINAL - 1.000000 0.820313 5.30 10.00% - 44,368 REMARKS - 15.00% - 34,166 20.00% - 27,665 25.00% - 23,213
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 3 0 0 1.909 0.00 5.30 2002 1 0 0 3 0 0 1.847 0.00 5.30 2003 1 0 0 3 0 0 1.787 0.00 5.30 2004 1 0 0 3 0 0 1.729 0.00 5.30 2005 1 0 0 3 0 0 1.673 0.00 5.30 2006 1 0 0 2 0 0 1.618 0.00 5.30 2007 1 0 0 3 0 0 1.566 0.00 5.30 2008 1 0 0 2 0 0 1.515 0.00 5.30 2009 1 0 0 3 0 0 1.466 0.00 5.30 2010 1 0 0 2 0 0 1.418 0.00 5.30 2011 1 0 0 2 0 0 1.372 0.00 5.30 2012 1 0 0 3 0 0 1.327 0.00 5.30 2013 1 0 0 2 0 0 1.284 0.00 5.30 2014 1 0 0 2 0 0 1.242 0.00 5.30 2015 1 0 0 2 0 0 1.202 0.00 5.30 SUB-TOTAL 0 0 38 0 0 22.955 0.00 5.30 REMAINDER 0 0 22 0 0 13.617 0.00 5.30 TOTAL 0 0 60 0 0 36.572 0.00 5.30 CUMULATIVE 0 0 553 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 613 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 10,115 0 10,115 0 31 10,084 2002 0 0 9,787 0 9,787 0 31 9,756 2003 0 0 9,468 0 9,468 0 29 9,439 2004 0 0 9,161 0 9,161 0 28 9,133 2005 0 0 8,863 0 8,863 0 28 8,835 2006 0 0 8,575 0 8,575 0 27 8,548 2007 0 0 8,296 0 8,296 0 25 8,271 2008 0 0 8,027 0 8,027 0 25 8,002 2009 0 0 7,765 0 7,765 0 24 7,741 2010 0 0 7,514 0 7,514 0 23 7,491 2011 0 0 7,269 0 7,269 0 23 7,246 2012 0 0 7,033 0 7,033 0 22 7,011 2013 0 0 6,804 0 6,804 0 21 6,783 2014 0 0 6,584 0 6,584 0 20 6,564 2015 0 0 6,369 0 6,369 0 20 6,349 SUB-TOT 0 0 121,630 0 121,630 0 377 121,253 REMAIN 0 0 72,148 0 72,148 0 224 71,924 TOTAL 0 0 193,778 0 193,778 0 601 193,177
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 3,300 0 0 0 3,300 6,784 6,784 6,460 2002 3,300 0 0 0 3,300 6,456 13,240 5,564 2003 3,300 0 0 0 3,300 6,139 19,379 4,790 2004 3,300 0 0 0 3,300 5,833 25,212 4,120 2005 3,300 0 0 0 3,300 5,535 30,747 3,539 2006 3,300 0 0 0 3,300 5,248 35,995 3,037 2007 3,300 0 0 0 3,300 4,971 40,966 2,605 2008 3,300 0 0 0 3,300 4,702 45,668 2,230 2009 3,300 0 0 0 3,300 4,441 50,109 1,906 2010 3,300 0 0 0 3,300 4,191 54,300 1,629 2011 3,300 0 0 0 3,300 3,946 58,246 1,388 2012 3,300 0 0 0 3,300 3,711 61,957 1,182 2013 3,300 0 0 0 3,300 3,483 65,440 1,004 2014 3,300 0 0 0 3,300 3,264 68,704 852 2015 3,300 0 0 0 3,300 3,049 71,753 720 SUBTOT 49,500 0 0 0 49,500 71,753 41,026 REMAIN 47,828 0 0 0 47,828 24,096 95,849 3,342 TOTAL 97,328 0 0 0 97,328 95,849 44,368 LIFE OF EVALUATION IS 29.49 YEARS. FINAL PRODUCTION RATE: 0.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 98 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 4-T17S-R17W PROVED FRYE #2 (TOPEKA) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 5.00% - 0 FINAL - 1.000000 10.00% - 0 REMARKS - 15.00% - 0 20.00% - 0 25.00% - 0
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 0 0 0 0.000 0.00 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 0 0 0 0.000 0.00 0.00 CUMULATIVE 0 0 12 ULTIMATE 0 0 12
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 0
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUBTOT 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 LIFE OF EVALUATION IS 0.00 YEARS. FINAL PRODUCTION RATE: 0.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 99 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 19-T17S-R16W PROVED GIESICK #1 (KANSAS CITY) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 5.30 5.00% - 536,131 FINAL - 1.000000 0.875000 5.30 10.00% - 407,274 REMARKS - 15.00% - 325,641 20.00% - 270,337 25.00% - 230,779
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 26 0 0 17.003 0.00 5.30 2002 1 0 0 25 0 0 15.983 0.00 5.30 2003 1 0 0 23 0 0 15.024 0.00 5.30 2004 1 0 0 21 0 0 14.123 0.00 5.30 2005 1 0 0 21 0 0 13.275 0.00 5.30 2006 1 0 0 19 0 0 12.479 0.00 5.30 2007 1 0 0 18 0 0 11.730 0.00 5.30 2008 1 0 0 17 0 0 11.026 0.00 5.30 2009 1 0 0 16 0 0 10.365 0.00 5.30 2010 1 0 0 15 0 0 9.743 0.00 5.30 2011 1 0 0 14 0 0 9.158 0.00 5.30 2012 1 0 0 13 0 0 8.609 0.00 5.30 2013 1 0 0 13 0 0 8.092 0.00 5.30 2014 1 0 0 11 0 0 7.607 0.00 5.30 2015 1 0 0 11 0 0 7.150 0.00 5.30 SUB-TOTAL 0 0 263 0 0 171.367 0.00 5.30 REMAINDER 0 0 93 0 0 60.065 0.00 5.30 TOTAL 0 0 356 0 0 231.432 0.00 5.30 CUMULATIVE 0 0 834 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 1,190 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 90,092 0 90,092 0 279 89,813 2002 0 0 84,686 0 84,686 0 263 84,423 2003 0 0 79,605 0 79,605 0 247 79,358 2004 0 0 74,829 0 74,829 0 232 74,597 2005 0 0 70,339 0 70,339 0 218 70,121 2006 0 0 66,119 0 66,119 0 205 65,914 2007 0 0 62,152 0 62,152 0 192 61,960 2008 0 0 58,423 0 58,423 0 181 58,242 2009 0 0 54,917 0 54,917 0 171 54,746 2010 0 0 51,622 0 51,622 0 160 51,462 2011 0 0 48,525 0 48,525 0 150 48,375 2012 0 0 45,613 0 45,613 0 141 45,472 2013 0 0 42,877 0 42,877 0 133 42,744 2014 0 0 40,304 0 40,304 0 125 40,179 2015 0 0 37,885 0 37,885 0 118 37,767 SUB-TOT 0 0 907,988 0 907,988 0 2,815 905,173 REMAIN 0 0 318,254 0 318,254 0 986 317,268 TOTAL 0 0 1,226,242 0 1,226,242 0 3,801 1,222,441
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 16,992 0 0 0 16,992 72,821 72,821 69,356 2002 16,992 0 0 0 16,992 67,431 140,252 58,135 2003 16,992 0 0 0 16,992 62,366 202,618 48,673 2004 16,992 0 0 0 16,992 57,605 260,223 40,696 2005 16,992 0 0 0 16,992 53,129 313,352 33,977 2006 16,992 0 0 0 16,992 48,922 362,274 28,321 2007 16,992 0 0 0 16,992 44,968 407,242 23,564 2008 16,992 0 0 0 16,992 41,250 448,492 19,568 2009 16,992 0 0 0 16,992 37,754 486,246 16,212 2010 16,992 0 0 0 16,992 34,470 520,716 13,400 2011 16,992 0 0 0 16,992 31,383 552,099 11,043 2012 16,992 0 0 0 16,992 28,480 580,579 9,072 2013 16,992 0 0 0 16,992 25,752 606,331 7,426 2014 16,992 0 0 0 16,992 23,187 629,518 6,052 2015 16,992 0 0 0 16,992 20,775 650,293 4,909 SUBTOT 254,880 0 0 0 254,880 650,293 390,404 REMAIN 210,984 0 0 0 210,984 106,284 756,577 16,870 TOTAL 465,864 0 0 0 465,864 756,577 407,274 LIFE OF EVALUATION IS 27.42 YEARS. FINAL PRODUCTION RATE: 0.4 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 100 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 24-T17S-R17W PROVED GILLIG #1 (TOPEKA) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 5.30 5.00% - 78,757 FINAL - 1.000000 0.875000 5.30 10.00% - 60,928 REMARKS - 15.00% - 48,937 20.00% - 40,553 25.00% - 34,474
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 4 0 0 2.440 0.00 5.30 2002 1 0 0 3 0 0 2.325 0.00 5.30 2003 1 0 0 4 0 0 2.216 0.00 5.30 2004 1 0 0 3 0 0 2.111 0.00 5.30 2005 1 0 0 3 0 0 2.012 0.00 5.30 2006 1 0 0 3 0 0 1.917 0.00 5.30 2007 1 0 0 3 0 0 1.826 0.00 5.30 2008 1 0 0 2 0 0 1.740 0.00 5.30 2009 1 0 0 3 0 0 1.658 0.00 5.30 2010 1 0 0 2 0 0 1.580 0.00 5.30 2011 1 0 0 3 0 0 1.506 0.00 5.30 2012 1 0 0 2 0 0 1.435 0.00 5.30 2013 1 0 0 2 0 0 1.367 0.00 5.30 2014 1 0 0 2 0 0 1.303 0.00 5.30 2015 1 0 0 2 0 0 1.241 0.00 5.30 SUB-TOTAL 0 0 41 0 0 26.677 0.00 5.30 REMAINDER 0 0 1 0 0 0.727 0.00 5.30 TOTAL 0 0 42 0 0 27.404 0.00 5.30 CUMULATIVE 0 0 617 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 659 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 12,931 0 12,931 0 40 12,891 2002 0 0 12,320 0 12,320 0 38 12,282 2003 0 0 11,740 0 11,740 0 37 11,703 2004 0 0 11,187 0 11,187 0 34 11,153 2005 0 0 10,659 0 10,659 0 33 10,626 2006 0 0 10,156 0 10,156 0 32 10,124 2007 0 0 9,678 0 9,678 0 30 9,648 2008 0 0 9,221 0 9,221 0 28 9,193 2009 0 0 8,787 0 8,787 0 28 8,759 2010 0 0 8,372 0 8,372 0 26 8,346 2011 0 0 7,977 0 7,977 0 24 7,953 2012 0 0 7,601 0 7,601 0 24 7,577 2013 0 0 7,243 0 7,243 0 22 7,221 2014 0 0 6,902 0 6,902 0 22 6,880 2015 0 0 6,576 0 6,576 0 20 6,556 SUB-TOT 0 0 141,350 0 141,350 0 438 140,912 REMAIN 0 0 3,852 0 3,852 0 12 3,840 TOTAL 0 0 145,202 0 145,202 0 450 144,752
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 2,460 0 0 0 2,460 10,431 10,431 9,933 2002 2,460 0 0 0 2,460 9,822 20,253 8,467 2003 2,460 0 0 0 2,460 9,243 29,496 7,213 2004 2,460 0 0 0 2,460 8,693 38,189 6,140 2005 2,460 0 0 0 2,460 8,166 46,355 5,221 2006 2,460 0 0 0 2,460 7,664 54,019 4,436 2007 2,460 0 0 0 2,460 7,188 61,207 3,767 2008 2,460 0 0 0 2,460 6,733 67,940 3,193 2009 2,460 0 0 0 2,460 6,299 74,239 2,704 2010 2,460 0 0 0 2,460 5,886 80,125 2,288 2011 2,460 0 0 0 2,460 5,493 85,618 1,932 2012 2,460 0 0 0 2,460 5,117 90,735 1,630 2013 2,460 0 0 0 2,460 4,761 95,496 1,372 2014 2,460 0 0 0 2,460 4,420 99,916 1,154 2015 2,460 0 0 0 2,460 4,096 104,012 968 SUBTOT 36,900 0 0 0 36,900 104,012 60,418 REMAIN 1,498 0 0 0 1,498 2,342 106,354 510 TOTAL 38,398 0 0 0 38,398 106,354 60,928 LIFE OF EVALUATION IS 15.61 YEARS. FINAL PRODUCTION RATE: 0.2 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 101 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 9-T17S-R17W PROVED GRUMBEIN #1-A (KSSC-LNSG) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 5.30 5.00% - 33,013 FINAL - 1.000000 0.875000 5.30 10.00% - 29,262 REMARKS - 15.00% - 26,133 20.00% - 23,505 25.00% - 21,283
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 3 0 0 2.081 0.00 5.30 2002 1 0 0 3 0 0 1.882 0.00 5.30 2003 1 0 0 3 0 0 1.703 0.00 5.30 2004 1 0 0 2 0 0 1.540 0.00 5.30 2005 1 0 0 2 0 0 1.393 0.00 5.30 2006 1 0 0 2 0 0 1.260 0.00 5.30 2007 1 0 0 1 0 0 0.255 0.00 5.30 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 16 0 0 10.114 0.00 5.30 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 16 0 0 10.114 0.00 5.30 CUMULATIVE 0 0 116 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 132 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 11,027 0 11,027 0 34 10,993 2002 0 0 9,974 0 9,974 0 31 9,943 2003 0 0 9,021 0 9,021 0 28 8,993 2004 0 0 8,160 0 8,160 0 25 8,135 2005 0 0 7,381 0 7,381 0 23 7,358 2006 0 0 6,676 0 6,676 0 21 6,655 2007 0 0 1,353 0 1,353 0 4 1,349 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 53,592 0 53,592 0 166 53,426 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 53,592 0 53,592 0 166 53,426
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 2,556 0 0 0 2,556 8,437 8,437 8,039 2002 2,556 0 0 0 2,556 7,387 15,824 6,372 2003 2,556 0 0 0 2,556 6,437 22,261 5,026 2004 2,556 0 0 0 2,556 5,579 27,840 3,944 2005 2,556 0 0 0 2,556 4,802 32,642 3,072 2006 2,556 0 0 0 2,556 4,099 36,741 2,375 2007 551 0 0 0 551 798 37,539 434 2008 0 0 0 0 0 0 37,539 0 2009 0 0 0 0 0 0 37,539 0 2010 0 0 0 0 0 0 37,539 0 2011 0 0 0 0 0 0 37,539 0 2012 0 0 0 0 0 0 37,539 0 2013 0 0 0 0 0 0 37,539 0 2014 0 0 0 0 0 0 37,539 0 2015 0 0 0 0 0 0 37,539 0 SUBTOT 15,887 0 0 0 15,887 37,539 29,262 REMAIN 0 0 0 0 0 0 37,539 0 TOTAL 15,887 0 0 0 15,887 37,539 29,262 LIFE OF EVALUATION IS 6.22 YEARS. FINAL PRODUCTION RATE: 0.2 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 102 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 24-T17S-R17W PROVED HANHARDT #1 (TOPEKA) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.820313 5.30 5.00% - 56,473 FINAL - 1.000000 0.820313 5.30 10.00% - 45,785 REMARKS - 15.00% - 37,943 20.00% - 32,075 25.00% - 27,598
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 3 0 0 1.758 0.00 5.30 2002 1 0 0 3 0 0 1.680 0.00 5.30 2003 1 0 0 2 0 0 1.605 0.00 5.30 2004 1 0 0 3 0 0 1.534 0.00 5.30 2005 1 0 0 2 0 0 1.466 0.00 5.30 2006 1 0 0 2 0 0 1.401 0.00 5.30 2007 1 0 0 3 0 0 1.338 0.00 5.30 2008 1 0 0 2 0 0 1.279 0.00 5.30 2009 1 0 0 2 0 0 1.222 0.00 5.30 2010 1 0 0 2 0 0 1.168 0.00 5.30 2011 1 0 0 1 0 0 0.952 0.00 5.30 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 25 0 0 15.403 0.00 5.30 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 25 0 0 15.403 0.00 5.30 CUMULATIVE 0 0 799 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 824 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 9,313 0 9,313 0 29 9,284 2002 0 0 8,900 0 8,900 0 27 8,873 2003 0 0 8,505 0 8,505 0 27 8,478 2004 0 0 8,127 0 8,127 0 25 8,102 2005 0 0 7,767 0 7,767 0 24 7,743 2006 0 0 7,421 0 7,421 0 23 7,398 2007 0 0 7,092 0 7,092 0 22 7,070 2008 0 0 6,777 0 6,777 0 21 6,756 2009 0 0 6,477 0 6,477 0 20 6,457 2010 0 0 6,188 0 6,188 0 19 6,169 2011 0 0 5,043 0 5,043 0 16 5,027 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 81,610 0 81,610 0 253 81,357 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 81,610 0 81,610 0 253 81,357
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 924 0 0 0 924 8,360 8,360 7,961 2002 924 0 0 0 924 7,949 16,309 6,851 2003 924 0 0 0 924 7,554 23,863 5,894 2004 924 0 0 0 924 7,178 31,041 5,070 2005 924 0 0 0 924 6,819 37,860 4,360 2006 924 0 0 0 924 6,474 44,334 3,747 2007 924 0 0 0 924 6,146 50,480 3,220 2008 924 0 0 0 924 5,832 56,312 2,765 2009 924 0 0 0 924 5,533 61,845 2,376 2010 924 0 0 0 924 5,245 67,090 2,038 2011 785 0 0 0 785 4,242 71,332 1,503 2012 0 0 0 0 0 0 71,332 0 2013 0 0 0 0 0 0 71,332 0 2014 0 0 0 0 0 0 71,332 0 2015 0 0 0 0 0 0 71,332 0 SUBTOT 10,025 0 0 0 10,025 71,332 45,785 REMAIN 0 0 0 0 0 0 71,332 0 TOTAL 10,025 0 0 0 10,025 71,332 45,785 LIFE OF EVALUATION IS 10.85 YEARS. FINAL PRODUCTION RATE: 0.2 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 103 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 24-T17S-R17W PROVED HANHARDT #1-A (TOPEKA) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.820313 5.30 5.00% - 174,961 FINAL - 1.000000 0.820313 5.30 10.00% - 131,840 REMARKS - 15.00% - 104,700 20.00% - 86,443 25.00% - 73,472
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 10 0 0 6.169 0.00 5.30 2002 1 0 0 10 0 0 5.895 0.00 5.30 2003 1 0 0 9 0 0 5.633 0.00 5.30 2004 1 0 0 9 0 0 5.383 0.00 5.30 2005 1 0 0 8 0 0 5.144 0.00 5.30 2006 1 0 0 8 0 0 4.916 0.00 5.30 2007 1 0 0 8 0 0 4.698 0.00 5.30 2008 1 0 0 7 0 0 4.489 0.00 5.30 2009 1 0 0 7 0 0 4.290 0.00 5.30 2010 1 0 0 7 0 0 4.099 0.00 5.30 2011 1 0 0 7 0 0 3.917 0.00 5.30 2012 1 0 0 6 0 0 3.743 0.00 5.30 2013 1 0 0 6 0 0 3.577 0.00 5.30 2014 1 0 0 5 0 0 3.418 0.00 5.30 2015 1 0 0 5 0 0 3.266 0.00 5.30 SUB-TOTAL 0 0 112 0 0 68.637 0.00 5.30 REMAINDER 0 0 48 0 0 28.759 0.00 5.30 TOTAL 0 0 160 0 0 97.396 0.00 5.30 CUMULATIVE 0 0 485 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 645 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 32,686 0 32,686 0 101 32,585 2002 0 0 31,235 0 31,235 0 97 31,138 2003 0 0 29,849 0 29,849 0 93 29,756 2004 0 0 28,523 0 28,523 0 88 28,435 2005 0 0 27,256 0 27,256 0 85 27,171 2006 0 0 26,046 0 26,046 0 80 25,966 2007 0 0 24,890 0 24,890 0 78 24,812 2008 0 0 23,785 0 23,785 0 73 23,712 2009 0 0 22,729 0 22,729 0 71 22,658 2010 0 0 21,719 0 21,719 0 67 21,652 2011 0 0 20,756 0 20,756 0 64 20,692 2012 0 0 19,833 0 19,833 0 62 19,771 2013 0 0 18,953 0 18,953 0 59 18,894 2014 0 0 18,112 0 18,112 0 56 18,056 2015 0 0 17,307 0 17,307 0 53 17,254 SUB-TOT 0 0 363,679 0 363,679 0 1,127 362,552 REMAIN 0 0 152,381 0 152,381 0 473 151,908 TOTAL 0 0 516,060 0 516,060 0 1,600 514,460
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 9,984 0 0 0 9,984 22,601 22,601 21,524 2002 9,984 0 0 0 9,984 21,154 43,755 18,236 2003 9,984 0 0 0 9,984 19,772 63,527 15,429 2004 9,984 0 0 0 9,984 18,451 81,978 13,034 2005 9,984 0 0 0 9,984 17,187 99,165 10,991 2006 9,984 0 0 0 9,984 15,982 115,147 9,251 2007 9,984 0 0 0 9,984 14,828 129,975 7,770 2008 9,984 0 0 0 9,984 13,728 143,703 6,511 2009 9,984 0 0 0 9,984 12,674 156,377 5,442 2010 9,984 0 0 0 9,984 11,668 168,045 4,536 2011 9,984 0 0 0 9,984 10,708 178,753 3,768 2012 9,984 0 0 0 9,984 9,787 188,540 3,117 2013 9,984 0 0 0 9,984 8,910 197,450 2,569 2014 9,984 0 0 0 9,984 8,072 205,522 2,107 2015 9,984 0 0 0 9,984 7,270 212,792 1,718 SUBTOT 149,760 0 0 0 149,760 212,792 126,003 REMAIN 115,648 0 0 0 115,648 36,260 249,052 5,837 TOTAL 265,408 0 0 0 265,408 249,052 131,840 LIFE OF EVALUATION IS 26.58 YEARS. FINAL PRODUCTION RATE: 0.3 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 104 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 24-T17S-R17W PROVED HANHARDT #1-A BP (TOPEKA) BEHIND PIPE REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.820313 5.30 5.00% - 134,746 FINAL - 1.000000 0.820313 5.30 10.00% - 122,095 REMARKS - 15.00% - 110,970 20.00% - 101,152 25.00% - 92,459
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 12 0 0 7.433 0.00 5.30 2002 1 0 0 17 0 0 10.490 0.00 5.30 2003 1 0 0 11 0 0 6.528 0.00 5.30 2004 1 0 0 7 0 0 4.063 0.00 5.30 2005 1 0 0 3 0 0 2.001 0.00 5.30 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 50 0 0 30.515 0.00 5.30 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 50 0 0 30.515 0.00 5.30 CUMULATIVE 0 0 0 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 50 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 39,384 0 39,384 0 122 39,262 2002 0 0 55,580 0 55,580 0 172 55,408 2003 0 0 34,591 0 34,591 0 108 34,483 2004 0 0 21,528 0 21,528 0 66 21,462 2005 0 0 10,604 0 10,604 0 33 10,571 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 161,687 0 161,687 0 501 161,186 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 161,687 0 161,687 0 501 161,186
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 12,000 0 12,000 27,262 27,262 25,105 2002 0 0 0 0 0 55,408 82,670 47,925 2003 0 0 0 0 0 34,483 117,153 26,999 2004 0 0 0 0 0 21,462 138,615 15,212 2005 0 0 0 0 0 10,571 149,186 6,854 2006 0 0 0 0 0 0 149,186 0 2007 0 0 0 0 0 0 149,186 0 2008 0 0 0 0 0 0 149,186 0 2009 0 0 0 0 0 0 149,186 0 2010 0 0 0 0 0 0 149,186 0 2011 0 0 0 0 0 0 149,186 0 2012 0 0 0 0 0 0 149,186 0 2013 0 0 0 0 0 0 149,186 0 2014 0 0 0 0 0 0 149,186 0 2015 0 0 0 0 0 0 149,186 0 SUBTOT 0 0 12,000 0 12,000 149,186 122,095 REMAIN 0 0 0 0 0 0 149,186 0 TOTAL 0 0 12,000 0 12,000 149,186 122,095 LIFE OF EVALUATION IS 4.75 YEARS. FINAL PRODUCTION RATE: 0.3 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 105 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 29-T16S-R17W PROVED HOFFMAN #3 (CHASE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 5.00% - 0 FINAL - 1.000000 10.00% - 0 REMARKS - 15.00% - 0 20.00% - 0 25.00% - 0
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 0 0 0 0.000 0.00 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 0 0 0 0.000 0.00 0.00 CUMULATIVE 0 0 135 ULTIMATE 0 0 135
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 0
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUBTOT 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 LIFE OF EVALUATION IS 0.00 YEARS. FINAL PRODUCTION RATE: 0.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 106 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 8-T16S-R17W PROVED HOLZMEISTER #1 (SHAWNEE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 5.00% - 0 FINAL - 1.000000 10.00% - 0 REMARKS - 15.00% - 0 20.00% - 0 25.00% - 0
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 0 0 0 0.000 0.00 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 0 0 0 0.000 0.00 0.00 CUMULATIVE 0 0 86 ULTIMATE 0 0 86
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 0
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUBTOT 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 LIFE OF EVALUATION IS 0.00 YEARS. FINAL PRODUCTION RATE: 0.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 107 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 27-T16S-R17W PROVED HOLZMEISTER #1-A PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 5.00% - 0 FINAL - 1.000000 10.00% - 0 REMARKS - 15.00% - 0 20.00% - 0 25.00% - 0
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 0 0 0 0.000 0.00 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 0 0 0 0.000 0.00 0.00 CUMULATIVE 0 0 21 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 21 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 0
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUBTOT 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 LIFE OF EVALUATION IS 0.00 YEARS. FINAL PRODUCTION RATE: 0.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 108 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 7-T16S-R17W PROVED HOLZMEISTER #1-B (KC-LANSING) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.861328 5.30 5.00% - 278 FINAL - 1.000000 0.861328 5.30 10.00% - 270 REMARKS - 15.00% - 263 20.00% - 256 25.00% - 249
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 1 0 0 0.597 0.00 5.30 2002 1 0 0 1 0 0 0.424 0.00 5.30 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 2 0 0 1.021 0.00 5.30 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 2 0 0 1.021 0.00 5.30 CUMULATIVE 0 0 23 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 25 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 3,161 0 3,161 0 10 3,151 2002 0 0 2,245 0 2,245 0 7 2,238 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 5,406 0 5,406 0 17 5,389 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 5,406 0 5,406 0 17 5,389
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 2,916 0 0 0 2,916 235 235 225 2002 2,187 0 0 0 2,187 51 286 45 2003 0 0 0 0 0 0 286 0 2004 0 0 0 0 0 0 286 0 2005 0 0 0 0 0 0 286 0 2006 0 0 0 0 0 0 286 0 2007 0 0 0 0 0 0 286 0 2008 0 0 0 0 0 0 286 0 2009 0 0 0 0 0 0 286 0 2010 0 0 0 0 0 0 286 0 2011 0 0 0 0 0 0 286 0 2012 0 0 0 0 0 0 286 0 2013 0 0 0 0 0 0 286 0 2014 0 0 0 0 0 0 286 0 2015 0 0 0 0 0 0 286 0 SUBTOT 5,103 0 0 0 5,103 286 270 REMAIN 0 0 0 0 0 0 286 0 TOTAL 5,103 0 0 0 5,103 286 270 LIFE OF EVALUATION IS 1.75 YEARS. FINAL PRODUCTION RATE: 0.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 109 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 10-T17S-R17W PROVED HONDERICK #1-C (LANSING) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 5.30 5.00% - 57,368 FINAL - 1.000000 0.875000 5.30 10.00% - 40,176 REMARKS - 15.00% - 30,590 20.00% - 24,617 25.00% - 20,576
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 3 0 0 1.654 0.00 5.30 2002 1 0 0 2 0 0 1.605 0.00 5.30 2003 1 0 0 2 0 0 1.556 0.00 5.30 2004 1 0 0 3 0 0 1.510 0.00 5.30 2005 1 0 0 2 0 0 1.465 0.00 5.30 2006 1 0 0 2 0 0 1.421 0.00 5.30 2007 1 0 0 2 0 0 1.378 0.00 5.30 2008 1 0 0 2 0 0 1.337 0.00 5.30 2009 1 0 0 2 0 0 1.297 0.00 5.30 2010 1 0 0 2 0 0 1.258 0.00 5.30 2011 1 0 0 2 0 0 1.220 0.00 5.30 2012 1 0 0 2 0 0 1.183 0.00 5.30 2013 1 0 0 2 0 0 1.148 0.00 5.30 2014 1 0 0 1 0 0 1.113 0.00 5.30 2015 1 0 0 2 0 0 1.080 0.00 5.30 SUB-TOTAL 0 0 31 0 0 20.225 0.00 5.30 REMAINDER 0 0 27 0 0 17.456 0.00 5.30 TOTAL 0 0 58 0 0 37.681 0.00 5.30 CUMULATIVE 0 0 91 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 149 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 8,765 0 8,765 0 27 8,738 2002 0 0 8,502 0 8,502 0 27 8,475 2003 0 0 8,247 0 8,247 0 25 8,222 2004 0 0 8,000 0 8,000 0 25 7,975 2005 0 0 7,759 0 7,759 0 24 7,735 2006 0 0 7,527 0 7,527 0 23 7,504 2007 0 0 7,301 0 7,301 0 23 7,278 2008 0 0 7,082 0 7,082 0 22 7,060 2009 0 0 6,870 0 6,870 0 21 6,849 2010 0 0 6,663 0 6,663 0 21 6,642 2011 0 0 6,464 0 6,464 0 20 6,444 2012 0 0 6,270 0 6,270 0 19 6,251 2013 0 0 6,081 0 6,081 0 19 6,062 2014 0 0 5,899 0 5,899 0 18 5,881 2015 0 0 5,722 0 5,722 0 18 5,704 SUB-TOT 0 0 107,152 0 107,152 0 332 106,820 REMAIN 0 0 92,490 0 92,490 0 287 92,203 TOTAL 0 0 199,642 0 199,642 0 619 199,023
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 2,808 0 0 0 2,808 5,930 5,930 5,646 2002 2,808 0 0 0 2,808 5,667 11,597 4,885 2003 2,808 0 0 0 2,808 5,414 17,011 4,224 2004 2,808 0 0 0 2,808 5,167 22,178 3,649 2005 2,808 0 0 0 2,808 4,927 27,105 3,150 2006 2,808 0 0 0 2,808 4,696 31,801 2,718 2007 2,808 0 0 0 2,808 4,470 36,271 2,342 2008 2,808 0 0 0 2,808 4,252 40,523 2,016 2009 2,808 0 0 0 2,808 4,041 44,564 1,735 2010 2,808 0 0 0 2,808 3,834 48,398 1,490 2011 2,808 0 0 0 2,808 3,636 52,034 1,279 2012 2,808 0 0 0 2,808 3,443 55,477 1,096 2013 2,808 0 0 0 2,808 3,254 58,731 938 2014 2,808 0 0 0 2,808 3,073 61,804 802 2015 2,808 0 0 0 2,808 2,896 64,700 684 SUBTOT 42,120 0 0 0 42,120 64,700 36,654 REMAIN 63,882 0 0 0 63,882 28,321 93,021 3,522 TOTAL 106,002 0 0 0 106,002 93,021 40,176 LIFE OF EVALUATION IS 37.75 YEARS. FINAL PRODUCTION RATE: 0.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 110 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 19-T16S-R17W PROVED HOOFER #1 (KSSC-LNSG) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 5.00% - 0 FINAL - 1.000000 10.00% - 0 REMARKS - 15.00% - 0 20.00% - 0 25.00% - 0
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 0 0 0 0.000 0.00 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 0 0 0 0.000 0.00 0.00 CUMULATIVE 0 0 357 ULTIMATE 0 0 357
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 0
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUBTOT 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 LIFE OF EVALUATION IS 0.00 YEARS. FINAL PRODUCTION RATE: 0.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 111 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 7-T17S-R16W PROVED JANSON #2-A (SHAWNEE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 5.00% - 0 FINAL - 1.000000 10.00% - 0 REMARKS - 15.00% - 0 20.00% - 0 25.00% - 0
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 0 0 0 0.000 0.00 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 0 0 0 0.000 0.00 0.00 CUMULATIVE 0 0 33 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 33 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 0
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUBTOT 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 LIFE OF EVALUATION IS 0.00 YEARS. FINAL PRODUCTION RATE: 0.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 112 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 28-T16S-R16W PROVED KAISER #1 (KSSC-LNSG) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 26.46 5.00% - 59,267 FINAL - 1.000000 0.875000 26.46 10.00% - 50,549 REMARKS - 15.00% - 43,806 20.00% - 38,497 25.00% - 34,244
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 891 0 0 779 0 0.000 26.46 0.00 2002 1 819 0 0 717 0 0.000 26.46 0.00 2003 1 754 0 0 660 0 0.000 26.46 0.00 2004 1 694 0 0 607 0 0.000 26.46 0.00 2005 1 638 0 0 558 0 0.000 26.46 0.00 2006 1 587 0 0 514 0 0.000 26.46 0.00 2007 1 540 0 0 472 0 0.000 26.46 0.00 2008 1 497 0 0 435 0 0.000 26.46 0.00 2009 1 457 0 0 400 0 0.000 26.46 0.00 2010 1 420 0 0 368 0 0.000 26.46 0.00 2011 1 387 0 0 339 0 0.000 26.46 0.00 2012 1 356 0 0 311 0 0.000 26.46 0.00 2013 1 112 0 0 98 0 0.000 26.46 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 7,152 0 0 6,258 0 0.000 26.46 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 7,152 0 0 6,258 0 0.000 26.46 0.00 CUMULATIVE 13,397 0 0 ULTIMATE 20,549 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 20,622 0 0 0 20,622 33 0 20,589 2002 18,971 0 0 0 18,971 30 0 18,941 2003 17,454 0 0 0 17,454 28 0 17,426 2004 16,058 0 0 0 16,058 26 0 16,032 2005 14,773 0 0 0 14,773 24 0 14,749 2006 13,592 0 0 0 13,592 21 0 13,571 2007 12,504 0 0 0 12,504 20 0 12,484 2008 11,503 0 0 0 11,503 19 0 11,484 2009 10,584 0 0 0 10,584 17 0 10,567 2010 9,736 0 0 0 9,736 15 0 9,721 2011 8,958 0 0 0 8,958 15 0 8,943 2012 8,241 0 0 0 8,241 13 0 8,228 2013 2,598 0 0 0 2,598 4 0 2,594 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 165,594 0 0 0 165,594 265 0 165,329 REMAIN 0 0 0 0 0 0 0 0 TOTAL 165,594 0 0 0 165,594 265 0 165,329
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 7,668 0 0 0 7,668 12,921 12,921 12,312 2002 7,668 0 0 0 7,668 11,273 24,194 9,724 2003 7,668 0 0 0 7,668 9,758 33,952 7,620 2004 7,668 0 0 0 7,668 8,364 42,316 5,912 2005 7,668 0 0 0 7,668 7,081 49,397 4,532 2006 7,668 0 0 0 7,668 5,903 55,300 3,421 2007 7,668 0 0 0 7,668 4,816 60,116 2,526 2008 7,668 0 0 0 7,668 3,816 63,932 1,813 2009 7,668 0 0 0 7,668 2,899 66,831 1,247 2010 7,668 0 0 0 7,668 2,053 68,884 800 2011 7,668 0 0 0 7,668 1,275 70,159 450 2012 7,668 0 0 0 7,668 560 70,719 180 2013 2,556 0 0 0 2,556 38 70,757 12 2014 0 0 0 0 0 0 70,757 0 2015 0 0 0 0 0 0 70,757 0 SUBTOT 94,572 0 0 0 94,572 70,757 50,549 REMAIN 0 0 0 0 0 0 70,757 0 TOTAL 94,572 0 0 0 94,572 70,757 50,549 LIFE OF EVALUATION IS 12.33 YEARS. FINAL PRODUCTION RATE: 28 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 113 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 2-T17S-R17W PROVED KAISER #2 (TOPEKA) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 5.30 5.00% - 18,208 FINAL - 1.000000 0.875000 5.30 10.00% - 15,983 REMARKS - 15.00% - 14,174 20.00% - 12,688 25.00% - 11,454
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 3 0 0 2.002 0.00 5.30 2002 1 0 0 3 0 0 1.875 0.00 5.30 2003 1 0 0 3 0 0 1.756 0.00 5.30 2004 1 0 0 2 0 0 1.645 0.00 5.30 2005 1 0 0 3 0 0 1.541 0.00 5.30 2006 1 0 0 2 0 0 1.443 0.00 5.30 2007 1 0 0 2 0 0 1.352 0.00 5.30 2008 1 0 0 2 0 0 1.267 0.00 5.30 2009 1 0 0 2 0 0 1.186 0.00 5.30 2010 1 0 0 0 0 0 0.379 0.00 5.30 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 22 0 0 14.446 0.00 5.30 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 22 0 0 14.446 0.00 5.30 CUMULATIVE 0 0 82 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 104 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 10,606 0 10,606 0 33 10,573 2002 0 0 9,935 0 9,935 0 31 9,904 2003 0 0 9,306 0 9,306 0 29 9,277 2004 0 0 8,717 0 8,717 0 27 8,690 2005 0 0 8,165 0 8,165 0 25 8,140 2006 0 0 7,648 0 7,648 0 24 7,624 2007 0 0 7,164 0 7,164 0 22 7,142 2008 0 0 6,711 0 6,711 0 21 6,690 2009 0 0 6,285 0 6,285 0 19 6,266 2010 0 0 2,006 0 2,006 0 6 2,000 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 76,543 0 76,543 0 237 76,306 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 76,543 0 76,543 0 237 76,306
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 5,928 0 0 0 5,928 4,645 4,645 4,427 2002 5,928 0 0 0 5,928 3,976 8,621 3,430 2003 5,928 0 0 0 5,928 3,349 11,970 2,616 2004 5,928 0 0 0 5,928 2,762 14,732 1,953 2005 5,928 0 0 0 5,928 2,212 16,944 1,417 2006 5,928 0 0 0 5,928 1,696 18,640 983 2007 5,928 0 0 0 5,928 1,214 19,854 638 2008 5,928 0 0 0 5,928 762 20,616 363 2009 5,928 0 0 0 5,928 338 20,954 146 2010 1,976 0 0 0 1,976 24 20,978 10 2011 0 0 0 0 0 0 20,978 0 2012 0 0 0 0 0 0 20,978 0 2013 0 0 0 0 0 0 20,978 0 2014 0 0 0 0 0 0 20,978 0 2015 0 0 0 0 0 0 20,978 0 SUBTOT 55,328 0 0 0 55,328 20,978 15,983 REMAIN 0 0 0 0 0 0 20,978 0 TOTAL 55,328 0 0 0 55,328 20,978 15,983 LIFE OF EVALUATION IS 9.33 YEARS. FINAL PRODUCTION RATE: 0.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 114 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 25-T17S-R17W PROVED KLEWENO #1 (TOPEKA) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.820313 5.30 5.00% - 10,851 FINAL - 1.000000 0.820313 5.30 10.00% - 8,954 REMARKS - 15.00% - 7,555 20.00% - 6,496 25.00% - 5,677
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 2 0 0 1.232 0.00 5.30 2002 1 0 0 2 0 0 1.201 0.00 5.30 2003 1 0 0 2 0 0 1.171 0.00 5.30 2004 1 0 0 2 0 0 1.142 0.00 5.30 2005 1 0 0 2 0 0 1.113 0.00 5.30 2006 1 0 0 1 0 0 1.085 0.00 5.30 2007 1 0 0 2 0 0 1.058 0.00 5.30 2008 1 0 0 2 0 0 1.032 0.00 5.30 2009 1 0 0 1 0 0 1.006 0.00 5.30 2010 1 0 0 2 0 0 0.981 0.00 5.30 2011 1 0 0 2 0 0 0.956 0.00 5.30 2012 1 0 0 1 0 0 0.932 0.00 5.30 2013 1 0 0 2 0 0 0.909 0.00 5.30 2014 1 0 0 1 0 0 0.886 0.00 5.30 2015 1 0 0 1 0 0 0.290 0.00 5.30 SUB-TOTAL 0 0 25 0 0 14.994 0.00 5.30 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 25 0 0 14.994 0.00 5.30 CUMULATIVE 0 0 410 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 435 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 6,525 0 6,525 0 20 6,505 2002 0 0 6,363 0 6,363 0 20 6,343 2003 0 0 6,203 0 6,203 0 19 6,184 2004 0 0 6,048 0 6,048 0 19 6,029 2005 0 0 5,897 0 5,897 0 18 5,879 2006 0 0 5,750 0 5,750 0 18 5,732 2007 0 0 5,606 0 5,606 0 17 5,589 2008 0 0 5,466 0 5,466 0 17 5,449 2009 0 0 5,329 0 5,329 0 17 5,312 2010 0 0 5,195 0 5,195 0 16 5,179 2011 0 0 5,066 0 5,066 0 16 5,050 2012 0 0 4,940 0 4,940 0 15 4,925 2013 0 0 4,815 0 4,815 0 15 4,800 2014 0 0 4,696 0 4,696 0 14 4,682 2015 0 0 1,539 0 1,539 0 5 1,534 SUB-TOT 0 0 79,438 0 79,438 0 246 79,192 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 79,438 0 79,438 0 246 79,192
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 4,584 0 0 0 4,584 1,921 1,921 1,830 2002 4,584 0 0 0 4,584 1,759 3,680 1,516 2003 4,584 0 0 0 4,584 1,600 5,280 1,249 2004 4,584 0 0 0 4,584 1,445 6,725 1,021 2005 4,584 0 0 0 4,584 1,295 8,020 829 2006 4,584 0 0 0 4,584 1,148 9,168 665 2007 4,584 0 0 0 4,584 1,005 10,173 527 2008 4,584 0 0 0 4,584 865 11,038 410 2009 4,584 0 0 0 4,584 728 11,766 313 2010 4,584 0 0 0 4,584 595 12,361 231 2011 4,584 0 0 0 4,584 466 12,827 165 2012 4,584 0 0 0 4,584 341 13,168 109 2013 4,584 0 0 0 4,584 216 13,384 62 2014 4,584 0 0 0 4,584 98 13,482 26 2015 1,528 0 0 0 1,528 6 13,488 1 SUBTOT 65,704 0 0 0 65,704 13,488 8,954 REMAIN 0 0 0 0 0 0 13,488 0 TOTAL 65,704 0 0 0 65,704 13,488 8,954 LIFE OF EVALUATION IS 14.33 YEARS. FINAL PRODUCTION RATE: 0.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 115 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 23-T17S-R17W PROVED KLEWENO -A- #1 (TOPEKA) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 5.30 5.00% - 45,902 FINAL - 1.000000 0.875000 5.30 10.00% - 34,066 REMARKS - 15.00% - 26,811 20.00% - 22,013 25.00% - 18,643
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 2 0 0 1.501 0.00 5.30 2002 1 0 0 3 0 0 1.436 0.00 5.30 2003 1 0 0 2 0 0 1.375 0.00 5.30 2004 1 0 0 2 0 0 1.315 0.00 5.30 2005 1 0 0 2 0 0 1.259 0.00 5.30 2006 1 0 0 1 0 0 1.205 0.00 5.30 2007 1 0 0 2 0 0 1.153 0.00 5.30 2008 1 0 0 2 0 0 1.103 0.00 5.30 2009 1 0 0 2 0 0 1.056 0.00 5.30 2010 1 0 0 1 0 0 1.011 0.00 5.30 2011 1 0 0 2 0 0 0.967 0.00 5.30 2012 1 0 0 1 0 0 0.925 0.00 5.30 2013 1 0 0 1 0 0 0.886 0.00 5.30 2014 1 0 0 2 0 0 0.848 0.00 5.30 2015 1 0 0 1 0 0 0.811 0.00 5.30 SUB-TOTAL 0 0 26 0 0 16.851 0.00 5.30 REMAINDER 0 0 13 0 0 8.296 0.00 5.30 TOTAL 0 0 39 0 0 25.147 0.00 5.30 CUMULATIVE 0 0 33 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 72 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 7,952 0 7,952 0 25 7,927 2002 0 0 7,610 0 7,610 0 23 7,587 2003 0 0 7,283 0 7,283 0 23 7,260 2004 0 0 6,970 0 6,970 0 21 6,949 2005 0 0 6,670 0 6,670 0 21 6,649 2006 0 0 6,383 0 6,383 0 20 6,363 2007 0 0 6,109 0 6,109 0 19 6,090 2008 0 0 5,846 0 5,846 0 18 5,828 2009 0 0 5,595 0 5,595 0 17 5,578 2010 0 0 5,354 0 5,354 0 17 5,337 2011 0 0 5,124 0 5,124 0 16 5,108 2012 0 0 4,903 0 4,903 0 15 4,888 2013 0 0 4,693 0 4,693 0 15 4,678 2014 0 0 4,491 0 4,491 0 13 4,478 2015 0 0 4,298 0 4,298 0 14 4,284 SUB-TOT 0 0 89,281 0 89,281 0 277 89,004 REMAIN 0 0 43,955 0 43,955 0 136 43,819 TOTAL 0 0 133,236 0 133,236 0 413 132,823
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 2,268 0 0 0 2,268 5,659 5,659 5,389 2002 2,268 0 0 0 2,268 5,319 10,978 4,585 2003 2,268 0 0 0 2,268 4,992 15,970 3,896 2004 2,268 0 0 0 2,268 4,681 20,651 3,306 2005 2,268 0 0 0 2,268 4,381 25,032 2,802 2006 2,268 0 0 0 2,268 4,095 29,127 2,370 2007 2,268 0 0 0 2,268 3,822 32,949 2,003 2008 2,268 0 0 0 2,268 3,560 36,509 1,688 2009 2,268 0 0 0 2,268 3,310 39,819 1,421 2010 2,268 0 0 0 2,268 3,069 42,888 1,193 2011 2,268 0 0 0 2,268 2,840 45,728 999 2012 2,268 0 0 0 2,268 2,620 48,348 835 2013 2,268 0 0 0 2,268 2,410 50,758 695 2014 2,268 0 0 0 2,268 2,210 52,968 576 2015 2,268 0 0 0 2,268 2,016 54,984 477 SUBTOT 34,020 0 0 0 34,020 54,984 32,235 REMAIN 31,752 0 0 0 31,752 12,067 67,051 1,831 TOTAL 65,772 0 0 0 65,772 67,051 34,066 LIFE OF EVALUATION IS 29.00 YEARS. FINAL PRODUCTION RATE: 0.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 116 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 6-T18S-R16W PROVED KOBER #1 (KSSC-LNSG) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 5.30 5.00% - 78,822 FINAL - 1.000000 0.875000 5.30 10.00% - 62,335 REMARKS - 15.00% - 51,103 20.00% - 43,105 25.00% - 37,186
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 5 0 0 3.234 0.00 5.30 2002 1 0 0 5 0 0 3.040 0.00 5.30 2003 1 0 0 4 0 0 2.857 0.00 5.30 2004 1 0 0 4 0 0 2.686 0.00 5.30 2005 1 0 0 4 0 0 2.525 0.00 5.30 2006 1 0 0 4 0 0 2.373 0.00 5.30 2007 1 0 0 3 0 0 2.231 0.00 5.30 2008 1 0 0 3 0 0 2.097 0.00 5.30 2009 1 0 0 3 0 0 1.971 0.00 5.30 2010 1 0 0 3 0 0 1.853 0.00 5.30 2011 1 0 0 3 0 0 1.742 0.00 5.30 2012 1 0 0 2 0 0 1.637 0.00 5.30 2013 1 0 0 3 0 0 1.539 0.00 5.30 2014 1 0 0 2 0 0 1.447 0.00 5.30 2015 1 0 0 2 0 0 1.360 0.00 5.30 SUB-TOTAL 0 0 50 0 0 32.592 0.00 5.30 REMAINDER 0 0 10 0 0 6.301 0.00 5.30 TOTAL 0 0 60 0 0 38.893 0.00 5.30 CUMULATIVE 0 0 106 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 166 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 17,135 0 17,135 0 53 17,082 2002 0 0 16,106 0 16,106 0 50 16,056 2003 0 0 15,140 0 15,140 0 47 15,093 2004 0 0 14,232 0 14,232 0 44 14,188 2005 0 0 13,378 0 13,378 0 42 13,336 2006 0 0 12,575 0 12,575 0 39 12,536 2007 0 0 11,820 0 11,820 0 36 11,784 2008 0 0 11,112 0 11,112 0 35 11,077 2009 0 0 10,444 0 10,444 0 32 10,412 2010 0 0 9,818 0 9,818 0 30 9,788 2011 0 0 9,229 0 9,229 0 29 9,200 2012 0 0 8,676 0 8,676 0 27 8,649 2013 0 0 8,154 0 8,154 0 25 8,129 2014 0 0 7,666 0 7,666 0 24 7,642 2015 0 0 7,205 0 7,205 0 22 7,183 SUB-TOT 0 0 172,690 0 172,690 0 535 172,155 REMAIN 0 0 33,387 0 33,387 0 104 33,283 TOTAL 0 0 206,077 0 206,077 0 639 205,438
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 4,896 0 0 0 4,896 12,186 12,186 11,607 2002 4,896 0 0 0 4,896 11,160 23,346 9,623 2003 4,896 0 0 0 4,896 10,197 33,543 7,958 2004 4,896 0 0 0 4,896 9,292 42,835 6,566 2005 4,896 0 0 0 4,896 8,440 51,275 5,398 2006 4,896 0 0 0 4,896 7,640 58,915 4,423 2007 4,896 0 0 0 4,896 6,888 65,803 3,611 2008 4,896 0 0 0 4,896 6,181 71,984 2,932 2009 4,896 0 0 0 4,896 5,516 77,500 2,369 2010 4,896 0 0 0 4,896 4,892 82,392 1,903 2011 4,896 0 0 0 4,896 4,304 86,696 1,515 2012 4,896 0 0 0 4,896 3,753 90,449 1,195 2013 4,896 0 0 0 4,896 3,233 93,682 933 2014 4,896 0 0 0 4,896 2,746 96,428 717 2015 4,896 0 0 0 4,896 2,287 98,715 541 SUBTOT 73,440 0 0 0 73,440 98,715 61,291 REMAIN 27,744 0 0 0 27,744 5,539 104,254 1,044 TOTAL 101,184 0 0 0 101,184 104,254 62,335 LIFE OF EVALUATION IS 20.67 YEARS. FINAL PRODUCTION RATE: 0.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 117 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 21-T17S-R17W PROVED LEBSACK -A- #1 (KSSC-LNSG) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.783854 5.30 5.00% - 48,623 FINAL - 1.000000 0.783854 5.30 10.00% - 35,537 REMARKS - 15.00% - 27,708 20.00% - 22,615 25.00% - 19,076
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 3 0 0 1.558 0.00 5.30 2002 1 0 0 2 0 0 1.498 0.00 5.30 2003 1 0 0 3 0 0 1.441 0.00 5.30 2004 1 0 0 2 0 0 1.387 0.00 5.30 2005 1 0 0 2 0 0 1.334 0.00 5.30 2006 1 0 0 3 0 0 1.283 0.00 5.30 2007 1 0 0 2 0 0 1.234 0.00 5.30 2008 1 0 0 2 0 0 1.188 0.00 5.30 2009 1 0 0 2 0 0 1.142 0.00 5.30 2010 1 0 0 2 0 0 1.099 0.00 5.30 2011 1 0 0 1 0 0 1.057 0.00 5.30 2012 1 0 0 2 0 0 1.017 0.00 5.30 2013 1 0 0 2 0 0 0.978 0.00 5.30 2014 1 0 0 1 0 0 0.941 0.00 5.30 2015 1 0 0 2 0 0 0.906 0.00 5.30 SUB-TOTAL 0 0 31 0 0 18.063 0.00 5.30 REMAINDER 0 0 18 0 0 10.550 0.00 5.30 TOTAL 0 0 49 0 0 28.613 0.00 5.30 CUMULATIVE 0 0 121 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 170 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 8,253 0 8,253 0 26 8,227 2002 0 0 7,939 0 7,939 0 24 7,915 2003 0 0 7,637 0 7,637 0 24 7,613 2004 0 0 7,347 0 7,347 0 23 7,324 2005 0 0 7,068 0 7,068 0 22 7,046 2006 0 0 6,799 0 6,799 0 21 6,778 2007 0 0 6,541 0 6,541 0 20 6,521 2008 0 0 6,292 0 6,292 0 19 6,273 2009 0 0 6,054 0 6,054 0 19 6,035 2010 0 0 5,823 0 5,823 0 18 5,805 2011 0 0 5,602 0 5,602 0 18 5,584 2012 0 0 5,389 0 5,389 0 16 5,373 2013 0 0 5,184 0 5,184 0 16 5,168 2014 0 0 4,988 0 4,988 0 16 4,972 2015 0 0 4,797 0 4,797 0 15 4,782 SUB-TOT 0 0 95,713 0 95,713 0 297 95,416 REMAIN 0 0 55,901 0 55,901 0 173 55,728 TOTAL 0 0 151,614 0 151,614 0 470 151,144
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 2,532 0 0 0 2,532 5,695 5,695 5,423 2002 2,532 0 0 0 2,532 5,383 11,078 4,640 2003 2,532 0 0 0 2,532 5,081 16,159 3,965 2004 2,532 0 0 0 2,532 4,792 20,951 3,385 2005 2,532 0 0 0 2,532 4,514 25,465 2,886 2006 2,532 0 0 0 2,532 4,246 29,711 2,458 2007 2,532 0 0 0 2,532 3,989 33,700 2,090 2008 2,532 0 0 0 2,532 3,741 37,441 1,774 2009 2,532 0 0 0 2,532 3,503 40,944 1,504 2010 2,532 0 0 0 2,532 3,273 44,217 1,272 2011 2,532 0 0 0 2,532 3,052 47,269 1,074 2012 2,532 0 0 0 2,532 2,841 50,110 904 2013 2,532 0 0 0 2,532 2,636 52,746 760 2014 2,532 0 0 0 2,532 2,440 55,186 637 2015 2,532 0 0 0 2,532 2,250 57,436 532 SUBTOT 37,980 0 0 0 37,980 57,436 33,304 REMAIN 40,301 0 0 0 40,301 15,427 72,863 2,233 TOTAL 78,281 0 0 0 78,281 72,863 35,537 LIFE OF EVALUATION IS 30.92 YEARS. FINAL PRODUCTION RATE: 0.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 118 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 19-T16S-R17W PROVED LIPPERT #2 (KSSC-LNSG) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 5.00% - 0 FINAL - 1.000000 10.00% - 0 REMARKS - 15.00% - 0 20.00% - 0 25.00% - 0
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 0 0 0 0.000 0.00 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 0 0 0 0.000 0.00 0.00 CUMULATIVE 0 0 2,213 ULTIMATE 0 0 2,213
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 0
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUBTOT 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 LIFE OF EVALUATION IS 0.00 YEARS. FINAL PRODUCTION RATE: 0.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 119 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 19-T16S-R17W PROVED LIPPERT #3 (COTTONWOOD) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 5.30 5.00% - 192,462 FINAL - 1.000000 0.875000 5.30 10.00% - 136,317 REMARKS - 15.00% - 104,590 20.00% - 84,611 25.00% - 70,989
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 8 0 0 5.090 0.00 5.30 2002 1 0 0 7 0 0 4.891 0.00 5.30 2003 1 0 0 8 0 0 4.701 0.00 5.30 2004 1 0 0 6 0 0 4.517 0.00 5.30 2005 1 0 0 7 0 0 4.341 0.00 5.30 2006 1 0 0 7 0 0 4.172 0.00 5.30 2007 1 0 0 6 0 0 4.009 0.00 5.30 2008 1 0 0 6 0 0 3.853 0.00 5.30 2009 1 0 0 5 0 0 3.703 0.00 5.30 2010 1 0 0 6 0 0 3.558 0.00 5.30 2011 1 0 0 5 0 0 3.419 0.00 5.30 2012 1 0 0 5 0 0 3.286 0.00 5.30 2013 1 0 0 5 0 0 3.158 0.00 5.30 2014 1 0 0 5 0 0 3.035 0.00 5.30 2015 1 0 0 4 0 0 2.916 0.00 5.30 SUB-TOTAL 0 0 90 0 0 58.649 0.00 5.30 REMAINDER 0 0 66 0 0 42.983 0.00 5.30 TOTAL 0 0 156 0 0 101.632 0.00 5.30 CUMULATIVE 0 0 168 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 324 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 26,969 0 26,969 0 84 26,885 2002 0 0 25,917 0 25,917 0 80 25,837 2003 0 0 24,907 0 24,907 0 77 24,830 2004 0 0 23,935 0 23,935 0 74 23,861 2005 0 0 23,001 0 23,001 0 72 22,929 2006 0 0 22,105 0 22,105 0 68 22,037 2007 0 0 21,242 0 21,242 0 66 21,176 2008 0 0 20,414 0 20,414 0 63 20,351 2009 0 0 19,618 0 19,618 0 61 19,557 2010 0 0 18,853 0 18,853 0 59 18,794 2011 0 0 18,117 0 18,117 0 56 18,061 2012 0 0 17,411 0 17,411 0 54 17,357 2013 0 0 16,732 0 16,732 0 52 16,680 2014 0 0 16,079 0 16,079 0 49 16,030 2015 0 0 15,453 0 15,453 0 48 15,405 SUB-TOT 0 0 310,753 0 310,753 0 963 309,790 REMAIN 0 0 227,746 0 227,746 0 706 227,040 TOTAL 0 0 538,499 0 538,499 0 1,669 536,830
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 6,060 0 0 0 6,060 20,825 20,825 19,830 2002 6,060 0 0 0 6,060 19,777 40,602 17,047 2003 6,060 0 0 0 6,060 18,770 59,372 14,646 2004 6,060 0 0 0 6,060 17,801 77,173 12,573 2005 6,060 0 0 0 6,060 16,869 94,042 10,785 2006 6,060 0 0 0 6,060 15,977 110,019 9,247 2007 6,060 0 0 0 6,060 15,116 125,135 7,919 2008 6,060 0 0 0 6,060 14,291 139,426 6,778 2009 6,060 0 0 0 6,060 13,497 152,923 5,794 2010 6,060 0 0 0 6,060 12,734 165,657 4,949 2011 6,060 0 0 0 6,060 12,001 177,658 4,222 2012 6,060 0 0 0 6,060 11,297 188,955 3,597 2013 6,060 0 0 0 6,060 10,620 199,575 3,061 2014 6,060 0 0 0 6,060 9,970 209,545 2,602 2015 6,060 0 0 0 6,060 9,345 218,890 2,207 SUBTOT 90,900 0 0 0 90,900 218,890 125,257 REMAIN 138,875 0 0 0 138,875 88,165 307,055 11,060 TOTAL 229,775 0 0 0 229,775 307,055 136,317 LIFE OF EVALUATION IS 37.92 YEARS. FINAL PRODUCTION RATE: 0.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 120 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 19-T16S-R17W PROVED LIPPERT #3 BP (WINFIELD) BEHIND PIPE REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 5.30 5.00% - 194,902 FINAL - 1.000000 0.875000 5.30 10.00% - 175,121 REMARKS - 15.00% - 158,438 20.00% - 144,274 25.00% - 132,172
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 20 0 0 13.017 0.00 5.30 2002 1 0 0 12 0 0 8.127 0.00 5.30 2003 1 0 0 11 0 0 6.645 0.00 5.30 2004 1 0 0 8 0 0 5.697 0.00 5.30 2005 1 0 0 8 0 0 4.884 0.00 5.30 2006 1 0 0 6 0 0 3.944 0.00 5.30 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 65 0 0 42.314 0.00 5.30 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 65 0 0 42.314 0.00 5.30 CUMULATIVE 0 0 0 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 65 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 68,972 0 68,972 0 214 68,758 2002 0 0 43,062 0 43,062 0 133 42,929 2003 0 0 35,207 0 35,207 0 109 35,098 2004 0 0 30,184 0 30,184 0 94 30,090 2005 0 0 25,879 0 25,879 0 80 25,799 2006 0 0 20,900 0 20,900 0 65 20,835 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 224,204 0 224,204 0 695 223,509 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 224,204 0 224,204 0 695 223,509
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 5,000 0 5,000 63,758 63,758 60,740 2002 0 0 0 0 0 42,929 106,687 37,090 2003 0 0 0 0 0 35,098 141,785 27,409 2004 0 0 0 0 0 30,090 171,875 21,271 2005 0 0 0 0 0 25,799 197,674 16,508 2006 0 0 0 0 0 20,835 218,509 12,103 2007 0 0 0 0 0 0 218,509 0 2008 0 0 0 0 0 0 218,509 0 2009 0 0 0 0 0 0 218,509 0 2010 0 0 0 0 0 0 218,509 0 2011 0 0 0 0 0 0 218,509 0 2012 0 0 0 0 0 0 218,509 0 2013 0 0 0 0 0 0 218,509 0 2014 0 0 0 0 0 0 218,509 0 2015 0 0 0 0 0 0 218,509 0 SUBTOT 0 0 5,000 0 5,000 218,509 175,121 REMAIN 0 0 0 0 0 0 218,509 0 TOTAL 0 0 5,000 0 5,000 218,509 175,121 LIFE OF EVALUATION IS 5.94 YEARS. FINAL PRODUCTION RATE: 0.5 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 121 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 29-T16S-R17W PROVED LIPPERT -B- #1 (PENNSYLVANIAN) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.755625 5.30 5.00% - 360 FINAL - 1.000000 0.755625 5.30 10.00% - 353 REMARKS - 15.00% - 346 20.00% - 339 25.00% - 332
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 1 0 0 0.393 0.00 5.30 2002 1 0 0 0 0 0 0.113 0.00 5.30 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 1 0 0 0.506 0.00 5.30 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 1 0 0 0.506 0.00 5.30 CUMULATIVE 0 0 1,225 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 1,226 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 2,082 0 2,082 0 6 2,076 2002 0 0 598 0 598 0 2 596 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 2,680 0 2,680 0 8 2,672 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 2,680 0 2,680 0 8 2,672
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 1,728 0 0 0 1,728 348 348 335 2002 576 0 0 0 576 20 368 18 2003 0 0 0 0 0 0 368 0 2004 0 0 0 0 0 0 368 0 2005 0 0 0 0 0 0 368 0 2006 0 0 0 0 0 0 368 0 2007 0 0 0 0 0 0 368 0 2008 0 0 0 0 0 0 368 0 2009 0 0 0 0 0 0 368 0 2010 0 0 0 0 0 0 368 0 2011 0 0 0 0 0 0 368 0 2012 0 0 0 0 0 0 368 0 2013 0 0 0 0 0 0 368 0 2014 0 0 0 0 0 0 368 0 2015 0 0 0 0 0 0 368 0 SUBTOT 2,304 0 0 0 2,304 368 353 REMAIN 0 0 0 0 0 0 368 0 TOTAL 2,304 0 0 0 2,304 368 353 LIFE OF EVALUATION IS 1.33 YEARS. FINAL PRODUCTION RATE: 0.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 122 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 29-T16S-R17W PROVED LIPPERT -B- #2 PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 5.00% - 0 FINAL - 1.000000 10.00% - 0 REMARKS - 15.00% - 0 20.00% - 0 25.00% - 0
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 0 0 0 0.000 0.00 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 0 0 0 0.000 0.00 0.00 CUMULATIVE 0 0 12 ULTIMATE 0 0 12
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 0
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUBTOT 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 LIFE OF EVALUATION IS 0.00 YEARS. FINAL PRODUCTION RATE: 0.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 123 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 32-T16S-R17W PROVED LIPPERT -C- #1 (TOPEKA) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.765625 5.30 5.00% - 26,729 FINAL - 1.000000 0.765625 5.30 10.00% - 22,088 REMARKS - 15.00% - 18,690 20.00% - 16,131 25.00% - 14,154
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 2 0 0 1.312 0.00 5.30 2002 1 0 0 2 0 0 1.207 0.00 5.30 2003 1 0 0 2 0 0 1.110 0.00 5.30 2004 1 0 0 2 0 0 1.021 0.00 5.30 2005 1 0 0 2 0 0 0.940 0.00 5.30 2006 1 0 0 1 0 0 0.864 0.00 5.30 2007 1 0 0 2 0 0 0.795 0.00 5.30 2008 1 0 0 1 0 0 0.732 0.00 5.30 2009 1 0 0 1 0 0 0.673 0.00 5.30 2010 1 0 0 1 0 0 0.619 0.00 5.30 2011 1 0 0 1 0 0 0.570 0.00 5.30 2012 1 0 0 1 0 0 0.524 0.00 5.30 2013 1 0 0 1 0 0 0.482 0.00 5.30 2014 1 0 0 1 0 0 0.444 0.00 5.30 2015 1 0 0 1 0 0 0.408 0.00 5.30 SUB-TOTAL 0 0 21 0 0 11.701 0.00 5.30 REMAINDER 0 0 0 0 0 0.376 0.00 5.30 TOTAL 0 0 21 0 0 12.077 0.00 5.30 CUMULATIVE 0 0 195 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 216 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 6,950 0 6,950 0 22 6,928 2002 0 0 6,394 0 6,394 0 19 6,375 2003 0 0 5,882 0 5,882 0 19 5,863 2004 0 0 5,412 0 5,412 0 16 5,396 2005 0 0 4,978 0 4,978 0 16 4,962 2006 0 0 4,581 0 4,581 0 14 4,567 2007 0 0 4,214 0 4,214 0 13 4,201 2008 0 0 3,877 0 3,877 0 12 3,865 2009 0 0 3,567 0 3,567 0 11 3,556 2010 0 0 3,281 0 3,281 0 10 3,271 2011 0 0 3,019 0 3,019 0 10 3,009 2012 0 0 2,777 0 2,777 0 8 2,769 2013 0 0 2,555 0 2,555 0 8 2,547 2014 0 0 2,351 0 2,351 0 7 2,344 2015 0 0 2,163 0 2,163 0 7 2,156 SUB-TOT 0 0 62,001 0 62,001 0 192 61,809 REMAIN 0 0 1,990 0 1,990 0 6 1,984 TOTAL 0 0 63,991 0 63,991 0 198 63,793
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 1,908 0 0 0 1,908 5,020 5,020 4,783 2002 1,908 0 0 0 1,908 4,467 9,487 3,852 2003 1,908 0 0 0 1,908 3,955 13,442 3,088 2004 1,908 0 0 0 1,908 3,488 16,930 2,465 2005 1,908 0 0 0 1,908 3,054 19,984 1,954 2006 1,908 0 0 0 1,908 2,659 22,643 1,540 2007 1,908 0 0 0 1,908 2,293 24,936 1,202 2008 1,908 0 0 0 1,908 1,957 26,893 929 2009 1,908 0 0 0 1,908 1,648 28,541 708 2010 1,908 0 0 0 1,908 1,363 29,904 531 2011 1,908 0 0 0 1,908 1,101 31,005 388 2012 1,908 0 0 0 1,908 861 31,866 274 2013 1,908 0 0 0 1,908 639 32,505 185 2014 1,908 0 0 0 1,908 436 32,941 114 2015 1,908 0 0 0 1,908 248 33,189 59 SUBTOT 28,620 0 0 0 28,620 33,189 22,072 REMAIN 1,908 0 0 0 1,908 76 33,265 16 TOTAL 30,528 0 0 0 30,528 33,265 22,088 LIFE OF EVALUATION IS 16.00 YEARS. FINAL PRODUCTION RATE: 0.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 124 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 3-T17S-R17W PROVED MCGILL #1 (SHAWNEE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 5.00% - 0 FINAL - 1.000000 10.00% - 0 REMARKS - 15.00% - 0 20.00% - 0 25.00% - 0
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 0 0 0 0.000 0.00 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 0 0 0 0.000 0.00 0.00 CUMULATIVE 0 0 436 ULTIMATE 0 0 436
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 0
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUBTOT 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 LIFE OF EVALUATION IS 0.00 YEARS. FINAL PRODUCTION RATE: 0.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 125 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 34-T16S-R17W PROVED O'DELL #1 (SHAWNEE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 5.00% - 0 FINAL - 1.000000 10.00% - 0 REMARKS - 15.00% - 0 20.00% - 0 25.00% - 0
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 0 0 0 0.000 0.00 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 0 0 0 0.000 0.00 0.00 CUMULATIVE 0 0 115 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 115 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 0
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUBTOT 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 LIFE OF EVALUATION IS 0.00 YEARS. FINAL PRODUCTION RATE: 0.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 126 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 28-T16S-R16W PROVED OCHS #1-A (SHAWNEE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 5.30 5.00% - 133,042 FINAL - 1.000000 0.875000 5.30 10.00% - 89,706 REMARKS - 15.00% - 67,058 20.00% - 53,437 25.00% - 44,406
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 5 0 0 2.999 0.00 5.30 2002 1 0 0 4 0 0 2.906 0.00 5.30 2003 1 0 0 4 0 0 2.816 0.00 5.30 2004 1 0 0 5 0 0 2.729 0.00 5.30 2005 1 0 0 4 0 0 2.644 0.00 5.30 2006 1 0 0 4 0 0 2.562 0.00 5.30 2007 1 0 0 3 0 0 2.483 0.00 5.30 2008 1 0 0 4 0 0 2.406 0.00 5.30 2009 1 0 0 4 0 0 2.331 0.00 5.30 2010 1 0 0 3 0 0 2.259 0.00 5.30 2011 1 0 0 4 0 0 2.189 0.00 5.30 2012 1 0 0 3 0 0 2.121 0.00 5.30 2013 1 0 0 3 0 0 2.055 0.00 5.30 2014 1 0 0 3 0 0 1.992 0.00 5.30 2015 1 0 0 3 0 0 1.930 0.00 5.30 SUB-TOTAL 0 0 56 0 0 36.422 0.00 5.30 REMAINDER 0 0 50 0 0 32.290 0.00 5.30 TOTAL 0 0 106 0 0 68.712 0.00 5.30 CUMULATIVE 0 0 218 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 324 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 15,891 0 15,891 0 49 15,842 2002 0 0 15,399 0 15,399 0 48 15,351 2003 0 0 14,921 0 14,921 0 46 14,875 2004 0 0 14,459 0 14,459 0 45 14,414 2005 0 0 14,010 0 14,010 0 44 13,966 2006 0 0 13,576 0 13,576 0 42 13,534 2007 0 0 13,156 0 13,156 0 40 13,116 2008 0 0 12,747 0 12,747 0 40 12,707 2009 0 0 12,353 0 12,353 0 38 12,315 2010 0 0 11,969 0 11,969 0 37 11,932 2011 0 0 11,598 0 11,598 0 36 11,562 2012 0 0 11,239 0 11,239 0 35 11,204 2013 0 0 10,890 0 10,890 0 34 10,856 2014 0 0 10,553 0 10,553 0 33 10,520 2015 0 0 10,226 0 10,226 0 31 10,195 SUB-TOT 0 0 192,987 0 192,987 0 598 192,389 REMAIN 0 0 171,087 0 171,087 0 531 170,556 TOTAL 0 0 364,074 0 364,074 0 1,129 362,945
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 3,288 0 0 0 3,288 12,554 12,554 11,953 2002 3,288 0 0 0 3,288 12,063 24,617 10,397 2003 3,288 0 0 0 3,288 11,587 36,204 9,040 2004 3,288 0 0 0 3,288 11,126 47,330 7,858 2005 3,288 0 0 0 3,288 10,678 58,008 6,826 2006 3,288 0 0 0 3,288 10,246 68,254 5,929 2007 3,288 0 0 0 3,288 9,828 78,082 5,149 2008 3,288 0 0 0 3,288 9,419 87,501 4,466 2009 3,288 0 0 0 3,288 9,027 96,528 3,875 2010 3,288 0 0 0 3,288 8,644 105,172 3,359 2011 3,288 0 0 0 3,288 8,274 113,446 2,910 2012 3,288 0 0 0 3,288 7,916 121,362 2,521 2013 3,288 0 0 0 3,288 7,568 128,930 2,181 2014 3,288 0 0 0 3,288 7,232 136,162 1,887 2015 3,288 0 0 0 3,288 6,907 143,069 1,631 SUBTOT 49,320 0 0 0 49,320 143,069 79,982 REMAIN 80,008 0 0 0 80,008 90,548 233,617 9,724 TOTAL 129,328 0 0 0 129,328 233,617 89,706 LIFE OF EVALUATION IS 39.33 YEARS. FINAL PRODUCTION RATE: 0.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 127 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 8-T16S-R17W PROVED PFEIFER -B- #1-B (WABAUNSEE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 5.00% - 0 FINAL - 1.000000 10.00% - 0 REMARKS - 15.00% - 0 20.00% - 0 25.00% - 0
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 0 0 0 0.000 0.00 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 0 0 0 0.000 0.00 0.00 CUMULATIVE 0 0 0 ULTIMATE 0 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 0
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUBTOT 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 LIFE OF EVALUATION IS 0.00 YEARS. FINAL PRODUCTION RATE: 0.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 128 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 10-T17S-R17W PROVED RAU #1 (TOPEKA) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.820313 5.30 5.00% - 262,383 FINAL - 1.000000 0.820313 5.30 10.00% - 197,610 REMARKS - 15.00% - 157,629 20.00% - 130,884 25.00% - 111,855
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 12 0 0 7.290 0.00 5.30 2002 1 0 0 11 0 0 6.736 0.00 5.30 2003 1 0 0 10 0 0 6.224 0.00 5.30 2004 1 0 0 10 0 0 5.751 0.00 5.30 2005 1 0 0 8 0 0 5.314 0.00 5.30 2006 1 0 0 8 0 0 4.910 0.00 5.30 2007 1 0 0 8 0 0 4.537 0.00 5.30 2008 1 0 0 7 0 0 4.192 0.00 5.30 2009 1 0 0 6 0 0 3.874 0.00 5.30 2010 1 0 0 6 0 0 3.579 0.00 5.30 2011 1 0 0 5 0 0 3.307 0.00 5.30 2012 1 0 0 5 0 0 3.056 0.00 5.30 2013 1 0 0 5 0 0 2.824 0.00 5.30 2014 1 0 0 4 0 0 2.609 0.00 5.30 2015 1 0 0 4 0 0 2.411 0.00 5.30 SUB-TOTAL 0 0 109 0 0 66.614 0.00 5.30 REMAINDER 0 0 33 0 0 20.046 0.00 5.30 TOTAL 0 0 142 0 0 86.660 0.00 5.30 CUMULATIVE 0 0 2,343 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 2,485 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 38,628 0 38,628 0 120 38,508 2002 0 0 35,692 0 35,692 0 110 35,582 2003 0 0 32,979 0 32,979 0 103 32,876 2004 0 0 30,474 0 30,474 0 94 30,380 2005 0 0 28,157 0 28,157 0 87 28,070 2006 0 0 26,017 0 26,017 0 81 25,936 2007 0 0 24,040 0 24,040 0 75 23,965 2008 0 0 22,213 0 22,213 0 68 22,145 2009 0 0 20,524 0 20,524 0 64 20,460 2010 0 0 18,965 0 18,965 0 59 18,906 2011 0 0 17,523 0 17,523 0 54 17,469 2012 0 0 16,192 0 16,192 0 50 16,142 2013 0 0 14,961 0 14,961 0 47 14,914 2014 0 0 13,824 0 13,824 0 43 13,781 2015 0 0 12,774 0 12,774 0 39 12,735 SUB-TOT 0 0 352,963 0 352,963 0 1,094 351,869 REMAIN 0 0 106,211 0 106,211 0 329 105,882 TOTAL 0 0 459,174 0 459,174 0 1,423 457,751
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 2,676 0 0 0 2,676 35,832 35,832 34,129 2002 2,676 0 0 0 2,676 32,906 68,738 28,372 2003 2,676 0 0 0 2,676 30,200 98,938 23,571 2004 2,676 0 0 0 2,676 27,704 126,642 19,573 2005 2,676 0 0 0 2,676 25,394 152,036 16,240 2006 2,676 0 0 0 2,676 23,260 175,296 13,466 2007 2,676 0 0 0 2,676 21,289 196,585 11,156 2008 2,676 0 0 0 2,676 19,469 216,054 9,236 2009 2,676 0 0 0 2,676 17,784 233,838 7,637 2010 2,676 0 0 0 2,676 16,230 250,068 6,309 2011 2,676 0 0 0 2,676 14,793 264,861 5,205 2012 2,676 0 0 0 2,676 13,466 278,327 4,289 2013 2,676 0 0 0 2,676 12,238 290,565 3,529 2014 2,676 0 0 0 2,676 11,105 301,670 2,899 2015 2,676 0 0 0 2,676 10,059 311,729 2,376 SUBTOT 40,140 0 0 0 40,140 311,729 187,987 REMAIN 38,992 0 0 0 38,992 66,890 378,619 9,623 TOTAL 79,132 0 0 0 79,132 378,619 197,610 LIFE OF EVALUATION IS 29.57 YEARS. FINAL PRODUCTION RATE: 0.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 129 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 23-T17S-R17W PROVED REICHEL #1 (KANSAS CITY) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 5.30 5.00% - 103,936 FINAL - 1.000000 0.875000 5.30 10.00% - 94,963 REMARKS - 15.00% - 87,284 20.00% - 80,667 25.00% - 74,928
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 17 0 0 11.186 0.00 5.30 2002 1 0 0 13 0 0 8.224 0.00 5.30 2003 1 0 0 10 0 0 6.912 0.00 5.30 2004 1 0 0 10 0 0 5.944 0.00 5.30 2005 1 0 0 7 0 0 5.112 0.00 5.30 2006 1 0 0 7 0 0 4.396 0.00 5.30 2007 1 0 0 6 0 0 3.781 0.00 5.30 2008 1 0 0 1 0 0 0.577 0.00 5.30 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 71 0 0 46.132 0.00 5.30 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 71 0 0 46.132 0.00 5.30 CUMULATIVE 0 0 253 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 324 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 59,271 0 59,271 0 184 59,087 2002 0 0 43,575 0 43,575 0 135 43,440 2003 0 0 36,621 0 36,621 0 113 36,508 2004 0 0 31,494 0 31,494 0 98 31,396 2005 0 0 27,085 0 27,085 0 84 27,001 2006 0 0 23,293 0 23,293 0 72 23,221 2007 0 0 20,032 0 20,032 0 62 19,970 2008 0 0 3,055 0 3,055 0 10 3,045 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 244,426 0 244,426 0 758 243,668 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 244,426 0 244,426 0 758 243,668
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 18,024 0 0 0 18,024 41,063 41,063 39,237 2002 18,024 0 0 0 18,024 25,416 66,479 21,972 2003 18,024 0 0 0 18,024 18,484 84,963 14,452 2004 18,024 0 0 0 18,024 13,372 98,335 9,468 2005 18,024 0 0 0 18,024 8,977 107,312 5,758 2006 18,024 0 0 0 18,024 5,197 112,509 3,023 2007 18,024 0 0 0 18,024 1,946 114,455 1,032 2008 3,004 0 0 0 3,004 41 114,496 21 2009 0 0 0 0 0 0 114,496 0 2010 0 0 0 0 0 0 114,496 0 2011 0 0 0 0 0 0 114,496 0 2012 0 0 0 0 0 0 114,496 0 2013 0 0 0 0 0 0 114,496 0 2014 0 0 0 0 0 0 114,496 0 2015 0 0 0 0 0 0 114,496 0 SUBTOT 129,172 0 0 0 129,172 114,496 94,963 REMAIN 0 0 0 0 0 0 114,496 0 TOTAL 129,172 0 0 0 129,172 114,496 94,963 LIFE OF EVALUATION IS 7.17 YEARS. FINAL PRODUCTION RATE: 0.4 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 130 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 31-T17S-R16W PROVED ROTHE #1 (TOPEKA) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 5.30 5.00% - 30,859 FINAL - 1.000000 0.875000 5.30 10.00% - 28,316 REMARKS - 15.00% - 26,104 20.00% - 24,169 25.00% - 22,468
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 6 0 0 3.738 0.00 5.30 2002 1 0 0 5 0 0 3.200 0.00 5.30 2003 1 0 0 4 0 0 2.739 0.00 5.30 2004 1 0 0 3 0 0 2.345 0.00 5.30 2005 1 0 0 4 0 0 2.007 0.00 5.30 2006 1 0 0 2 0 0 1.718 0.00 5.30 2007 1 0 0 0 0 0 0.131 0.00 5.30 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 24 0 0 15.878 0.00 5.30 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 24 0 0 15.878 0.00 5.30 CUMULATIVE 0 0 833 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 857 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 19,807 0 19,807 0 61 19,746 2002 0 0 16,955 0 16,955 0 53 16,902 2003 0 0 14,514 0 14,514 0 45 14,469 2004 0 0 12,424 0 12,424 0 38 12,386 2005 0 0 10,634 0 10,634 0 33 10,601 2006 0 0 9,103 0 9,103 0 29 9,074 2007 0 0 697 0 697 0 2 695 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 84,134 0 84,134 0 261 83,873 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 84,134 0 84,134 0 261 83,873
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 8,232 0 0 0 8,232 11,514 11,514 10,983 2002 8,232 0 0 0 8,232 8,670 20,184 7,489 2003 8,232 0 0 0 8,232 6,237 26,421 4,879 2004 8,232 0 0 0 8,232 4,154 30,575 2,944 2005 8,232 0 0 0 8,232 2,369 32,944 1,522 2006 8,232 0 0 0 8,232 842 33,786 494 2007 686 0 0 0 686 9 33,795 5 2008 0 0 0 0 0 0 33,795 0 2009 0 0 0 0 0 0 33,795 0 2010 0 0 0 0 0 0 33,795 0 2011 0 0 0 0 0 0 33,795 0 2012 0 0 0 0 0 0 33,795 0 2013 0 0 0 0 0 0 33,795 0 2014 0 0 0 0 0 0 33,795 0 2015 0 0 0 0 0 0 33,795 0 SUBTOT 50,078 0 0 0 50,078 33,795 28,316 REMAIN 0 0 0 0 0 0 33,795 0 TOTAL 50,078 0 0 0 50,078 33,795 28,316 LIFE OF EVALUATION IS 6.08 YEARS. FINAL PRODUCTION RATE: 0.2 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 131 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 20-T17S-R16W PROVED ROTHE, R. #1 (KANSAS CITY) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.820313 5.30 5.00% - 230,014 FINAL - 1.000000 0.820313 5.30 10.00% - 175,106 REMARKS - 15.00% - 140,433 20.00% - 116,929 25.00% - 100,079
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 11 0 0 6.882 0.00 5.30 2002 1 0 0 11 0 0 6.386 0.00 5.30 2003 1 0 0 9 0 0 5.927 0.00 5.30 2004 1 0 0 9 0 0 5.500 0.00 5.30 2005 1 0 0 9 0 0 5.104 0.00 5.30 2006 1 0 0 8 0 0 4.736 0.00 5.30 2007 1 0 0 7 0 0 4.395 0.00 5.30 2008 1 0 0 6 0 0 4.079 0.00 5.30 2009 1 0 0 7 0 0 3.785 0.00 5.30 2010 1 0 0 5 0 0 3.513 0.00 5.30 2011 1 0 0 6 0 0 3.260 0.00 5.30 2012 1 0 0 5 0 0 3.025 0.00 5.30 2013 1 0 0 4 0 0 2.807 0.00 5.30 2014 1 0 0 5 0 0 2.605 0.00 5.30 2015 1 0 0 4 0 0 2.418 0.00 5.30 SUB-TOTAL 0 0 106 0 0 64.422 0.00 5.30 REMAINDER 0 0 33 0 0 20.483 0.00 5.30 TOTAL 0 0 139 0 0 84.905 0.00 5.30 CUMULATIVE 0 0 456 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 595 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 36,463 0 36,463 0 113 36,350 2002 0 0 33,838 0 33,838 0 105 33,733 2003 0 0 31,401 0 31,401 0 97 31,304 2004 0 0 29,141 0 29,141 0 91 29,050 2005 0 0 27,042 0 27,042 0 83 26,959 2006 0 0 25,096 0 25,096 0 78 25,018 2007 0 0 23,288 0 23,288 0 72 23,216 2008 0 0 21,612 0 21,612 0 67 21,545 2009 0 0 20,056 0 20,056 0 63 19,993 2010 0 0 18,611 0 18,611 0 57 18,554 2011 0 0 17,272 0 17,272 0 54 17,218 2012 0 0 16,028 0 16,028 0 50 15,978 2013 0 0 14,874 0 14,874 0 46 14,828 2014 0 0 13,803 0 13,803 0 42 13,761 2015 0 0 12,810 0 12,810 0 40 12,770 SUB-TOT 0 0 341,335 0 341,335 0 1,058 340,277 REMAIN 0 0 108,526 0 108,526 0 337 108,189 TOTAL 0 0 449,861 0 449,861 0 1,395 448,466
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 4,212 0 0 0 4,212 32,138 32,138 30,611 2002 4,212 0 0 0 4,212 29,521 61,659 25,453 2003 4,212 0 0 0 4,212 27,092 88,751 21,145 2004 4,212 0 0 0 4,212 24,838 113,589 17,548 2005 4,212 0 0 0 4,212 22,747 136,336 14,548 2006 4,212 0 0 0 4,212 20,806 157,142 12,045 2007 4,212 0 0 0 4,212 19,004 176,146 9,959 2008 4,212 0 0 0 4,212 17,333 193,479 8,223 2009 4,212 0 0 0 4,212 15,781 209,260 6,777 2010 4,212 0 0 0 4,212 14,342 223,602 5,575 2011 4,212 0 0 0 4,212 13,006 236,608 4,577 2012 4,212 0 0 0 4,212 11,766 248,374 3,748 2013 4,212 0 0 0 4,212 10,616 258,990 3,061 2014 4,212 0 0 0 4,212 9,549 268,539 2,493 2015 4,212 0 0 0 4,212 8,558 277,097 2,022 SUBTOT 63,180 0 0 0 63,180 277,097 167,785 REMAIN 60,372 0 0 0 60,372 47,817 324,914 7,321 TOTAL 123,552 0 0 0 123,552 324,914 175,106 LIFE OF EVALUATION IS 29.33 YEARS. FINAL PRODUCTION RATE: 0.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 132 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 4-T17S-R17W PROVED SCHEUERMAN -A- #1 (GRWS-SHWN) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 5.30 5.00% - 55,825 FINAL - 1.000000 0.875000 5.30 10.00% - 44,883 REMARKS - 15.00% - 37,257 20.00% - 31,725 25.00% - 27,569
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 3 0 0 2.227 0.00 5.30 2002 1 0 0 4 0 0 2.049 0.00 5.30 2003 1 0 0 2 0 0 1.885 0.00 5.30 2004 1 0 0 3 0 0 1.734 0.00 5.30 2005 1 0 0 3 0 0 1.595 0.00 5.30 2006 1 0 0 2 0 0 1.468 0.00 5.30 2007 1 0 0 2 0 0 1.350 0.00 5.30 2008 1 0 0 2 0 0 1.242 0.00 5.30 2009 1 0 0 2 0 0 1.143 0.00 5.30 2010 1 0 0 1 0 0 1.051 0.00 5.30 2011 1 0 0 2 0 0 0.967 0.00 5.30 2012 1 0 0 1 0 0 0.890 0.00 5.30 2013 1 0 0 1 0 0 0.819 0.00 5.30 2014 1 0 0 1 0 0 0.753 0.00 5.30 2015 1 0 0 2 0 0 0.693 0.00 5.30 SUB-TOTAL 0 0 31 0 0 19.866 0.00 5.30 REMAINDER 0 0 4 0 0 2.643 0.00 5.30 TOTAL 0 0 35 0 0 22.509 0.00 5.30 CUMULATIVE 0 0 428 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 463 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 11,799 0 11,799 0 37 11,762 2002 0 0 10,855 0 10,855 0 33 10,822 2003 0 0 9,986 0 9,986 0 31 9,955 2004 0 0 9,188 0 9,188 0 29 9,159 2005 0 0 8,452 0 8,452 0 26 8,426 2006 0 0 7,776 0 7,776 0 24 7,752 2007 0 0 7,155 0 7,155 0 22 7,133 2008 0 0 6,582 0 6,582 0 21 6,561 2009 0 0 6,055 0 6,055 0 18 6,037 2010 0 0 5,571 0 5,571 0 18 5,553 2011 0 0 5,125 0 5,125 0 15 5,110 2012 0 0 4,715 0 4,715 0 15 4,700 2013 0 0 4,338 0 4,338 0 14 4,324 2014 0 0 3,991 0 3,991 0 12 3,979 2015 0 0 3,672 0 3,672 0 11 3,661 SUB-TOT 0 0 105,260 0 105,260 0 326 104,934 REMAIN 0 0 14,006 0 14,006 0 44 13,962 TOTAL 0 0 119,266 0 119,266 0 370 118,896
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 2,352 0 0 0 2,352 9,410 9,410 8,964 2002 2,352 0 0 0 2,352 8,470 17,880 7,304 2003 2,352 0 0 0 2,352 7,603 25,483 5,935 2004 2,352 0 0 0 2,352 6,807 32,290 4,811 2005 2,352 0 0 0 2,352 6,074 38,364 3,885 2006 2,352 0 0 0 2,352 5,400 43,764 3,127 2007 2,352 0 0 0 2,352 4,781 48,545 2,506 2008 2,352 0 0 0 2,352 4,209 52,754 1,998 2009 2,352 0 0 0 2,352 3,685 56,439 1,583 2010 2,352 0 0 0 2,352 3,201 59,640 1,245 2011 2,352 0 0 0 2,352 2,758 62,398 970 2012 2,352 0 0 0 2,352 2,348 64,746 749 2013 2,352 0 0 0 2,352 1,972 66,718 569 2014 2,352 0 0 0 2,352 1,627 68,345 425 2015 2,352 0 0 0 2,352 1,309 69,654 310 SUBTOT 35,280 0 0 0 35,280 69,654 44,381 REMAIN 11,368 0 0 0 11,368 2,594 72,248 502 TOTAL 46,648 0 0 0 46,648 72,248 44,883 LIFE OF EVALUATION IS 19.83 YEARS. FINAL PRODUCTION RATE: 0.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 133 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 18-T16S-R17W PROVED SCHLITTER #2 (PENNSYLVANIAN) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.861328 5.30 5.00% - 13,458 FINAL - 1.000000 0.861328 5.30 10.00% - 11,692 REMARKS - 15.00% - 10,283 20.00% - 9,143 25.00% - 8,209
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 2 0 0 1.123 0.00 5.30 2002 1 0 0 1 0 0 1.037 0.00 5.30 2003 1 0 0 2 0 0 0.958 0.00 5.30 2004 1 0 0 1 0 0 0.885 0.00 5.30 2005 1 0 0 2 0 0 0.817 0.00 5.30 2006 1 0 0 1 0 0 0.754 0.00 5.30 2007 1 0 0 1 0 0 0.697 0.00 5.30 2008 1 0 0 1 0 0 0.643 0.00 5.30 2009 1 0 0 1 0 0 0.594 0.00 5.30 2010 1 0 0 1 0 0 0.549 0.00 5.30 2011 1 0 0 0 0 0 0.216 0.00 5.30 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 13 0 0 8.273 0.00 5.30 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 13 0 0 8.273 0.00 5.30 CUMULATIVE 0 0 175 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 188 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 5,951 0 5,951 0 18 5,933 2002 0 0 5,496 0 5,496 0 17 5,479 2003 0 0 5,075 0 5,075 0 16 5,059 2004 0 0 4,688 0 4,688 0 15 4,673 2005 0 0 4,328 0 4,328 0 13 4,315 2006 0 0 3,998 0 3,998 0 13 3,985 2007 0 0 3,691 0 3,691 0 11 3,680 2008 0 0 3,409 0 3,409 0 11 3,398 2009 0 0 3,149 0 3,149 0 9 3,140 2010 0 0 2,907 0 2,907 0 9 2,898 2011 0 0 1,145 0 1,145 0 4 1,141 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 43,837 0 43,837 0 136 43,701 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 43,837 0 43,837 0 136 43,701
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 2,688 0 0 0 2,688 3,245 3,245 3,092 2002 2,688 0 0 0 2,688 2,791 6,036 2,408 2003 2,688 0 0 0 2,688 2,371 8,407 1,852 2004 2,688 0 0 0 2,688 1,985 10,392 1,403 2005 2,688 0 0 0 2,688 1,627 12,019 1,042 2006 2,688 0 0 0 2,688 1,297 13,316 752 2007 2,688 0 0 0 2,688 992 14,308 521 2008 2,688 0 0 0 2,688 710 15,018 337 2009 2,688 0 0 0 2,688 452 15,470 195 2010 2,688 0 0 0 2,688 210 15,680 82 2011 1,120 0 0 0 1,120 21 15,701 8 2012 0 0 0 0 0 0 15,701 0 2013 0 0 0 0 0 0 15,701 0 2014 0 0 0 0 0 0 15,701 0 2015 0 0 0 0 0 0 15,701 0 SUBTOT 28,000 0 0 0 28,000 15,701 11,692 REMAIN 0 0 0 0 0 0 15,701 0 TOTAL 28,000 0 0 0 28,000 15,701 11,692 LIFE OF EVALUATION IS 10.42 YEARS. FINAL PRODUCTION RATE: 0.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 134 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 13-T17S-R17W PROVED SCHNEIDER #1 (KANSAS CITY) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.820313 5.30 5.00% - 186,888 FINAL - 1.000000 0.820313 5.30 10.00% - 163,342 REMARKS - 15.00% - 144,456 20.00% - 129,100 25.00% - 116,455
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 20 0 0 12.366 0.00 5.30 2002 1 0 0 18 0 0 10.833 0.00 5.30 2003 1 0 0 16 0 0 9.489 0.00 5.30 2004 1 0 0 13 0 0 8.313 0.00 5.30 2005 1 0 0 12 0 0 7.282 0.00 5.30 2006 1 0 0 11 0 0 6.379 0.00 5.30 2007 1 0 0 9 0 0 5.588 0.00 5.30 2008 1 0 0 8 0 0 4.895 0.00 5.30 2009 1 0 0 7 0 0 4.288 0.00 5.30 2010 1 0 0 6 0 0 3.756 0.00 5.30 2011 1 0 0 4 0 0 2.242 0.00 5.30 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 124 0 0 75.431 0.00 5.30 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 124 0 0 75.431 0.00 5.30 CUMULATIVE 0 0 391 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 515 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 65,521 0 65,521 0 203 65,318 2002 0 0 57,396 0 57,396 0 178 57,218 2003 0 0 50,279 0 50,279 0 156 50,123 2004 0 0 44,044 0 44,044 0 136 43,908 2005 0 0 38,583 0 38,583 0 120 38,463 2006 0 0 33,798 0 33,798 0 105 33,693 2007 0 0 29,608 0 29,608 0 92 29,516 2008 0 0 25,936 0 25,936 0 80 25,856 2009 0 0 22,720 0 22,720 0 70 22,650 2010 0 0 19,903 0 19,903 0 62 19,841 2011 0 0 11,878 0 11,878 0 37 11,841 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 399,666 0 399,666 0 1,239 398,427 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 399,666 0 399,666 0 1,239 398,427
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 17,040 0 0 0 17,040 48,278 48,278 46,020 2002 17,040 0 0 0 17,040 40,178 88,456 34,671 2003 17,040 0 0 0 17,040 33,083 121,539 25,845 2004 17,040 0 0 0 17,040 26,868 148,407 19,002 2005 17,040 0 0 0 17,040 21,423 169,830 13,718 2006 17,040 0 0 0 17,040 16,653 186,483 9,655 2007 17,040 0 0 0 17,040 12,476 198,959 6,550 2008 17,040 0 0 0 17,040 8,816 207,775 4,193 2009 17,040 0 0 0 17,040 5,610 213,385 2,417 2010 17,040 0 0 0 17,040 2,801 216,186 1,097 2011 11,360 0 0 0 11,360 481 216,667 174 2012 0 0 0 0 0 0 216,667 0 2013 0 0 0 0 0 0 216,667 0 2014 0 0 0 0 0 0 216,667 0 2015 0 0 0 0 0 0 216,667 0 SUBTOT 181,760 0 0 0 181,760 216,667 163,342 REMAIN 0 0 0 0 0 0 216,667 0 TOTAL 181,760 0 0 0 181,760 216,667 163,342 LIFE OF EVALUATION IS 10.67 YEARS. FINAL PRODUCTION RATE: 0.4 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 135 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 25-T16S-R17W PROVED SHERWOOD #1 (SHAWNEE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.792969 5.30 5.00% - 117,979 FINAL - 1.000000 0.792969 5.30 10.00% - 77,262 REMARKS - 15.00% - 56,828 20.00% - 44,852 25.00% - 37,043
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 4 0 0 2.505 0.00 5.30 2002 1 0 0 4 0 0 2.444 0.00 5.30 2003 1 0 0 4 0 0 2.384 0.00 5.30 2004 1 0 0 4 0 0 2.326 0.00 5.30 2005 1 0 0 4 0 0 2.269 0.00 5.30 2006 1 0 0 4 0 0 2.213 0.00 5.30 2007 1 0 0 4 0 0 2.159 0.00 5.30 2008 1 0 0 3 0 0 2.106 0.00 5.30 2009 1 0 0 4 0 0 2.054 0.00 5.30 2010 1 0 0 3 0 0 2.004 0.00 5.30 2011 1 0 0 3 0 0 1.955 0.00 5.30 2012 1 0 0 4 0 0 1.907 0.00 5.30 2013 1 0 0 3 0 0 1.860 0.00 5.30 2014 1 0 0 3 0 0 1.815 0.00 5.30 2015 1 0 0 3 0 0 1.770 0.00 5.30 SUB-TOTAL 0 0 54 0 0 31.771 0.00 5.30 REMAINDER 0 0 54 0 0 31.943 0.00 5.30 TOTAL 0 0 108 0 0 63.714 0.00 5.30 CUMULATIVE 0 0 217 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 325 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 13,275 0 13,275 0 41 13,234 2002 0 0 12,950 0 12,950 0 40 12,910 2003 0 0 12,632 0 12,632 0 39 12,593 2004 0 0 12,323 0 12,323 0 39 12,284 2005 0 0 12,021 0 12,021 0 37 11,984 2006 0 0 11,727 0 11,727 0 36 11,691 2007 0 0 11,439 0 11,439 0 36 11,403 2008 0 0 11,159 0 11,159 0 34 11,125 2009 0 0 10,885 0 10,885 0 34 10,851 2010 0 0 10,619 0 10,619 0 33 10,586 2011 0 0 10,359 0 10,359 0 32 10,327 2012 0 0 10,105 0 10,105 0 31 10,074 2013 0 0 9,857 0 9,857 0 31 9,826 2014 0 0 9,616 0 9,616 0 30 9,586 2015 0 0 9,380 0 9,380 0 29 9,351 SUB-TOT 0 0 168,347 0 168,347 0 522 167,825 REMAIN 0 0 169,249 0 169,249 0 525 168,724 TOTAL 0 0 337,596 0 337,596 0 1,047 336,549
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 3,012 0 0 0 3,012 10,222 10,222 9,732 2002 3,012 0 0 0 3,012 9,898 20,120 8,530 2003 3,012 0 0 0 3,012 9,581 29,701 7,475 2004 3,012 0 0 0 3,012 9,272 38,973 6,548 2005 3,012 0 0 0 3,012 8,972 47,945 5,735 2006 3,012 0 0 0 3,012 8,679 56,624 5,022 2007 3,012 0 0 0 3,012 8,391 65,015 4,396 2008 3,012 0 0 0 3,012 8,113 73,128 3,846 2009 3,012 0 0 0 3,012 7,839 80,967 3,365 2010 3,012 0 0 0 3,012 7,574 88,541 2,943 2011 3,012 0 0 0 3,012 7,315 95,856 2,573 2012 3,012 0 0 0 3,012 7,062 102,918 2,248 2013 3,012 0 0 0 3,012 6,814 109,732 1,964 2014 3,012 0 0 0 3,012 6,574 116,306 1,715 2015 3,012 0 0 0 3,012 6,339 122,645 1,497 SUBTOT 45,180 0 0 0 45,180 122,645 67,589 REMAIN 73,292 0 0 0 73,292 95,432 218,077 9,673 TOTAL 118,472 0 0 0 118,472 218,077 77,262 LIFE OF EVALUATION IS 39.33 YEARS. FINAL PRODUCTION RATE: 0.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 136 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 11-T17S-R17W PROVED STEITZ -A- #1 (KANSAS CITY) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 5.30 5.00% - 107,254 FINAL - 1.000000 0.875000 5.30 10.00% - 84,725 REMARKS - 15.00% - 69,392 20.00% - 58,484 25.00% - 50,420
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 7 0 0 4.493 0.00 5.30 2002 1 0 0 6 0 0 4.237 0.00 5.30 2003 1 0 0 7 0 0 3.996 0.00 5.30 2004 1 0 0 5 0 0 3.768 0.00 5.30 2005 1 0 0 6 0 0 3.553 0.00 5.30 2006 1 0 0 5 0 0 3.350 0.00 5.30 2007 1 0 0 5 0 0 3.160 0.00 5.30 2008 1 0 0 4 0 0 2.979 0.00 5.30 2009 1 0 0 5 0 0 2.810 0.00 5.30 2010 1 0 0 4 0 0 2.649 0.00 5.30 2011 1 0 0 4 0 0 2.498 0.00 5.30 2012 1 0 0 3 0 0 2.356 0.00 5.30 2013 1 0 0 4 0 0 2.222 0.00 5.30 2014 1 0 0 3 0 0 2.095 0.00 5.30 2015 1 0 0 3 0 0 1.976 0.00 5.30 SUB-TOTAL 0 0 71 0 0 46.142 0.00 5.30 REMAINDER 0 0 14 0 0 9.132 0.00 5.30 TOTAL 0 0 85 0 0 55.274 0.00 5.30 CUMULATIVE 0 0 287 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 372 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 23,807 0 23,807 0 74 23,733 2002 0 0 22,450 0 22,450 0 69 22,381 2003 0 0 21,170 0 21,170 0 66 21,104 2004 0 0 19,963 0 19,963 0 62 19,901 2005 0 0 18,826 0 18,826 0 58 18,768 2006 0 0 17,752 0 17,752 0 55 17,697 2007 0 0 16,741 0 16,741 0 52 16,689 2008 0 0 15,786 0 15,786 0 49 15,737 2009 0 0 14,887 0 14,887 0 46 14,841 2010 0 0 14,038 0 14,038 0 44 13,994 2011 0 0 13,237 0 13,237 0 41 13,196 2012 0 0 12,484 0 12,484 0 39 12,445 2013 0 0 11,771 0 11,771 0 36 11,735 2014 0 0 11,101 0 11,101 0 34 11,067 2015 0 0 10,468 0 10,468 0 33 10,435 SUB-TOT 0 0 244,481 0 244,481 0 758 243,723 REMAIN 0 0 48,388 0 48,388 0 150 48,238 TOTAL 0 0 292,869 0 292,869 0 908 291,961
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 7,284 0 0 0 7,284 16,449 16,449 15,667 2002 7,284 0 0 0 7,284 15,097 31,546 13,017 2003 7,284 0 0 0 7,284 13,820 45,366 10,787 2004 7,284 0 0 0 7,284 12,617 57,983 8,914 2005 7,284 0 0 0 7,284 11,484 69,467 7,345 2006 7,284 0 0 0 7,284 10,413 79,880 6,029 2007 7,284 0 0 0 7,284 9,405 89,285 4,929 2008 7,284 0 0 0 7,284 8,453 97,738 4,011 2009 7,284 0 0 0 7,284 7,557 105,295 3,246 2010 7,284 0 0 0 7,284 6,710 112,005 2,609 2011 7,284 0 0 0 7,284 5,912 117,917 2,080 2012 7,284 0 0 0 7,284 5,161 123,078 1,645 2013 7,284 0 0 0 7,284 4,451 127,529 1,284 2014 7,284 0 0 0 7,284 3,783 131,312 988 2015 7,284 0 0 0 7,284 3,151 134,463 745 SUBTOT 109,260 0 0 0 109,260 134,463 83,296 REMAIN 40,669 0 0 0 40,669 7,569 142,032 1,429 TOTAL 149,929 0 0 0 149,929 142,032 84,725 LIFE OF EVALUATION IS 20.58 YEARS. FINAL PRODUCTION RATE: 0.2 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 137 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 14-T17S-R17W PROVED STEITZ -B- #1 (TOPEKA) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.820313 5.30 5.00% - 64,707 FINAL - 1.000000 0.820313 5.30 10.00% - 51,478 REMARKS - 15.00% - 42,377 20.00% - 35,849 25.00% - 30,991
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 4 0 0 2.711 0.00 5.30 2002 1 0 0 5 0 0 2.542 0.00 5.30 2003 1 0 0 4 0 0 2.383 0.00 5.30 2004 1 0 0 3 0 0 2.234 0.00 5.30 2005 1 0 0 4 0 0 2.095 0.00 5.30 2006 1 0 0 3 0 0 1.964 0.00 5.30 2007 1 0 0 3 0 0 1.842 0.00 5.30 2008 1 0 0 3 0 0 1.727 0.00 5.30 2009 1 0 0 2 0 0 1.619 0.00 5.30 2010 1 0 0 3 0 0 1.518 0.00 5.30 2011 1 0 0 2 0 0 1.423 0.00 5.30 2012 1 0 0 2 0 0 1.334 0.00 5.30 2013 1 0 0 2 0 0 1.251 0.00 5.30 2014 1 0 0 2 0 0 1.173 0.00 5.30 2015 1 0 0 2 0 0 1.100 0.00 5.30 SUB-TOTAL 0 0 44 0 0 26.916 0.00 5.30 REMAINDER 0 0 8 0 0 4.552 0.00 5.30 TOTAL 0 0 52 0 0 31.468 0.00 5.30 CUMULATIVE 0 0 344 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 396 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 14,363 0 14,363 0 45 14,318 2002 0 0 13,468 0 13,468 0 41 13,427 2003 0 0 12,627 0 12,627 0 39 12,588 2004 0 0 11,838 0 11,838 0 37 11,801 2005 0 0 11,101 0 11,101 0 35 11,066 2006 0 0 10,407 0 10,407 0 32 10,375 2007 0 0 9,758 0 9,758 0 30 9,728 2008 0 0 9,149 0 9,149 0 28 9,121 2009 0 0 8,579 0 8,579 0 27 8,552 2010 0 0 8,043 0 8,043 0 25 8,018 2011 0 0 7,541 0 7,541 0 23 7,518 2012 0 0 7,070 0 7,070 0 22 7,048 2013 0 0 6,630 0 6,630 0 21 6,609 2014 0 0 6,215 0 6,215 0 19 6,196 2015 0 0 5,828 0 5,828 0 18 5,810 SUB-TOT 0 0 142,617 0 142,617 0 442 142,175 REMAIN 0 0 24,118 0 24,118 0 75 24,043 TOTAL 0 0 166,735 0 166,735 0 517 166,218
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 4,068 0 0 0 4,068 10,250 10,250 9,763 2002 4,068 0 0 0 4,068 9,359 19,609 8,070 2003 4,068 0 0 0 4,068 8,520 28,129 6,650 2004 4,068 0 0 0 4,068 7,733 35,862 5,464 2005 4,068 0 0 0 4,068 6,998 42,860 4,476 2006 4,068 0 0 0 4,068 6,307 49,167 3,652 2007 4,068 0 0 0 4,068 5,660 54,827 2,967 2008 4,068 0 0 0 4,068 5,053 59,880 2,397 2009 4,068 0 0 0 4,068 4,484 64,364 1,926 2010 4,068 0 0 0 4,068 3,950 68,314 1,536 2011 4,068 0 0 0 4,068 3,450 71,764 1,215 2012 4,068 0 0 0 4,068 2,980 74,744 949 2013 4,068 0 0 0 4,068 2,541 77,285 734 2014 4,068 0 0 0 4,068 2,128 79,413 555 2015 4,068 0 0 0 4,068 1,742 81,155 412 SUBTOT 61,020 0 0 0 61,020 81,155 50,766 REMAIN 20,340 0 0 0 20,340 3,703 84,858 712 TOTAL 81,360 0 0 0 81,360 84,858 51,478 LIFE OF EVALUATION IS 20.00 YEARS. FINAL PRODUCTION RATE: 0.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 138 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 14-T17S-R17W PROVED THIELENHAUS #1 (TOPEKA) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 5.30 5.00% - 83,759 FINAL - 1.000000 0.875000 5.30 10.00% - 66,662 REMARKS - 15.00% - 54,961 20.00% - 46,585 25.00% - 40,353
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 5 0 0 3.144 0.00 5.30 2002 1 0 0 4 0 0 2.897 0.00 5.30 2003 1 0 0 4 0 0 2.669 0.00 5.30 2004 1 0 0 4 0 0 2.459 0.00 5.30 2005 1 0 0 4 0 0 2.265 0.00 5.30 2006 1 0 0 3 0 0 2.087 0.00 5.30 2007 1 0 0 3 0 0 1.923 0.00 5.30 2008 1 0 0 3 0 0 1.771 0.00 5.30 2009 1 0 0 2 0 0 1.632 0.00 5.30 2010 1 0 0 2 0 0 1.504 0.00 5.30 2011 1 0 0 2 0 0 1.385 0.00 5.30 2012 1 0 0 2 0 0 1.276 0.00 5.30 2013 1 0 0 2 0 0 1.176 0.00 5.30 2014 1 0 0 2 0 0 1.083 0.00 5.30 2015 1 0 0 1 0 0 0.998 0.00 5.30 SUB-TOTAL 0 0 43 0 0 28.269 0.00 5.30 REMAINDER 0 0 8 0 0 4.731 0.00 5.30 TOTAL 0 0 51 0 0 33.000 0.00 5.30 CUMULATIVE 0 0 1,561 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 1,612 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 16,659 0 16,659 0 52 16,607 2002 0 0 15,349 0 15,349 0 47 15,302 2003 0 0 14,140 0 14,140 0 44 14,096 2004 0 0 13,027 0 13,027 0 40 12,987 2005 0 0 12,003 0 12,003 0 38 11,965 2006 0 0 11,057 0 11,057 0 34 11,023 2007 0 0 10,188 0 10,188 0 32 10,156 2008 0 0 9,385 0 9,385 0 29 9,356 2009 0 0 8,647 0 8,647 0 26 8,621 2010 0 0 7,967 0 7,967 0 25 7,942 2011 0 0 7,339 0 7,339 0 23 7,316 2012 0 0 6,762 0 6,762 0 21 6,741 2013 0 0 6,230 0 6,230 0 19 6,211 2014 0 0 5,739 0 5,739 0 18 5,721 2015 0 0 5,288 0 5,288 0 16 5,272 SUB-TOT 0 0 149,780 0 149,780 0 464 149,316 REMAIN 0 0 25,068 0 25,068 0 78 24,990 TOTAL 0 0 174,848 0 174,848 0 542 174,306
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 3,012 0 0 0 3,012 13,595 13,595 12,951 2002 3,012 0 0 0 3,012 12,290 25,885 10,598 2003 3,012 0 0 0 3,012 11,084 36,969 8,652 2004 3,012 0 0 0 3,012 9,975 46,944 7,048 2005 3,012 0 0 0 3,012 8,953 55,897 5,727 2006 3,012 0 0 0 3,012 8,011 63,908 4,639 2007 3,012 0 0 0 3,012 7,144 71,052 3,744 2008 3,012 0 0 0 3,012 6,344 77,396 3,011 2009 3,012 0 0 0 3,012 5,609 83,005 2,409 2010 3,012 0 0 0 3,012 4,930 87,935 1,917 2011 3,012 0 0 0 3,012 4,304 92,239 1,515 2012 3,012 0 0 0 3,012 3,729 95,968 1,188 2013 3,012 0 0 0 3,012 3,199 99,167 923 2014 3,012 0 0 0 3,012 2,709 101,876 708 2015 3,012 0 0 0 3,012 2,260 104,136 534 SUBTOT 45,180 0 0 0 45,180 104,136 65,564 REMAIN 19,076 0 0 0 19,076 5,914 110,050 1,098 TOTAL 64,256 0 0 0 64,256 110,050 66,662 LIFE OF EVALUATION IS 21.33 YEARS. FINAL PRODUCTION RATE: 0.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 139 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 14-T17S-R17W PROVED THIELENHAUS #1 BP (TOPEKA) BEHIND PIPE REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 5.30 5.00% - 375,070 FINAL - 1.000000 0.875000 5.30 10.00% - 317,217 REMARKS - 15.00% - 272,900 20.00% - 238,326 25.00% - 210,877
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 29 0 0 18.596 0.00 5.30 2002 1 0 0 20 0 0 13.320 0.00 5.30 2003 1 0 0 18 0 0 11.621 0.00 5.30 2004 1 0 0 15 0 0 10.139 0.00 5.30 2005 1 0 0 14 0 0 8.845 0.00 5.30 2006 1 0 0 12 0 0 7.717 0.00 5.30 2007 1 0 0 10 0 0 6.733 0.00 5.30 2008 1 0 0 9 0 0 5.874 0.00 5.30 2009 1 0 0 8 0 0 5.125 0.00 5.30 2010 1 0 0 7 0 0 4.471 0.00 5.30 2011 1 0 0 3 0 0 1.954 0.00 5.30 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 145 0 0 94.395 0.00 5.30 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 145 0 0 94.395 0.00 5.30 CUMULATIVE 0 0 0 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 145 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 98,531 0 98,531 0 305 98,226 2002 0 0 70,574 0 70,574 0 219 70,355 2003 0 0 61,573 0 61,573 0 191 61,382 2004 0 0 53,719 0 53,719 0 167 53,552 2005 0 0 46,867 0 46,867 0 145 46,722 2006 0 0 40,889 0 40,889 0 127 40,762 2007 0 0 35,674 0 35,674 0 110 35,564 2008 0 0 31,123 0 31,123 0 97 31,026 2009 0 0 27,154 0 27,154 0 84 27,070 2010 0 0 23,690 0 23,690 0 73 23,617 2011 0 0 10,354 0 10,354 0 32 10,322 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 500,148 0 500,148 0 1,550 498,598 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 500,148 0 500,148 0 1,550 498,598
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 3,012 0 15,000 0 18,012 80,214 80,214 76,081 2002 3,012 0 0 0 3,012 67,343 147,557 58,090 2003 3,012 0 0 0 3,012 58,370 205,927 45,578 2004 3,012 0 0 0 3,012 50,540 256,467 35,724 2005 3,012 0 0 0 3,012 43,710 300,177 27,968 2006 3,012 0 0 0 3,012 37,750 337,927 21,865 2007 3,012 0 0 0 3,012 32,552 370,479 17,067 2008 3,012 0 0 0 3,012 28,014 398,493 13,296 2009 3,012 0 0 0 3,012 24,058 422,551 10,337 2010 3,012 0 0 0 3,012 20,605 443,156 8,014 2011 1,458 0 0 0 1,458 8,864 452,020 3,197 2012 0 0 0 0 0 0 452,020 0 2013 0 0 0 0 0 0 452,020 0 2014 0 0 0 0 0 0 452,020 0 2015 0 0 0 0 0 0 452,020 0 SUBTOT 31,578 0 15,000 0 46,578 452,020 317,217 REMAIN 0 0 0 0 0 0 452,020 0 TOTAL 31,578 0 15,000 0 46,578 452,020 317,217 LIFE OF EVALUATION IS 10.48 YEARS. FINAL PRODUCTION RATE: 0.5 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 140 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 19-T16S-R17W PROVED TORREY #2 (KSSC-LNSG) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.861328 5.30 5.00% - 416,331 FINAL - 1.000000 0.861328 5.30 10.00% - 294,907 REMARKS - 15.00% - 226,903 20.00% - 184,106 25.00% - 154,862
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 15 0 0 9.842 0.00 5.30 2002 1 0 0 15 0 0 9.350 0.00 5.30 2003 1 0 0 14 0 0 8.883 0.00 5.30 2004 1 0 0 13 0 0 8.439 0.00 5.30 2005 1 0 0 12 0 0 8.017 0.00 5.30 2006 1 0 0 12 0 0 7.616 0.00 5.30 2007 1 0 0 12 0 0 7.235 0.00 5.30 2008 1 0 0 10 0 0 6.873 0.00 5.30 2009 1 0 0 11 0 0 6.530 0.00 5.30 2010 1 0 0 9 0 0 6.203 0.00 5.30 2011 1 0 0 9 0 0 5.893 0.00 5.30 2012 1 0 0 9 0 0 5.598 0.00 5.30 2013 1 0 0 8 0 0 5.318 0.00 5.30 2014 1 0 0 8 0 0 5.052 0.00 5.30 2015 1 0 0 8 0 0 4.800 0.00 5.30 SUB-TOTAL 0 0 165 0 0 105.649 0.00 5.30 REMAINDER 0 0 101 0 0 65.020 0.00 5.30 TOTAL 0 0 266 0 0 170.669 0.00 5.30 CUMULATIVE 0 0 2,861 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 3,127 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 52,149 0 52,149 0 162 51,987 2002 0 0 49,542 0 49,542 0 153 49,389 2003 0 0 47,065 0 47,065 0 146 46,919 2004 0 0 44,711 0 44,711 0 139 44,572 2005 0 0 42,476 0 42,476 0 131 42,345 2006 0 0 40,352 0 40,352 0 126 40,226 2007 0 0 38,335 0 38,335 0 118 38,217 2008 0 0 36,418 0 36,418 0 113 36,305 2009 0 0 34,596 0 34,596 0 107 34,489 2010 0 0 32,867 0 32,867 0 102 32,765 2011 0 0 31,224 0 31,224 0 97 31,127 2012 0 0 29,663 0 29,663 0 92 29,571 2013 0 0 28,179 0 28,179 0 87 28,092 2014 0 0 26,770 0 26,770 0 83 26,687 2015 0 0 25,432 0 25,432 0 79 25,353 SUB-TOT 0 0 559,779 0 559,779 0 1,735 558,044 REMAIN 0 0 344,507 0 344,507 0 1,068 343,439 TOTAL 0 0 904,286 0 904,286 0 2,803 901,483
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 5,856 0 0 0 5,856 46,131 46,131 43,929 2002 5,856 0 0 0 5,856 43,533 89,664 37,526 2003 5,856 0 0 0 5,856 41,063 130,727 32,042 2004 5,856 0 0 0 5,856 38,716 169,443 27,347 2005 5,856 0 0 0 5,856 36,489 205,932 23,330 2006 5,856 0 0 0 5,856 34,370 240,302 19,893 2007 5,856 0 0 0 5,856 32,361 272,663 16,955 2008 5,856 0 0 0 5,856 30,449 303,112 14,441 2009 5,856 0 0 0 5,856 28,633 331,745 12,293 2010 5,856 0 0 0 5,856 26,909 358,654 10,457 2011 5,856 0 0 0 5,856 25,271 383,925 8,891 2012 5,856 0 0 0 5,856 23,715 407,640 7,552 2013 5,856 0 0 0 5,856 22,236 429,876 6,409 2014 5,856 0 0 0 5,856 20,831 450,707 5,436 2015 5,856 0 0 0 5,856 19,497 470,204 4,606 SUBTOT 87,840 0 0 0 87,840 470,204 271,107 REMAIN 142,496 0 0 0 142,496 200,943 671,147 23,800 TOTAL 230,336 0 0 0 230,336 671,147 294,907 LIFE OF EVALUATION IS 39.33 YEARS. FINAL PRODUCTION RATE: 0.2 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 141 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO INC - OPERATOR 20-T16S-R17W PROVED URBAN R & A #1 (WABAUNSEE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 5.30 5.00% - 8,055 FINAL - 1.000000 0.875000 5.30 10.00% - 7,097 REMARKS - 15.00% - 6,316 20.00% - 5,675 25.00% - 5,141
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 1 0 0 0.420 0.00 5.30 2002 1 0 0 0 0 0 0.336 0.00 5.30 2003 1 0 0 1 0 0 0.269 0.00 5.30 2004 1 0 0 0 0 0 0.215 0.00 5.30 2005 1 0 0 0 0 0 0.172 0.00 5.30 2006 1 0 0 0 0 0 0.138 0.00 5.30 2007 1 0 0 1 0 0 0.110 0.00 5.30 2008 1 0 0 0 0 0 0.088 0.00 5.30 2009 1 0 0 0 0 0 0.002 0.00 5.30 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 3 0 0 1.750 0.00 5.30 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 3 0 0 1.750 0.00 5.30 CUMULATIVE 0 0 71 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 74 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 2,226 0 2,226 0 7 2,219 2002 0 0 1,781 0 1,781 0 5 1,776 2003 0 0 1,424 0 1,424 0 5 1,419 2004 0 0 1,140 0 1,140 0 3 1,137 2005 0 0 912 0 912 0 3 909 2006 0 0 729 0 729 0 2 727 2007 0 0 584 0 584 0 2 582 2008 0 0 466 0 466 0 2 464 2009 0 0 13 0 13 0 0 13 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 9,275 0 9,275 0 29 9,246 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 9,275 0 9,275 0 29 9,246
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 2,219 2,219 2,116 2002 0 0 0 0 0 1,776 3,995 1,533 2003 0 0 0 0 0 1,419 5,414 1,109 2004 0 0 0 0 0 1,137 6,551 804 2005 0 0 0 0 0 909 7,460 582 2006 0 0 0 0 0 727 8,187 421 2007 0 0 0 0 0 582 8,769 305 2008 0 0 0 0 0 464 9,233 221 2009 0 0 0 0 0 13 9,246 6 2010 0 0 0 0 0 0 9,246 0 2011 0 0 0 0 0 0 9,246 0 2012 0 0 0 0 0 0 9,246 0 2013 0 0 0 0 0 0 9,246 0 2014 0 0 0 0 0 0 9,246 0 2015 0 0 0 0 0 0 9,246 0 SUBTOT 0 0 0 0 0 9,246 7,097 REMAIN 0 0 0 0 0 0 9,246 0 TOTAL 0 0 0 0 0 9,246 7,097 LIFE OF EVALUATION IS 8.03 YEARS. FINAL PRODUCTION RATE: 0.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 142 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL EAST FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 35-T17S-R18W PROVED BAHR #1 (KSSC-LNSG) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 5.30 5.00% - 149,662 FINAL - 1.000000 0.875000 5.30 10.00% - 99,687 REMARKS - 15.00% - 73,824 20.00% - 58,460 25.00% - 48,377
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 5 0 0 3.120 0.00 5.30 2002 1 0 0 4 0 0 3.033 0.00 5.30 2003 1 0 0 5 0 0 2.948 0.00 5.30 2004 1 0 0 4 0 0 2.865 0.00 5.30 2005 1 0 0 5 0 0 2.785 0.00 5.30 2006 1 0 0 4 0 0 2.707 0.00 5.30 2007 1 0 0 4 0 0 2.631 0.00 5.30 2008 1 0 0 4 0 0 2.558 0.00 5.30 2009 1 0 0 4 0 0 2.486 0.00 5.30 2010 1 0 0 3 0 0 2.416 0.00 5.30 2011 1 0 0 4 0 0 2.349 0.00 5.30 2012 1 0 0 3 0 0 2.283 0.00 5.30 2013 1 0 0 4 0 0 2.219 0.00 5.30 2014 1 0 0 3 0 0 2.157 0.00 5.30 2015 1 0 0 3 0 0 2.097 0.00 5.30 SUB-TOTAL 0 0 59 0 0 38.654 0.00 5.30 REMAINDER 0 0 49 0 0 31.501 0.00 5.30 TOTAL 0 0 108 0 0 70.155 0.00 5.30 CUMULATIVE 0 0 132 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 240 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 16,532 0 16,532 0 51 16,481 2002 0 0 16,069 0 16,069 0 50 16,019 2003 0 0 15,619 0 15,619 0 48 15,571 2004 0 0 15,182 0 15,182 0 48 15,134 2005 0 0 14,757 0 14,757 0 45 14,712 2006 0 0 14,343 0 14,343 0 45 14,298 2007 0 0 13,942 0 13,942 0 43 13,899 2008 0 0 13,551 0 13,551 0 42 13,509 2009 0 0 13,172 0 13,172 0 41 13,131 2010 0 0 12,804 0 12,804 0 40 12,764 2011 0 0 12,444 0 12,444 0 38 12,406 2012 0 0 12,097 0 12,097 0 38 12,059 2013 0 0 11,757 0 11,757 0 36 11,721 2014 0 0 11,429 0 11,429 0 35 11,394 2015 0 0 11,108 0 11,108 0 35 11,073 SUB-TOT 0 0 204,806 0 204,806 0 635 204,171 REMAIN 0 0 166,909 0 166,909 0 517 166,392 TOTAL 0 0 371,715 0 371,715 0 1,152 370,563
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 3,024 0 0 0 3,024 13,457 13,457 12,812 2002 3,024 0 0 0 3,024 12,995 26,452 11,200 2003 3,024 0 0 0 3,024 12,547 38,999 9,789 2004 3,024 0 0 0 3,024 12,110 51,109 8,552 2005 3,024 0 0 0 3,024 11,688 62,797 7,471 2006 3,024 0 0 0 3,024 11,274 74,071 6,524 2007 3,024 0 0 0 3,024 10,875 84,946 5,697 2008 3,024 0 0 0 3,024 10,485 95,431 4,972 2009 3,024 0 0 0 3,024 10,107 105,538 4,338 2010 3,024 0 0 0 3,024 9,740 115,278 3,784 2011 3,024 0 0 0 3,024 9,382 124,660 3,300 2012 3,024 0 0 0 3,024 9,035 133,695 2,877 2013 3,024 0 0 0 3,024 8,697 142,392 2,506 2014 3,024 0 0 0 3,024 8,370 150,762 2,184 2015 3,024 0 0 0 3,024 8,049 158,811 1,901 SUBTOT 45,360 0 0 0 45,360 158,811 87,907 REMAIN 60,385 0 0 0 60,385 106,007 264,818 11,780 TOTAL 105,745 0 0 0 105,745 264,818 99,687 LIFE OF EVALUATION IS 34.97 YEARS. FINAL PRODUCTION RATE: 0.2 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 143 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL WEST FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 11-T17S-R18W PROVED LEGLEITER -A- #1 (CHASE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.738281 5.30 5.00% - 345,404 FINAL - 1.000000 0.738281 5.30 10.00% - 233,583 REMARKS - 15.00% - 174,909 20.00% - 139,528 25.00% - 116,027
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 14 0 0 7.791 0.00 5.30 2002 1 0 0 14 0 0 7.542 0.00 5.30 2003 1 0 0 13 0 0 7.300 0.00 5.30 2004 1 0 0 13 0 0 7.067 0.00 5.30 2005 1 0 0 13 0 0 6.840 0.00 5.30 2006 1 0 0 12 0 0 6.622 0.00 5.30 2007 1 0 0 11 0 0 6.410 0.00 5.30 2008 1 0 0 12 0 0 6.205 0.00 5.30 2009 1 0 0 10 0 0 6.006 0.00 5.30 2010 1 0 0 11 0 0 5.814 0.00 5.30 2011 1 0 0 10 0 0 5.628 0.00 5.30 2012 1 0 0 10 0 0 5.448 0.00 5.30 2013 1 0 0 10 0 0 5.273 0.00 5.30 2014 1 0 0 9 0 0 5.105 0.00 5.30 2015 1 0 0 9 0 0 4.941 0.00 5.30 SUB-TOTAL 0 0 171 0 0 93.992 0.00 5.30 REMAINDER 0 0 149 0 0 81.731 0.00 5.30 TOTAL 0 0 320 0 0 175.723 0.00 5.30 CUMULATIVE 0 0 236 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 556 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 41,280 0 41,280 0 128 41,152 2002 0 0 39,958 0 39,958 0 124 39,834 2003 0 0 38,680 0 38,680 0 120 38,560 2004 0 0 37,442 0 37,442 0 116 37,326 2005 0 0 36,245 0 36,245 0 112 36,133 2006 0 0 35,084 0 35,084 0 109 34,975 2007 0 0 33,961 0 33,961 0 105 33,856 2008 0 0 32,875 0 32,875 0 102 32,773 2009 0 0 31,823 0 31,823 0 99 31,724 2010 0 0 30,804 0 30,804 0 95 30,709 2011 0 0 29,819 0 29,819 0 93 29,726 2012 0 0 28,865 0 28,865 0 89 28,776 2013 0 0 27,940 0 27,940 0 87 27,853 2014 0 0 27,047 0 27,047 0 84 26,963 2015 0 0 26,181 0 26,181 0 81 26,100 SUB-TOT 0 0 498,004 0 498,004 0 1,544 496,460 REMAIN 0 0 433,048 0 433,048 0 1,342 431,706 TOTAL 0 0 931,052 0 931,052 0 2,886 928,166
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 8,256 0 0 0 8,256 32,896 32,896 31,321 2002 8,256 0 0 0 8,256 31,578 64,474 27,217 2003 8,256 0 0 0 8,256 30,304 94,778 23,643 2004 8,256 0 0 0 8,256 29,070 123,848 20,531 2005 8,256 0 0 0 8,256 27,877 151,725 17,822 2006 8,256 0 0 0 8,256 26,719 178,444 15,462 2007 8,256 0 0 0 8,256 25,600 204,044 13,411 2008 8,256 0 0 0 8,256 24,517 228,561 11,626 2009 8,256 0 0 0 8,256 23,468 252,029 10,073 2010 8,256 0 0 0 8,256 22,453 274,482 8,725 2011 8,256 0 0 0 8,256 21,470 295,952 7,552 2012 8,256 0 0 0 8,256 20,520 316,472 6,533 2013 8,256 0 0 0 8,256 19,597 336,069 5,649 2014 8,256 0 0 0 8,256 18,707 354,776 4,880 2015 8,256 0 0 0 8,256 17,844 372,620 4,215 SUBTOT 123,840 0 0 0 123,840 372,620 208,660 REMAIN 200,896 0 0 0 200,896 230,810 603,430 24,923 TOTAL 324,736 0 0 0 324,736 603,430 233,583 LIFE OF EVALUATION IS 39.33 YEARS. FINAL PRODUCTION RATE: 0.3 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 144 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
REICHEL WEST FIELD, RUSH COUNTY, KANSAS GAS LEASE TENGASCO, INC. - OPERATOR 1-T17S-R18W PROVED MUTH #1&2 (CHSE-SHWN) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.722656 5.30 5.00% - 601,824 FINAL - 1.000000 0.722656 5.30 10.00% - 420,634 REMARKS - 15.00% - 320,745 20.00% - 258,648 25.00% - 216,606
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 2 0 0 27 0 0 14.635 0.00 5.30 2002 2 0 0 26 0 0 14.050 0.00 5.30 2003 2 0 0 25 0 0 13.488 0.00 5.30 2004 2 0 0 25 0 0 12.948 0.00 5.30 2005 2 0 0 23 0 0 12.430 0.00 5.30 2006 2 0 0 22 0 0 11.933 0.00 5.30 2007 2 0 0 21 0 0 11.456 0.00 5.30 2008 2 0 0 21 0 0 10.998 0.00 5.30 2009 2 0 0 19 0 0 10.558 0.00 5.30 2010 2 0 0 19 0 0 10.135 0.00 5.30 2011 2 0 0 18 0 0 9.730 0.00 5.30 2012 2 0 0 18 0 0 9.341 0.00 5.30 2013 2 0 0 16 0 0 8.967 0.00 5.30 2014 2 0 0 16 0 0 8.609 0.00 5.30 2015 2 0 0 16 0 0 8.264 0.00 5.30 SUB-TOTAL 0 0 312 0 0 167.542 0.00 5.30 REMAINDER 0 0 232 0 0 124.887 0.00 5.30 TOTAL 0 0 544 0 0 292.429 0.00 5.30 CUMULATIVE 0 0 573 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 0 0 1,117 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 77,545 0 77,545 0 240 77,305 2002 0 0 74,443 0 74,443 0 231 74,212 2003 0 0 71,466 0 71,466 0 222 71,244 2004 0 0 68,607 0 68,607 0 212 68,395 2005 0 0 65,862 0 65,862 0 205 65,657 2006 0 0 63,228 0 63,228 0 196 63,032 2007 0 0 60,699 0 60,699 0 188 60,511 2008 0 0 58,271 0 58,271 0 180 58,091 2009 0 0 55,940 0 55,940 0 174 55,766 2010 0 0 53,703 0 53,703 0 166 53,537 2011 0 0 51,554 0 51,554 0 160 51,394 2012 0 0 49,493 0 49,493 0 154 49,339 2013 0 0 47,512 0 47,512 0 147 47,365 2014 0 0 45,612 0 45,612 0 141 45,471 2015 0 0 43,788 0 43,788 0 136 43,652 SUB-TOT 0 0 887,723 0 887,723 0 2,752 884,971 REMAIN 0 0 661,712 0 661,712 0 2,051 659,661 TOTAL 0 0 1,549,435 0 1,549,435 0 4,803 1,544,632
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 14,124 0 0 0 14,124 63,181 63,181 60,162 2002 14,124 0 0 0 14,124 60,088 123,269 51,793 2003 14,124 0 0 0 14,124 57,120 180,389 44,568 2004 14,124 0 0 0 14,124 54,271 234,660 38,331 2005 14,124 0 0 0 14,124 51,533 286,193 32,948 2006 14,124 0 0 0 14,124 48,908 335,101 28,306 2007 14,124 0 0 0 14,124 46,387 381,488 24,302 2008 14,124 0 0 0 14,124 43,967 425,455 20,851 2009 14,124 0 0 0 14,124 41,642 467,097 17,877 2010 14,124 0 0 0 14,124 39,413 506,510 15,316 2011 14,124 0 0 0 14,124 37,270 543,780 13,110 2012 14,124 0 0 0 14,124 35,215 578,995 11,214 2013 14,124 0 0 0 14,124 33,241 612,236 9,581 2014 14,124 0 0 0 14,124 31,347 643,583 8,180 2015 14,124 0 0 0 14,124 29,528 673,111 6,974 SUBTOT 211,860 0 0 0 211,860 673,111 383,513 REMAIN 343,684 0 0 0 343,684 315,977 989,088 37,121 TOTAL 555,544 0 0 0 555,544 989,088 420,634 LIFE OF EVALUATION IS 39.33 YEARS. FINAL PRODUCTION RATE: 0.5 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 145 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
RIDGEWAY SOUTH FIELD, TREGO COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 34-T12S-R21W PROVED SCHOENTHALER (ARBUCKLE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.820313 26.46 5.00% - 237,244 FINAL - 1.000000 0.820313 26.46 10.00% - 203,406 REMARKS - 15.00% - 177,741 20.00% - 157,781 25.00% - 141,903
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 3,506 0 0 2,876 0 0.000 26.46 0.00 2002 1 2,749 0 0 2,255 0 0.000 26.46 0.00 2003 1 2,156 0 0 1,768 0 0.000 26.46 0.00 2004 1 1,806 0 0 1,482 0 0.000 26.46 0.00 2005 1 1,626 0 0 1,334 0 0.000 26.46 0.00 2006 1 1,464 0 0 1,201 0 0.000 26.46 0.00 2007 1 1,317 0 0 1,080 0 0.000 26.46 0.00 2008 1 1,185 0 0 973 0 0.000 26.46 0.00 2009 1 1,067 0 0 875 0 0.000 26.46 0.00 2010 1 960 0 0 787 0 0.000 26.46 0.00 2011 1 864 0 0 709 0 0.000 26.46 0.00 2012 1 778 0 0 638 0 0.000 26.46 0.00 2013 1 700 0 0 574 0 0.000 26.46 0.00 2014 1 630 0 0 517 0 0.000 26.46 0.00 2015 1 431 0 0 353 0 0.000 26.46 0.00 SUB-TOTAL 21,239 0 0 17,422 0 0.000 26.46 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 21,239 0 0 17,422 0 0.000 26.46 0.00 CUMULATIVE 45,249 0 0 ULTIMATE 66,488 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 76,107 0 0 0 76,107 122 0 75,985 2002 59,668 0 0 0 59,668 95 0 59,573 2003 46,780 0 0 0 46,780 75 0 46,705 2004 39,216 0 0 0 39,216 63 0 39,153 2005 35,294 0 0 0 35,294 56 0 35,238 2006 31,764 0 0 0 31,764 51 0 31,713 2007 28,588 0 0 0 28,588 46 0 28,542 2008 25,730 0 0 0 25,730 41 0 25,689 2009 23,156 0 0 0 23,156 37 0 23,119 2010 20,841 0 0 0 20,841 33 0 20,808 2011 18,757 0 0 0 18,757 30 0 18,727 2012 16,881 0 0 0 16,881 27 0 16,854 2013 15,192 0 0 0 15,192 25 0 15,167 2014 13,674 0 0 0 13,674 22 0 13,652 2015 9,350 0 0 0 9,350 15 0 9,335 SUB-TOT 460,998 0 0 0 460,998 738 0 460,260 REMAIN 0 0 0 0 0 0 0 0 TOTAL 460,998 0 0 0 460,998 738 0 460,260
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 12,012 0 0 0 12,012 63,973 63,973 61,036 2002 12,012 0 0 0 12,012 47,561 111,534 41,081 2003 12,012 0 0 0 12,012 34,693 146,227 27,131 2004 12,012 0 0 0 12,012 27,141 173,368 19,185 2005 12,012 0 0 0 12,012 23,226 196,594 14,863 2006 12,012 0 0 0 12,012 19,701 216,295 11,413 2007 12,012 0 0 0 12,012 16,530 232,825 8,669 2008 12,012 0 0 0 12,012 13,677 246,502 6,494 2009 12,012 0 0 0 12,012 11,107 257,609 4,775 2010 12,012 0 0 0 12,012 8,796 266,405 3,424 2011 12,012 0 0 0 12,012 6,715 273,120 2,366 2012 12,012 0 0 0 12,012 4,842 277,962 1,546 2013 12,012 0 0 0 12,012 3,155 281,117 913 2014 12,012 0 0 0 12,012 1,640 282,757 431 2015 9,009 0 0 0 9,009 326 283,083 79 SUBTOT 177,177 0 0 0 177,177 283,083 203,406 REMAIN 0 0 0 0 0 0 283,083 0 TOTAL 177,177 0 0 0 177,177 283,083 203,406 LIFE OF EVALUATION IS 14.75 YEARS. FINAL PRODUCTION RATE: 46 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 146 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
RIGA NORTHEAST FIELD, TREGO COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 9-T13S-R21W PROVED KELLER (KSSC-LNSG) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 26.46 5.00% - 26,729 FINAL - 1.000000 0.875000 26.46 10.00% - 22,697 REMARKS - 15.00% - 19,589 20.00% - 17,149 25.00% - 15,202
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 2 552 0 0 483 0 0.000 26.46 0.00 2002 2 525 0 0 459 0 0.000 26.46 0.00 2003 2 500 0 0 438 0 0.000 26.46 0.00 2004 2 476 0 0 416 0 0.000 26.46 0.00 2005 2 453 0 0 397 0 0.000 26.46 0.00 2006 2 432 0 0 377 0 0.000 26.46 0.00 2007 2 410 0 0 360 0 0.000 26.46 0.00 2008 2 391 0 0 342 0 0.000 26.46 0.00 2009 2 373 0 0 326 0 0.000 26.46 0.00 2010 2 354 0 0 310 0 0.000 26.46 0.00 2011 2 337 0 0 295 0 0.000 26.46 0.00 2012 2 321 0 0 281 0 0.000 26.46 0.00 2013 2 27 0 0 23 0 0.000 26.46 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 5,151 0 0 4,507 0 0.000 26.46 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 5,151 0 0 4,507 0 0.000 26.46 0.00 CUMULATIVE 48,750 0 0 ULTIMATE 53,901 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 12,774 0 0 0 12,774 20 0 12,754 2002 12,160 0 0 0 12,160 20 0 12,140 2003 11,577 0 0 0 11,577 18 0 11,559 2004 11,022 0 0 0 11,022 18 0 11,004 2005 10,492 0 0 0 10,492 17 0 10,475 2006 9,988 0 0 0 9,988 16 0 9,972 2007 9,509 0 0 0 9,509 15 0 9,494 2008 9,053 0 0 0 9,053 15 0 9,038 2009 8,618 0 0 0 8,618 13 0 8,605 2010 8,205 0 0 0 8,205 13 0 8,192 2011 7,810 0 0 0 7,810 13 0 7,797 2012 7,436 0 0 0 7,436 12 0 7,424 2013 604 0 0 0 604 1 0 603 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 119,248 0 0 0 119,248 191 0 119,057 REMAIN 0 0 0 0 0 0 0 0 TOTAL 119,248 0 0 0 119,248 191 0 119,057
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 7,200 0 0 0 7,200 5,554 5,554 5,291 2002 7,200 0 0 0 7,200 4,940 10,494 4,261 2003 7,200 0 0 0 7,200 4,359 14,853 3,403 2004 7,200 0 0 0 7,200 3,804 18,657 2,689 2005 7,200 0 0 0 7,200 3,275 21,932 2,096 2006 7,200 0 0 0 7,200 2,772 24,704 1,606 2007 7,200 0 0 0 7,200 2,294 26,998 1,203 2008 7,200 0 0 0 7,200 1,838 28,836 873 2009 7,200 0 0 0 7,200 1,405 30,241 604 2010 7,200 0 0 0 7,200 992 31,233 387 2011 7,200 0 0 0 7,200 597 31,830 211 2012 7,200 0 0 0 7,200 224 32,054 72 2013 600 0 0 0 600 3 32,057 1 2014 0 0 0 0 0 0 32,057 0 2015 0 0 0 0 0 0 32,057 0 SUBTOT 87,000 0 0 0 87,000 32,057 22,697 REMAIN 0 0 0 0 0 0 32,057 0 TOTAL 87,000 0 0 0 87,000 32,057 22,697 LIFE OF EVALUATION IS 12.08 YEARS. FINAL PRODUCTION RATE: 26 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 147 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
RIGA NORTHEAST FIELD, TREGO COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 9-T13S-R21W PROVED KELLER -A- (ARBUCKLE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 26.46 5.00% - 160,049 FINAL - 1.000000 0.875000 26.46 10.00% - 123,840 REMARKS - 15.00% - 99,999 20.00% - 83,452 25.00% - 71,440
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 3 1,466 0 0 1,282 0 0.000 26.46 0.00 2002 3 1,395 0 0 1,221 0 0.000 26.46 0.00 2003 3 1,328 0 0 1,163 0 0.000 26.46 0.00 2004 3 1,265 0 0 1,106 0 0.000 26.46 0.00 2005 3 1,204 0 0 1,054 0 0.000 26.46 0.00 2006 3 1,146 0 0 1,003 0 0.000 26.46 0.00 2007 3 1,091 0 0 954 0 0.000 26.46 0.00 2008 3 1,039 0 0 909 0 0.000 26.46 0.00 2009 3 989 0 0 865 0 0.000 26.46 0.00 2010 3 941 0 0 824 0 0.000 26.46 0.00 2011 3 896 0 0 784 0 0.000 26.46 0.00 2012 3 854 0 0 747 0 0.000 26.46 0.00 2013 3 812 0 0 711 0 0.000 26.46 0.00 2014 3 773 0 0 676 0 0.000 26.46 0.00 2015 3 736 0 0 644 0 0.000 26.46 0.00 SUB-TOTAL 15,935 0 0 13,943 0 0.000 26.46 0.00 REMAINDER 4,669 0 0 4,085 0 0.000 26.46 0.00 TOTAL 20,604 0 0 18,028 0 0.000 26.46 0.00 CUMULATIVE 99,507 0 0 ULTIMATE 120,111 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 33,935 0 0 0 33,935 54 0 33,881 2002 32,305 0 0 0 32,305 52 0 32,253 2003 30,755 0 0 0 30,755 49 0 30,706 2004 29,279 0 0 0 29,279 47 0 29,232 2005 27,873 0 0 0 27,873 45 0 27,828 2006 26,536 0 0 0 26,536 42 0 26,494 2007 25,261 0 0 0 25,261 41 0 25,220 2008 24,050 0 0 0 24,050 38 0 24,012 2009 22,894 0 0 0 22,894 37 0 22,857 2010 21,796 0 0 0 21,796 34 0 21,762 2011 20,750 0 0 0 20,750 34 0 20,716 2012 19,754 0 0 0 19,754 31 0 19,723 2013 18,805 0 0 0 18,805 30 0 18,775 2014 17,903 0 0 0 17,903 29 0 17,874 2015 17,044 0 0 0 17,044 27 0 17,017 SUB-TOT 368,940 0 0 0 368,940 590 0 368,350 REMAIN 108,091 0 0 0 108,091 173 0 107,918 TOTAL 477,031 0 0 0 477,031 763 0 476,268
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 11,292 0 0 0 11,292 22,589 22,589 21,514 2002 11,292 0 0 0 11,292 20,961 43,550 18,071 2003 11,292 0 0 0 11,292 19,414 62,964 15,151 2004 11,292 0 0 0 11,292 17,940 80,904 12,674 2005 11,292 0 0 0 11,292 16,536 97,440 10,575 2006 11,292 0 0 0 11,292 15,202 112,642 8,801 2007 11,292 0 0 0 11,292 13,928 126,570 7,299 2008 11,292 0 0 0 11,292 12,720 139,290 6,034 2009 11,292 0 0 0 11,292 11,565 150,855 4,967 2010 11,292 0 0 0 11,292 10,470 161,325 4,070 2011 11,292 0 0 0 11,292 9,424 170,749 3,316 2012 11,292 0 0 0 11,292 8,431 179,180 2,686 2013 11,292 0 0 0 11,292 7,483 186,663 2,158 2014 11,292 0 0 0 11,292 6,582 193,245 1,719 2015 11,292 0 0 0 11,292 5,725 198,970 1,353 SUBTOT 169,380 0 0 0 169,380 198,970 120,388 REMAIN 88,454 0 0 0 88,454 19,464 218,434 3,452 TOTAL 257,834 0 0 0 257,834 218,434 123,840 LIFE OF EVALUATION IS 22.83 YEARS. FINAL PRODUCTION RATE: 41 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 148 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
RUGGELS WEST FIELD, OSBORNE COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 16-T10S-R15W PROVED MAIER (KSSC-LNSG) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 0.812500 0.676025 26.46 5.00% - 127,724 FINAL - 0.812500 0.676025 26.46 10.00% - 105,006 REMARKS - 15.00% - 88,615 20.00% - 76,395 25.00% - 67,016
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 1,607 0 0 1,086 0 0.000 26.46 0.00 2002 1 1,446 0 0 978 0 0.000 26.46 0.00 2003 1 1,302 0 0 880 0 0.000 26.46 0.00 2004 1 1,171 0 0 792 0 0.000 26.46 0.00 2005 1 1,055 0 0 713 0 0.000 26.46 0.00 2006 1 948 0 0 641 0 0.000 26.46 0.00 2007 1 854 0 0 577 0 0.000 26.46 0.00 2008 1 769 0 0 520 0 0.000 26.46 0.00 2009 1 692 0 0 468 0 0.000 26.46 0.00 2010 1 622 0 0 421 0 0.000 26.46 0.00 2011 1 561 0 0 378 0 0.000 26.46 0.00 2012 1 504 0 0 341 0 0.000 26.46 0.00 2013 1 454 0 0 307 0 0.000 26.46 0.00 2014 1 408 0 0 276 0 0.000 26.46 0.00 2015 1 368 0 0 249 0 0.000 26.46 0.00 SUB-TOTAL 12,761 0 0 8,627 0 0.000 26.46 0.00 REMAINDER 832 0 0 562 0 0.000 26.46 0.00 TOTAL 13,593 0 0 9,189 0 0.000 26.46 0.00 CUMULATIVE 8,908 0 0 ULTIMATE 22,501 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 28,744 0 0 0 28,744 46 0 28,698 2002 25,870 0 0 0 25,870 41 0 25,829 2003 23,283 0 0 0 23,283 38 0 23,245 2004 20,955 0 0 0 20,955 33 0 20,922 2005 18,859 0 0 0 18,859 30 0 18,829 2006 16,973 0 0 0 16,973 27 0 16,946 2007 15,276 0 0 0 15,276 25 0 15,251 2008 13,748 0 0 0 13,748 22 0 13,726 2009 12,374 0 0 0 12,374 20 0 12,354 2010 11,136 0 0 0 11,136 18 0 11,118 2011 10,023 0 0 0 10,023 16 0 10,007 2012 9,020 0 0 0 9,020 14 0 9,006 2013 8,118 0 0 0 8,118 13 0 8,105 2014 7,306 0 0 0 7,306 12 0 7,294 2015 6,576 0 0 0 6,576 10 0 6,566 SUB-TOT 228,261 0 0 0 228,261 365 0 227,896 REMAIN 14,887 0 0 0 14,887 24 0 14,863 TOTAL 243,148 0 0 0 243,148 389 0 242,759
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 4,641 0 0 0 4,641 24,057 24,057 22,922 2002 4,641 0 0 0 4,641 21,188 45,245 18,274 2003 4,641 0 0 0 4,641 18,604 63,849 14,526 2004 4,641 0 0 0 4,641 16,281 80,130 11,507 2005 4,641 0 0 0 4,641 14,188 94,318 9,078 2006 4,641 0 0 0 4,641 12,305 106,623 7,127 2007 4,641 0 0 0 4,641 10,610 117,233 5,563 2008 4,641 0 0 0 4,641 9,085 126,318 4,312 2009 4,641 0 0 0 4,641 7,713 134,031 3,314 2010 4,641 0 0 0 4,641 6,477 140,508 2,520 2011 4,641 0 0 0 4,641 5,366 145,874 1,890 2012 4,641 0 0 0 4,641 4,365 150,239 1,391 2013 4,641 0 0 0 4,641 3,464 153,703 1,000 2014 4,641 0 0 0 4,641 2,653 156,356 694 2015 4,641 0 0 0 4,641 1,925 158,281 456 SUBTOT 69,615 0 0 0 69,615 158,281 104,574 REMAIN 12,763 0 0 0 12,763 2,100 160,381 432 TOTAL 82,378 0 0 0 82,378 160,381 105,006 LIFE OF EVALUATION IS 17.75 YEARS. FINAL PRODUCTION RATE: 22 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 149 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
RUGGELS WEST FIELD, OSBORNE COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 16-T10S-R15W PROVED MAIER #1 BP (KSSC-LNSG) BEHIND PIPE REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 0.812500 0.676025 26.46 5.00% - 364,007 FINAL - 0.812500 0.676025 26.46 10.00% - 283,230 REMARKS - 15.00% - 229,086 20.00% - 191,036 25.00% - 163,160
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 3,446 0 0 2,330 0 0.000 26.46 0.00 2002 1 3,157 0 0 2,134 0 0.000 26.46 0.00 2003 1 2,892 0 0 1,955 0 0.000 26.46 0.00 2004 1 2,648 0 0 1,790 0 0.000 26.46 0.00 2005 1 2,426 0 0 1,640 0 0.000 26.46 0.00 2006 1 2,222 0 0 1,502 0 0.000 26.46 0.00 2007 1 2,035 0 0 1,376 0 0.000 26.46 0.00 2008 1 1,864 0 0 1,260 0 0.000 26.46 0.00 2009 1 1,707 0 0 1,154 0 0.000 26.46 0.00 2010 1 1,564 0 0 1,057 0 0.000 26.46 0.00 2011 1 1,432 0 0 968 0 0.000 26.46 0.00 2012 1 1,312 0 0 887 0 0.000 26.46 0.00 2013 1 1,202 0 0 813 0 0.000 26.46 0.00 2014 1 1,100 0 0 744 0 0.000 26.46 0.00 2015 1 1,008 0 0 681 0 0.000 26.46 0.00 SUB-TOTAL 30,015 0 0 20,291 0 0.000 26.46 0.00 REMAINDER 2,785 0 0 1,883 0 0.000 26.46 0.00 TOTAL 32,800 0 0 22,174 0 0.000 26.46 0.00 CUMULATIVE 0 0 0 ULTIMATE 32,800 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 61,649 0 0 0 61,649 99 0 61,550 2002 56,467 0 0 0 56,467 90 0 56,377 2003 51,721 0 0 0 51,721 83 0 51,638 2004 47,372 0 0 0 47,372 76 0 47,296 2005 43,391 0 0 0 43,391 69 0 43,322 2006 39,743 0 0 0 39,743 64 0 39,679 2007 36,402 0 0 0 36,402 58 0 36,344 2008 33,343 0 0 0 33,343 53 0 33,290 2009 30,539 0 0 0 30,539 49 0 30,490 2010 27,973 0 0 0 27,973 45 0 27,928 2011 25,621 0 0 0 25,621 41 0 25,580 2012 23,467 0 0 0 23,467 37 0 23,430 2013 21,495 0 0 0 21,495 35 0 21,460 2014 19,687 0 0 0 19,687 31 0 19,656 2015 18,033 0 0 0 18,033 29 0 18,004 SUB-TOT 536,903 0 0 0 536,903 859 0 536,044 REMAIN 49,811 0 0 0 49,811 80 0 49,731 TOTAL 586,714 0 0 0 586,714 939 0 585,775
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 4,641 0 9,750 0 14,391 47,159 47,159 44,500 2002 4,641 0 0 0 4,641 51,736 98,895 44,610 2003 4,641 0 0 0 4,641 46,997 145,892 36,684 2004 4,641 0 0 0 4,641 42,655 188,547 30,139 2005 4,641 0 0 0 4,641 38,681 227,228 24,740 2006 4,641 0 0 0 4,641 35,038 262,266 20,286 2007 4,641 0 0 0 4,641 31,703 293,969 16,616 2008 4,641 0 0 0 4,641 28,649 322,618 13,592 2009 4,641 0 0 0 4,641 25,849 348,467 11,101 2010 4,641 0 0 0 4,641 23,287 371,754 9,053 2011 4,641 0 0 0 4,641 20,939 392,693 7,369 2012 4,641 0 0 0 4,641 18,789 411,482 5,985 2013 4,641 0 0 0 4,641 16,819 428,301 4,851 2014 4,641 0 0 0 4,641 15,015 443,316 3,919 2015 4,641 0 0 0 4,641 13,363 456,679 3,158 SUBTOT 69,615 0 9,750 0 79,365 456,679 276,603 REMAIN 15,453 0 0 0 15,453 34,278 490,957 6,627 TOTAL 85,068 0 9,750 0 94,818 490,957 283,230 LIFE OF EVALUATION IS 18.33 YEARS. FINAL PRODUCTION RATE: 60 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 150 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
SANDFORD FIELD, BARTON COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 26-T17S-R14W PROVED BEN TEMPERO (ARBUCKLE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.820312 26.46 5.00% - 346,134 FINAL - 1.000000 0.820312 26.46 10.00% - 276,739 REMARKS - 15.00% - 228,544 20.00% - 193,734 25.00% - 167,709
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 3,748 0 0 3,074 0 0.000 26.46 0.00 2002 1 3,523 0 0 2,890 0 0.000 26.46 0.00 2003 1 3,311 0 0 2,717 0 0.000 26.46 0.00 2004 1 3,113 0 0 2,553 0 0.000 26.46 0.00 2005 1 2,926 0 0 2,401 0 0.000 26.46 0.00 2006 1 2,751 0 0 2,256 0 0.000 26.46 0.00 2007 1 2,585 0 0 2,121 0 0.000 26.46 0.00 2008 1 2,431 0 0 1,994 0 0.000 26.46 0.00 2009 1 2,284 0 0 1,874 0 0.000 26.46 0.00 2010 1 2,148 0 0 1,761 0 0.000 26.46 0.00 2011 1 2,018 0 0 1,656 0 0.000 26.46 0.00 2012 1 1,898 0 0 1,557 0 0.000 26.46 0.00 2013 1 1,784 0 0 1,463 0 0.000 26.46 0.00 2014 1 1,676 0 0 1,375 0 0.000 26.46 0.00 2015 1 1,576 0 0 1,293 0 0.000 26.46 0.00 SUB-TOTAL 37,772 0 0 30,985 0 0.000 26.46 0.00 REMAINDER 5,612 0 0 4,603 0 0.000 26.46 0.00 TOTAL 43,384 0 0 35,588 0 0.000 26.46 0.00 CUMULATIVE 105,859 0 0 ULTIMATE 149,243 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 81,348 0 0 0 81,348 130 0 81,218 2002 76,467 0 0 0 76,467 123 0 76,344 2003 71,879 0 0 0 71,879 115 0 71,764 2004 67,567 0 0 0 67,567 108 0 67,459 2005 63,512 0 0 0 63,512 101 0 63,411 2006 59,702 0 0 0 59,702 96 0 59,606 2007 56,119 0 0 0 56,119 90 0 56,029 2008 52,753 0 0 0 52,753 84 0 52,669 2009 49,587 0 0 0 49,587 79 0 49,508 2010 46,612 0 0 0 46,612 75 0 46,537 2011 43,815 0 0 0 43,815 70 0 43,745 2012 41,187 0 0 0 41,187 66 0 41,121 2013 38,715 0 0 0 38,715 62 0 38,653 2014 36,392 0 0 0 36,392 58 0 36,334 2015 34,209 0 0 0 34,209 55 0 34,154 SUB-TOT 819,864 0 0 0 819,864 1,312 0 818,552 REMAIN 121,798 0 0 0 121,798 195 0 121,603 TOTAL 941,662 0 0 0 941,662 1,507 0 940,155
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 25,548 0 0 0 25,548 55,670 55,670 53,027 2002 25,548 0 0 0 25,548 50,796 106,466 43,799 2003 25,548 0 0 0 25,548 46,216 152,682 36,074 2004 25,548 0 0 0 25,548 41,911 194,593 29,614 2005 25,548 0 0 0 25,548 37,863 232,456 24,218 2006 25,548 0 0 0 25,548 34,058 266,514 19,720 2007 25,548 0 0 0 25,548 30,481 296,995 15,977 2008 25,548 0 0 0 25,548 27,121 324,116 12,869 2009 25,548 0 0 0 25,548 23,960 348,076 10,292 2010 25,548 0 0 0 25,548 20,989 369,065 8,162 2011 25,548 0 0 0 25,548 18,197 387,262 6,406 2012 25,548 0 0 0 25,548 15,573 402,835 4,963 2013 25,548 0 0 0 25,548 13,105 415,940 3,781 2014 25,548 0 0 0 25,548 10,786 426,726 2,818 2015 25,548 0 0 0 25,548 8,606 435,332 2,036 SUBTOT 383,220 0 0 0 383,220 435,332 273,756 REMAIN 106,450 0 0 0 106,450 15,153 450,485 2,983 TOTAL 489,670 0 0 0 489,670 450,485 276,739 LIFE OF EVALUATION IS 19.17 YEARS. FINAL PRODUCTION RATE: 99 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 151 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
SANDFORD FIELD, BARTON COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 26-T17S-R14W PROVED BEN TEMPERO #5 PUD (ARBUCKLE) UNDEVELOPED REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.820312 26.46 5.00% - 296,797 FINAL - 1.000000 0.820312 26.46 10.00% - 214,627 REMARKS - 15.00% - 161,211 20.00% - 124,539 25.00% - 98,191
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 3,782 0 0 3,102 0 0.000 26.46 0.00 2002 1 3,560 0 0 2,921 0 0.000 26.46 0.00 2003 1 2,853 0 0 2,340 0 0.000 26.46 0.00 2004 1 2,694 0 0 2,210 0 0.000 26.46 0.00 2005 1 2,544 0 0 2,087 0 0.000 26.46 0.00 2006 1 2,402 0 0 1,970 0 0.000 26.46 0.00 2007 1 2,268 0 0 1,861 0 0.000 26.46 0.00 2008 1 2,142 0 0 1,757 0 0.000 26.46 0.00 2009 1 2,023 0 0 1,659 0 0.000 26.46 0.00 2010 1 1,910 0 0 1,567 0 0.000 26.46 0.00 2011 1 1,804 0 0 1,480 0 0.000 26.46 0.00 2012 1 1,703 0 0 1,397 0 0.000 26.46 0.00 2013 1 1,608 0 0 1,319 0 0.000 26.46 0.00 2014 1 1,519 0 0 1,246 0 0.000 26.46 0.00 2015 1 1,434 0 0 1,177 0 0.000 26.46 0.00 SUB-TOTAL 34,246 0 0 28,093 0 0.000 26.46 0.00 REMAINDER 9,799 0 0 8,038 0 0.000 26.46 0.00 TOTAL 44,045 0 0 36,131 0 0.000 26.46 0.00 CUMULATIVE 0 0 0 ULTIMATE 44,045 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 82,092 0 0 0 82,092 131 0 81,961 2002 77,279 0 0 0 77,279 124 0 77,155 2003 61,919 0 0 0 61,919 99 0 61,820 2004 58,471 0 0 0 58,471 94 0 58,377 2005 55,214 0 0 0 55,214 88 0 55,126 2006 52,139 0 0 0 52,139 83 0 52,056 2007 49,235 0 0 0 49,235 79 0 49,156 2008 46,493 0 0 0 46,493 75 0 46,418 2009 43,904 0 0 0 43,904 70 0 43,834 2010 41,459 0 0 0 41,459 66 0 41,393 2011 39,150 0 0 0 39,150 63 0 39,087 2012 36,969 0 0 0 36,969 59 0 36,910 2013 34,911 0 0 0 34,911 56 0 34,855 2014 32,966 0 0 0 32,966 53 0 32,913 2015 31,130 0 0 0 31,130 49 0 31,081 SUB-TOT 743,331 0 0 0 743,331 1,189 0 742,142 REMAIN 212,684 0 0 0 212,684 341 0 212,343 TOTAL 956,015 0 0 0 956,015 1,530 0 954,485
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 9,000 0 100,000 0 109,000 -27,039 -27,039 -26,848 2002 18,000 0 0 0 18,000 59,155 32,116 51,337 2003 18,000 0 0 0 18,000 43,820 75,936 34,200 2004 18,000 0 0 0 18,000 40,377 116,313 28,525 2005 18,000 0 0 0 18,000 37,126 153,439 23,743 2006 18,000 0 0 0 18,000 34,056 187,495 19,716 2007 18,000 0 0 0 18,000 31,156 218,651 16,328 2008 18,000 0 0 0 18,000 28,418 247,069 13,481 2009 18,000 0 0 0 18,000 25,834 272,903 11,094 2010 18,000 0 0 0 18,000 23,393 296,296 9,094 2011 18,000 0 0 0 18,000 21,087 317,383 7,421 2012 18,000 0 0 0 18,000 18,910 336,293 6,024 2013 18,000 0 0 0 18,000 16,855 353,148 4,861 2014 18,000 0 0 0 18,000 14,913 368,061 3,894 2015 18,000 0 0 0 18,000 13,081 381,142 3,091 SUBTOT 261,000 0 100,000 0 361,000 381,142 205,961 REMAIN 162,000 0 0 0 162,000 50,343 431,485 8,666 TOTAL 423,000 0 100,000 0 523,000 431,485 214,627 LIFE OF EVALUATION IS 24.00 YEARS. FINAL PRODUCTION RATE: 70 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 152 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
SCHWINDT FIELD, RUSH COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 30-T17S-R18W PROVED JACOBS -B- (CNGL-LNSG-MSSP-VIOL) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 26.46 5.00% - 290,609 FINAL - 1.000000 0.875000 26.46 10.00% - 211,726 REMARKS - 15.00% - 164,856 20.00% - 134,476 25.00% - 113,405
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 2,027 0 0 1,774 0 0.000 26.46 0.00 2002 1 1,947 0 0 1,703 0 0.000 26.46 0.00 2003 1 1,868 0 0 1,635 0 0.000 26.46 0.00 2004 1 1,794 0 0 1,570 0 0.000 26.46 0.00 2005 1 1,722 0 0 1,506 0 0.000 26.46 0.00 2006 1 1,653 0 0 1,447 0 0.000 26.46 0.00 2007 1 1,587 0 0 1,389 0 0.000 26.46 0.00 2008 1 1,524 0 0 1,333 0 0.000 26.46 0.00 2009 1 1,463 0 0 1,280 0 0.000 26.46 0.00 2010 1 1,404 0 0 1,228 0 0.000 26.46 0.00 2011 1 1,348 0 0 1,180 0 0.000 26.46 0.00 2012 1 1,294 0 0 1,132 0 0.000 26.46 0.00 2013 1 1,242 0 0 1,087 0 0.000 26.46 0.00 2014 1 1,193 0 0 1,043 0 0.000 26.46 0.00 2015 1 1,144 0 0 1,002 0 0.000 26.46 0.00 SUB-TOTAL 23,210 0 0 20,309 0 0.000 26.46 0.00 REMAINDER 13,703 0 0 11,990 0 0.000 26.46 0.00 TOTAL 36,913 0 0 32,299 0 0.000 26.46 0.00 CUMULATIVE 71,608 0 0 ULTIMATE 108,521 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 46,942 0 0 0 46,942 75 0 46,867 2002 45,064 0 0 0 45,064 72 0 44,992 2003 43,261 0 0 0 43,261 69 0 43,192 2004 41,531 0 0 0 41,531 67 0 41,464 2005 39,869 0 0 0 39,869 64 0 39,805 2006 38,275 0 0 0 38,275 61 0 38,214 2007 36,744 0 0 0 36,744 59 0 36,685 2008 35,274 0 0 0 35,274 56 0 35,218 2009 33,864 0 0 0 33,864 54 0 33,810 2010 32,508 0 0 0 32,508 52 0 32,456 2011 31,208 0 0 0 31,208 50 0 31,158 2012 29,960 0 0 0 29,960 48 0 29,912 2013 28,762 0 0 0 28,762 46 0 28,716 2014 27,611 0 0 0 27,611 44 0 27,567 2015 26,507 0 0 0 26,507 43 0 26,464 SUB-TOT 537,380 0 0 0 537,380 860 0 536,520 REMAIN 317,260 0 0 0 317,260 507 0 316,753 TOTAL 854,640 0 0 0 854,640 1,367 0 853,273
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 12,996 0 0 0 12,996 33,871 33,871 32,254 2002 12,996 0 0 0 12,996 31,996 65,867 27,581 2003 12,996 0 0 0 12,996 30,196 96,063 23,562 2004 12,996 0 0 0 12,996 28,468 124,531 20,108 2005 12,996 0 0 0 12,996 26,809 151,340 17,142 2006 12,996 0 0 0 12,996 25,218 176,558 14,596 2007 12,996 0 0 0 12,996 23,689 200,247 12,411 2008 12,996 0 0 0 12,996 22,222 222,469 10,540 2009 12,996 0 0 0 12,996 20,814 243,283 8,936 2010 12,996 0 0 0 12,996 19,460 262,743 7,563 2011 12,996 0 0 0 12,996 18,162 280,905 6,390 2012 12,996 0 0 0 12,996 16,916 297,821 5,387 2013 12,996 0 0 0 12,996 15,720 313,541 4,532 2014 12,996 0 0 0 12,996 14,571 328,112 3,802 2015 12,996 0 0 0 12,996 13,468 341,580 3,182 SUBTOT 194,940 0 0 0 194,940 341,580 197,986 REMAIN 219,849 0 0 0 219,849 96,904 438,484 13,740 TOTAL 414,789 0 0 0 414,789 438,484 211,726 LIFE OF EVALUATION IS 31.92 YEARS. FINAL PRODUCTION RATE: 47 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 153 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
SPRING CREEK FIELD, TREGO COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 32-T12S-R21W PROVED RIDGWAY (ARBUCKLE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.779300 26.46 5.00% - 205,913 FINAL - 1.000000 0.779300 26.46 10.00% - 168,048 REMARKS - 15.00% - 141,177 20.00% - 121,383 25.00% - 106,320
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 2,486 0 0 1,937 0 0.000 26.46 0.00 2002 1 2,248 0 0 1,752 0 0.000 26.46 0.00 2003 1 2,041 0 0 1,590 0 0.000 26.46 0.00 2004 1 1,860 0 0 1,450 0 0.000 26.46 0.00 2005 1 1,702 0 0 1,327 0 0.000 26.46 0.00 2006 1 1,563 0 0 1,218 0 0.000 26.46 0.00 2007 1 1,439 0 0 1,121 0 0.000 26.46 0.00 2008 1 1,330 0 0 1,036 0 0.000 26.46 0.00 2009 1 1,231 0 0 960 0 0.000 26.46 0.00 2010 1 1,143 0 0 891 0 0.000 26.46 0.00 2011 1 1,064 0 0 829 0 0.000 26.46 0.00 2012 1 992 0 0 773 0 0.000 26.46 0.00 2013 1 928 0 0 723 0 0.000 26.46 0.00 2014 1 869 0 0 677 0 0.000 26.46 0.00 2015 1 815 0 0 635 0 0.000 26.46 0.00 SUB-TOTAL 21,711 0 0 16,919 0 0.000 26.46 0.00 REMAINDER 2,862 0 0 2,231 0 0.000 26.46 0.00 TOTAL 24,573 0 0 19,150 0 0.000 26.46 0.00 CUMULATIVE 106,952 0 0 ULTIMATE 131,525 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 51,263 0 0 0 51,263 82 0 51,181 2002 46,346 0 0 0 46,346 74 0 46,272 2003 42,083 0 0 0 42,083 68 0 42,015 2004 38,364 0 0 0 38,364 61 0 38,303 2005 35,101 0 0 0 35,101 56 0 35,045 2006 32,226 0 0 0 32,226 52 0 32,174 2007 29,678 0 0 0 29,678 47 0 29,631 2008 27,412 0 0 0 27,412 44 0 27,368 2009 25,387 0 0 0 25,387 41 0 25,346 2010 23,573 0 0 0 23,573 37 0 23,536 2011 21,938 0 0 0 21,938 35 0 21,903 2012 20,464 0 0 0 20,464 33 0 20,431 2013 19,128 0 0 0 19,128 31 0 19,097 2014 17,915 0 0 0 17,915 28 0 17,887 2015 16,809 0 0 0 16,809 27 0 16,782 SUB-TOT 447,687 0 0 0 447,687 716 0 446,971 REMAIN 59,024 0 0 0 59,024 95 0 58,929 TOTAL 506,711 0 0 0 506,711 811 0 505,900
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 12,804 0 0 0 12,804 38,377 38,377 36,569 2002 12,804 0 0 0 12,804 33,468 71,845 28,869 2003 12,804 0 0 0 12,804 29,211 101,056 22,808 2004 12,804 0 0 0 12,804 25,499 126,555 18,022 2005 12,804 0 0 0 12,804 22,241 148,796 14,230 2006 12,804 0 0 0 12,804 19,370 168,166 11,218 2007 12,804 0 0 0 12,804 16,827 184,993 8,823 2008 12,804 0 0 0 12,804 14,564 199,557 6,912 2009 12,804 0 0 0 12,804 12,542 212,099 5,388 2010 12,804 0 0 0 12,804 10,732 222,831 4,174 2011 12,804 0 0 0 12,804 9,099 231,930 3,204 2012 12,804 0 0 0 12,804 7,627 239,557 2,431 2013 12,804 0 0 0 12,804 6,293 245,850 1,816 2014 12,804 0 0 0 12,804 5,083 250,933 1,328 2015 12,804 0 0 0 12,804 3,978 254,911 942 SUBTOT 192,060 0 0 0 192,060 254,911 166,734 REMAIN 52,283 0 0 0 52,283 6,646 261,557 1,314 TOTAL 244,343 0 0 0 244,343 261,557 168,048 LIFE OF EVALUATION IS 19.08 YEARS. FINAL PRODUCTION RATE: 52 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 154 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
STOCKTON FIELD, ROOKS COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 35-T7S-R17W PROVED HINDMAN, D.A. (TOPEKA) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.809370 26.46 5.00% - 57,581 FINAL - 1.000000 0.809370 26.46 10.00% - 44,374 REMARKS - 15.00% - 35,693 20.00% - 29,685 25.00% - 25,339
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 703 0 0 569 0 0.000 26.46 0.00 2002 1 680 0 0 550 0 0.000 26.46 0.00 2003 1 657 0 0 532 0 0.000 26.46 0.00 2004 1 635 0 0 514 0 0.000 26.46 0.00 2005 1 613 0 0 496 0 0.000 26.46 0.00 2006 1 593 0 0 480 0 0.000 26.46 0.00 2007 1 573 0 0 464 0 0.000 26.46 0.00 2008 1 554 0 0 449 0 0.000 26.46 0.00 2009 1 536 0 0 433 0 0.000 26.46 0.00 2010 1 517 0 0 419 0 0.000 26.46 0.00 2011 1 501 0 0 405 0 0.000 26.46 0.00 2012 1 483 0 0 391 0 0.000 26.46 0.00 2013 1 467 0 0 378 0 0.000 26.46 0.00 2014 1 452 0 0 366 0 0.000 26.46 0.00 2015 1 436 0 0 353 0 0.000 26.46 0.00 SUB-TOTAL 8,400 0 0 6,799 0 0.000 26.46 0.00 REMAINDER 2,728 0 0 2,208 0 0.000 26.46 0.00 TOTAL 11,128 0 0 9,007 0 0.000 26.46 0.00 CUMULATIVE 48,683 0 0 ULTIMATE 59,811 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 15,060 0 0 0 15,060 24 0 15,036 2002 14,555 0 0 0 14,555 23 0 14,532 2003 14,068 0 0 0 14,068 23 0 14,045 2004 13,597 0 0 0 13,597 22 0 13,575 2005 13,141 0 0 0 13,141 21 0 13,120 2006 12,701 0 0 0 12,701 20 0 12,681 2007 12,275 0 0 0 12,275 20 0 12,255 2008 11,864 0 0 0 11,864 19 0 11,845 2009 11,467 0 0 0 11,467 18 0 11,449 2010 11,082 0 0 0 11,082 18 0 11,064 2011 10,712 0 0 0 10,712 17 0 10,695 2012 10,352 0 0 0 10,352 16 0 10,336 2013 10,006 0 0 0 10,006 16 0 9,990 2014 9,670 0 0 0 9,670 16 0 9,654 2015 9,347 0 0 0 9,347 15 0 9,332 SUB-TOT 179,897 0 0 0 179,897 288 0 179,609 REMAIN 58,424 0 0 0 58,424 93 0 58,331 TOTAL 238,321 0 0 0 238,321 381 0 237,940
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 7,176 0 0 0 7,176 7,860 7,860 7,485 2002 7,176 0 0 0 7,176 7,356 15,216 6,342 2003 7,176 0 0 0 7,176 6,869 22,085 5,360 2004 7,176 0 0 0 7,176 6,399 28,484 4,521 2005 7,176 0 0 0 7,176 5,944 34,428 3,801 2006 7,176 0 0 0 7,176 5,505 39,933 3,186 2007 7,176 0 0 0 7,176 5,079 45,012 2,662 2008 7,176 0 0 0 7,176 4,669 49,681 2,215 2009 7,176 0 0 0 7,176 4,273 53,954 1,835 2010 7,176 0 0 0 7,176 3,888 57,842 1,511 2011 7,176 0 0 0 7,176 3,519 61,361 1,238 2012 7,176 0 0 0 7,176 3,160 64,521 1,007 2013 7,176 0 0 0 7,176 2,814 67,335 812 2014 7,176 0 0 0 7,176 2,478 69,813 647 2015 7,176 0 0 0 7,176 2,156 71,969 509 SUBTOT 107,640 0 0 0 107,640 71,969 43,131 REMAIN 51,428 0 0 0 51,428 6,903 78,872 1,243 TOTAL 159,068 0 0 0 159,068 78,872 44,374 LIFE OF EVALUATION IS 22.17 YEARS. FINAL PRODUCTION RATE: 28 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 155 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
STOCKTON FIELD, ROOKS COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 26-T7S-R17W PROVED STEBBINS (HOWARD) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 0.925000 0.751570 26.46 5.00% - 95,356 FINAL - 0.925000 0.751570 26.46 10.00% - 71,289 REMARKS - 15.00% - 56,284 20.00% - 46,268 25.00% - 39,196
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 986 0 0 741 0 0.000 26.46 0.00 2002 1 951 0 0 715 0 0.000 26.46 0.00 2003 1 917 0 0 689 0 0.000 26.46 0.00 2004 1 886 0 0 666 0 0.000 26.46 0.00 2005 1 855 0 0 642 0 0.000 26.46 0.00 2006 1 825 0 0 620 0 0.000 26.46 0.00 2007 1 795 0 0 598 0 0.000 26.46 0.00 2008 1 768 0 0 578 0 0.000 26.46 0.00 2009 1 742 0 0 557 0 0.000 26.46 0.00 2010 1 715 0 0 537 0 0.000 26.46 0.00 2011 1 690 0 0 519 0 0.000 26.46 0.00 2012 1 666 0 0 500 0 0.000 26.46 0.00 2013 1 643 0 0 483 0 0.000 26.46 0.00 2014 1 620 0 0 467 0 0.000 26.46 0.00 2015 1 598 0 0 449 0 0.000 26.46 0.00 SUB-TOTAL 11,657 0 0 8,761 0 0.000 26.46 0.00 REMAINDER 5,580 0 0 4,194 0 0.000 26.46 0.00 TOTAL 17,237 0 0 12,955 0 0.000 26.46 0.00 CUMULATIVE 44,333 0 0 ULTIMATE 61,570 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 19,600 0 0 0 19,600 31 0 19,569 2002 18,913 0 0 0 18,913 31 0 18,882 2003 18,252 0 0 0 18,252 29 0 18,223 2004 17,613 0 0 0 17,613 28 0 17,585 2005 16,996 0 0 0 16,996 27 0 16,969 2006 16,402 0 0 0 16,402 26 0 16,376 2007 15,828 0 0 0 15,828 26 0 15,802 2008 15,273 0 0 0 15,273 24 0 15,249 2009 14,739 0 0 0 14,739 24 0 14,715 2010 14,223 0 0 0 14,223 23 0 14,200 2011 13,726 0 0 0 13,726 22 0 13,704 2012 13,244 0 0 0 13,244 21 0 13,223 2013 12,782 0 0 0 12,782 20 0 12,762 2014 12,334 0 0 0 12,334 20 0 12,314 2015 11,902 0 0 0 11,902 19 0 11,883 SUB-TOT 231,827 0 0 0 231,827 371 0 231,456 REMAIN 110,961 0 0 0 110,961 177 0 110,784 TOTAL 342,788 0 0 0 342,788 548 0 342,240
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 7,715 0 0 0 7,715 11,854 11,854 11,288 2002 7,714 0 0 0 7,714 11,168 23,022 9,627 2003 7,715 0 0 0 7,715 10,508 33,530 8,200 2004 7,714 0 0 0 7,714 9,871 43,401 6,973 2005 7,715 0 0 0 7,715 9,254 52,655 5,917 2006 7,714 0 0 0 7,714 8,662 61,317 5,014 2007 7,715 0 0 0 7,715 8,087 69,404 4,237 2008 7,714 0 0 0 7,714 7,535 76,939 3,574 2009 7,715 0 0 0 7,715 7,000 83,939 3,006 2010 7,714 0 0 0 7,714 6,486 90,425 2,521 2011 7,715 0 0 0 7,715 5,989 96,414 2,107 2012 7,714 0 0 0 7,714 5,509 101,923 1,754 2013 7,715 0 0 0 7,715 5,047 106,970 1,456 2014 7,714 0 0 0 7,714 4,600 111,570 1,200 2015 7,715 0 0 0 7,715 4,168 115,738 985 SUBTOT 115,718 0 0 0 115,718 115,738 67,859 REMAIN 89,359 0 0 0 89,359 21,425 137,163 3,430 TOTAL 205,077 0 0 0 205,077 137,163 71,289 LIFE OF EVALUATION IS 26.58 YEARS. FINAL PRODUCTION RATE: 32 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 156 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
STOCKTON FIELD, ROOKS COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 26-T7S-R17W PROVED WATTS PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 0.925000 0.809380 26.46 5.00% - 79,832 FINAL - 0.925000 0.809380 26.46 10.00% - 58,691 REMARKS - 15.00% - 45,851 20.00% - 37,434 25.00% - 31,565
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 781 0 0 632 0 0.000 26.46 0.00 2002 1 757 0 0 613 0 0.000 26.46 0.00 2003 1 736 0 0 596 0 0.000 26.46 0.00 2004 1 715 0 0 578 0 0.000 26.46 0.00 2005 1 694 0 0 562 0 0.000 26.46 0.00 2006 1 673 0 0 545 0 0.000 26.46 0.00 2007 1 655 0 0 530 0 0.000 26.46 0.00 2008 1 635 0 0 514 0 0.000 26.46 0.00 2009 1 617 0 0 499 0 0.000 26.46 0.00 2010 1 599 0 0 485 0 0.000 26.46 0.00 2011 1 581 0 0 470 0 0.000 26.46 0.00 2012 1 565 0 0 457 0 0.000 26.46 0.00 2013 1 548 0 0 444 0 0.000 26.46 0.00 2014 1 533 0 0 431 0 0.000 26.46 0.00 2015 1 517 0 0 419 0 0.000 26.46 0.00 SUB-TOTAL 9,606 0 0 7,775 0 0.000 26.46 0.00 REMAINDER 5,675 0 0 4,593 0 0.000 26.46 0.00 TOTAL 15,281 0 0 12,368 0 0.000 26.46 0.00 CUMULATIVE 41,160 0 0 ULTIMATE 56,441 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 16,716 0 0 0 16,716 27 0 16,689 2002 16,231 0 0 0 16,231 26 0 16,205 2003 15,761 0 0 0 15,761 25 0 15,736 2004 15,303 0 0 0 15,303 24 0 15,279 2005 14,860 0 0 0 14,860 24 0 14,836 2006 14,429 0 0 0 14,429 23 0 14,406 2007 14,010 0 0 0 14,010 23 0 13,987 2008 13,604 0 0 0 13,604 21 0 13,583 2009 13,209 0 0 0 13,209 22 0 13,187 2010 12,827 0 0 0 12,827 20 0 12,807 2011 12,454 0 0 0 12,454 20 0 12,434 2012 12,094 0 0 0 12,094 19 0 12,075 2013 11,742 0 0 0 11,742 19 0 11,723 2014 11,402 0 0 0 11,402 18 0 11,384 2015 11,072 0 0 0 11,072 18 0 11,054 SUB-TOT 205,714 0 0 0 205,714 329 0 205,385 REMAIN 121,537 0 0 0 121,537 195 0 121,342 TOTAL 327,251 0 0 0 327,251 524 0 326,727
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 7,326 0 0 0 7,326 9,363 9,363 8,916 2002 7,326 0 0 0 7,326 8,879 18,242 7,653 2003 7,326 0 0 0 7,326 8,410 26,652 6,562 2004 7,326 0 0 0 7,326 7,953 34,605 5,618 2005 7,326 0 0 0 7,326 7,510 42,115 4,802 2006 7,326 0 0 0 7,326 7,080 49,195 4,097 2007 7,326 0 0 0 7,326 6,661 55,856 3,490 2008 7,326 0 0 0 7,326 6,257 62,113 2,968 2009 7,326 0 0 0 7,326 5,861 67,974 2,516 2010 7,326 0 0 0 7,326 5,481 73,455 2,130 2011 7,326 0 0 0 7,326 5,108 78,563 1,797 2012 7,326 0 0 0 7,326 4,749 83,312 1,513 2013 7,326 0 0 0 7,326 4,397 87,709 1,267 2014 7,326 0 0 0 7,326 4,058 91,767 1,059 2015 7,326 0 0 0 7,326 3,728 95,495 881 SUBTOT 109,890 0 0 0 109,890 95,495 55,269 REMAIN 98,901 0 0 0 98,901 22,441 117,936 3,422 TOTAL 208,791 0 0 0 208,791 117,936 58,691 LIFE OF EVALUATION IS 28.50 YEARS. FINAL PRODUCTION RATE: 29 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 157 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
STREMEL FIELD, RUSH COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 30-T16S-R16W PROVED OCHS #1 & 3 (MISSISSIPPIAN) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 0.875000 26.46 5.30 5.00% - 33,247 FINAL - 1.000000 0.875000 0.875000 26.46 5.30 10.00% - 27,891 REMARKS - 15.00% - 23,839 20.00% - 20,710 25.00% - 18,248
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF (A) $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 391 0 1 342 0 0.712 26.46 5.30 2002 1 375 0 1 328 0 0.655 26.46 5.30 2003 1 359 0 1 314 0 0.603 26.46 5.30 2004 1 343 0 1 301 0 0.554 26.46 5.30 2005 1 330 0 1 288 0 0.510 26.46 5.30 2006 1 315 0 0 276 0 0.469 26.46 5.30 2007 1 302 0 1 265 0 0.432 26.46 5.30 2008 1 290 0 1 253 0 0.397 26.46 5.30 2009 1 277 0 0 243 0 0.365 26.46 5.30 2010 1 266 0 1 232 0 0.336 26.46 5.30 2011 1 255 0 0 223 0 0.309 26.46 5.30 2012 1 204 0 1 178 0 0.239 26.46 5.30 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 3,707 0 9 3,243 0 5.581 26.46 5.30 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 3,707 0 9 3,243 0 5.581 26.46 5.30 CUMULATIVE 23,694 0 179 (A) NET GAS VOLUMES ACCOUNT FOR SURFACE LOSSES, ULTIMATE 27,401 0 188 SHRINKAGE FACTOR = 25.60 %
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 9,053 0 3,773 0 12,826 14 12 12,800 2002 8,673 0 3,471 0 12,144 14 10 12,120 2003 8,309 0 3,193 0 11,502 14 10 11,478 2004 7,960 0 2,938 0 10,898 12 9 10,877 2005 7,626 0 2,702 0 10,328 13 9 10,306 2006 7,305 0 2,487 0 9,792 11 8 9,773 2007 6,998 0 2,288 0 9,286 11 7 9,268 2008 6,705 0 2,104 0 8,809 11 6 8,792 2009 6,423 0 1,936 0 8,359 10 6 8,343 2010 6,153 0 1,782 0 7,935 10 6 7,919 2011 5,895 0 1,639 0 7,534 10 5 7,519 2012 4,722 0 1,265 0 5,987 7 4 5,976 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 85,822 0 29,578 0 115,400 137 92 115,171 REMAIN 0 0 0 0 0 0 0 0 TOTAL 85,822 0 29,578 0 115,400 137 92 115,171
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 6,312 0 0 0 6,312 6,488 6,488 6,181 2002 6,312 0 0 0 6,312 5,808 12,296 5,009 2003 6,312 0 0 0 6,312 5,166 17,462 4,033 2004 6,312 0 0 0 6,312 4,565 22,027 3,226 2005 6,312 0 0 0 6,312 3,994 26,021 2,555 2006 6,312 0 0 0 6,312 3,461 29,482 2,005 2007 6,312 0 0 0 6,312 2,956 32,438 1,550 2008 6,312 0 0 0 6,312 2,480 34,918 1,178 2009 6,312 0 0 0 6,312 2,031 36,949 873 2010 6,312 0 0 0 6,312 1,607 38,556 625 2011 6,312 0 0 0 6,312 1,207 39,763 426 2012 5,260 0 0 0 5,260 716 40,479 230 2013 0 0 0 0 0 0 40,479 0 2014 0 0 0 0 0 0 40,479 0 2015 0 0 0 0 0 0 40,479 0 SUBTOT 74,692 0 0 0 74,692 40,479 27,891 REMAIN 0 0 0 0 0 0 40,479 0 TOTAL 74,692 0 0 0 74,692 40,479 27,891 LIFE OF EVALUATION IS 11.83 YEARS. FINAL PRODUCTION RATE: 20 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 158 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
STREMEL FIELD, RUSH COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 30-T16S-R16W PROVED URBAN -D- #2 (KSSC-LNSG) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 26.46 5.00% - 138,752 FINAL - 1.000000 0.875000 26.46 10.00% - 105,407 REMARKS - 15.00% - 84,104 20.00% - 69,632 25.00% - 59,286
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 2 1,201 0 0 1,050 0 0.000 26.46 0.00 2002 2 1,148 0 0 1,006 0 0.000 26.46 0.00 2003 2 1,100 0 0 962 0 0.000 26.46 0.00 2004 2 1,052 0 0 921 0 0.000 26.46 0.00 2005 2 1,007 0 0 881 0 0.000 26.46 0.00 2006 2 964 0 0 843 0 0.000 26.46 0.00 2007 2 922 0 0 807 0 0.000 26.46 0.00 2008 2 883 0 0 772 0 0.000 26.46 0.00 2009 2 844 0 0 739 0 0.000 26.46 0.00 2010 2 809 0 0 708 0 0.000 26.46 0.00 2011 2 773 0 0 676 0 0.000 26.46 0.00 2012 2 741 0 0 648 0 0.000 26.46 0.00 2013 2 708 0 0 620 0 0.000 26.46 0.00 2014 2 678 0 0 593 0 0.000 26.46 0.00 2015 2 649 0 0 568 0 0.000 26.46 0.00 SUB-TOTAL 13,479 0 0 11,794 0 0.000 26.46 0.00 REMAINDER 5,170 0 0 4,524 0 0.000 26.46 0.00 TOTAL 18,649 0 0 16,318 0 0.000 26.46 0.00 CUMULATIVE 56,903 0 0 ULTIMATE 75,552 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 27,796 0 0 0 27,796 44 0 27,752 2002 26,600 0 0 0 26,600 43 0 26,557 2003 25,457 0 0 0 25,457 41 0 25,416 2004 24,361 0 0 0 24,361 39 0 24,322 2005 23,315 0 0 0 23,315 37 0 23,278 2006 22,312 0 0 0 22,312 36 0 22,276 2007 21,352 0 0 0 21,352 34 0 21,318 2008 20,434 0 0 0 20,434 33 0 20,401 2009 19,556 0 0 0 19,556 31 0 19,525 2010 18,715 0 0 0 18,715 30 0 18,685 2011 17,910 0 0 0 17,910 28 0 17,882 2012 17,140 0 0 0 17,140 28 0 17,112 2013 16,402 0 0 0 16,402 26 0 16,376 2014 15,698 0 0 0 15,698 25 0 15,673 2015 15,022 0 0 0 15,022 24 0 14,998 SUB-TOT 312,070 0 0 0 312,070 499 0 311,571 REMAIN 119,697 0 0 0 119,697 192 0 119,505 TOTAL 431,767 0 0 0 431,767 691 0 431,076
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 9,420 0 0 0 9,420 18,332 18,332 17,458 2002 9,420 0 0 0 9,420 17,137 35,469 14,774 2003 9,420 0 0 0 9,420 15,996 51,465 12,483 2004 9,420 0 0 0 9,420 14,902 66,367 10,527 2005 9,420 0 0 0 9,420 13,858 80,225 8,861 2006 9,420 0 0 0 9,420 12,856 93,081 7,442 2007 9,420 0 0 0 9,420 11,898 104,979 6,235 2008 9,420 0 0 0 9,420 10,981 115,960 5,209 2009 9,420 0 0 0 9,420 10,105 126,065 4,339 2010 9,420 0 0 0 9,420 9,265 135,330 3,601 2011 9,420 0 0 0 9,420 8,462 143,792 2,978 2012 9,420 0 0 0 9,420 7,692 151,484 2,450 2013 9,420 0 0 0 9,420 6,956 158,440 2,006 2014 9,420 0 0 0 9,420 6,253 164,693 1,632 2015 9,420 0 0 0 9,420 5,578 170,271 1,318 SUBTOT 141,300 0 0 0 141,300 170,271 101,313 REMAIN 94,985 0 0 0 94,985 24,520 194,791 4,094 TOTAL 236,285 0 0 0 236,285 194,791 105,407 LIFE OF EVALUATION IS 25.08 YEARS. FINAL PRODUCTION RATE: 34 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 159 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
THACKER FIELD, RUSSELL COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 29-T13S-R13W PROVED THACKER #2 (KC-LANSING) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.847656 26.46 5.00% - 217,616 FINAL - 1.000000 0.847656 26.46 10.00% - 162,931 REMARKS - 15.00% - 127,729 20.00% - 103,989 25.00% - 87,267
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 1,176 0 0 997 0 0.000 26.46 0.00 2002 1 1,129 0 0 957 0 0.000 26.46 0.00 2003 1 1,083 0 0 918 0 0.000 26.46 0.00 2004 1 1,041 0 0 882 0 0.000 26.46 0.00 2005 1 998 0 0 846 0 0.000 26.46 0.00 2006 1 959 0 0 813 0 0.000 26.46 0.00 2007 1 920 0 0 780 0 0.000 26.46 0.00 2008 1 884 0 0 749 0 0.000 26.46 0.00 2009 1 848 0 0 719 0 0.000 26.46 0.00 2010 1 815 0 0 691 0 0.000 26.46 0.00 2011 1 781 0 0 662 0 0.000 26.46 0.00 2012 1 751 0 0 636 0 0.000 26.46 0.00 2013 1 720 0 0 611 0 0.000 26.46 0.00 2014 1 692 0 0 586 0 0.000 26.46 0.00 2015 1 664 0 0 563 0 0.000 26.46 0.00 SUB-TOTAL 13,461 0 0 11,410 0 0.000 26.46 0.00 REMAINDER 1,237 0 0 1,049 0 0.000 26.46 0.00 TOTAL 14,698 0 0 12,459 0 0.000 26.46 0.00 CUMULATIVE 20,915 0 0 ULTIMATE 35,613 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 26,373 0 0 0 26,373 42 0 26,331 2002 25,318 0 0 0 25,318 41 0 25,277 2003 24,305 0 0 0 24,305 39 0 24,266 2004 23,333 0 0 0 23,333 37 0 23,296 2005 22,400 0 0 0 22,400 36 0 22,364 2006 21,503 0 0 0 21,503 34 0 21,469 2007 20,644 0 0 0 20,644 33 0 20,611 2008 19,818 0 0 0 19,818 32 0 19,786 2009 19,025 0 0 0 19,025 30 0 18,995 2010 18,264 0 0 0 18,264 30 0 18,234 2011 17,533 0 0 0 17,533 28 0 17,505 2012 16,832 0 0 0 16,832 27 0 16,805 2013 16,159 0 0 0 16,159 25 0 16,134 2014 15,513 0 0 0 15,513 25 0 15,488 2015 14,892 0 0 0 14,892 24 0 14,868 SUB-TOT 301,912 0 0 0 301,912 483 0 301,429 REMAIN 27,748 0 0 0 27,748 44 0 27,704 TOTAL 329,660 0 0 0 329,660 527 0 329,133
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 1,320 0 0 0 1,320 25,011 25,011 23,814 2002 1,320 0 0 0 1,320 23,957 48,968 20,649 2003 1,320 0 0 0 1,320 22,946 71,914 17,903 2004 1,320 0 0 0 1,320 21,976 93,890 15,520 2005 1,320 0 0 0 1,320 21,044 114,934 13,454 2006 1,320 0 0 0 1,320 20,149 135,083 11,660 2007 1,320 0 0 0 1,320 19,291 154,374 10,106 2008 1,320 0 0 0 1,320 18,466 172,840 8,756 2009 1,320 0 0 0 1,320 17,675 190,515 7,588 2010 1,320 0 0 0 1,320 16,914 207,429 6,572 2011 1,320 0 0 0 1,320 16,185 223,614 5,693 2012 1,320 0 0 0 1,320 15,485 239,099 4,930 2013 1,320 0 0 0 1,320 14,814 253,913 4,270 2014 1,320 0 0 0 1,320 14,168 268,081 3,696 2015 1,320 0 0 0 1,320 13,548 281,629 3,200 SUBTOT 19,800 0 0 0 19,800 281,629 157,811 REMAIN 2,613 0 0 0 2,613 25,091 306,720 5,120 TOTAL 22,413 0 0 0 22,413 306,720 162,931 LIFE OF EVALUATION IS 16.98 YEARS. FINAL PRODUCTION RATE: 50 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 160 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
TRAPP FIELD, BARTON COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 16-T16S-R13W PROVED DEUTSCH (ARBUCKLE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 5.00% - 0 FINAL - 1.000000 10.00% - 0 REMARKS - 15.00% - 0 20.00% - 0 25.00% - 0
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 0 0 0 0.000 0.00 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 0 0 0 0.000 0.00 0.00 CUMULATIVE 16,371 0 0 ULTIMATE 16,371 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 0
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUBTOT 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 LIFE OF EVALUATION IS 0.00 YEARS. FINAL PRODUCTION RATE: 0 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 161 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
TRAPP FIELD, BARTON COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 8-T16S-R13W PROVED HOWLIER #1 (ARBUCKLE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 0.937000 0.768633 26.46 5.00% - 90,457 FINAL - 0.937000 0.768633 26.46 10.00% - 81,205 REMARKS - 15.00% - 73,579 20.00% - 67,214 25.00% - 61,839
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 1,807 0 0 1,389 0 0.000 26.46 0.00 2002 1 1,320 0 0 1,015 0 0.000 26.46 0.00 2003 1 1,008 0 0 774 0 0.000 26.46 0.00 2004 1 794 0 0 611 0 0.000 26.46 0.00 2005 1 643 0 0 494 0 0.000 26.46 0.00 2006 1 530 0 0 407 0 0.000 26.46 0.00 2007 1 445 0 0 342 0 0.000 26.46 0.00 2008 1 379 0 0 292 0 0.000 26.46 0.00 2009 1 327 0 0 251 0 0.000 26.46 0.00 2010 1 284 0 0 218 0 0.000 26.46 0.00 2011 1 108 0 0 83 0 0.000 26.46 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 7,645 0 0 5,876 0 0.000 26.46 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 7,645 0 0 5,876 0 0.000 26.46 0.00 CUMULATIVE 16,411 0 0 ULTIMATE 24,056 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 36,744 0 0 0 36,744 59 0 36,685 2002 26,859 0 0 0 26,859 43 0 26,816 2003 20,495 0 0 0 20,495 33 0 20,462 2004 16,155 0 0 0 16,155 25 0 16,130 2005 13,064 0 0 0 13,064 21 0 13,043 2006 10,784 0 0 0 10,784 18 0 10,766 2007 9,053 0 0 0 9,053 14 0 9,039 2008 7,709 0 0 0 7,709 12 0 7,697 2009 6,645 0 0 0 6,645 11 0 6,634 2010 5,786 0 0 0 5,786 9 0 5,777 2011 2,196 0 0 0 2,196 4 0 2,192 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 155,490 0 0 0 155,490 249 0 155,241 REMAIN 0 0 0 0 0 0 0 0 TOTAL 155,490 0 0 0 155,490 249 0 155,241
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 5,127 0 0 0 5,127 31,558 31,558 30,135 2002 5,128 0 0 0 5,128 21,688 53,246 18,741 2003 5,127 0 0 0 5,127 15,335 68,581 11,993 2004 5,127 0 0 0 5,127 11,003 79,584 7,789 2005 5,127 0 0 0 5,127 7,916 87,500 5,073 2006 5,128 0 0 0 5,128 5,638 93,138 3,271 2007 5,127 0 0 0 5,127 3,912 97,050 2,055 2008 5,127 0 0 0 5,127 2,570 99,620 1,223 2009 5,127 0 0 0 5,127 1,507 101,127 650 2010 5,128 0 0 0 5,128 649 101,776 255 2011 2,136 0 0 0 2,136 56 101,832 20 2012 0 0 0 0 0 0 101,832 0 2013 0 0 0 0 0 0 101,832 0 2014 0 0 0 0 0 0 101,832 0 2015 0 0 0 0 0 0 101,832 0 SUBTOT 53,409 0 0 0 53,409 101,832 81,205 REMAIN 0 0 0 0 0 0 101,832 0 TOTAL 53,409 0 0 0 53,409 101,832 81,205 LIFE OF EVALUATION IS 10.42 YEARS. FINAL PRODUCTION RATE: 21 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 162 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
WEBSTER FIELD, ROOKS COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 33-T8S-R19W PROVED CERROW-CERROW -A- (ARBUCKLE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 26.46 5.00% - 174,963 FINAL - 1.000000 0.875000 26.46 10.00% - 128,115 REMARKS - 15.00% - 99,955 20.00% - 81,592 25.00% - 68,819
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 1,350 0 0 1,181 0 0.000 26.46 0.00 2002 1 1,302 0 0 1,139 0 0.000 26.46 0.00 2003 1 1,255 0 0 1,099 0 0.000 26.46 0.00 2004 1 1,212 0 0 1,060 0 0.000 26.46 0.00 2005 1 1,168 0 0 1,022 0 0.000 26.46 0.00 2006 1 1,126 0 0 986 0 0.000 26.46 0.00 2007 1 1,087 0 0 950 0 0.000 26.46 0.00 2008 1 1,048 0 0 917 0 0.000 26.46 0.00 2009 1 1,011 0 0 885 0 0.000 26.46 0.00 2010 1 975 0 0 853 0 0.000 26.46 0.00 2011 1 940 0 0 823 0 0.000 26.46 0.00 2012 1 907 0 0 794 0 0.000 26.46 0.00 2013 1 875 0 0 765 0 0.000 26.46 0.00 2014 1 844 0 0 738 0 0.000 26.46 0.00 2015 1 813 0 0 712 0 0.000 26.46 0.00 SUB-TOTAL 15,913 0 0 13,924 0 0.000 26.46 0.00 REMAINDER 9,331 0 0 8,165 0 0.000 26.46 0.00 TOTAL 25,244 0 0 22,089 0 0.000 26.46 0.00 CUMULATIVE 71,230 0 0 ULTIMATE 96,474 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 31,252 0 0 0 31,252 50 0 31,202 2002 30,142 0 0 0 30,142 48 0 30,094 2003 29,072 0 0 0 29,072 47 0 29,025 2004 28,040 0 0 0 28,040 45 0 27,995 2005 27,045 0 0 0 27,045 43 0 27,002 2006 26,084 0 0 0 26,084 42 0 26,042 2007 25,159 0 0 0 25,159 40 0 25,119 2008 24,266 0 0 0 24,266 39 0 24,227 2009 23,404 0 0 0 23,404 37 0 23,367 2010 22,573 0 0 0 22,573 36 0 22,537 2011 21,772 0 0 0 21,772 35 0 21,737 2012 20,999 0 0 0 20,999 34 0 20,965 2013 20,253 0 0 0 20,253 32 0 20,221 2014 19,535 0 0 0 19,535 31 0 19,504 2015 18,841 0 0 0 18,841 30 0 18,811 SUB-TOT 368,437 0 0 0 368,437 589 0 367,848 REMAIN 216,025 0 0 0 216,025 346 0 215,679 TOTAL 584,462 0 0 0 584,462 935 0 583,527
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 10,692 0 0 0 10,692 20,510 20,510 19,531 2002 10,692 0 0 0 10,692 19,402 39,912 16,724 2003 10,692 0 0 0 10,692 18,333 58,245 14,305 2004 10,692 0 0 0 10,692 17,303 75,548 12,222 2005 10,692 0 0 0 10,692 16,310 91,858 10,429 2006 10,692 0 0 0 10,692 15,350 107,208 8,884 2007 10,692 0 0 0 10,692 14,427 121,635 7,559 2008 10,692 0 0 0 10,692 13,535 135,170 6,419 2009 10,692 0 0 0 10,692 12,675 147,845 5,442 2010 10,692 0 0 0 10,692 11,845 159,690 4,604 2011 10,692 0 0 0 10,692 11,045 170,735 3,886 2012 10,692 0 0 0 10,692 10,273 181,008 3,271 2013 10,692 0 0 0 10,692 9,529 190,537 2,747 2014 10,692 0 0 0 10,692 8,812 199,349 2,300 2015 10,692 0 0 0 10,692 8,119 207,468 1,918 SUBTOT 160,380 0 0 0 160,380 207,468 120,241 REMAIN 162,162 0 0 0 162,162 53,517 260,985 7,874 TOTAL 322,542 0 0 0 322,542 260,985 128,115 LIFE OF EVALUATION IS 30.17 YEARS. FINAL PRODUCTION RATE: 39 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 163 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
WEBSTER FIELD, ROOKS COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 33-T8S-R19W PROVED LOWRY #1 (ARBUCKLE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.847656 26.46 5.00% - 16,965 FINAL - 1.000000 0.847656 26.46 10.00% - 15,493 REMARKS - 15.00% - 14,219 20.00% - 13,110 25.00% - 12,140
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 699 0 0 593 0 0.000 26.46 0.00 2002 1 644 0 0 545 0 0.000 26.46 0.00 2003 1 591 0 0 502 0 0.000 26.46 0.00 2004 1 545 0 0 461 0 0.000 26.46 0.00 2005 1 501 0 0 425 0 0.000 26.46 0.00 2006 1 461 0 0 391 0 0.000 26.46 0.00 2007 1 73 0 0 62 0 0.000 26.46 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 3,514 0 0 2,979 0 0.000 26.46 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 3,514 0 0 2,979 0 0.000 26.46 0.00 CUMULATIVE 18,787 0 0 ULTIMATE 22,301 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 15,684 0 0 0 15,684 25 0 15,659 2002 14,429 0 0 0 14,429 23 0 14,406 2003 13,275 0 0 0 13,275 21 0 13,254 2004 12,213 0 0 0 12,213 20 0 12,193 2005 11,236 0 0 0 11,236 18 0 11,218 2006 10,337 0 0 0 10,337 16 0 10,321 2007 1,641 0 0 0 1,641 3 0 1,638 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 78,815 0 0 0 78,815 126 0 78,689 REMAIN 0 0 0 0 0 0 0 0 TOTAL 78,815 0 0 0 78,815 126 0 78,689
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 9,732 0 0 0 9,732 5,927 5,927 5,652 2002 9,732 0 0 0 9,732 4,674 10,601 4,035 2003 9,732 0 0 0 9,732 3,522 14,123 2,754 2004 9,732 0 0 0 9,732 2,461 16,584 1,744 2005 9,732 0 0 0 9,732 1,486 18,070 954 2006 9,732 0 0 0 9,732 589 18,659 345 2007 1,622 0 0 0 1,622 16 18,675 9 2008 0 0 0 0 0 0 18,675 0 2009 0 0 0 0 0 0 18,675 0 2010 0 0 0 0 0 0 18,675 0 2011 0 0 0 0 0 0 18,675 0 2012 0 0 0 0 0 0 18,675 0 2013 0 0 0 0 0 0 18,675 0 2014 0 0 0 0 0 0 18,675 0 2015 0 0 0 0 0 0 18,675 0 SUBTOT 60,014 0 0 0 60,014 18,675 15,493 REMAIN 0 0 0 0 0 0 18,675 0 TOTAL 60,014 0 0 0 60,014 18,675 15,493 LIFE OF EVALUATION IS 6.17 YEARS. FINAL PRODUCTION RATE: 36 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 164 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
WERTH NORTH FIELD, ELLIS COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 34-T12S-R20W PROVED SCHNELLER (ABCK-LNSG) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.820313 26.46 5.00% - 162,889 FINAL - 1.000000 0.820313 26.46 10.00% - 130,735 REMARKS - 15.00% - 108,192 20.00% - 91,804 25.00% - 79,501
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 3 2,035 0 0 1,670 0 0.000 26.46 0.00 2002 3 1,934 0 0 1,586 0 0.000 26.46 0.00 2003 3 1,837 0 0 1,507 0 0.000 26.46 0.00 2004 3 1,745 0 0 1,431 0 0.000 26.46 0.00 2005 3 1,658 0 0 1,360 0 0.000 26.46 0.00 2006 3 1,575 0 0 1,292 0 0.000 26.46 0.00 2007 3 1,497 0 0 1,228 0 0.000 26.46 0.00 2008 3 1,421 0 0 1,166 0 0.000 26.46 0.00 2009 3 1,350 0 0 1,108 0 0.000 26.46 0.00 2010 3 1,283 0 0 1,052 0 0.000 26.46 0.00 2011 3 1,219 0 0 1,000 0 0.000 26.46 0.00 2012 3 1,158 0 0 949 0 0.000 26.46 0.00 2013 3 1,100 0 0 903 0 0.000 26.46 0.00 2014 3 1,044 0 0 857 0 0.000 26.46 0.00 2015 3 993 0 0 814 0 0.000 26.46 0.00 SUB-TOTAL 21,849 0 0 17,923 0 0.000 26.46 0.00 REMAINDER 2,828 0 0 2,320 0 0.000 26.46 0.00 TOTAL 24,677 0 0 20,243 0 0.000 26.46 0.00 CUMULATIVE 168,213 0 0 ULTIMATE 192,890 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 44,181 0 0 0 44,181 71 0 44,110 2002 41,972 0 0 0 41,972 67 0 41,905 2003 39,873 0 0 0 39,873 64 0 39,809 2004 37,880 0 0 0 37,880 60 0 37,820 2005 35,985 0 0 0 35,985 58 0 35,927 2006 34,186 0 0 0 34,186 55 0 34,131 2007 32,477 0 0 0 32,477 51 0 32,426 2008 30,854 0 0 0 30,854 50 0 30,804 2009 29,310 0 0 0 29,310 47 0 29,263 2010 27,845 0 0 0 27,845 44 0 27,801 2011 26,453 0 0 0 26,453 43 0 26,410 2012 25,130 0 0 0 25,130 40 0 25,090 2013 23,873 0 0 0 23,873 38 0 23,835 2014 22,680 0 0 0 22,680 36 0 22,644 2015 21,546 0 0 0 21,546 35 0 21,511 SUB-TOT 474,245 0 0 0 474,245 759 0 473,486 REMAIN 61,375 0 0 0 61,375 98 0 61,277 TOTAL 535,620 0 0 0 535,620 857 0 534,763
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 17,844 0 0 0 17,844 26,266 26,266 25,018 2002 17,844 0 0 0 17,844 24,061 50,327 20,746 2003 17,844 0 0 0 17,844 21,965 72,292 17,145 2004 17,844 0 0 0 17,844 19,976 92,268 14,114 2005 17,844 0 0 0 17,844 18,083 110,351 11,566 2006 17,844 0 0 0 17,844 16,287 126,638 9,431 2007 17,844 0 0 0 17,844 14,582 141,220 7,643 2008 17,844 0 0 0 17,844 12,960 154,180 6,150 2009 17,844 0 0 0 17,844 11,419 165,599 4,905 2010 17,844 0 0 0 17,844 9,957 175,556 3,872 2011 17,844 0 0 0 17,844 8,566 184,122 3,016 2012 17,844 0 0 0 17,844 7,246 191,368 2,309 2013 17,844 0 0 0 17,844 5,991 197,359 1,729 2014 17,844 0 0 0 17,844 4,800 202,159 1,255 2015 17,844 0 0 0 17,844 3,667 205,826 867 SUBTOT 267,660 0 0 0 267,660 205,826 129,766 REMAIN 56,506 0 0 0 56,506 4,771 210,597 969 TOTAL 324,166 0 0 0 324,166 210,597 130,735 LIFE OF EVALUATION IS 18.17 YEARS. FINAL PRODUCTION RATE: 69 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 165 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
WESTHUSIN FIELD, ROOKS COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 18-T9S-R16W PROVED DOUGHERTY EAST #1 (LANSING) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 0.934400 0.766500 26.46 5.00% - 70,235 FINAL - 0.934400 0.766500 26.46 10.00% - 54,832 REMARKS - 15.00% - 44,230 20.00% - 36,698 25.00% - 31,181
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 723 0 0 554 0 0.000 26.46 0.00 2002 1 701 0 0 538 0 0.000 26.46 0.00 2003 1 680 0 0 521 0 0.000 26.46 0.00 2004 1 660 0 0 506 0 0.000 26.46 0.00 2005 1 640 0 0 490 0 0.000 26.46 0.00 2006 1 621 0 0 476 0 0.000 26.46 0.00 2007 1 602 0 0 462 0 0.000 26.46 0.00 2008 1 584 0 0 447 0 0.000 26.46 0.00 2009 1 567 0 0 435 0 0.000 26.46 0.00 2010 1 550 0 0 421 0 0.000 26.46 0.00 2011 1 533 0 0 409 0 0.000 26.46 0.00 2012 1 517 0 0 396 0 0.000 26.46 0.00 2013 1 501 0 0 385 0 0.000 26.46 0.00 2014 1 461 0 0 353 0 0.000 26.46 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 8,340 0 0 6,393 0 0.000 26.46 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 8,340 0 0 6,393 0 0.000 26.46 0.00 CUMULATIVE 42,601 0 0 ULTIMATE 50,941 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 14,662 0 0 0 14,662 23 0 14,639 2002 14,223 0 0 0 14,223 23 0 14,200 2003 13,796 0 0 0 13,796 22 0 13,774 2004 13,382 0 0 0 13,382 22 0 13,360 2005 12,980 0 0 0 12,980 20 0 12,960 2006 12,591 0 0 0 12,591 21 0 12,570 2007 12,213 0 0 0 12,213 19 0 12,194 2008 11,847 0 0 0 11,847 19 0 11,828 2009 11,492 0 0 0 11,492 18 0 11,474 2010 11,146 0 0 0 11,146 18 0 11,128 2011 10,813 0 0 0 10,813 18 0 10,795 2012 10,488 0 0 0 10,488 16 0 10,472 2013 10,173 0 0 0 10,173 17 0 10,156 2014 9,342 0 0 0 9,342 15 0 9,327 2015 0 0 0 0 0 0 0 0 SUB-TOT 169,148 0 0 0 169,148 271 0 168,877 REMAIN 0 0 0 0 0 0 0 0 TOTAL 169,148 0 0 0 169,148 271 0 168,877
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 5,416 0 0 0 5,416 9,223 9,223 8,782 2002 5,416 0 0 0 5,416 8,784 18,007 7,571 2003 5,415 0 0 0 5,415 8,359 26,366 6,523 2004 5,416 0 0 0 5,416 7,944 34,310 5,610 2005 5,416 0 0 0 5,416 7,544 41,854 4,824 2006 5,416 0 0 0 5,416 7,154 49,008 4,140 2007 5,415 0 0 0 5,415 6,779 55,787 3,552 2008 5,416 0 0 0 5,416 6,412 62,199 3,040 2009 5,416 0 0 0 5,416 6,058 68,257 2,601 2010 5,416 0 0 0 5,416 5,712 73,969 2,220 2011 5,416 0 0 0 5,416 5,379 79,348 1,892 2012 5,415 0 0 0 5,415 5,057 84,405 1,611 2013 5,416 0 0 0 5,416 4,740 89,145 1,366 2014 5,123 0 0 0 5,123 4,204 93,349 1,100 2015 0 0 0 0 0 0 93,349 0 SUBTOT 75,528 0 0 0 75,528 93,349 54,832 REMAIN 0 0 0 0 0 0 93,349 0 TOTAL 75,528 0 0 0 75,528 93,349 54,832 LIFE OF EVALUATION IS 13.95 YEARS. FINAL PRODUCTION RATE: 40 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 166 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
WESTHUSIN FIELD, ROOKS COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 18-T9S-R16W PROVED DOUGHERTY EAST #1 BP (ARBUCKLE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 0.934400 0.766500 26.46 5.00% - 20,007 FINAL - 0.934400 0.766500 26.46 10.00% - 11,294 REMARKS - 15.00% - 6,391 20.00% - 3,624 25.00% - 2,059
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 1 640 0 0 491 0 0.000 26.46 0.00 2011 1 960 0 0 735 0 0.000 26.46 0.00 2012 1 960 0 0 736 0 0.000 26.46 0.00 2013 1 640 0 0 491 0 0.000 26.46 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 3,200 0 0 2,453 0 0.000 26.46 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 3,200 0 0 2,453 0 0.000 26.46 0.00 CUMULATIVE 0 0 0 ULTIMATE 3,200 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 12,980 0 0 0 12,980 21 0 12,959 2011 19,471 0 0 0 19,471 31 0 19,440 2012 19,470 0 0 0 19,470 31 0 19,439 2013 12,980 0 0 0 12,980 21 0 12,959 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 64,901 0 0 0 64,901 104 0 64,797 REMAIN 0 0 0 0 0 0 0 0 TOTAL 64,901 0 0 0 64,901 104 0 64,797
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 3,611 0 11,213 0 14,824 -1,865 -1,865 -838 2011 5,415 0 0 0 5,415 14,025 12,160 4,932 2012 5,416 0 0 0 5,416 14,023 26,183 4,463 2013 3,611 0 0 0 3,611 9,348 35,531 2,737 2014 0 0 0 0 0 0 35,531 0 2015 0 0 0 0 0 0 35,531 0 SUBTOT 18,053 0 11,213 0 29,266 35,531 11,294 REMAIN 0 0 0 0 0 0 35,531 0 TOTAL 18,053 0 11,213 0 29,266 35,531 11,294 LIFE OF EVALUATION IS 12.67 YEARS. FINAL PRODUCTION RATE: 80 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 167 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
WESTHUSIN FIELD, ROOKS COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 18-T9S-R16W PROVED DOUGHERTY EAST #2 PUD (ARBUCKLE) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 0.934400 5.00% - 0 FINAL - 0.934400 10.00% - 0 REMARKS - 15.00% - 0 20.00% - 0 25.00% - 0
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 0 0 0 0.000 0.00 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 0 0 0 0.000 0.00 0.00 CUMULATIVE 0 0 0 ULTIMATE 0 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 0
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUBTOT 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 LIFE OF EVALUATION IS 0.00 YEARS. FINAL PRODUCTION RATE: 0 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 168 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
YOHE FIELD, ROOKS COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 33-T8S-R18W PROVED FINNESY (LANSING) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 26.46 5.00% - 211,530 FINAL - 1.000000 0.875000 26.46 10.00% - 165,716 REMARKS - 15.00% - 134,826 20.00% - 113,034 25.00% - 97,040
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 3 2,318 0 0 2,028 0 0.000 26.46 0.00 2002 3 2,220 0 0 1,943 0 0.000 26.46 0.00 2003 3 2,129 0 0 1,862 0 0.000 26.46 0.00 2004 3 2,039 0 0 1,785 0 0.000 26.46 0.00 2005 3 1,955 0 0 1,710 0 0.000 26.46 0.00 2006 3 1,873 0 0 1,639 0 0.000 26.46 0.00 2007 3 1,795 0 0 1,571 0 0.000 26.46 0.00 2008 3 1,720 0 0 1,505 0 0.000 26.46 0.00 2009 3 1,648 0 0 1,442 0 0.000 26.46 0.00 2010 3 1,579 0 0 1,382 0 0.000 26.46 0.00 2011 3 1,514 0 0 1,324 0 0.000 26.46 0.00 2012 3 1,451 0 0 1,270 0 0.000 26.46 0.00 2013 3 1,390 0 0 1,216 0 0.000 26.46 0.00 2014 3 1,332 0 0 1,166 0 0.000 26.46 0.00 2015 3 1,277 0 0 1,117 0 0.000 26.46 0.00 SUB-TOTAL 26,240 0 0 22,960 0 0.000 26.46 0.00 REMAINDER 6,291 0 0 5,504 0 0.000 26.46 0.00 TOTAL 32,531 0 0 28,464 0 0.000 26.46 0.00 CUMULATIVE 89,831 0 0 ULTIMATE 122,362 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 53,657 0 0 0 53,657 86 0 53,571 2002 51,419 0 0 0 51,419 82 0 51,337 2003 49,275 0 0 0 49,275 79 0 49,196 2004 47,220 0 0 0 47,220 76 0 47,144 2005 45,251 0 0 0 45,251 72 0 45,179 2006 43,364 0 0 0 43,364 69 0 43,295 2007 41,556 0 0 0 41,556 67 0 41,489 2008 39,823 0 0 0 39,823 64 0 39,759 2009 38,163 0 0 0 38,163 61 0 38,102 2010 36,571 0 0 0 36,571 58 0 36,513 2011 35,046 0 0 0 35,046 56 0 34,990 2012 33,584 0 0 0 33,584 54 0 33,530 2013 32,185 0 0 0 32,185 51 0 32,134 2014 30,842 0 0 0 30,842 50 0 30,792 2015 29,556 0 0 0 29,556 47 0 29,509 SUB-TOT 607,512 0 0 0 607,512 972 0 606,540 REMAIN 145,657 0 0 0 145,657 233 0 145,424 TOTAL 753,169 0 0 0 753,169 1,205 0 751,964
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 22,692 0 0 0 22,692 30,879 30,879 29,409 2002 22,692 0 0 0 22,692 28,645 59,524 24,696 2003 22,692 0 0 0 22,692 26,504 86,028 20,685 2004 22,692 0 0 0 22,692 24,452 110,480 17,274 2005 22,692 0 0 0 22,692 22,487 132,967 14,382 2006 22,692 0 0 0 22,692 20,603 153,570 11,927 2007 22,692 0 0 0 22,692 18,797 172,367 9,851 2008 22,692 0 0 0 22,692 17,067 189,434 8,097 2009 22,692 0 0 0 22,692 15,410 204,844 6,618 2010 22,692 0 0 0 22,692 13,821 218,665 5,374 2011 22,692 0 0 0 22,692 12,298 230,963 4,328 2012 22,692 0 0 0 22,692 10,838 241,801 3,454 2013 22,692 0 0 0 22,692 9,442 251,243 2,723 2014 22,692 0 0 0 22,692 8,100 259,343 2,115 2015 22,692 0 0 0 22,692 6,817 266,160 1,612 SUBTOT 340,380 0 0 0 340,380 266,160 162,545 REMAIN 128,588 0 0 0 128,588 16,836 282,996 3,171 TOTAL 468,968 0 0 0 468,968 282,996 165,716 LIFE OF EVALUATION IS 20.67 YEARS. FINAL PRODUCTION RATE: 82 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 169 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
YOHE FIELD, ROOKS COUNTY, KANSAS OIL LEASE TENGASCO, INC. - OPERATOR 33-T8S-R18W PROVED MOSHER (LANSING) PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 26.46 5.00% - 297,780 FINAL - 1.000000 0.875000 26.46 10.00% - 233,392 REMARKS - 15.00% - 190,305 20.00% - 159,998 25.00% - 137,755
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 2 2,520 0 0 2,205 0 0.000 26.46 0.00 2002 2 2,356 0 0 2,061 0 0.000 26.46 0.00 2003 2 2,202 0 0 1,928 0 0.000 26.46 0.00 2004 2 2,060 0 0 1,802 0 0.000 26.46 0.00 2005 2 1,926 0 0 1,685 0 0.000 26.46 0.00 2006 2 1,800 0 0 1,575 0 0.000 26.46 0.00 2007 2 1,684 0 0 1,473 0 0.000 26.46 0.00 2008 2 1,574 0 0 1,378 0 0.000 26.46 0.00 2009 2 1,472 0 0 1,287 0 0.000 26.46 0.00 2010 2 1,376 0 0 1,205 0 0.000 26.46 0.00 2011 2 1,286 0 0 1,125 0 0.000 26.46 0.00 2012 2 1,203 0 0 1,053 0 0.000 26.46 0.00 2013 2 1,125 0 0 984 0 0.000 26.46 0.00 2014 2 1,052 0 0 921 0 0.000 26.46 0.00 2015 2 983 0 0 860 0 0.000 26.46 0.00 SUB-TOTAL 24,619 0 0 21,542 0 0.000 26.46 0.00 REMAINDER 5,601 0 0 4,900 0 0.000 26.46 0.00 TOTAL 30,220 0 0 26,442 0 0.000 26.46 0.00 CUMULATIVE 65,369 0 0 ULTIMATE 95,589 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 58,337 0 0 0 58,337 93 0 58,244 2002 54,546 0 0 0 54,546 88 0 54,458 2003 51,000 0 0 0 51,000 81 0 50,919 2004 47,685 0 0 0 47,685 77 0 47,608 2005 44,585 0 0 0 44,585 71 0 44,514 2006 41,687 0 0 0 41,687 67 0 41,620 2007 38,978 0 0 0 38,978 62 0 38,916 2008 36,444 0 0 0 36,444 58 0 36,386 2009 34,076 0 0 0 34,076 55 0 34,021 2010 31,860 0 0 0 31,860 51 0 31,809 2011 29,789 0 0 0 29,789 47 0 29,742 2012 27,854 0 0 0 27,854 45 0 27,809 2013 26,042 0 0 0 26,042 42 0 26,000 2014 24,350 0 0 0 24,350 39 0 24,311 2015 22,767 0 0 0 22,767 36 0 22,731 SUB-TOT 570,000 0 0 0 570,000 912 0 569,088 REMAIN 129,666 0 0 0 129,666 207 0 129,459 TOTAL 699,666 0 0 0 699,666 1,119 0 698,547
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 13,284 0 0 0 13,284 44,960 44,960 42,824 2002 13,284 0 0 0 13,284 41,174 86,134 35,502 2003 13,284 0 0 0 13,284 37,635 123,769 29,374 2004 13,284 0 0 0 13,284 34,324 158,093 24,252 2005 13,284 0 0 0 13,284 31,230 189,323 19,974 2006 13,284 0 0 0 13,284 28,336 217,659 16,406 2007 13,284 0 0 0 13,284 25,632 243,291 13,434 2008 13,284 0 0 0 13,284 23,102 266,393 10,960 2009 13,284 0 0 0 13,284 20,737 287,130 8,907 2010 13,284 0 0 0 13,284 18,525 305,655 7,202 2011 13,284 0 0 0 13,284 16,458 322,113 5,793 2012 13,284 0 0 0 13,284 14,525 336,638 4,628 2013 13,284 0 0 0 13,284 12,716 349,354 3,667 2014 13,284 0 0 0 13,284 11,027 360,381 2,880 2015 13,284 0 0 0 13,284 9,447 369,828 2,233 SUBTOT 199,260 0 0 0 199,260 369,828 228,036 REMAIN 99,630 0 0 0 99,630 29,829 399,657 5,356 TOTAL 298,890 0 0 0 298,890 399,657 233,392 LIFE OF EVALUATION IS 22.50 YEARS. FINAL PRODUCTION RATE: 48 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 170 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
STATE SUMMARY TOTAL PROVED TENNESSEE PROPERTIES ALL CATEGORIES REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 5.00% - 350,078,551 FINAL - 10.00% - 300,208,036 REMARKS - 15.00% - 262,378,315 20.00% - 232,689,167 25.00% - 208,752,856
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 41 79,069 0 10,933 63,181 0 8,809.642 24.10 9.77 2002 51 62,515 0 11,461 50,017 0 9,469.580 24.10 9.77 2003 49 49,452 0 7,734 39,616 0 6,399.015 24.10 9.77 2004 48 39,023 0 5,379 31,340 0 4,449.691 24.10 9.77 2005 46 30,575 0 3,758 24,705 0 3,102.221 24.10 9.77 2006 49 29,015 0 3,314 23,800 0 2,711.895 24.10 9.77 2007 47 21,124 0 2,820 17,254 0 2,303.338 24.10 9.77 2008 44 22,121 0 2,160 17,058 0 1,751.874 24.10 9.77 2009 36 18,694 0 1,596 14,166 0 1,289.484 24.10 9.77 2010 30 43,214 0 1,263 32,310 0 1,003.033 24.10 9.77 2011 26 25,893 0 968 19,264 0 767.840 24.10 9.77 2012 23 21,880 0 752 17,196 0 592.119 24.10 9.77 2013 18 14,418 0 527 11,439 0 405.450 24.10 9.77 2014 14 8,707 0 425 6,885 0 323.796 24.10 9.77 2015 13 4,443 0 364 3,520 0 276.288 24.10 9.77 SUB-TOTAL 470,143 0 53,454 371,751 0 43,655.266 24.10 9.77 REMAINDER 5,898 0 1,070 4,945 0 796.072 24.10 9.77 TOTAL 476,041 0 54,524 376,696 0 44,451.338 24.10 9.77 CUMULATIVE 93,733 0 48 ULTIMATE 569,774 0 54,572
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 1,522,649 0 86,070,198 0 87,592,847 45,680 2,582,103 84,965,064 2002 1,205,422 0 92,517,798 0 93,723,220 36,161 2,775,536 90,911,523 2003 954,736 0 62,518,384 0 63,473,120 28,644 1,875,552 61,568,924 2004 755,325 0 43,473,470 0 44,228,795 22,660 1,304,205 42,901,930 2005 595,371 0 30,308,704 0 30,904,075 17,860 909,259 29,976,956 2006 573,599 0 26,495,212 0 27,068,811 17,207 794,859 26,256,745 2007 415,816 0 22,503,611 0 22,919,427 12,475 675,106 22,231,846 2008 411,059 0 17,115,807 0 17,526,866 12,332 513,471 17,001,063 2009 341,426 0 12,598,256 0 12,939,682 10,244 377,953 12,551,485 2010 778,672 0 9,799,632 0 10,578,304 23,360 293,988 10,260,956 2011 464,302 0 7,501,794 0 7,966,096 13,929 225,054 7,727,113 2012 414,403 0 5,785,007 0 6,199,410 12,431 173,550 6,013,429 2013 275,674 0 3,961,243 0 4,236,917 8,273 118,838 4,109,806 2014 165,902 0 3,163,490 0 3,329,392 4,974 94,905 3,229,513 2015 84,861 0 2,699,335 0 2,784,196 2,546 80,981 2,700,669 SUB-TOT 8,959,217 0 426,511,941 0 435,471,158 268,776 12,795,360 422,407,022 REMAIN 119,144 0 7,777,622 0 7,896,766 3,575 233,327 7,659,864 TOTAL 9,078,361 0 434,289,563 0 443,367,924 272,351 13,028,687 430,066,886
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 181,200 0 4,850,000 0 5,031,200 79,933,864 79,933,864 75,176,780 2002 298,520 0 2,500,000 0 2,798,520 88,113,003 168,046,867 76,073,347 2003 302,840 0 0 0 302,840 61,266,084 229,312,951 47,935,392 2004 293,535 0 0 0 293,535 42,608,395 271,921,346 30,165,315 2005 260,335 0 0 0 260,335 29,716,621 301,637,967 19,041,375 2006 347,916 0 165,000 0 512,916 25,743,829 327,381,796 14,889,555 2007 331,672 0 0 0 331,672 21,900,174 349,281,970 11,491,546 2008 296,283 0 20,000 0 316,283 16,684,780 365,966,750 7,932,169 2009 237,599 0 25,000 0 262,599 12,288,886 378,255,636 5,285,789 2010 213,775 0 75,000 0 288,775 9,972,181 388,227,817 3,879,021 2011 184,436 0 0 0 184,436 7,542,677 395,770,494 2,657,588 2012 156,208 0 25,000 0 181,208 5,832,221 401,602,715 1,859,991 2013 120,818 0 0 0 120,818 3,988,988 405,591,703 1,153,501 2014 107,795 0 0 0 107,795 3,121,718 408,713,421 815,160 2015 82,181 0 0 0 82,181 2,618,488 411,331,909 619,686 SUBTOT 3,415,113 0 7,660,000 0 11,075,113 411,331,909 298,976,215 REMAIN 216,944 0 0 0 216,944 7,442,920 418,774,829 1,231,821 TOTAL 3,632,057 0 7,660,000 0 11,292,057 418,774,829 300,208,036 LIFE OF SUMMARY IS 26.14 YEARS.
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 171 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE
STATE SUMMARY PROVED TENNESSEE PROPERTIES PRODUCING REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 5.00% - 5,358,355 FINAL - 10.00% - 4,632,294 REMARKS - 15.00% - 4,073,827 20.00% - 3,633,046 25.00% - 3,277,397
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 5 79,069 0 0 63,181 0 0.000 24.10 0.00 2002 5 62,515 0 0 50,017 0 0.000 24.10 0.00 2003 5 49,452 0 0 39,616 0 0.000 24.10 0.00 2004 5 39,023 0 0 31,340 0 0.000 24.10 0.00 2005 4 30,575 0 0 24,705 0 0.000 24.10 0.00 2006 4 24,196 0 0 19,584 0 0.000 24.10 0.00 2007 4 19,158 0 0 15,533 0 0.000 24.10 0.00 2008 4 15,179 0 0 12,326 0 0.000 24.10 0.00 2009 4 12,028 0 0 9,784 0 0.000 24.10 0.00 2010 4 9,539 0 0 7,770 0 0.000 24.10 0.00 2011 4 7,567 0 0 6,174 0 0.000 24.10 0.00 2012 4 6,004 0 0 4,908 0 0.000 24.10 0.00 2013 4 4,354 0 0 3,593 0 0.000 24.10 0.00 2014 3 3,393 0 0 2,812 0 0.000 24.10 0.00 2015 3 1,615 0 0 1,400 0 0.000 24.10 0.00 SUB-TOTAL 363,667 0 0 292,743 0 0.000 24.10 0.00 REMAINDER 4,199 0 0 3,675 0 0.000 24.10 0.00 TOTAL 367,866 0 0 296,418 0 0.000 24.10 0.00 CUMULATIVE 93,733 0 0 ULTIMATE 461,599 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 1,522,649 0 0 0 1,522,649 45,680 0 1,476,969 2002 1,205,422 0 0 0 1,205,422 36,161 0 1,169,261 2003 954,736 0 0 0 954,736 28,644 0 926,092 2004 755,325 0 0 0 755,325 22,660 0 732,665 2005 595,371 0 0 0 595,371 17,860 0 577,511 2006 471,985 0 0 0 471,985 14,159 0 457,826 2007 374,342 0 0 0 374,342 11,230 0 363,112 2008 297,033 0 0 0 297,033 8,912 0 288,121 2009 235,799 0 0 0 235,799 7,075 0 228,724 2010 187,275 0 0 0 187,275 5,617 0 181,658 2011 148,808 0 0 0 148,808 4,465 0 144,343 2012 118,292 0 0 0 118,292 3,548 0 114,744 2013 86,593 0 0 0 86,593 2,599 0 83,994 2014 67,733 0 0 0 67,733 2,031 0 65,702 2015 33,761 0 0 0 33,761 1,012 0 32,749 SUB-TOT 7,055,124 0 0 0 7,055,124 211,653 0 6,843,471 REMAIN 88,552 0 0 0 88,552 2,657 0 85,895 TOTAL 7,143,676 0 0 0 7,143,676 214,310 0 6,929,366
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 43,200 0 0 0 43,200 1,433,769 1,433,769 1,367,394 2002 43,200 0 0 0 43,200 1,126,061 2,559,830 972,145 2003 43,200 0 0 0 43,200 882,892 3,442,722 689,979 2004 42,000 0 0 0 42,000 690,665 4,133,387 488,599 2005 38,400 0 0 0 38,400 539,111 4,672,498 345,243 2006 38,400 0 0 0 38,400 419,426 5,091,924 243,145 2007 38,400 0 0 0 38,400 324,712 5,416,636 170,405 2008 38,400 0 0 0 38,400 249,721 5,666,357 118,635 2009 38,400 0 0 0 38,400 190,324 5,856,681 81,854 2010 38,400 0 0 0 38,400 143,258 5,999,939 55,779 2011 38,400 0 0 0 38,400 105,943 6,105,882 37,346 2012 38,400 0 0 0 38,400 76,344 6,182,226 24,368 2013 30,400 0 0 0 30,400 53,594 6,235,820 15,486 2014 28,800 0 0 0 28,800 36,902 6,272,722 9,656 2015 11,389 0 0 0 11,389 21,360 6,294,082 5,061 SUBTOT 549,389 0 0 0 549,389 6,294,082 4,625,095 REMAIN 48,800 0 0 0 48,800 37,095 6,331,177 7,199 TOTAL 598,189 0 0 0 598,189 6,331,177 4,632,294 LIFE OF SUMMARY IS 20.08 YEARS.
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 172 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE STATE SUMMARY PROVED TENNESSEE PROPERTIES SHUT-IN
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 5.00% - 142,811,185 FINAL - 10.00% - 122,351,353 REMARKS - 15.00% - 107,494,485 20.00% - 96,159,510 25.00% - 87,179,018
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 17 0 0 6,133 0 0 4,608.793 0.00 9.77 2002 17 0 0 4,404 0 0 3,295.015 0.00 9.77 2003 15 0 0 2,893 0 0 2,165.955 0.00 9.77 2004 14 0 0 2,030 0 0 1,517.339 0.00 9.77 2005 13 0 0 1,492 0 0 1,118.943 0.00 9.77 2006 13 0 0 1,289 0 0 960.358 0.00 9.77 2007 12 0 0 1,148 0 0 855.809 0.00 9.77 2008 12 0 0 962 0 0 716.757 0.00 9.77 2009 10 0 0 749 0 0 562.769 0.00 9.77 2010 8 0 0 630 0 0 471.620 0.00 9.77 2011 7 0 0 490 0 0 370.449 0.00 9.77 2012 6 0 0 384 0 0 284.016 0.00 9.77 2013 5 0 0 339 0 0 248.619 0.00 9.77 2014 5 0 0 306 0 0 225.254 0.00 9.77 2015 5 0 0 280 0 0 205.100 0.00 9.77 SUB-TOTAL 0 0 23,529 0 0 17,606.796 0.00 9.77 REMAINDER 0 0 1,053 0 0 785.285 0.00 9.77 TOTAL 0 0 24,582 0 0 18,392.081 0.00 9.77 CUMULATIVE 0 0 48 ULTIMATE 0 0 24,630
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 45,027,906 0 45,027,906 0 1,350,836 43,677,070 2002 0 0 32,192,295 0 32,192,295 0 965,769 31,226,526 2003 0 0 21,161,380 0 21,161,380 0 634,842 20,526,538 2004 0 0 14,824,399 0 14,824,399 0 444,732 14,379,667 2005 0 0 10,932,077 0 10,932,077 0 327,962 10,604,115 2006 0 0 9,382,702 0 9,382,702 0 281,480 9,101,222 2007 0 0 8,361,256 0 8,361,256 0 250,839 8,110,417 2008 0 0 7,002,717 0 7,002,717 0 210,081 6,792,636 2009 0 0 5,498,251 0 5,498,251 0 164,950 5,333,301 2010 0 0 4,607,729 0 4,607,729 0 138,230 4,469,499 2011 0 0 3,619,292 0 3,619,292 0 108,579 3,510,713 2012 0 0 2,774,838 0 2,774,838 0 83,245 2,691,593 2013 0 0 2,429,008 0 2,429,008 0 72,870 2,356,138 2014 0 0 2,200,729 0 2,200,729 0 66,022 2,134,707 2015 0 0 2,003,822 0 2,003,822 0 60,115 1,943,707 SUB-TOT 0 0 172,018,401 0 172,018,401 0 5,160,552 166,857,849 REMAIN 0 0 7,672,235 0 7,672,235 0 230,166 7,442,069 TOTAL 0 0 179,690,636 0 179,690,636 0 5,390,718 174,299,918
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 82,500 0 330,000 0 412,500 43,264,570 43,264,570 41,026,488 2002 97,620 0 0 0 97,620 31,128,906 74,393,476 26,920,801 2003 84,440 0 0 0 84,440 20,442,098 94,835,574 15,993,438 2004 76,335 0 0 0 76,335 14,303,332 109,138,906 10,125,629 2005 75,000 0 0 0 75,000 10,529,115 119,668,021 6,744,900 2006 83,871 0 0 0 83,871 9,017,351 128,685,372 5,215,439 2007 82,800 0 0 0 82,800 8,027,617 136,712,989 4,209,387 2008 77,093 0 0 0 77,093 6,715,543 143,428,532 3,189,456 2009 58,420 0 0 0 58,420 5,274,881 148,703,413 2,268,128 2010 53,896 0 0 0 53,896 4,415,603 153,119,016 1,717,987 2011 45,396 0 0 0 45,396 3,465,317 156,584,333 1,220,444 2012 34,199 0 0 0 34,199 2,657,394 159,241,727 847,428 2013 32,400 0 0 0 32,400 2,323,738 161,565,465 670,060 2014 32,400 0 0 0 32,400 2,102,307 163,667,772 548,726 2015 32,400 0 0 0 32,400 1,911,307 165,579,079 451,569 SUBTOT 948,770 0 330,000 0 1,278,770 165,579,079 121,149,880 REMAIN 144,527 0 0 0 144,527 7,297,542 172,876,621 1,201,473 TOTAL 1,093,297 0 330,000 0 1,423,297 172,876,621 122,351,353 LIFE OF SUMMARY IS 26.14 YEARS.
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 173 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE STATE SUMMARY PROVED TENNESSEE PROPERTIES BEHIND PIPE
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 5.00% - 6,101,930 FINAL - 10.00% - 4,191,675 REMARKS - 15.00% - 2,957,575 20.00% - 2,143,853 25.00% - 1,596,394
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 27 0 0 23.968 0.00 9.77 2002 1 0 0 26 0 0 22.796 0.00 9.77 2003 1 0 0 21 0 0 17.674 0.00 9.77 2004 1 0 0 15 0 0 13.702 0.00 9.77 2005 1 0 0 12 0 0 10.623 0.00 9.77 2006 9 4,819 0 210 4,216 0 162.804 24.10 9.77 2007 9 1,966 0 153 1,721 0 117.371 24.10 9.77 2008 8 6,942 0 120 4,732 0 91.649 24.10 9.77 2009 8 6,666 0 107 4,382 0 80.006 24.10 9.77 2010 9 33,675 0 140 24,540 0 100.363 24.10 9.77 2011 7 18,326 0 115 13,090 0 78.104 24.10 9.77 2012 6 15,876 0 76 12,288 0 54.338 24.10 9.77 2013 4 10,064 0 49 7,846 0 33.845 24.10 9.77 2014 4 5,314 0 32 4,073 0 22.175 24.10 9.77 2015 3 2,828 0 20 2,120 0 14.954 24.10 9.77 SUB-TOTAL 106,476 0 1,123 79,008 0 844.372 24.10 9.77 REMAINDER 1,699 0 17 1,270 0 10.787 24.10 9.77 TOTAL 108,175 0 1,140 80,278 0 855.159 24.10 9.77 CUMULATIVE 0 0 0 ULTIMATE 108,175 0 1,140
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 234,172 0 234,172 0 7,025 227,147 2002 0 0 222,716 0 222,716 0 6,682 216,034 2003 0 0 172,671 0 172,671 0 5,180 167,491 2004 0 0 133,870 0 133,870 0 4,016 129,854 2005 0 0 103,790 0 103,790 0 3,114 100,676 2006 101,614 0 1,590,598 0 1,692,212 3,048 47,718 1,641,446 2007 41,474 0 1,146,711 0 1,188,185 1,245 34,402 1,152,538 2008 114,026 0 895,409 0 1,009,435 3,420 26,861 979,154 2009 105,627 0 781,659 0 887,286 3,169 23,451 860,666 2010 591,397 0 980,549 0 1,571,946 17,743 29,416 1,524,787 2011 315,494 0 763,080 0 1,078,574 9,464 22,893 1,046,217 2012 296,111 0 530,880 0 826,991 8,883 15,926 802,182 2013 189,081 0 330,666 0 519,747 5,674 9,920 504,153 2014 98,169 0 216,646 0 314,815 2,943 6,501 305,371 2015 51,100 0 146,104 0 197,204 1,534 4,383 191,287 SUB-TOT 1,904,093 0 8,249,521 0 10,153,614 57,123 247,488 9,849,003 REMAIN 30,592 0 105,387 0 135,979 918 3,161 131,900 TOTAL 1,934,685 0 8,354,908 0 10,289,593 58,041 250,649 9,980,903
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 6,000 0 20,000 0 26,000 201,147 201,147 189,119 2002 7,200 0 0 0 7,200 208,834 409,981 180,321 2003 7,200 0 0 0 7,200 160,291 570,272 125,289 2004 7,200 0 0 0 7,200 122,654 692,926 86,786 2005 7,200 0 0 0 7,200 93,476 786,402 59,874 2006 67,200 0 165,000 0 232,200 1,409,246 2,195,648 813,205 2007 58,286 0 0 0 58,286 1,094,252 3,289,900 574,984 2008 56,921 0 20,000 0 76,921 902,233 4,192,133 427,857 2009 48,800 0 25,000 0 73,800 786,866 4,978,999 337,173 2010 58,033 0 75,000 0 133,033 1,391,754 6,370,753 540,291 2011 49,789 0 0 0 49,789 996,428 7,367,181 352,190 2012 38,270 0 25,000 0 63,270 738,912 8,106,093 235,313 2013 36,000 0 0 0 36,000 468,153 8,574,246 135,481 2014 32,195 0 0 0 32,195 273,176 8,847,422 71,565 2015 26,400 0 0 0 26,400 164,887 9,012,309 39,078 SUBTOT 506,694 0 330,000 0 836,694 9,012,309 4,168,526 REMAIN 23,617 0 0 0 23,617 108,283 9,120,592 23,149 TOTAL 530,311 0 330,000 0 860,311 9,120,592 4,191,675 LIFE OF SUMMARY IS 16.24 YEARS.
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 174 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE STATE SUMMARY PROVED TENNESSEE PROPERTIES UNDEVELOPED
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 5.00% - 195,807,081 FINAL - 10.00% - 169,032,714 REMARKS - 15.00% - 147,852,428 20.00% - 130,752,758 25.00% - 116,700,047
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 18 0 0 4,773 0 0 4,176.880 0.00 9.77 2002 28 0 0 7,031 0 0 6,151.769 0.00 9.77 2003 28 0 0 4,820 0 0 4,215.387 0.00 9.77 2004 28 0 0 3,334 0 0 2,918.650 0.00 9.77 2005 28 0 0 2,254 0 0 1,972.655 0.00 9.77 2006 23 0 0 1,815 0 0 1,588.732 0.00 9.77 2007 22 0 0 1,519 0 0 1,330.158 0.00 9.77 2008 20 0 0 1,078 0 0 943.468 0.00 9.77 2009 14 0 0 740 0 0 646.709 0.00 9.77 2010 9 0 0 493 0 0 431.050 0.00 9.77 2011 8 0 0 363 0 0 319.286 0.00 9.77 2012 7 0 0 292 0 0 253.765 0.00 9.77 2013 5 0 0 139 0 0 122.986 0.00 9.77 2014 2 0 0 87 0 0 76.368 0.00 9.77 2015 2 0 0 64 0 0 56.234 0.00 9.77 SUB-TOTAL 0 0 28,802 0 0 25,204.097 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 28,802 0 0 25,204.097 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 28,802
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 40,808,120 0 40,808,120 0 1,224,242 39,583,878 2002 0 0 60,102,787 0 60,102,787 0 1,803,085 58,299,702 2003 0 0 41,184,333 0 41,184,333 0 1,235,530 39,948,803 2004 0 0 28,515,201 0 28,515,201 0 855,457 27,659,744 2005 0 0 19,272,837 0 19,272,837 0 578,183 18,694,654 2006 0 0 15,521,912 0 15,521,912 0 465,661 15,056,251 2007 0 0 12,995,644 0 12,995,644 0 389,865 12,605,779 2008 0 0 9,217,681 0 9,217,681 0 276,529 8,941,152 2009 0 0 6,318,346 0 6,318,346 0 189,552 6,128,794 2010 0 0 4,211,354 0 4,211,354 0 126,342 4,085,012 2011 0 0 3,119,422 0 3,119,422 0 93,582 3,025,840 2012 0 0 2,479,289 0 2,479,289 0 74,379 2,404,910 2013 0 0 1,201,569 0 1,201,569 0 36,048 1,165,521 2014 0 0 746,115 0 746,115 0 22,382 723,733 2015 0 0 549,409 0 549,409 0 16,483 532,926 SUB-TOT 0 0 246,244,019 0 246,244,019 0 7,387,320 238,856,699 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 246,244,019 0 246,244,019 0 7,387,320 238,856,699
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 49,500 0 4,500,000 0 4,549,500 35,034,378 35,034,378 32,593,779 2002 150,500 0 2,500,000 0 2,650,500 55,649,202 90,683,580 48,000,080 2003 168,000 0 0 0 168,000 39,780,803 130,464,383 31,126,686 2004 168,000 0 0 0 168,000 27,491,744 157,956,127 19,464,301 2005 139,735 0 0 0 139,735 18,554,919 176,511,046 11,891,358 2006 158,445 0 0 0 158,445 14,897,806 191,408,852 8,617,766 2007 152,186 0 0 0 152,186 12,453,593 203,862,445 6,536,770 2008 123,869 0 0 0 123,869 8,817,283 212,679,728 4,196,221 2009 91,979 0 0 0 91,979 6,036,815 218,716,543 2,598,634 2010 63,446 0 0 0 63,446 4,021,566 222,738,109 1,564,964 2011 50,851 0 0 0 50,851 2,974,989 225,713,098 1,047,608 2012 45,339 0 0 0 45,339 2,359,571 228,072,669 752,882 2013 22,018 0 0 0 22,018 1,143,503 229,216,172 332,474 2014 14,400 0 0 0 14,400 709,333 229,925,505 185,213 2015 11,992 0 0 0 11,992 520,934 230,446,439 123,978 SUBTOT 1,410,260 0 7,000,000 0 8,410,260 230,446,439 169,032,714 REMAIN 0 0 0 0 0 0 230,446,439 0 TOTAL 1,410,260 0 7,000,000 0 8,410,260 230,446,439 169,032,714 LIFE OF SUMMARY IS 14.95 YEARS.
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 175 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE STATE SUMMARY TOTAL PROBABLE TENNESSEE PROPERTIES UNDEVELOPED
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 5.00% - 91,285,523 FINAL - 10.00% - 75,180,091 REMARKS - 15.00% - 62,778,240 20.00% - 53,040,641 25.00% - 45,259,984
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 10 0 0 2,537 0 0 2,220.294 0.00 9.77 2003 10 0 0 3,233 0 0 2,828.251 0.00 9.77 2004 10 0 0 2,101 0 0 1,838.375 0.00 9.77 2005 10 0 0 1,444 0 0 1,263.798 0.00 9.77 2006 10 0 0 1,037 0 0 907.028 0.00 9.77 2007 10 0 0 770 0 0 673.586 0.00 9.77 2008 10 0 0 587 0 0 514.300 0.00 9.77 2009 10 0 0 698 0 0 610.551 0.00 9.77 2010 10 0 0 617 0 0 539.494 0.00 9.77 2011 10 0 0 466 0 0 407.657 0.00 9.77 2012 10 0 0 207 0 0 181.607 0.00 9.77 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 13,697 0 0 11,984.941 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 13,697 0 0 11,984.941 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 13,697
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 21,692,276 0 21,692,276 0 650,768 21,041,508 2003 0 0 27,632,016 0 27,632,016 0 828,961 26,803,055 2004 0 0 17,960,921 0 17,960,921 0 538,827 17,422,094 2005 0 0 12,347,309 0 12,347,309 0 370,420 11,976,889 2006 0 0 8,861,666 0 8,861,666 0 265,850 8,595,816 2007 0 0 6,580,932 0 6,580,932 0 197,428 6,383,504 2008 0 0 5,024,707 0 5,024,707 0 150,741 4,873,966 2009 0 0 5,965,084 0 5,965,084 0 178,952 5,786,132 2010 0 0 5,270,854 0 5,270,854 0 158,126 5,112,728 2011 0 0 3,982,814 0 3,982,814 0 119,484 3,863,330 2012 0 0 1,774,301 0 1,774,301 0 53,229 1,721,072 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 117,092,880 0 117,092,880 0 3,512,786 113,580,094 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 117,092,880 0 117,092,880 0 3,512,786 113,580,094
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 30,000 0 250,000 0 280,000 20,761,508 20,761,508 17,480,359 2003 60,000 0 0 0 60,000 26,743,055 47,504,563 20,937,119 2004 60,000 0 0 0 60,000 17,362,094 64,866,657 12,297,993 2005 60,000 0 0 0 60,000 11,916,889 76,783,546 7,637,931 2006 72,000 0 0 0 72,000 8,523,816 85,307,362 4,943,860 2007 72,000 0 0 0 72,000 6,311,504 91,618,866 3,312,906 2008 72,000 0 0 0 72,000 4,801,966 96,420,832 2,281,177 2009 72,000 0 0 0 72,000 5,714,132 102,134,964 2,442,044 2010 72,000 0 0 0 72,000 5,040,728 107,175,692 1,962,871 2011 72,000 0 0 0 72,000 3,791,330 110,967,022 1,335,968 2012 38,909 0 0 0 38,909 1,682,163 112,649,185 547,863 2013 0 0 0 0 0 0 112,649,185 0 2014 0 0 0 0 0 0 112,649,185 0 2015 0 0 0 0 0 0 112,649,185 0 SUBTOT 680,909 0 250,000 0 930,909 112,649,185 75,180,091 REMAIN 0 0 0 0 0 0 112,649,185 0 TOTAL 680,909 0 250,000 0 930,909 112,649,185 75,180,091 LIFE OF SUMMARY IS 11.54 YEARS.
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 176 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE STATE SUMMARY TOTAL POSSIBLE TENNESSEE PROPERTIES UNDEVELOPED
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 5.00% - 53,825,724 FINAL - 10.00% - 43,252,319 REMARKS - 15.00% - 35,019,134 20.00% - 28,549,812 25.00% - 23,422,959
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 13 0 0 1,726 0 0 1,510.593 0.00 9.77 2004 13 0 0 2,200 0 0 1,924.953 0.00 9.77 2005 13 0 0 1,430 0 0 1,251.313 0.00 9.77 2006 13 0 0 984 0 0 860.265 0.00 9.77 2007 13 0 0 717 0 0 627.712 0.00 9.77 2008 13 0 0 660 0 0 577.760 0.00 9.77 2009 13 0 0 526 0 0 460.133 0.00 9.77 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 8,243 0 0 7,212.729 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 8,243 0 0 7,212.729 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 8,243
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 14,758,492 0 14,758,492 0 442,755 14,315,737 2004 0 0 18,806,791 0 18,806,791 0 564,203 18,242,588 2005 0 0 12,225,327 0 12,225,327 0 366,760 11,858,567 2006 0 0 8,404,787 0 8,404,787 0 252,144 8,152,643 2007 0 0 6,132,744 0 6,132,744 0 183,982 5,948,762 2008 0 0 5,644,714 0 5,644,714 0 169,342 5,475,372 2009 0 0 4,495,497 0 4,495,497 0 134,865 4,360,632 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 70,468,352 0 70,468,352 0 2,114,051 68,354,301 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 70,468,352 0 70,468,352 0 2,114,051 68,354,301
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 39,000 0 250,000 0 289,000 14,026,737 14,026,737 10,687,250 2004 78,000 0 0 0 78,000 18,164,588 32,191,325 12,873,157 2005 78,000 0 0 0 78,000 11,780,567 43,971,892 7,553,585 2006 93,600 0 0 0 93,600 8,059,043 52,030,935 4,675,789 2007 93,600 0 0 0 93,600 5,855,162 57,886,097 3,071,757 2008 93,600 0 0 0 93,600 5,381,772 63,267,869 2,556,234 2009 93,362 0 0 0 93,362 4,267,270 67,535,139 1,834,547 2010 0 0 0 0 0 0 67,535,139 0 2011 0 0 0 0 0 0 67,535,139 0 2012 0 0 0 0 0 0 67,535,139 0 2013 0 0 0 0 0 0 67,535,139 0 2014 0 0 0 0 0 0 67,535,139 0 2015 0 0 0 0 0 0 67,535,139 0 SUBTOT 569,162 0 250,000 0 819,162 67,535,139 43,252,319 REMAIN 0 0 0 0 0 0 67,535,139 0 TOTAL 569,162 0 250,000 0 819,162 67,535,139 43,252,319 LIFE OF SUMMARY IS 9.00 YEARS.
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 177 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E PROVED ANITA COLSON #1 (KNOX) SHUT-IN
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 9,102,418 FINAL - 1.000000 0.875000 9.77 10.00% - 7,927,799 REMARKS - CAPITAL INCLUDED TO PERFORATE REMAINDER OF KNOX PAY. 15.00% - 7,017,950 20.00% - 6,296,953 25.00% - 5,713,432
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 339 0 0 296.841 0.00 9.77 2002 1 0 0 249 0 0 218.012 0.00 9.77 2003 1 0 0 166 0 0 144.639 0.00 9.77 2004 1 0 0 115 0 0 100.992 0.00 9.77 2005 1 0 0 84 0 0 73.374 0.00 9.77 2006 1 0 0 74 0 0 64.675 0.00 9.77 2007 1 0 0 67 0 0 58.713 0.00 9.77 2008 1 0 0 58 0 0 50.770 0.00 9.77 2009 1 0 0 51 0 0 44.358 0.00 9.77 2010 1 0 0 44 0 0 39.105 0.00 9.77 2011 1 0 0 40 0 0 34.745 0.00 9.77 2012 1 0 0 9 0 0 8.087 0.00 9.77 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 1,296 0 0 1,134.311 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 1,296 0 0 1,134.311 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 1,296
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 2,900,140 0 2,900,140 0 87,004 2,813,136 2002 0 0 2,129,978 0 2,129,978 0 63,900 2,066,078 2003 0 0 1,413,127 0 1,413,127 0 42,393 1,370,734 2004 0 0 986,693 0 986,693 0 29,601 957,092 2005 0 0 716,864 0 716,864 0 21,506 695,358 2006 0 0 631,872 0 631,872 0 18,956 612,916 2007 0 0 573,626 0 573,626 0 17,209 556,417 2008 0 0 496,022 0 496,022 0 14,881 481,141 2009 0 0 433,375 0 433,375 0 13,001 420,374 2010 0 0 382,053 0 382,053 0 11,461 370,592 2011 0 0 339,460 0 339,460 0 10,184 329,276 2012 0 0 79,009 0 79,009 0 2,371 76,638 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 11,082,219 0 11,082,219 0 332,467 10,749,752 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 11,082,219 0 11,082,219 0 332,467 10,749,752
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 5,000 0 20,000 0 25,000 2,788,136 2,788,136 2,643,736 2002 6,000 0 0 0 6,000 2,060,078 4,848,214 1,781,382 2003 6,000 0 0 0 6,000 1,364,734 6,212,948 1,067,748 2004 6,000 0 0 0 6,000 951,092 7,164,040 673,345 2005 6,000 0 0 0 6,000 689,358 7,853,398 441,660 2006 7,200 0 0 0 7,200 605,716 8,459,114 350,179 2007 7,200 0 0 0 7,200 549,217 9,008,331 287,970 2008 7,200 0 0 0 7,200 473,941 9,482,272 224,925 2009 7,200 0 0 0 7,200 413,174 9,895,446 177,487 2010 7,200 0 0 0 7,200 363,392 10,258,838 141,295 2011 7,200 0 0 0 7,200 322,076 10,580,914 113,354 2012 1,799 0 0 0 1,799 74,839 10,655,753 24,718 2013 0 0 0 0 0 0 10,655,753 0 2014 0 0 0 0 0 0 10,655,753 0 2015 0 0 0 0 0 0 10,655,753 0 SUBTOT 73,999 0 20,000 0 93,999 10,655,753 7,927,799 REMAIN 0 0 0 0 0 0 10,655,753 0 TOTAL 73,999 0 20,000 0 93,999 10,655,753 7,927,799 LIFE OF EVALUATION IS 11.25 YEARS. FINAL PRODUCTION RATE: 3.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 178 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE OIL LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E PROVED ANITA COLSON #1 (TRENTON) BEHIND PIPE
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 0.875000 24.10 9.77 5.00% - 282,154 FINAL - 1.000000 0.875000 0.875000 24.10 9.77 10.00% - 152,227 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2012. 15.00% - 82,525 20.00% - 44,946 25.00% - 24,589
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 1 6,421 0 14 5,619 0 12.339 24.10 9.77 2013 1 4,748 0 11 4,154 0 9.122 24.10 9.77 2014 1 2,396 0 5 2,096 0 4.604 24.10 9.77 2015 1 1,209 0 2 1,058 0 2.324 24.10 9.77 SUB-TOTAL 14,774 0 32 12,927 0 28.389 24.10 9.77 REMAINDER 706 0 2 618 0 1.356 24.10 9.77 TOTAL 15,480 0 34 13,545 0 29.745 24.10 9.77 CUMULATIVE 0 0 0 ULTIMATE 15,480 0 34
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 135,413 0 120,551 0 255,964 4,062 3,617 248,285 2013 100,107 0 89,119 0 189,226 3,004 2,673 183,549 2014 50,527 0 44,982 0 95,509 1,515 1,350 92,644 2015 25,504 0 22,705 0 48,209 766 681 46,762 SUB-TOT 311,551 0 277,357 0 588,908 9,347 8,321 571,240 REMAIN 14,884 0 13,250 0 28,134 446 397 27,291 TOTAL 326,435 0 290,607 0 617,042 9,793 8,718 598,531
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 7,200 0 25,000 0 32,200 216,085 216,085 67,894 2013 9,600 0 0 0 9,600 173,949 390,034 50,413 2014 9,600 0 0 0 9,600 83,044 473,078 21,793 2015 9,600 0 0 0 9,600 37,162 510,240 8,835 SUBTOT 36,000 0 25,000 0 61,000 510,240 148,935 REMAIN 11,937 0 0 0 11,937 15,354 525,594 3,292 TOTAL 47,937 0 25,000 0 72,937 525,594 152,227 LIFE OF EVALUATION IS 16.24 YEARS. FINAL PRODUCTION RATE: 31 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 179 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E PROVED ANITA COLSON #2 (TRENTON) SHUT-IN
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 914,219 FINAL - 1.000000 0.875000 9.77 10.00% - 857,395 REMARKS - 15.00% - 805,644 20.00% - 758,422 25.00% - 715,246
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 51 0 0 44.225 0.00 9.77 2002 1 0 0 40 0 0 34.968 0.00 9.77 2003 1 0 0 25 0 0 22.119 0.00 9.77 2004 1 0 0 4 0 0 3.688 0.00 9.77 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 120 0 0 105.000 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 120 0 0 105.000 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 120
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 432,077 0 432,077 0 12,962 419,115 2002 0 0 341,639 0 341,639 0 10,249 331,390 2003 0 0 216,103 0 216,103 0 6,484 209,619 2004 0 0 36,031 0 36,031 0 1,081 34,950 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 1,025,850 0 1,025,850 0 30,776 995,074 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 1,025,850 0 1,025,850 0 30,776 995,074
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 5,000 0 0 0 5,000 414,115 414,115 391,886 2002 6,000 0 0 0 6,000 325,390 739,505 281,430 2003 6,000 0 0 0 6,000 203,619 943,124 159,423 2004 1,335 0 0 0 1,335 33,615 976,739 24,656 2005 0 0 0 0 0 0 976,739 0 2006 0 0 0 0 0 0 976,739 0 2007 0 0 0 0 0 0 976,739 0 2008 0 0 0 0 0 0 976,739 0 2009 0 0 0 0 0 0 976,739 0 2010 0 0 0 0 0 0 976,739 0 2011 0 0 0 0 0 0 976,739 0 2012 0 0 0 0 0 0 976,739 0 2013 0 0 0 0 0 0 976,739 0 2014 0 0 0 0 0 0 976,739 0 2015 0 0 0 0 0 0 976,739 0 SUBTOT 18,335 0 0 0 18,335 976,739 857,395 REMAIN 0 0 0 0 0 0 976,739 0 TOTAL 18,335 0 0 0 18,335 976,739 857,395 LIFE OF EVALUATION IS 3.22 YEARS. FINAL PRODUCTION RATE: 1.5 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 180 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E PROVED CHEVRON WARREN REED #1 (KNOX) SHUT-IN
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 13,630,429 FINAL - 1.000000 0.875000 9.77 10.00% - 12,011,204 REMARKS - CAPITAL INCLUDED TO PERFORATE REMAINDER OF KNOX PAY. 15.00% - 10,722,253 20.00% - 9,676,821 25.00% - 8,814,210
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 518 0 0 452.910 0.00 9.77 2002 1 0 0 397 0 0 347.363 0.00 9.77 2003 1 0 0 263 0 0 230.463 0.00 9.77 2004 1 0 0 184 0 0 160.920 0.00 9.77 2005 1 0 0 134 0 0 116.915 0.00 9.77 2006 1 0 0 113 0 0 99.519 0.00 9.77 2007 1 0 0 91 0 0 79.686 0.00 9.77 2008 1 0 0 71 0 0 61.774 0.00 9.77 2009 1 0 0 56 0 0 49.357 0.00 9.77 2010 1 0 0 46 0 0 40.386 0.00 9.77 2011 1 0 0 32 0 0 27.560 0.00 9.77 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 1,905 0 0 1,666.853 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 1,905 0 0 1,666.853 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 1,905
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 4,424,926 0 4,424,926 0 132,748 4,292,178 2002 0 0 3,393,739 0 3,393,739 0 101,812 3,291,927 2003 0 0 2,251,623 0 2,251,623 0 67,549 2,184,074 2004 0 0 1,572,189 0 1,572,189 0 47,165 1,525,024 2005 0 0 1,142,264 0 1,142,264 0 34,268 1,107,996 2006 0 0 972,296 0 972,296 0 29,169 943,127 2007 0 0 778,528 0 778,528 0 23,356 755,172 2008 0 0 603,532 0 603,532 0 18,106 585,426 2009 0 0 482,222 0 482,222 0 14,467 467,755 2010 0 0 394,567 0 394,567 0 11,837 382,730 2011 0 0 269,263 0 269,263 0 8,077 261,186 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 16,285,149 0 16,285,149 0 488,554 15,796,595 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 16,285,149 0 16,285,149 0 488,554 15,796,595
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 5,000 0 20,000 0 25,000 4,267,178 4,267,178 4,040,694 2002 6,000 0 0 0 6,000 3,285,927 7,553,105 2,841,382 2003 6,000 0 0 0 6,000 2,178,074 9,731,179 1,704,084 2004 6,000 0 0 0 6,000 1,519,024 11,250,203 1,075,417 2005 6,000 0 0 0 6,000 1,101,996 12,352,199 706,024 2006 7,200 0 0 0 7,200 935,927 13,288,126 541,578 2007 7,200 0 0 0 7,200 747,972 14,036,098 392,575 2008 7,200 0 0 0 7,200 578,226 14,614,324 274,641 2009 7,200 0 0 0 7,200 460,555 15,074,879 197,973 2010 7,200 0 0 0 7,200 375,530 15,450,409 146,098 2011 5,796 0 0 0 5,796 255,390 15,705,799 90,738 2012 0 0 0 0 0 0 15,705,799 0 2013 0 0 0 0 0 0 15,705,799 0 2014 0 0 0 0 0 0 15,705,799 0 2015 0 0 0 0 0 0 15,705,799 0 SUBTOT 70,796 0 20,000 0 90,796 15,705,799 12,011,204 REMAIN 0 0 0 0 0 0 15,705,799 0 TOTAL 70,796 0 20,000 0 90,796 15,705,799 12,011,204 LIFE OF EVALUATION IS 10.80 YEARS. FINAL PRODUCTION RATE: 3.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 181 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E PROVED D. SUTTON HEIRS #1 (KNOX) SHUT-IN
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.678444 9.77 5.00% - 13,254,043 FINAL - 1.000000 0.678444 9.77 10.00% - 11,140,327 REMARKS - CAPITAL INCLUDED TO PERFORATE REMAINDER OF KNOX PAY. 15.00% - 9,651,960 20.00% - 8,549,636 25.00% - 7,697,839
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 579 0 0 392.604 0.00 9.77 2002 1 0 0 430 0 0 291.755 0.00 9.77 2003 1 0 0 285 0 0 193.571 0.00 9.77 2004 1 0 0 199 0 0 135.162 0.00 9.77 2005 1 0 0 145 0 0 98.201 0.00 9.77 2006 1 0 0 128 0 0 86.822 0.00 9.77 2007 1 0 0 117 0 0 79.671 0.00 9.77 2008 1 0 0 103 0 0 69.593 0.00 9.77 2009 1 0 0 90 0 0 61.339 0.00 9.77 2010 1 0 0 81 0 0 54.492 0.00 9.77 2011 1 0 0 72 0 0 48.746 0.00 9.77 2012 1 0 0 64 0 0 43.876 0.00 9.77 2013 1 0 0 59 0 0 39.712 0.00 9.77 2014 1 0 0 53 0 0 36.122 0.00 9.77 2015 1 0 0 49 0 0 33.005 0.00 9.77 SUB-TOTAL 0 0 2,454 0 0 1,664.671 0.00 9.77 REMAINDER 0 0 124 0 0 84.464 0.00 9.77 TOTAL 0 0 2,578 0 0 1,749.135 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 2,578
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 3,835,738 0 3,835,738 0 115,072 3,720,666 2002 0 0 2,850,451 0 2,850,451 0 85,514 2,764,937 2003 0 0 1,891,189 0 1,891,189 0 56,735 1,834,454 2004 0 0 1,320,528 0 1,320,528 0 39,616 1,280,912 2005 0 0 959,427 0 959,427 0 28,783 930,644 2006 0 0 848,255 0 848,255 0 25,448 822,807 2007 0 0 778,388 0 778,388 0 23,351 755,037 2008 0 0 679,924 0 679,924 0 20,398 659,526 2009 0 0 599,284 0 599,284 0 17,979 581,305 2010 0 0 532,382 0 532,382 0 15,971 516,411 2011 0 0 476,247 0 476,247 0 14,287 461,960 2012 0 0 428,669 0 428,669 0 12,860 415,809 2013 0 0 387,983 0 387,983 0 11,640 376,343 2014 0 0 352,910 0 352,910 0 10,587 342,323 2015 0 0 322,457 0 322,457 0 9,674 312,783 SUB-TOT 0 0 16,263,832 0 16,263,832 0 487,915 15,775,917 REMAIN 0 0 825,209 0 825,209 0 24,756 800,453 TOTAL 0 0 17,089,041 0 17,089,041 0 512,671 16,576,370
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 5,000 0 20,000 0 25,000 3,695,666 3,695,666 3,503,151 2002 6,000 0 0 0 6,000 2,758,937 6,454,603 2,385,690 2003 6,000 0 0 0 6,000 1,828,454 8,283,057 1,430,550 2004 6,000 0 0 0 6,000 1,274,912 9,557,969 902,596 2005 6,000 0 0 0 6,000 924,644 10,482,613 592,400 2006 7,200 0 0 0 7,200 815,607 11,298,220 471,489 2007 7,200 0 0 0 7,200 747,837 12,046,057 392,075 2008 7,200 0 0 0 7,200 652,326 12,698,383 309,559 2009 7,200 0 0 0 7,200 574,105 13,272,488 246,598 2010 7,200 0 0 0 7,200 509,211 13,781,699 197,981 2011 7,200 0 0 0 7,200 454,760 14,236,459 160,042 2012 7,200 0 0 0 7,200 408,609 14,645,068 130,163 2013 7,200 0 0 0 7,200 369,143 15,014,211 106,441 2014 7,200 0 0 0 7,200 335,123 15,349,334 87,469 2015 7,200 0 0 0 7,200 305,583 15,654,917 72,196 SUBTOT 101,000 0 20,000 0 121,000 15,654,917 10,988,400 REMAIN 21,754 0 0 0 21,754 778,699 16,433,616 151,927 TOTAL 122,754 0 20,000 0 142,754 16,433,616 11,140,327 LIFE OF EVALUATION IS 18.02 YEARS. FINAL PRODUCTION RATE: 3.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 182 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E PROVED D. SUTTON HEIRS #1 (TRENTON) BEHIND PIPE
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.678444 9.77 5.00% - 859,995 FINAL - 1.000000 0.678444 9.77 10.00% - 593,815 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2006. 15.00% - 413,743 20.00% - 290,745 25.00% - 205,950
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 1 0 0 49 0 0 33.339 0.00 9.77 2007 1 0 0 40 0 0 27.189 0.00 9.77 2008 1 0 0 34 0 0 22.617 0.00 9.77 2009 1 0 0 28 0 0 19.123 0.00 9.77 2010 1 0 0 24 0 0 16.391 0.00 9.77 2011 1 0 0 21 0 0 14.213 0.00 9.77 2012 1 0 0 10 0 0 6.888 0.00 9.77 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 206 0 0 139.760 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 206 0 0 139.760 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 206
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 325,727 0 325,727 0 9,772 315,955 2007 0 0 265,637 0 265,637 0 7,969 257,668 2008 0 0 220,968 0 220,968 0 6,629 214,339 2009 0 0 186,830 0 186,830 0 5,605 181,225 2010 0 0 160,137 0 160,137 0 4,804 155,333 2011 0 0 138,856 0 138,856 0 4,166 134,690 2012 0 0 67,295 0 67,295 0 2,018 65,277 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 1,365,450 0 1,365,450 0 40,963 1,324,487 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 1,365,450 0 1,365,450 0 40,963 1,324,487
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 7,200 0 20,000 0 27,200 288,755 288,755 166,834 2007 7,200 0 0 0 7,200 250,468 539,223 131,377 2008 7,200 0 0 0 7,200 207,139 746,362 98,337 2009 7,200 0 0 0 7,200 174,025 920,387 74,777 2010 7,200 0 0 0 7,200 148,133 1,068,520 57,612 2011 7,200 0 0 0 7,200 127,490 1,196,010 44,880 2012 3,870 0 0 0 3,870 61,407 1,257,417 19,998 2013 0 0 0 0 0 0 1,257,417 0 2014 0 0 0 0 0 0 1,257,417 0 2015 0 0 0 0 0 0 1,257,417 0 SUBTOT 47,070 0 20,000 0 67,070 1,257,417 593,815 REMAIN 0 0 0 0 0 0 1,257,417 0 TOTAL 47,070 0 20,000 0 67,070 1,257,417 593,815 LIFE OF EVALUATION IS 11.54 YEARS. FINAL PRODUCTION RATE: 1.5 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 183 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 6-T1S-R75E PROVED DARRELL SUTTON #1 (KNOX) SHUT-IN
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 759,401 FINAL - 1.000000 0.875000 9.77 10.00% - 711,752 REMARKS - CAPITAL INCLUDED TO PERFORATE REMAINDER OF KNOX PAY. 15.00% - 668,013 20.00% - 627,811 25.00% - 590,812
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 39 0 0 34.005 0.00 9.77 2002 1 0 0 41 0 0 36.318 0.00 9.77 2003 1 0 0 22 0 0 18.927 0.00 9.77 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 102 0 0 89.250 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 102 0 0 89.250 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 102
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 332,228 0 332,228 0 9,967 322,261 2002 0 0 354,831 0 354,831 0 10,645 344,186 2003 0 0 184,914 0 184,914 0 5,547 179,367 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 871,973 0 871,973 0 26,159 845,814 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 871,973 0 871,973 0 26,159 845,814
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 5,000 0 20,000 0 25,000 297,261 297,261 279,916 2002 6,000 0 0 0 6,000 338,186 635,447 291,682 2003 3,440 0 0 0 3,440 175,927 811,374 140,154 2004 0 0 0 0 0 0 811,374 0 2005 0 0 0 0 0 0 811,374 0 2006 0 0 0 0 0 0 811,374 0 2007 0 0 0 0 0 0 811,374 0 2008 0 0 0 0 0 0 811,374 0 2009 0 0 0 0 0 0 811,374 0 2010 0 0 0 0 0 0 811,374 0 2011 0 0 0 0 0 0 811,374 0 2012 0 0 0 0 0 0 811,374 0 2013 0 0 0 0 0 0 811,374 0 2014 0 0 0 0 0 0 811,374 0 2015 0 0 0 0 0 0 811,374 0 SUBTOT 14,440 0 20,000 0 34,440 811,374 711,752 REMAIN 0 0 0 0 0 0 811,374 0 TOTAL 14,440 0 20,000 0 34,440 811,374 711,752 LIFE OF EVALUATION IS 2.57 YEARS. FINAL PRODUCTION RATE: 3.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 184 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE OIL LEASE MILLER PETROLEUM - OPERATOR 6-T1S-R75E PROVED DEWEY SUTTON #1 (TRENTON) PRODUCING
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 24.10 5.00% - 1,484,243 FINAL - 1.000000 0.875000 24.10 10.00% - 1,292,196 REMARKS - 15.00% - 1,142,188 20.00% - 1,022,461 25.00% - 925,055
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 20,620 0 0 18,042 0 0.000 24.10 0.00 2002 1 16,116 0 0 14,102 0 0.000 24.10 0.00 2003 1 12,597 0 0 11,023 0 0.000 24.10 0.00 2004 1 9,846 0 0 8,615 0 0.000 24.10 0.00 2005 1 7,696 0 0 6,734 0 0.000 24.10 0.00 2006 1 6,015 0 0 5,263 0 0.000 24.10 0.00 2007 1 4,701 0 0 4,113 0 0.000 24.10 0.00 2008 1 3,675 0 0 3,216 0 0.000 24.10 0.00 2009 1 2,872 0 0 2,513 0 0.000 24.10 0.00 2010 1 2,245 0 0 1,964 0 0.000 24.10 0.00 2011 1 1,755 0 0 1,535 0 0.000 24.10 0.00 2012 1 1,371 0 0 1,200 0 0.000 24.10 0.00 2013 1 1,072 0 0 938 0 0.000 24.10 0.00 2014 1 838 0 0 734 0 0.000 24.10 0.00 2015 1 75 0 0 65 0 0.000 24.10 0.00 SUB-TOTAL 91,494 0 0 80,057 0 0.000 24.10 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 91,494 0 0 80,057 0 0.000 24.10 0.00 CUMULATIVE 6,006 0 0 ULTIMATE 97,500 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 434,821 0 0 0 434,821 13,045 0 421,776 2002 339,860 0 0 0 339,860 10,195 0 329,665 2003 265,638 0 0 0 265,638 7,970 0 257,668 2004 207,625 0 0 0 207,625 6,228 0 201,397 2005 162,282 0 0 0 162,282 4,869 0 157,413 2006 126,841 0 0 0 126,841 3,805 0 123,036 2007 99,141 0 0 0 99,141 2,974 0 96,167 2008 77,489 0 0 0 77,489 2,325 0 75,164 2009 60,566 0 0 0 60,566 1,817 0 58,749 2010 47,339 0 0 0 47,339 1,420 0 45,919 2011 37,001 0 0 0 37,001 1,110 0 35,891 2012 28,920 0 0 0 28,920 868 0 28,052 2013 22,605 0 0 0 22,605 678 0 21,927 2014 17,668 0 0 0 17,668 530 0 17,138 2015 1,584 0 0 0 1,584 47 0 1,537 SUB-TOT 1,929,380 0 0 0 1,929,380 57,881 0 1,871,499 REMAIN 0 0 0 0 0 0 0 0 TOTAL 1,929,380 0 0 0 1,929,380 57,881 0 1,871,499
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 9,600 0 0 0 9,600 412,176 412,176 393,131 2002 9,600 0 0 0 9,600 320,065 732,241 276,343 2003 9,600 0 0 0 9,600 248,068 980,309 193,883 2004 9,600 0 0 0 9,600 191,797 1,172,106 135,697 2005 9,600 0 0 0 9,600 147,813 1,319,919 94,669 2006 9,600 0 0 0 9,600 113,436 1,433,355 65,767 2007 9,600 0 0 0 9,600 86,567 1,519,922 45,435 2008 9,600 0 0 0 9,600 65,564 1,585,486 31,151 2009 9,600 0 0 0 9,600 49,149 1,634,635 21,141 2010 9,600 0 0 0 9,600 36,319 1,670,954 14,144 2011 9,600 0 0 0 9,600 26,291 1,697,245 9,270 2012 9,600 0 0 0 9,600 18,452 1,715,697 5,891 2013 9,600 0 0 0 9,600 12,327 1,728,024 3,564 2014 9,600 0 0 0 9,600 7,538 1,735,562 1,975 2015 989 0 0 0 989 548 1,736,110 135 SUBTOT 135,389 0 0 0 135,389 1,736,110 1,292,196 REMAIN 0 0 0 0 0 0 1,736,110 0 TOTAL 135,389 0 0 0 135,389 1,736,110 1,292,196 LIFE OF EVALUATION IS 14.10 YEARS. FINAL PRODUCTION RATE: 60 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 185 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E PROVED DORIS HELTON #1 (KNOX) SHUT-IN
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 12,270,843 FINAL - 1.000000 0.875000 9.77 10.00% - 10,360,880 REMARKS - CAPITAL INCLUDED TO PERFORATE REMAINDER OF KNOX PAY. 15.00% - 8,991,787 20.00% - 7,968,182 25.00% - 7,174,010
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 420 0 0 367.366 0.00 9.77 2002 1 0 0 308 0 0 269.813 0.00 9.77 2003 1 0 0 205 0 0 179.006 0.00 9.77 2004 1 0 0 143 0 0 124.988 0.00 9.77 2005 1 0 0 103 0 0 90.808 0.00 9.77 2006 1 0 0 93 0 0 80.724 0.00 9.77 2007 1 0 0 86 0 0 75.669 0.00 9.77 2008 1 0 0 77 0 0 67.433 0.00 9.77 2009 1 0 0 69 0 0 60.490 0.00 9.77 2010 1 0 0 63 0 0 54.583 0.00 9.77 2011 1 0 0 56 0 0 49.513 0.00 9.77 2012 1 0 0 52 0 0 45.128 0.00 9.77 2013 1 0 0 47 0 0 41.310 0.00 9.77 2014 1 0 0 43 0 0 37.963 0.00 9.77 2015 1 0 0 40 0 0 35.013 0.00 9.77 SUB-TOTAL 0 0 1,805 0 0 1,579.807 0.00 9.77 REMAINDER 0 0 26 0 0 22.690 0.00 9.77 TOTAL 0 0 1,831 0 0 1,602.497 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 1,831
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 3,589,169 0 3,589,169 0 107,675 3,481,494 2002 0 0 2,636,070 0 2,636,070 0 79,082 2,556,988 2003 0 0 1,748,893 0 1,748,893 0 52,467 1,696,426 2004 0 0 1,221,137 0 1,221,137 0 36,634 1,184,503 2005 0 0 887,195 0 887,195 0 26,616 860,579 2006 0 0 788,677 0 788,677 0 23,660 765,017 2007 0 0 739,283 0 739,283 0 22,179 717,104 2008 0 0 658,816 0 658,816 0 19,764 639,052 2009 0 0 590,992 0 590,992 0 17,730 573,262 2010 0 0 533,277 0 533,277 0 15,998 517,279 2011 0 0 483,742 0 483,742 0 14,513 469,229 2012 0 0 440,902 0 440,902 0 13,227 427,675 2013 0 0 403,595 0 403,595 0 12,107 391,488 2014 0 0 370,900 0 370,900 0 11,127 359,773 2015 0 0 342,082 0 342,082 0 10,263 331,819 SUB-TOT 0 0 15,434,730 0 15,434,730 0 463,042 14,971,688 REMAIN 0 0 221,677 0 221,677 0 6,650 215,027 TOTAL 0 0 15,656,407 0 15,656,407 0 469,692 15,186,715
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 5,000 0 20,000 0 25,000 3,456,494 3,456,494 3,277,659 2002 6,000 0 0 0 6,000 2,550,988 6,007,482 2,205,876 2003 6,000 0 0 0 6,000 1,690,426 7,697,908 1,322,561 2004 6,000 0 0 0 6,000 1,178,503 8,876,411 834,342 2005 6,000 0 0 0 6,000 854,579 9,730,990 547,512 2006 7,200 0 0 0 7,200 757,817 10,488,807 438,015 2007 7,200 0 0 0 7,200 709,904 11,198,711 372,122 2008 7,200 0 0 0 7,200 631,852 11,830,563 299,797 2009 7,200 0 0 0 7,200 566,062 12,396,625 243,111 2010 7,200 0 0 0 7,200 510,079 12,906,704 198,293 2011 7,200 0 0 0 7,200 462,029 13,368,733 162,582 2012 7,200 0 0 0 7,200 420,475 13,789,208 133,930 2013 7,200 0 0 0 7,200 384,288 14,173,496 110,798 2014 7,200 0 0 0 7,200 352,573 14,526,069 92,015 2015 7,200 0 0 0 7,200 324,619 14,850,688 76,688 SUBTOT 101,000 0 20,000 0 121,000 14,850,688 10,315,301 REMAIN 4,984 0 0 0 4,984 210,043 15,060,731 45,579 TOTAL 105,984 0 20,000 0 125,984 15,060,731 10,360,880 LIFE OF EVALUATION IS 15.69 YEARS. FINAL PRODUCTION RATE: 3.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 186 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E PROVED DORIS HELTON #1 (TRENTON-STONE RIVER) BEHIND PIPE
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 621,246 FINAL - 1.000000 0.875000 9.77 10.00% - 442,093 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2006. 15.00% - 316,162 20.00% - 227,192 25.00% - 164,019
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 1 0 0 33 0 0 29.122 0.00 9.77 2007 1 0 0 28 0 0 24.442 0.00 9.77 2008 1 0 0 24 0 0 20.819 0.00 9.77 2009 1 0 0 21 0 0 17.957 0.00 9.77 2010 1 0 0 6 0 0 5.660 0.00 9.77 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 112 0 0 98.000 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 112 0 0 98.000 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 112
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 284,526 0 284,526 0 8,536 275,990 2007 0 0 238,794 0 238,794 0 7,164 231,630 2008 0 0 203,406 0 203,406 0 6,102 197,304 2009 0 0 175,440 0 175,440 0 5,263 170,177 2010 0 0 55,294 0 55,294 0 1,659 53,635 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 957,460 0 957,460 0 28,724 928,736 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 957,460 0 957,460 0 28,724 928,736
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 7,200 0 20,000 0 27,200 248,790 248,790 143,632 2007 7,200 0 0 0 7,200 224,430 473,220 117,694 2008 7,200 0 0 0 7,200 190,104 663,324 90,234 2009 7,200 0 0 0 7,200 162,977 826,301 70,018 2010 2,494 0 0 0 2,494 51,141 877,442 20,515 2011 0 0 0 0 0 0 877,442 0 2012 0 0 0 0 0 0 877,442 0 2013 0 0 0 0 0 0 877,442 0 2014 0 0 0 0 0 0 877,442 0 2015 0 0 0 0 0 0 877,442 0 SUBTOT 31,294 0 20,000 0 51,294 877,442 442,093 REMAIN 0 0 0 0 0 0 877,442 0 TOTAL 31,294 0 20,000 0 51,294 877,442 442,093 LIFE OF EVALUATION IS 9.35 YEARS. FINAL PRODUCTION RATE: 1.5 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 187 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 6-T1S-R75E PROVED GARY PATTON #2 (KNOX) SHUT-IN
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.656250 9.77 5.00% - 4,724,131 FINAL - 1.000000 0.656250 9.77 10.00% - 4,250,549 REMARKS - CAPITAL INCLUDED TO PERFORATE REMAINDER OF KNOX PAY. 15.00% - 3,860,243 20.00% - 3,534,312 25.00% - 3,258,734
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 290 0 0 190.317 0.00 9.77 2002 1 0 0 191 0 0 125.633 0.00 9.77 2003 1 0 0 117 0 0 76.602 0.00 9.77 2004 1 0 0 77 0 0 50.224 0.00 9.77 2005 1 0 0 53 0 0 34.754 0.00 9.77 2006 1 0 0 45 0 0 30.013 0.00 9.77 2007 1 0 0 44 0 0 28.481 0.00 9.77 2008 1 0 0 39 0 0 25.736 0.00 9.77 2009 1 0 0 9 0 0 5.833 0.00 9.77 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 865 0 0 567.593 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 865 0 0 567.593 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 865
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 1,859,399 0 1,859,399 0 55,782 1,803,617 2002 0 0 1,227,437 0 1,227,437 0 36,823 1,190,614 2003 0 0 748,400 0 748,400 0 22,452 725,948 2004 0 0 490,693 0 490,693 0 14,721 475,972 2005 0 0 339,548 0 339,548 0 10,186 329,362 2006 0 0 293,228 0 293,228 0 8,797 284,431 2007 0 0 278,262 0 278,262 0 8,348 269,914 2008 0 0 251,438 0 251,438 0 7,543 243,895 2009 0 0 56,989 0 56,989 0 1,710 55,279 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 5,545,394 0 5,545,394 0 166,362 5,379,032 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 5,545,394 0 5,545,394 0 166,362 5,379,032
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 5,000 0 20,000 0 25,000 1,778,617 1,778,617 1,687,548 2002 6,000 0 0 0 6,000 1,184,614 2,963,231 1,025,178 2003 6,000 0 0 0 6,000 719,948 3,683,179 563,614 2004 6,000 0 0 0 6,000 469,972 4,153,151 332,882 2005 6,000 0 0 0 6,000 323,362 4,476,513 207,252 2006 7,200 0 0 0 7,200 277,231 4,753,744 160,234 2007 7,200 0 0 0 7,200 262,714 5,016,458 137,696 2008 7,200 0 0 0 7,200 236,695 5,253,153 112,295 2009 1,734 0 0 0 1,734 53,545 5,306,698 23,850 2010 0 0 0 0 0 0 5,306,698 0 2011 0 0 0 0 0 0 5,306,698 0 2012 0 0 0 0 0 0 5,306,698 0 2013 0 0 0 0 0 0 5,306,698 0 2014 0 0 0 0 0 0 5,306,698 0 2015 0 0 0 0 0 0 5,306,698 0 SUBTOT 52,334 0 20,000 0 72,334 5,306,698 4,250,549 REMAIN 0 0 0 0 0 0 5,306,698 0 TOTAL 52,334 0 20,000 0 72,334 5,306,698 4,250,549 LIFE OF EVALUATION IS 8.24 YEARS. FINAL PRODUCTION RATE: 3.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 188 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE OIL LEASE TENGASCO INC. - OPERATOR 6-T1S-R75E PROVED GARY PATTON #2 (KNOX) BEHIND PIPE
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.656250 0.656250 24.10 9.77 5.00% - 392,150 FINAL - 1.000000 0.656250 0.656250 24.10 9.77 10.00% - 235,603 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2009. 15.00% - 142,391 20.00% - 86,537 25.00% - 52,868
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 1 2,568 0 9 1,685 0 5.634 24.10 9.77 2010 1 7,532 0 25 4,943 0 16.524 24.10 9.77 2011 1 4,510 0 15 2,960 0 9.895 24.10 9.77 2012 1 2,701 0 9 1,772 0 5.925 24.10 9.77 2013 1 1,617 0 5 1,061 0 3.548 24.10 9.77 2014 1 968 0 4 636 0 2.125 24.10 9.77 2015 1 580 0 1 381 0 1.272 24.10 9.77 SUB-TOTAL 20,476 0 68 13,438 0 44.923 24.10 9.77 REMAINDER 164 0 1 107 0 0.359 24.10 9.77 TOTAL 20,640 0 69 13,545 0 45.282 24.10 9.77 CUMULATIVE 0 0 0 ULTIMATE 20,640 0 69
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 40,613 0 55,040 0 95,653 1,218 1,651 92,784 2010 119,119 0 161,436 0 280,555 3,574 4,843 272,138 2011 71,331 0 96,670 0 168,001 2,140 2,900 162,961 2012 42,715 0 57,889 0 100,604 1,281 1,737 97,586 2013 25,578 0 34,665 0 60,243 768 1,040 58,435 2014 15,317 0 20,757 0 36,074 459 623 34,992 2015 9,172 0 12,431 0 21,603 275 373 20,955 SUB-TOT 323,845 0 438,888 0 762,733 9,715 13,167 739,851 REMAIN 2,590 0 3,509 0 6,099 78 105 5,916 TOTAL 326,435 0 442,397 0 768,832 9,793 13,272 745,767
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 2,400 0 25,000 0 27,400 65,384 65,384 26,941 2010 9,600 0 0 0 9,600 262,538 327,922 102,421 2011 9,600 0 0 0 9,600 153,361 481,283 54,164 2012 9,600 0 0 0 9,600 87,986 569,269 28,135 2013 9,600 0 0 0 9,600 48,835 618,104 14,141 2014 9,600 0 0 0 9,600 25,392 643,496 6,661 2015 9,600 0 0 0 9,600 11,355 654,851 2,701 SUBTOT 60,000 0 25,000 0 85,000 654,851 235,164 REMAIN 3,925 0 0 0 3,925 1,991 656,842 439 TOTAL 63,925 0 25,000 0 88,925 656,842 235,603 LIFE OF EVALUATION IS 15.41 YEARS. FINAL PRODUCTION RATE: 31 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 189 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE OIL LEASE TENGASCO INC. - OPERATOR 6-T1S-R75E PROVED LAURA J. LAWSON #1 (MURFREESBORO) SHUT-IN
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 5.00% - 0 FINAL - 1.000000 10.00% - 0 REMARKS - NO RESERVES ASSIGNED PENDING ADDITIONAL DATA. 15.00% - 0 20.00% - 0 25.00% - 0
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 0 0 0 0.000 0.00 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 0 0 0 0.000 0.00 0.00 CUMULATIVE 0 0 0 ULTIMATE 0 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 0
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUBTOT 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 LIFE OF EVALUATION IS 0.00 YEARS. FINAL PRODUCTION RATE: 0 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 190 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 6-T1S-R75E PROVED LAURA J. LAWSON #1 (MURFREESBORO) BEHIND PIPE
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 75,192 FINAL - 1.000000 0.875000 9.77 10.00% - 55,309 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2006. 15.00% - 40,772 20.00% - 30,119 25.00% - 22,296
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 1 0 0 9 0 0 7.777 0.00 9.77 2007 1 0 0 6 0 0 5.050 0.00 9.77 2008 1 0 0 2 0 0 2.048 0.00 9.77 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 17 0 0 14.875 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 17 0 0 14.875 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 17
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 75,980 0 75,980 0 2,279 73,701 2007 0 0 49,341 0 49,341 0 1,481 47,860 2008 0 0 20,008 0 20,008 0 600 19,408 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 145,329 0 145,329 0 4,360 140,969 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 145,329 0 145,329 0 4,360 140,969
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 7,200 0 20,000 0 27,200 46,501 46,501 26,517 2007 7,200 0 0 0 7,200 40,660 87,161 21,381 2008 4,121 0 0 0 4,121 15,287 102,448 7,411 2009 0 0 0 0 0 0 102,448 0 2010 0 0 0 0 0 0 102,448 0 2011 0 0 0 0 0 0 102,448 0 2012 0 0 0 0 0 0 102,448 0 2013 0 0 0 0 0 0 102,448 0 2014 0 0 0 0 0 0 102,448 0 2015 0 0 0 0 0 0 102,448 0 SUBTOT 18,521 0 20,000 0 38,521 102,448 55,309 REMAIN 0 0 0 0 0 0 102,448 0 TOTAL 18,521 0 20,000 0 38,521 102,448 55,309 LIFE OF EVALUATION IS 7.57 YEARS. FINAL PRODUCTION RATE: 0.3 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 191 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 6-T1S-R75E PROVED LAURA J. LAWSON #2 (KNOX) SHUT-IN
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.656250 9.77 5.00% - 5,831,052 FINAL - 1.000000 0.656250 9.77 10.00% - 5,124,797 REMARKS - CAPITAL INCLUDED TO PERFORATE REMAINDER OF KNOX PAY. 15.00% - 4,565,344 20.00% - 4,114,013 25.00% - 3,743,611
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 299 0 0 196.344 0.00 9.77 2002 1 0 0 220 0 0 144.187 0.00 9.77 2003 1 0 0 146 0 0 95.660 0.00 9.77 2004 1 0 0 101 0 0 66.793 0.00 9.77 2005 1 0 0 74 0 0 48.527 0.00 9.77 2006 1 0 0 66 0 0 42.729 0.00 9.77 2007 1 0 0 58 0 0 38.616 0.00 9.77 2008 1 0 0 51 0 0 33.250 0.00 9.77 2009 1 0 0 44 0 0 28.945 0.00 9.77 2010 1 0 0 38 0 0 25.090 0.00 9.77 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 1,097 0 0 720.141 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 1,097 0 0 720.141 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 1,097
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 1,918,277 0 1,918,277 0 57,548 1,860,729 2002 0 0 1,408,710 0 1,408,710 0 42,262 1,366,448 2003 0 0 934,601 0 934,601 0 28,038 906,563 2004 0 0 652,568 0 652,568 0 19,577 632,991 2005 0 0 474,111 0 474,111 0 14,223 459,888 2006 0 0 417,458 0 417,458 0 12,524 404,934 2007 0 0 377,276 0 377,276 0 11,318 365,958 2008 0 0 324,857 0 324,857 0 9,746 315,111 2009 0 0 282,794 0 282,794 0 8,484 274,310 2010 0 0 245,134 0 245,134 0 7,354 237,780 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 7,035,786 0 7,035,786 0 211,074 6,824,712 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 7,035,786 0 7,035,786 0 211,074 6,824,712
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 5,000 0 20,000 0 25,000 1,835,729 1,835,729 1,740,401 2002 6,000 0 0 0 6,000 1,360,448 3,196,177 1,176,408 2003 6,000 0 0 0 6,000 900,563 4,096,740 704,592 2004 6,000 0 0 0 6,000 626,991 4,723,731 443,895 2005 6,000 0 0 0 6,000 453,888 5,177,619 290,802 2006 7,200 0 0 0 7,200 397,734 5,575,353 229,945 2007 7,200 0 0 0 7,200 358,758 5,934,111 188,116 2008 7,200 0 0 0 7,200 307,911 6,242,022 146,136 2009 7,200 0 0 0 7,200 267,110 6,509,132 114,747 2010 7,096 0 0 0 7,096 230,684 6,739,816 89,755 2011 0 0 0 0 0 0 6,739,816 0 2012 0 0 0 0 0 0 6,739,816 0 2013 0 0 0 0 0 0 6,739,816 0 2014 0 0 0 0 0 0 6,739,816 0 2015 0 0 0 0 0 0 6,739,816 0 SUBTOT 64,896 0 20,000 0 84,896 6,739,816 5,124,797 REMAIN 0 0 0 0 0 0 6,739,816 0 TOTAL 64,896 0 20,000 0 84,896 6,739,816 5,124,797 LIFE OF EVALUATION IS 9.99 YEARS. FINAL PRODUCTION RATE: 3.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 192 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 6-T1S-R75E PROVED LAURA J. LAWSON #2 (TRENTON-MURFREESBORO) BEHIND PIPE
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.656250 0.656250 24.10 9.77 5.00% - 814,188 FINAL - 1.000000 0.656250 0.656250 24.10 9.77 10.00% - 457,447 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2010. 15.00% - 259,275 20.00% - 148,167 25.00% - 85,328
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 1 2,038 0 34 1,338 0 22.294 24.10 9.77 2011 1 3,292 0 55 2,160 0 36.007 24.10 9.77 2012 1 2,468 0 41 1,619 0 26.985 24.10 9.77 2013 1 1,848 0 31 1,214 0 20.223 24.10 9.77 2014 1 1,386 0 23 909 0 15.156 24.10 9.77 2015 1 1,039 0 17 681 0 11.358 24.10 9.77 SUB-TOTAL 12,071 0 201 7,921 0 132.023 24.10 9.77 REMAINDER 829 0 14 545 0 9.071 24.10 9.77 TOTAL 12,900 0 215 8,466 0 141.094 24.10 9.77 CUMULATIVE 0 0 0 ULTIMATE 12,900 0 215
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 32,237 0 217,810 0 250,047 967 6,534 242,546 2011 52,066 0 351,789 0 403,855 1,562 10,554 391,739 2012 39,020 0 263,640 0 302,660 1,171 7,909 293,580 2013 29,242 0 197,579 0 226,821 877 5,928 220,016 2014 21,915 0 148,072 0 169,987 657 4,442 164,888 2015 16,424 0 110,968 0 127,392 493 3,329 123,570 SUB-TOT 190,904 0 1,289,858 0 1,480,762 5,727 38,696 1,436,339 REMAIN 13,118 0 88,628 0 101,746 394 2,659 98,693 TOTAL 204,022 0 1,378,486 0 1,582,508 6,121 41,355 1,535,032
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 3,600 0 25,000 0 28,600 213,946 213,946 80,890 2011 7,200 0 0 0 7,200 384,539 598,485 135,533 2012 7,200 0 0 0 7,200 286,380 884,865 91,371 2013 7,200 0 0 0 7,200 212,816 1,097,681 61,465 2014 7,200 0 0 0 7,200 157,688 1,255,369 41,228 2015 7,200 0 0 0 7,200 116,370 1,371,739 27,542 SUBTOT 39,600 0 25,000 0 64,600 1,371,739 438,029 REMAIN 7,755 0 0 0 7,755 90,938 1,462,677 19,418 TOTAL 47,355 0 25,000 0 72,355 1,462,677 457,447 LIFE OF EVALUATION IS 16.08 YEARS. FINAL PRODUCTION RATE: 0.9 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 193 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 10-T1S-R74E PROVED PAUL REED #1 (KNOX) SHUT-IN
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.750000 9.77 5.00% - 4,953,523 FINAL - 1.000000 0.750000 9.77 10.00% - 4,309,009 REMARKS - CAPITAL INCLUDED TO PERFORATE REMAINDER OF KNOX PAY. 15.00% - 3,803,637 20.00% - 3,400,177 25.00% - 3,072,493
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 203 0 0 152.431 0.00 9.77 2002 0 0 156 0 0 116.551 0.00 9.77 2003 0 0 106 0 0 79.940 0.00 9.77 2004 0 0 77 0 0 57.271 0.00 9.77 2005 0 0 56 0 0 42.470 0.00 9.77 2006 0 0 56 0 0 41.554 0.00 9.77 2007 0 0 50 0 0 37.742 0.00 9.77 2008 0 0 45 0 0 33.962 0.00 9.77 2009 0 0 41 0 0 30.731 0.00 9.77 2010 0 0 28 0 0 20.502 0.00 9.77 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 818 0 0 613.154 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 818 0 0 613.154 0.00 9.77 CUMULATIVE 0 0 48 ULTIMATE 0 0 866
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 1,489,247 0 1,489,247 0 44,677 1,444,570 2002 0 0 1,138,699 0 1,138,699 0 34,161 1,104,538 2003 0 0 781,017 0 781,017 0 23,431 757,586 2004 0 0 559,535 0 559,535 0 16,786 542,749 2005 0 0 414,932 0 414,932 0 12,448 402,484 2006 0 0 405,984 0 405,984 0 12,179 393,805 2007 0 0 368,741 0 368,741 0 11,063 357,678 2008 0 0 331,811 0 331,811 0 9,954 321,857 2009 0 0 300,242 0 300,242 0 9,007 291,235 2010 0 0 200,300 0 200,300 0 6,009 194,291 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 5,990,508 0 5,990,508 0 179,715 5,810,793 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 5,990,508 0 5,990,508 0 179,715 5,810,793
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 20,000 0 20,000 1,424,570 1,424,570 1,350,001 2002 0 0 0 0 0 1,104,538 2,529,108 954,808 2003 0 0 0 0 0 757,586 3,286,694 592,577 2004 0 0 0 0 0 542,749 3,829,443 384,172 2005 0 0 0 0 0 402,484 4,231,927 257,821 2006 0 0 0 0 0 393,805 4,625,732 227,872 2007 0 0 0 0 0 357,678 4,983,410 187,472 2008 0 0 0 0 0 321,857 5,305,267 152,699 2009 0 0 0 0 0 291,235 5,596,502 125,069 2010 0 0 0 0 0 194,291 5,790,793 76,518 2011 0 0 0 0 0 0 5,790,793 0 2012 0 0 0 0 0 0 5,790,793 0 2013 0 0 0 0 0 0 5,790,793 0 2014 0 0 0 0 0 0 5,790,793 0 2015 0 0 0 0 0 0 5,790,793 0 SUBTOT 0 0 20,000 0 20,000 5,790,793 4,309,009 REMAIN 0 0 0 0 0 0 5,790,793 0 TOTAL 0 0 20,000 0 20,000 5,790,793 4,309,009 LIFE OF EVALUATION IS 9.72 YEARS. FINAL PRODUCTION RATE: 3.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 194 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE OIL LEASE TENGASCO INC. - OPERATOR 10-T1S-R74E PROVED PAUL REED #2 (STONES RIVER) PRODUCING
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.750000 24.10 5.00% - 594,643 FINAL - 1.000000 0.750000 24.10 10.00% - 525,380 REMARKS - 15.00% - 469,593 20.00% - 423,959 25.00% - 386,098
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 10,708 0 0 8,031 0 0.000 24.10 0.00 2002 1 8,305 0 0 6,229 0 0.000 24.10 0.00 2003 1 6,443 0 0 4,832 0 0.000 24.10 0.00 2004 1 4,998 0 0 3,748 0 0.000 24.10 0.00 2005 1 3,877 0 0 2,908 0 0.000 24.10 0.00 2006 1 3,007 0 0 2,255 0 0.000 24.10 0.00 2007 1 2,332 0 0 1,750 0 0.000 24.10 0.00 2008 1 1,810 0 0 1,357 0 0.000 24.10 0.00 2009 1 1,403 0 0 1,053 0 0.000 24.10 0.00 2010 1 1,089 0 0 816 0 0.000 24.10 0.00 2011 1 845 0 0 634 0 0.000 24.10 0.00 2012 1 655 0 0 491 0 0.000 24.10 0.00 2013 1 94 0 0 70 0 0.000 24.10 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 45,566 0 0 34,174 0 0.000 24.10 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 45,566 0 0 34,174 0 0.000 24.10 0.00 CUMULATIVE 38,079 0 0 ULTIMATE 83,645 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 193,538 0 0 0 193,538 5,806 0 187,732 2002 150,128 0 0 0 150,128 4,504 0 145,624 2003 116,454 0 0 0 116,454 3,494 0 112,960 2004 90,333 0 0 0 90,333 2,710 0 87,623 2005 70,071 0 0 0 70,071 2,102 0 67,969 2006 54,355 0 0 0 54,355 1,630 0 52,725 2007 42,163 0 0 0 42,163 1,265 0 40,898 2008 32,705 0 0 0 32,705 981 0 31,724 2009 25,370 0 0 0 25,370 762 0 24,608 2010 19,679 0 0 0 19,679 590 0 19,089 2011 15,266 0 0 0 15,266 458 0 14,808 2012 11,841 0 0 0 11,841 355 0 11,486 2013 1,697 0 0 0 1,697 51 0 1,646 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 823,600 0 0 0 823,600 24,708 0 798,892 REMAIN 0 0 0 0 0 0 0 0 TOTAL 823,600 0 0 0 823,600 24,708 0 798,892
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 9,600 0 0 0 9,600 178,132 178,132 169,923 2002 9,600 0 0 0 9,600 136,024 314,156 117,460 2003 9,600 0 0 0 9,600 103,360 417,516 80,798 2004 9,600 0 0 0 9,600 78,023 495,539 55,213 2005 9,600 0 0 0 9,600 58,369 553,908 37,394 2006 9,600 0 0 0 9,600 43,125 597,033 25,011 2007 9,600 0 0 0 9,600 31,298 628,331 16,435 2008 9,600 0 0 0 9,600 22,124 650,455 10,519 2009 9,600 0 0 0 9,600 15,008 665,463 6,462 2010 9,600 0 0 0 9,600 9,489 674,952 3,701 2011 9,600 0 0 0 9,600 5,208 680,160 1,842 2012 9,600 0 0 0 9,600 1,886 682,046 608 2013 1,600 0 0 0 1,600 46 682,092 14 2014 0 0 0 0 0 0 682,092 0 2015 0 0 0 0 0 0 682,092 0 SUBTOT 116,800 0 0 0 116,800 682,092 525,380 REMAIN 0 0 0 0 0 0 682,092 0 TOTAL 116,800 0 0 0 116,800 682,092 525,380 LIFE OF EVALUATION IS 12.17 YEARS. FINAL PRODUCTION RATE: 46 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 195 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 10-T1S-R74E PROVED PAUL REED #2 (TRTN-SR) BEHIND PIPE
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.750000 9.77 5.00% - 474,619 FINAL - 1.000000 0.750000 9.77 10.00% - 335,918 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2006. 15.00% - 239,202 20.00% - 171,327 25.00% - 123,394
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 1 0 0 31 0 0 23.545 0.00 9.77 2007 1 0 0 24 0 0 17.805 0.00 9.77 2008 1 0 0 19 0 0 13.957 0.00 9.77 2009 1 0 0 15 0 0 11.249 0.00 9.77 2010 1 0 0 12 0 0 9.269 0.00 9.77 2011 1 0 0 2 0 0 1.425 0.00 9.77 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 103 0 0 77.250 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 103 0 0 77.250 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 103
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 230,032 0 230,032 0 6,901 223,131 2007 0 0 173,951 0 173,951 0 5,218 168,733 2008 0 0 136,364 0 136,364 0 4,091 132,273 2009 0 0 109,906 0 109,906 0 3,298 106,608 2010 0 0 90,558 0 90,558 0 2,716 87,842 2011 0 0 13,922 0 13,922 0 418 13,504 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 754,733 0 754,733 0 22,642 732,091 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 754,733 0 754,733 0 22,642 732,091
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 7,200 0 20,000 0 27,200 195,931 195,931 113,130 2007 7,200 0 0 0 7,200 161,533 357,464 84,779 2008 7,200 0 0 0 7,200 125,073 482,537 59,406 2009 7,200 0 0 0 7,200 99,408 581,945 42,733 2010 7,200 0 0 0 7,200 80,642 662,587 31,375 2011 1,231 0 0 0 1,231 12,273 674,860 4,495 2012 0 0 0 0 0 0 674,860 0 2013 0 0 0 0 0 0 674,860 0 2014 0 0 0 0 0 0 674,860 0 2015 0 0 0 0 0 0 674,860 0 SUBTOT 37,231 0 20,000 0 57,231 674,860 335,918 REMAIN 0 0 0 0 0 0 674,860 0 TOTAL 37,231 0 20,000 0 57,231 674,860 335,918 LIFE OF EVALUATION IS 10.17 YEARS. FINAL PRODUCTION RATE: 0.9 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 196 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 10-T1S-R74E PROVED PAUL REED #3 (KNOX) SHUT-IN
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.656250 9.77 5.00% - 3,549,296 FINAL - 1.000000 0.656250 9.77 10.00% - 3,171,220 REMARKS - CAPITAL INCLUDED TO PERFORATE REMAINDER OF KNOX PAY. 15.00% - 2,860,224 20.00% - 2,601,432 25.00% - 2,383,670
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 198 0 0 130.187 0.00 9.77 2002 1 0 0 137 0 0 89.540 0.00 9.77 2003 1 0 0 93 0 0 61.440 0.00 9.77 2004 1 0 0 68 0 0 44.032 0.00 9.77 2005 1 0 0 49 0 0 32.661 0.00 9.77 2006 1 0 0 42 0 0 27.449 0.00 9.77 2007 1 0 0 41 0 0 26.874 0.00 9.77 2008 1 0 0 29 0 0 18.678 0.00 9.77 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 657 0 0 430.861 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 657 0 0 430.861 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 657
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 1,271,929 0 1,271,929 0 38,158 1,233,771 2002 0 0 874,807 0 874,807 0 26,244 848,563 2003 0 0 600,274 0 600,274 0 18,008 582,266 2004 0 0 430,190 0 430,190 0 12,906 417,284 2005 0 0 319,100 0 319,100 0 9,573 309,527 2006 0 0 268,177 0 268,177 0 8,045 260,132 2007 0 0 262,559 0 262,559 0 7,877 254,682 2008 0 0 182,489 0 182,489 0 5,475 177,014 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 4,209,525 0 4,209,525 0 126,286 4,083,239 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 4,209,525 0 4,209,525 0 126,286 4,083,239
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 5,000 0 20,000 0 25,000 1,208,771 1,208,771 1,148,247 2002 6,000 0 0 0 6,000 842,563 2,051,334 728,360 2003 6,000 0 0 0 6,000 576,266 2,627,600 450,762 2004 6,000 0 0 0 6,000 411,284 3,038,884 291,128 2005 6,000 0 0 0 6,000 303,527 3,342,411 194,440 2006 7,200 0 0 0 7,200 252,932 3,595,343 146,222 2007 7,200 0 0 0 7,200 247,482 3,842,825 129,703 2008 5,429 0 0 0 5,429 171,585 4,014,410 82,358 2009 0 0 0 0 0 0 4,014,410 0 2010 0 0 0 0 0 0 4,014,410 0 2011 0 0 0 0 0 0 4,014,410 0 2012 0 0 0 0 0 0 4,014,410 0 2013 0 0 0 0 0 0 4,014,410 0 2014 0 0 0 0 0 0 4,014,410 0 2015 0 0 0 0 0 0 4,014,410 0 SUBTOT 48,829 0 20,000 0 68,829 4,014,410 3,171,220 REMAIN 0 0 0 0 0 0 4,014,410 0 TOTAL 48,829 0 20,000 0 68,829 4,014,410 3,171,220 LIFE OF EVALUATION IS 7.75 YEARS. FINAL PRODUCTION RATE: 3.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 197 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 10-T1S-R74E PROVED PAUL REED #3 (TRENTON) BEHIND PIPE
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.656250 9.77 5.00% - 78,948 FINAL - 1.000000 0.656250 9.77 10.00% - 59,112 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2006. 15.00% - 44,328 20.00% - 33,291 25.00% - 25,039
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 1 0 0 15 0 0 10.080 0.00 9.77 2007 1 0 0 7 0 0 4.358 0.00 9.77 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 22 0 0 14.438 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 22 0 0 14.438 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 22
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 98,480 0 98,480 0 2,954 95,526 2007 0 0 42,574 0 42,574 0 1,278 41,296 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 141,054 0 141,054 0 4,232 136,822 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 141,054 0 141,054 0 4,232 136,822
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 7,200 0 20,000 0 27,200 68,326 68,326 39,148 2007 4,018 0 0 0 4,018 37,278 105,604 19,964 2008 0 0 0 0 0 0 105,604 0 2009 0 0 0 0 0 0 105,604 0 2010 0 0 0 0 0 0 105,604 0 2011 0 0 0 0 0 0 105,604 0 2012 0 0 0 0 0 0 105,604 0 2013 0 0 0 0 0 0 105,604 0 2014 0 0 0 0 0 0 105,604 0 2015 0 0 0 0 0 0 105,604 0 SUBTOT 11,218 0 20,000 0 31,218 105,604 59,112 REMAIN 0 0 0 0 0 0 105,604 0 TOTAL 11,218 0 20,000 0 31,218 105,604 59,112 LIFE OF EVALUATION IS 6.56 YEARS. FINAL PRODUCTION RATE: 0.9 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 198 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 6-T1S-R75E PROVED PAUL REED #4 (KNOX) SHUT-IN
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 15,833,298 FINAL - 1.000000 0.875000 9.77 10.00% - 12,939,684 REMARKS - CAPITAL INCLUDED TO PERFORATE REMAINDER OF KNOX PAY. 15.00% - 10,948,917 20.00% - 9,506,928 25.00% - 8,415,999
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 422 0 0 369.019 0.00 9.77 2002 1 0 0 355 0 0 310.421 0.00 9.77 2003 1 0 0 264 0 0 231.158 0.00 9.77 2004 1 0 0 202 0 0 176.891 0.00 9.77 2005 1 0 0 158 0 0 138.463 0.00 9.77 2006 1 0 0 147 0 0 128.357 0.00 9.77 2007 1 0 0 133 0 0 116.737 0.00 9.77 2008 1 0 0 115 0 0 100.828 0.00 9.77 2009 1 0 0 101 0 0 88.007 0.00 9.77 2010 1 0 0 89 0 0 77.518 0.00 9.77 2011 1 0 0 78 0 0 68.824 0.00 9.77 2012 1 0 0 71 0 0 61.535 0.00 9.77 2013 1 0 0 63 0 0 55.362 0.00 9.77 2014 1 0 0 57 0 0 50.087 0.00 9.77 2015 1 0 0 52 0 0 45.543 0.00 9.77 SUB-TOTAL 0 0 2,307 0 0 2,018.750 0.00 9.77 REMAINDER 0 0 158 0 0 138.099 0.00 9.77 TOTAL 0 0 2,465 0 0 2,156.849 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 2,465
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 3,605,312 0 3,605,312 0 108,159 3,497,153 2002 0 0 3,032,810 0 3,032,810 0 90,985 2,941,825 2003 0 0 2,258,409 0 2,258,409 0 67,752 2,190,657 2004 0 0 1,728,226 0 1,728,226 0 51,847 1,676,379 2005 0 0 1,352,786 0 1,352,786 0 40,583 1,312,203 2006 0 0 1,254,048 0 1,254,048 0 37,622 1,216,426 2007 0 0 1,140,516 0 1,140,516 0 34,215 1,106,301 2008 0 0 985,090 0 985,090 0 29,553 955,537 2009 0 0 859,826 0 859,826 0 25,795 834,031 2010 0 0 757,348 0 757,348 0 22,720 734,628 2011 0 0 672,410 0 672,410 0 20,172 652,238 2012 0 0 601,200 0 601,200 0 18,036 583,164 2013 0 0 540,892 0 540,892 0 16,227 524,665 2014 0 0 489,353 0 489,353 0 14,681 474,672 2015 0 0 444,951 0 444,951 0 13,348 431,603 SUB-TOT 0 0 19,723,177 0 19,723,177 0 591,695 19,131,482 REMAIN 0 0 1,349,231 0 1,349,231 0 40,477 1,308,754 TOTAL 0 0 21,072,408 0 21,072,408 0 632,172 20,440,236
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 5,000 0 20,000 0 25,000 3,472,153 3,472,153 3,289,341 2002 6,000 0 0 0 6,000 2,935,825 6,407,978 2,535,959 2003 6,000 0 0 0 6,000 2,184,657 8,592,635 1,707,812 2004 6,000 0 0 0 6,000 1,670,379 10,263,014 1,181,776 2005 6,000 0 0 0 6,000 1,306,203 11,569,217 836,389 2006 7,200 0 0 0 7,200 1,209,226 12,778,443 699,007 2007 7,200 0 0 0 7,200 1,099,101 13,877,544 576,291 2008 7,200 0 0 0 7,200 948,337 14,825,881 450,067 2009 7,200 0 0 0 7,200 826,831 15,652,712 355,179 2010 7,200 0 0 0 7,200 727,428 16,380,140 282,841 2011 7,200 0 0 0 7,200 645,038 17,025,178 227,018 2012 7,200 0 0 0 7,200 575,964 17,601,142 183,484 2013 7,200 0 0 0 7,200 517,465 18,118,607 149,215 2014 7,200 0 0 0 7,200 467,472 18,586,079 122,017 2015 7,200 0 0 0 7,200 424,403 19,010,482 100,271 SUBTOT 101,000 0 20,000 0 121,000 19,010,482 12,696,667 REMAIN 26,696 0 0 0 26,696 1,282,058 20,292,540 243,017 TOTAL 127,696 0 20,000 0 147,696 20,292,540 12,939,684 LIFE OF EVALUATION IS 18.71 YEARS. FINAL PRODUCTION RATE: 3.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 199 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 6-T1S-R75E PROVED PAUL REED #4 (TRENTON) BEHIND PIPE
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 84,771 FINAL - 1.000000 0.875000 9.77 10.00% - 64,078 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2006. 15.00% - 48,502 20.00% - 36,763 25.00% - 27,902
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 1 0 0 15 0 0 12.845 0.00 9.77 2007 1 0 0 2 0 0 2.030 0.00 9.77 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 17 0 0 14.875 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 17 0 0 14.875 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 17
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 125,499 0 125,499 0 3,765 121,734 2007 0 0 19,830 0 19,830 0 595 19,235 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 145,329 0 145,329 0 4,360 140,969 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 145,329 0 145,329 0 4,360 140,969
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 7,200 0 20,000 0 27,200 94,534 94,534 54,404 2007 1,468 0 0 0 1,468 17,767 112,301 9,674 2008 0 0 0 0 0 0 112,301 0 2009 0 0 0 0 0 0 112,301 0 2010 0 0 0 0 0 0 112,301 0 2011 0 0 0 0 0 0 112,301 0 2012 0 0 0 0 0 0 112,301 0 2013 0 0 0 0 0 0 112,301 0 2014 0 0 0 0 0 0 112,301 0 2015 0 0 0 0 0 0 112,301 0 SUBTOT 8,668 0 20,000 0 28,668 112,301 64,078 REMAIN 0 0 0 0 0 0 112,301 0 TOTAL 8,668 0 20,000 0 28,668 112,301 64,078 LIFE OF EVALUATION IS 6.20 YEARS. FINAL PRODUCTION RATE: 0.9 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 200 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE OIL LEASE TENGASCO INC. - OPERATOR 10-T1S-R74E PROVED PAUL REED #5 (STONES RIVER) PRODUCING
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 24.10 5.00% - 2,257,954 FINAL - 1.000000 0.875000 24.10 10.00% - 1,918,675 REMARKS - 15.00% - 1,665,401 20.00% - 1,470,230 25.00% - 1,315,747
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 27,212 0 0 23,811 0 0.000 24.10 0.00 2002 1 22,110 0 0 19,346 0 0.000 24.10 0.00 2003 1 17,963 0 0 15,718 0 0.000 24.10 0.00 2004 1 14,595 0 0 12,770 0 0.000 24.10 0.00 2005 1 11,859 0 0 10,376 0 0.000 24.10 0.00 2006 1 9,634 0 0 8,430 0 0.000 24.10 0.00 2007 1 7,828 0 0 6,850 0 0.000 24.10 0.00 2008 1 6,360 0 0 5,565 0 0.000 24.10 0.00 2009 1 5,167 0 0 4,521 0 0.000 24.10 0.00 2010 1 4,199 0 0 3,674 0 0.000 24.10 0.00 2011 1 3,411 0 0 2,984 0 0.000 24.10 0.00 2012 1 2,771 0 0 2,425 0 0.000 24.10 0.00 2013 1 2,252 0 0 1,971 0 0.000 24.10 0.00 2014 1 1,829 0 0 1,601 0 0.000 24.10 0.00 2015 1 1,487 0 0 1,300 0 0.000 24.10 0.00 SUB-TOTAL 138,677 0 0 121,342 0 0.000 24.10 0.00 REMAINDER 4,199 0 0 3,675 0 0.000 24.10 0.00 TOTAL 142,876 0 0 125,017 0 0.000 24.10 0.00 CUMULATIVE 37,865 0 0 ULTIMATE 180,741 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 573,841 0 0 0 573,841 17,215 0 556,626 2002 466,234 0 0 0 466,234 13,987 0 452,247 2003 378,806 0 0 0 378,806 11,364 0 367,442 2004 307,772 0 0 0 307,772 9,234 0 298,538 2005 250,059 0 0 0 250,059 7,501 0 242,558 2006 203,167 0 0 0 203,167 6,095 0 197,072 2007 165,070 0 0 0 165,070 4,952 0 160,118 2008 134,116 0 0 0 134,116 4,024 0 130,092 2009 108,966 0 0 0 108,966 3,269 0 105,697 2010 88,533 0 0 0 88,533 2,656 0 85,877 2011 71,932 0 0 0 71,932 2,158 0 69,774 2012 58,443 0 0 0 58,443 1,753 0 56,690 2013 47,483 0 0 0 47,483 1,425 0 46,058 2014 38,580 0 0 0 38,580 1,157 0 37,423 2015 31,345 0 0 0 31,345 940 0 30,405 SUB-TOT 2,924,347 0 0 0 2,924,347 87,730 0 2,836,617 REMAIN 88,552 0 0 0 88,552 2,657 0 85,895 TOTAL 3,012,899 0 0 0 3,012,899 90,387 0 2,922,512
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 9,600 0 0 0 9,600 547,026 547,026 521,575 2002 9,600 0 0 0 9,600 442,647 989,673 382,049 2003 9,600 0 0 0 9,600 357,842 1,347,515 279,582 2004 9,600 0 0 0 9,600 288,938 1,636,453 204,350 2005 9,600 0 0 0 9,600 232,958 1,869,411 149,144 2006 9,600 0 0 0 9,600 187,472 2,056,883 108,649 2007 9,600 0 0 0 9,600 150,518 2,207,401 78,965 2008 9,600 0 0 0 9,600 120,492 2,327,893 57,222 2009 9,600 0 0 0 9,600 96,097 2,423,990 41,313 2010 9,600 0 0 0 9,600 76,277 2,500,267 29,685 2011 9,600 0 0 0 9,600 60,174 2,560,441 21,199 2012 9,600 0 0 0 9,600 47,090 2,607,531 15,019 2013 9,600 0 0 0 9,600 36,458 2,643,989 10,527 2014 9,600 0 0 0 9,600 27,823 2,671,812 7,273 2015 9,600 0 0 0 9,600 20,805 2,692,617 4,924 SUBTOT 144,000 0 0 0 144,000 2,692,617 1,911,476 REMAIN 48,800 0 0 0 48,800 37,095 2,729,712 7,199 TOTAL 192,800 0 0 0 192,800 2,729,712 1,918,675 LIFE OF EVALUATION IS 20.08 YEARS. FINAL PRODUCTION RATE: 39 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 201 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE OIL LEASE TENGASCO INC. - OPERATOR 6-T1S-R75E PROVED PAUL REED/HELTON UNIT #6 (STONES RIVER) PRODUCING
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.656250 24.10 5.00% - 1,014,958 FINAL - 1.000000 0.656250 24.10 10.00% - 889,847 REMARKS - 15.00% - 790,779 20.00% - 710,831 25.00% - 645,208
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 19,727 0 0 12,946 0 0.000 24.10 0.00 2002 1 15,302 0 0 10,042 0 0.000 24.10 0.00 2003 1 11,870 0 0 7,789 0 0.000 24.10 0.00 2004 1 9,207 0 0 6,043 0 0.000 24.10 0.00 2005 1 7,143 0 0 4,687 0 0.000 24.10 0.00 2006 1 5,540 0 0 3,636 0 0.000 24.10 0.00 2007 1 4,297 0 0 2,820 0 0.000 24.10 0.00 2008 1 3,334 0 0 2,188 0 0.000 24.10 0.00 2009 1 2,586 0 0 1,697 0 0.000 24.10 0.00 2010 1 2,006 0 0 1,316 0 0.000 24.10 0.00 2011 1 1,556 0 0 1,021 0 0.000 24.10 0.00 2012 1 1,207 0 0 792 0 0.000 24.10 0.00 2013 1 936 0 0 614 0 0.000 24.10 0.00 2014 1 726 0 0 477 0 0.000 24.10 0.00 2015 1 53 0 0 35 0 0.000 24.10 0.00 SUB-TOTAL 85,490 0 0 56,103 0 0.000 24.10 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 85,490 0 0 56,103 0 0.000 24.10 0.00 CUMULATIVE 8,416 0 0 ULTIMATE 93,906 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 311,993 0 0 0 311,993 9,360 0 302,633 2002 242,012 0 0 0 242,012 7,260 0 234,752 2003 187,729 0 0 0 187,729 5,632 0 182,097 2004 145,622 0 0 0 145,622 4,369 0 141,253 2005 112,959 0 0 0 112,959 3,388 0 109,571 2006 87,622 0 0 0 87,622 2,629 0 84,993 2007 67,968 0 0 0 67,968 2,039 0 65,929 2008 52,723 0 0 0 52,723 1,582 0 51,141 2009 40,897 0 0 0 40,897 1,227 0 39,670 2010 31,724 0 0 0 31,724 951 0 30,773 2011 24,609 0 0 0 24,609 739 0 23,870 2012 19,088 0 0 0 19,088 572 0 18,516 2013 14,808 0 0 0 14,808 445 0 14,363 2014 11,485 0 0 0 11,485 344 0 11,141 2015 832 0 0 0 832 25 0 807 SUB-TOT 1,352,071 0 0 0 1,352,071 40,562 0 1,311,509 REMAIN 0 0 0 0 0 0 0 0 TOTAL 1,352,071 0 0 0 1,352,071 40,562 0 1,311,509
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 9,600 0 0 0 9,600 293,033 293,033 279,516 2002 9,600 0 0 0 9,600 225,152 518,185 194,413 2003 9,600 0 0 0 9,600 172,497 690,682 134,833 2004 9,600 0 0 0 9,600 131,653 822,335 93,155 2005 9,600 0 0 0 9,600 99,971 922,306 64,036 2006 9,600 0 0 0 9,600 75,393 997,699 43,718 2007 9,600 0 0 0 9,600 56,329 1,054,028 29,570 2008 9,600 0 0 0 9,600 41,541 1,095,569 19,743 2009 9,600 0 0 0 9,600 30,070 1,125,639 12,938 2010 9,600 0 0 0 9,600 21,173 1,146,812 8,249 2011 9,600 0 0 0 9,600 14,270 1,161,082 5,035 2012 9,600 0 0 0 9,600 8,916 1,169,998 2,850 2013 9,600 0 0 0 9,600 4,763 1,174,761 1,381 2014 9,600 0 0 0 9,600 1,541 1,176,302 408 2015 800 0 0 0 800 7 1,176,309 2 SUBTOT 135,200 0 0 0 135,200 1,176,309 889,847 REMAIN 0 0 0 0 0 0 1,176,309 0 TOTAL 135,200 0 0 0 135,200 1,176,309 889,847 LIFE OF EVALUATION IS 14.08 YEARS. FINAL PRODUCTION RATE: 53 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 202 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E PROVED PURKEY #1 (KNOX) SHUT-IN
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 0.500000 0.437500 9.77 5.00% - 8,561,338 FINAL - 0.500000 0.437500 9.77 10.00% - 7,194,694 REMARKS - CAPITAL INCLUDED TO PERFORATE REMAINDER OF KNOX PAY. 15.00% - 6,232,751 WELL REPLACES LOCATION #3. RESERVES REDUCED DUE TO LESS PAY THAN ANTICIPATED. 20.00% - 5,520,544 25.00% - 4,970,347
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 579 0 0 253.174 0.00 9.77 2002 1 0 0 430 0 0 188.141 0.00 9.77 2003 1 0 0 285 0 0 124.826 0.00 9.77 2004 1 0 0 199 0 0 87.160 0.00 9.77 2005 1 0 0 145 0 0 63.326 0.00 9.77 2006 1 0 0 128 0 0 55.988 0.00 9.77 2007 1 0 0 117 0 0 51.377 0.00 9.77 2008 1 0 0 103 0 0 44.878 0.00 9.77 2009 1 0 0 90 0 0 39.555 0.00 9.77 2010 1 0 0 81 0 0 35.139 0.00 9.77 2011 1 0 0 72 0 0 31.434 0.00 9.77 2012 1 0 0 64 0 0 28.294 0.00 9.77 2013 1 0 0 59 0 0 25.608 0.00 9.77 2014 1 0 0 53 0 0 23.293 0.00 9.77 2015 1 0 0 49 0 0 21.283 0.00 9.77 SUB-TOTAL 0 0 2,454 0 0 1,073.476 0.00 9.77 REMAINDER 0 0 124 0 0 54.467 0.00 9.77 TOTAL 0 0 2,578 0 0 1,127.943 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 2,578
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 2,473,506 0 2,473,506 0 74,205 2,399,301 2002 0 0 1,838,136 0 1,838,136 0 55,144 1,782,992 2003 0 0 1,219,549 0 1,219,549 0 36,587 1,182,962 2004 0 0 851,552 0 851,552 0 25,546 826,006 2005 0 0 618,695 0 618,695 0 18,561 600,134 2006 0 0 547,003 0 547,003 0 16,410 530,593 2007 0 0 501,950 0 501,950 0 15,059 486,891 2008 0 0 438,455 0 438,455 0 13,153 425,302 2009 0 0 386,453 0 386,453 0 11,594 374,859 2010 0 0 343,310 0 343,310 0 10,299 333,011 2011 0 0 307,112 0 307,112 0 9,214 297,898 2012 0 0 276,430 0 276,430 0 8,293 268,137 2013 0 0 250,194 0 250,194 0 7,505 242,689 2014 0 0 227,578 0 227,578 0 6,828 220,750 2015 0 0 207,938 0 207,938 0 6,238 201,700 SUB-TOT 0 0 10,487,861 0 10,487,861 0 314,636 10,173,225 REMAIN 0 0 532,143 0 532,143 0 15,964 516,179 TOTAL 0 0 11,020,004 0 11,020,004 0 330,600 10,689,404
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 2,500 0 10,000 0 12,500 2,386,801 2,386,801 2,262,580 2002 3,000 0 0 0 3,000 1,779,992 4,166,793 1,539,180 2003 3,000 0 0 0 3,000 1,179,962 5,346,755 923,179 2004 3,000 0 0 0 3,000 823,006 6,169,761 582,660 2005 3,000 0 0 0 3,000 597,134 6,766,895 382,570 2006 3,600 0 0 0 3,600 526,993 7,293,888 304,646 2007 3,600 0 0 0 3,600 483,291 7,777,179 253,378 2008 3,600 0 0 0 3,600 421,702 8,198,881 200,117 2009 3,600 0 0 0 3,600 371,259 8,570,140 159,469 2010 3,600 0 0 0 3,600 329,411 8,899,551 128,074 2011 3,600 0 0 0 3,600 294,298 9,193,849 103,570 2012 3,600 0 0 0 3,600 264,537 9,458,386 84,269 2013 3,600 0 0 0 3,600 239,089 9,697,475 68,940 2014 3,600 0 0 0 3,600 217,150 9,914,625 56,677 2015 3,600 0 0 0 3,600 198,100 10,112,725 46,802 SUBTOT 50,500 0 10,000 0 60,500 10,112,725 7,096,111 REMAIN 10,877 0 0 0 10,877 505,302 10,618,027 98,583 TOTAL 61,377 0 10,000 0 71,377 10,618,027 7,194,694 LIFE OF EVALUATION IS 18.02 YEARS. FINAL PRODUCTION RATE: 3.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 203 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 10-T1S-R74E PROVED RAY DEAN HELTON #1 (KNOX) SHUT-IN
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 3,666,096 FINAL - 1.000000 0.875000 9.77 10.00% - 3,560,528 REMARKS - CAPITAL INCLUDED TO PERFORATE REMAINDER OF KNOX PAY. 15.00% - 3,459,513 20.00% - 3,362,798 25.00% - 3,270,145
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 389 0 0 340.739 0.00 9.77 2002 1 0 0 70 0 0 60.886 0.00 9.77 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 459 0 0 401.625 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 459 0 0 401.625 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 459
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 3,329,025 0 3,329,025 0 99,871 3,229,154 2002 0 0 594,851 0 594,851 0 17,845 577,006 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 3,923,876 0 3,923,876 0 117,716 3,806,160 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 3,923,876 0 3,923,876 0 117,716 3,806,160
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 5,000 0 20,000 0 25,000 3,204,154 3,204,154 3,057,148 2002 4,671 0 0 0 4,671 572,335 3,776,489 503,380 2003 0 0 0 0 0 0 3,776,489 0 2004 0 0 0 0 0 0 3,776,489 0 2005 0 0 0 0 0 0 3,776,489 0 2006 0 0 0 0 0 0 3,776,489 0 2007 0 0 0 0 0 0 3,776,489 0 2008 0 0 0 0 0 0 3,776,489 0 2009 0 0 0 0 0 0 3,776,489 0 2010 0 0 0 0 0 0 3,776,489 0 2011 0 0 0 0 0 0 3,776,489 0 2012 0 0 0 0 0 0 3,776,489 0 2013 0 0 0 0 0 0 3,776,489 0 2014 0 0 0 0 0 0 3,776,489 0 2015 0 0 0 0 0 0 3,776,489 0 SUBTOT 9,671 0 20,000 0 29,671 3,776,489 3,560,528 REMAIN 0 0 0 0 0 0 3,776,489 0 TOTAL 9,671 0 20,000 0 29,671 3,776,489 3,560,528 LIFE OF EVALUATION IS 1.78 YEARS. FINAL PRODUCTION RATE: 3.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 204 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 10-T1S-R74E PROVED RAY DEAN HELTON #1 (TRENTON-STONES RIVER) BEHIND PIPE
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 850,809 FINAL - 1.000000 0.875000 9.77 10.00% - 743,944 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2001. 15.00% - 657,391 20.00% - 586,372 25.00% - 527,378
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 27 0 0 23.968 0.00 9.77 2002 1 0 0 26 0 0 22.796 0.00 9.77 2003 1 0 0 21 0 0 17.674 0.00 9.77 2004 1 0 0 15 0 0 13.702 0.00 9.77 2005 1 0 0 12 0 0 10.623 0.00 9.77 2006 1 0 0 10 0 0 8.236 0.00 9.77 2007 1 0 0 7 0 0 6.385 0.00 9.77 2008 1 0 0 6 0 0 4.951 0.00 9.77 2009 1 0 0 4 0 0 3.838 0.00 9.77 2010 1 0 0 1 0 0 0.701 0.00 9.77 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 129 0 0 112.874 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 129 0 0 112.874 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 129
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 234,172 0 234,172 0 7,025 227,147 2002 0 0 222,716 0 222,716 0 6,682 216,034 2003 0 0 172,671 0 172,671 0 5,180 167,491 2004 0 0 133,870 0 133,870 0 4,016 129,854 2005 0 0 103,790 0 103,790 0 3,114 100,676 2006 0 0 80,467 0 80,467 0 2,414 78,053 2007 0 0 62,386 0 62,386 0 1,871 60,515 2008 0 0 48,367 0 48,367 0 1,451 46,916 2009 0 0 37,499 0 37,499 0 1,125 36,374 2010 0 0 6,851 0 6,851 0 206 6,645 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 1,102,789 0 1,102,789 0 33,084 1,069,705 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 1,102,789 0 1,102,789 0 33,084 1,069,705
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 6,000 0 20,000 0 26,000 201,147 201,147 189,119 2002 7,200 0 0 0 7,200 208,834 409,981 180,321 2003 7,200 0 0 0 7,200 160,291 570,272 125,289 2004 7,200 0 0 0 7,200 122,654 692,926 86,786 2005 7,200 0 0 0 7,200 93,476 786,402 59,874 2006 7,200 0 0 0 7,200 70,853 857,255 41,083 2007 7,200 0 0 0 7,200 53,315 910,570 27,986 2008 7,200 0 0 0 7,200 39,716 950,286 18,873 2009 7,200 0 0 0 7,200 29,174 979,460 12,551 2010 1,539 0 0 0 1,539 5,106 984,566 2,062 2011 0 0 0 0 0 0 984,566 0 2012 0 0 0 0 0 0 984,566 0 2013 0 0 0 0 0 0 984,566 0 2014 0 0 0 0 0 0 984,566 0 2015 0 0 0 0 0 0 984,566 0 SUBTOT 65,139 0 20,000 0 85,139 984,566 743,944 REMAIN 0 0 0 0 0 0 984,566 0 TOTAL 65,139 0 20,000 0 85,139 984,566 743,944 LIFE OF EVALUATION IS 9.21 YEARS. FINAL PRODUCTION RATE: 0.3 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 205 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE OIL LEASE TENGASCO INC. - OPERATOR 6-T1S-R75E PROVED STEPHEN LAWSON #1 (TRENTON) PRODUCING
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 0.500000 0.437500 24.10 5.00% - 6,557 FINAL - 0.500000 0.437500 24.10 10.00% - 6,196 REMARKS - 15.00% - 5,866 20.00% - 5,565 25.00% - 5,289
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 802 0 0 351 0 0.000 24.10 0.00 2002 1 682 0 0 298 0 0.000 24.10 0.00 2003 1 579 0 0 254 0 0.000 24.10 0.00 2004 1 377 0 0 164 0 0.000 24.10 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 2,440 0 0 1,067 0 0.000 24.10 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 2,440 0 0 1,067 0 0.000 24.10 0.00 CUMULATIVE 3,367 0 0 ULTIMATE 5,807 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 8,456 0 0 0 8,456 254 0 8,202 2002 7,188 0 0 0 7,188 215 0 6,973 2003 6,109 0 0 0 6,109 184 0 5,925 2004 3,973 0 0 0 3,973 119 0 3,854 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 25,726 0 0 0 25,726 772 0 24,954 REMAIN 0 0 0 0 0 0 0 0 TOTAL 25,726 0 0 0 25,726 772 0 24,954
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 4,800 0 0 0 4,800 3,402 3,402 3,249 2002 4,800 0 0 0 4,800 2,173 5,575 1,880 2003 4,800 0 0 0 4,800 1,125 6,700 883 2004 3,600 0 0 0 3,600 254 6,954 184 2005 0 0 0 0 0 0 6,954 0 2006 0 0 0 0 0 0 6,954 0 2007 0 0 0 0 0 0 6,954 0 2008 0 0 0 0 0 0 6,954 0 2009 0 0 0 0 0 0 6,954 0 2010 0 0 0 0 0 0 6,954 0 2011 0 0 0 0 0 0 6,954 0 2012 0 0 0 0 0 0 6,954 0 2013 0 0 0 0 0 0 6,954 0 2014 0 0 0 0 0 0 6,954 0 2015 0 0 0 0 0 0 6,954 0 SUBTOT 18,000 0 0 0 18,000 6,954 6,196 REMAIN 0 0 0 0 0 0 6,954 0 TOTAL 18,000 0 0 0 18,000 6,954 6,196 LIFE OF EVALUATION IS 3.75 YEARS. FINAL PRODUCTION RATE: 40 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 206 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 6-T1S-R75E PROVED STEPHEN LAWSON #2 (KNOX) SHUT-IN
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.656250 9.77 5.00% - 730,992 FINAL - 1.000000 0.656250 9.77 10.00% - 698,952 REMARKS - CAPITAL INCLUDED TO PERFORATE REMAINDER OF KNOX PAY. 15.00% - 668,838 20.00% - 640,510 25.00% - 613,842
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 77 0 0 50.621 0.00 9.77 2002 1 0 0 51 0 0 33.379 0.00 9.77 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 128 0 0 84.000 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 128 0 0 84.000 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 128
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 494,568 0 494,568 0 14,837 479,731 2002 0 0 326,112 0 326,112 0 9,783 316,329 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 820,680 0 820,680 0 24,620 796,060 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 820,680 0 820,680 0 24,620 796,060
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 5,000 0 20,000 0 25,000 454,731 454,731 429,992 2002 5,949 0 0 0 5,949 310,380 765,111 268,960 2003 0 0 0 0 0 0 765,111 0 2004 0 0 0 0 0 0 765,111 0 2005 0 0 0 0 0 0 765,111 0 2006 0 0 0 0 0 0 765,111 0 2007 0 0 0 0 0 0 765,111 0 2008 0 0 0 0 0 0 765,111 0 2009 0 0 0 0 0 0 765,111 0 2010 0 0 0 0 0 0 765,111 0 2011 0 0 0 0 0 0 765,111 0 2012 0 0 0 0 0 0 765,111 0 2013 0 0 0 0 0 0 765,111 0 2014 0 0 0 0 0 0 765,111 0 2015 0 0 0 0 0 0 765,111 0 SUBTOT 10,949 0 20,000 0 30,949 765,111 698,952 REMAIN 0 0 0 0 0 0 765,111 0 TOTAL 10,949 0 20,000 0 30,949 765,111 698,952 LIFE OF EVALUATION IS 1.99 YEARS. FINAL PRODUCTION RATE: 3.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 207 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 6-T1S-R75E PROVED STEPHEN LAWSON #3 (KNOX) SHUT-IN
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.765624 9.77 5.00% - 5,124,103 FINAL - 1.000000 0.765624 9.77 10.00% - 4,553,857 REMARKS - CAPITAL INCLUDED TO PERFORATE REMAINDER OF KNOX PAY. 15.00% - 4,089,850 20.00% - 3,707,236 25.00% - 3,387,696
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 236 0 0 180.342 0.00 9.77 2002 1 0 0 170 0 0 130.814 0.00 9.77 2003 1 0 0 114 0 0 86.780 0.00 9.77 2004 1 0 0 79 0 0 60.588 0.00 9.77 2005 1 0 0 57 0 0 44.017 0.00 9.77 2006 1 0 0 54 0 0 40.886 0.00 9.77 2007 1 0 0 49 0 0 37.410 0.00 9.77 2008 1 0 0 41 0 0 31.852 0.00 9.77 2009 1 0 0 14 0 0 10.708 0.00 9.77 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 814 0 0 623.397 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 814 0 0 623.397 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 814
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 1,761,938 0 1,761,938 0 52,858 1,709,080 2002 0 0 1,278,056 0 1,278,056 0 38,342 1,239,714 2003 0 0 847,842 0 847,842 0 25,435 822,407 2004 0 0 591,948 0 591,948 0 17,759 574,189 2005 0 0 430,045 0 430,045 0 12,901 417,144 2006 0 0 399,452 0 399,452 0 11,983 387,469 2007 0 0 365,498 0 365,498 0 10,965 354,533 2008 0 0 311,193 0 311,193 0 9,336 301,857 2009 0 0 104,613 0 104,613 0 3,139 101,474 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 6,090,585 0 6,090,585 0 182,718 5,907,867 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 6,090,585 0 6,090,585 0 182,718 5,907,867
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 5,000 0 20,000 0 25,000 1,684,080 1,684,080 1,597,208 2002 6,000 0 0 0 6,000 1,233,714 2,917,794 1,066,820 2003 6,000 0 0 0 6,000 816,407 3,734,201 638,751 2004 6,000 0 0 0 6,000 568,189 4,302,390 402,267 2005 6,000 0 0 0 6,000 411,144 4,713,534 263,416 2006 7,200 0 0 0 7,200 380,269 5,093,803 219,677 2007 7,200 0 0 0 7,200 347,333 5,441,136 182,144 2008 7,200 0 0 0 7,200 294,657 5,735,793 139,858 2009 2,686 0 0 0 2,686 98,788 5,834,581 43,716 2010 0 0 0 0 0 0 5,834,581 0 2011 0 0 0 0 0 0 5,834,581 0 2012 0 0 0 0 0 0 5,834,581 0 2013 0 0 0 0 0 0 5,834,581 0 2014 0 0 0 0 0 0 5,834,581 0 2015 0 0 0 0 0 0 5,834,581 0 SUBTOT 53,286 0 20,000 0 73,286 5,834,581 4,553,857 REMAIN 0 0 0 0 0 0 5,834,581 0 TOTAL 53,286 0 20,000 0 73,286 5,834,581 4,553,857 LIFE OF EVALUATION IS 8.37 YEARS. FINAL PRODUCTION RATE: 3.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 208 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE OIL LEASE TENGASCO INC. - OPERATOR 6-T1S-R75E PROVED STEPHEN LAWSON #3 (TRNT-SR-MFB) BEHIND PIPE
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.765624 0.765624 24.10 9.77 5.00% - 475,946 FINAL - 1.000000 0.765624 0.765624 24.10 9.77 10.00% - 288,955 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2010. 15.00% - 176,111 20.00% - 107,738 25.00% - 66,148
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 1 22,310 0 15 17,081 0 11.476 24.10 9.77 2011 1 9,731 0 7 7,450 0 5.005 24.10 9.77 2012 1 4,244 0 2 3,250 0 2.183 24.10 9.77 2013 1 1,851 0 2 1,417 0 0.952 24.10 9.77 2014 1 564 0 0 432 0 0.290 24.10 9.77 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 38,700 0 26 29,630 0 19.906 24.10 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 38,700 0 26 29,630 0 19.906 24.10 9.77 CUMULATIVE 0 0 0 ULTIMATE 38,700 0 26
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 411,658 0 112,118 0 523,776 12,350 3,364 508,062 2011 179,544 0 48,901 0 228,445 5,386 1,467 221,592 2012 78,309 0 21,327 0 99,636 2,349 639 96,648 2013 34,154 0 9,303 0 43,457 1,025 279 42,153 2014 10,410 0 2,835 0 13,245 312 86 12,847 2015 0 0 0 0 0 0 0 0 SUB-TOT 714,075 0 194,484 0 908,559 21,422 5,835 881,302 REMAIN 0 0 0 0 0 0 0 0 TOTAL 714,075 0 194,484 0 908,559 21,422 5,835 881,302
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 9,600 0 50,000 0 59,600 448,462 448,462 174,631 2011 9,600 0 0 0 9,600 211,992 660,454 75,066 2012 9,600 0 0 0 9,600 87,048 747,502 27,913 2013 9,600 0 0 0 9,600 32,553 780,055 9,462 2014 5,795 0 0 0 5,795 7,052 787,107 1,883 2015 0 0 0 0 0 0 787,107 0 SUBTOT 44,195 0 50,000 0 94,195 787,107 288,955 REMAIN 0 0 0 0 0 0 787,107 0 TOTAL 44,195 0 50,000 0 94,195 787,107 288,955 LIFE OF EVALUATION IS 13.60 YEARS. FINAL PRODUCTION RATE: 61 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 209 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR PROVED STEPHEN LAWSON #4 (KNOX) SHUT-IN
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.656250 9.77 5.00% - 3,557,670 FINAL - 1.000000 0.656250 9.77 10.00% - 3,145,504 REMARKS - CAPITAL INCLUDED TO PERFORATE REMAINDER OF KNOX PAY. 15.00% - 2,805,907 WELL REPLACES LOCATION #22. RESERVES INCREASED DUE TO MORE PAY 20.00% - 2,523,368 THAN ANTICIPATED. 25.00% - 2,286,069
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 158 0 0 103.889 0.00 9.77 2002 1 0 0 139 0 0 90.776 0.00 9.77 2003 1 0 0 105 0 0 69.246 0.00 9.77 2004 1 0 0 83 0 0 54.060 0.00 9.77 2005 1 0 0 65 0 0 43.035 0.00 9.77 2006 1 0 0 53 0 0 34.833 0.00 9.77 2007 1 0 0 44 0 0 28.603 0.00 9.77 2008 1 0 0 17 0 0 11.308 0.00 9.77 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 664 0 0 435.750 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 664 0 0 435.750 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 664
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 1,014,991 0 1,014,991 0 30,450 984,541 2002 0 0 886,884 0 886,884 0 26,606 860,278 2003 0 0 676,535 0 676,535 0 20,296 656,239 2004 0 0 528,165 0 528,165 0 15,845 512,320 2005 0 0 420,450 0 420,450 0 12,614 407,836 2006 0 0 340,320 0 340,320 0 10,209 330,111 2007 0 0 279,449 0 279,449 0 8,384 271,065 2008 0 0 110,484 0 110,484 0 3,314 107,170 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 4,257,278 0 4,257,278 0 127,718 4,129,560 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 4,257,278 0 4,257,278 0 127,718 4,129,560
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 5,000 0 20,000 0 25,000 959,541 959,541 907,930 2002 6,000 0 0 0 6,000 854,278 1,813,819 737,772 2003 6,000 0 0 0 6,000 650,239 2,464,058 508,228 2004 6,000 0 0 0 6,000 506,320 2,970,378 358,168 2005 6,000 0 0 0 6,000 401,836 3,372,214 257,276 2006 7,200 0 0 0 7,200 322,911 3,695,125 187,125 2007 7,200 0 0 0 7,200 263,865 3,958,990 138,401 2008 3,264 0 0 0 3,264 103,906 4,062,896 50,604 2009 0 0 0 0 0 0 4,062,896 0 2010 0 0 0 0 0 0 4,062,896 0 2011 0 0 0 0 0 0 4,062,896 0 2012 0 0 0 0 0 0 4,062,896 0 2013 0 0 0 0 0 0 4,062,896 0 2014 0 0 0 0 0 0 4,062,896 0 2015 0 0 0 0 0 0 4,062,896 0 SUBTOT 46,664 0 20,000 0 66,664 4,062,896 3,145,504 REMAIN 0 0 0 0 0 0 4,062,896 0 TOTAL 46,664 0 20,000 0 66,664 4,062,896 3,145,504 LIFE OF EVALUATION IS 7.45 YEARS. FINAL PRODUCTION RATE: 3.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 210 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE OIL LEASE TENGASCO INC. - OPERATOR PROVED STEPHEN LAWSON #4 (STONES RIVER) BEHIND PIPE
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.656250 0.656250 24.10 9.77 5.00% - 128,402 FINAL - 1.000000 0.656250 0.656250 24.10 9.77 10.00% - 85,430 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2008. 15.00% - 57,005 20.00% - 38,146 25.00% - 25,597
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 1 6,139 0 4 4,029 0 2.707 24.10 9.77 2009 1 4,058 0 3 2,663 0 1.789 24.10 9.77 2010 1 1,795 0 1 1,178 0 0.791 24.10 9.77 2011 1 793 0 1 520 0 0.350 24.10 9.77 2012 1 42 0 0 28 0 0.018 24.10 9.77 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 12,827 0 9 8,418 0 5.655 24.10 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 12,827 0 9 8,418 0 5.655 24.10 9.77 CUMULATIVE 0 0 0 ULTIMATE 12,827 0 9
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 97,099 0 26,446 0 123,545 2,913 793 119,839 2009 64,174 0 17,478 0 81,652 1,925 525 79,202 2010 28,383 0 7,730 0 36,113 852 232 35,029 2011 12,553 0 3,419 0 15,972 376 102 15,494 2012 654 0 178 0 832 20 6 806 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 202,863 0 55,251 0 258,114 6,086 1,658 250,370 REMAIN 0 0 0 0 0 0 0 0 TOTAL 202,863 0 55,251 0 258,114 6,086 1,658 250,370
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 7,200 0 20,000 0 27,200 92,639 92,639 43,259 2009 9,600 0 0 0 9,600 69,602 162,241 30,092 2010 9,600 0 0 0 9,600 25,429 187,670 9,968 2011 9,600 0 0 0 9,600 5,894 193,564 2,109 2012 800 0 0 0 800 6 193,570 2 2013 0 0 0 0 0 0 193,570 0 2014 0 0 0 0 0 0 193,570 0 2015 0 0 0 0 0 0 193,570 0 SUBTOT 36,800 0 20,000 0 56,800 193,570 85,430 REMAIN 0 0 0 0 0 0 193,570 0 TOTAL 36,800 0 20,000 0 56,800 193,570 85,430 LIFE OF EVALUATION IS 11.08 YEARS. FINAL PRODUCTION RATE: 41 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 211 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE OIL LEASE TENGASCO INC. - OPERATOR 10-T1S-R74E PROVED T.J. HARRISON #1 (TRENTON) PRODUCING
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 5.00% - 0 FINAL - 1.000000 10.00% - 0 REMARKS - 15.00% - 0 20.00% - 0 25.00% - 0
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 0 0 0 0.000 0.00 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 0 0 0 0.000 0.00 0.00 CUMULATIVE 0 0 0 ULTIMATE 0 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 0
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUBTOT 0 0 0 0 0 0 0 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 0 0 0 0 0 LIFE OF EVALUATION IS 0.00 YEARS. FINAL PRODUCTION RATE: 0 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 212 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 6-T1S-R75E PROVED WARREN REED #1 (KNOX) SHUT-IN
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 2,824,461 FINAL - 1.000000 0.875000 9.77 10.00% - 2,564,728 REMARKS - CAPITAL INCLUDED TO PERFORATE REMAINDER OF KNOX PAY. 15.00% - 2,339,822 20.00% - 2,144,134 25.00% - 1,973,056
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 111 0 0 96.725 0.00 9.77 2002 1 0 0 97 0 0 85.380 0.00 9.77 2003 1 0 0 72 0 0 63.031 0.00 9.77 2004 1 0 0 55 0 0 47.892 0.00 9.77 2005 1 0 0 42 0 0 37.264 0.00 9.77 2006 1 0 0 6 0 0 4.832 0.00 9.77 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 383 0 0 335.124 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 383 0 0 335.124 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 383
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 945,008 0 945,008 0 28,350 916,658 2002 0 0 834,167 0 834,167 0 25,025 809,142 2003 0 0 615,817 0 615,817 0 18,475 597,342 2004 0 0 467,901 0 467,901 0 14,037 453,864 2005 0 0 364,072 0 364,072 0 10,922 353,150 2006 0 0 47,206 0 47,206 0 1,416 45,790 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 3,274,171 0 3,274,171 0 98,225 3,175,946 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 3,274,171 0 3,274,171 0 98,225 3,175,946
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 5,000 0 20,000 0 25,000 891,658 891,658 842,449 2002 6,000 0 0 0 6,000 803,142 1,694,800 693,816 2003 6,000 0 0 0 6,000 591,342 2,286,142 462,308 2004 6,000 0 0 0 6,000 447,864 2,734,006 316,882 2005 6,000 0 0 0 6,000 347,150 3,081,156 222,303 2006 1,071 0 0 0 1,071 44,719 3,125,875 26,970 2007 0 0 0 0 0 0 3,125,875 0 2008 0 0 0 0 0 0 3,125,875 0 2009 0 0 0 0 0 0 3,125,875 0 2010 0 0 0 0 0 0 3,125,875 0 2011 0 0 0 0 0 0 3,125,875 0 2012 0 0 0 0 0 0 3,125,875 0 2013 0 0 0 0 0 0 3,125,875 0 2014 0 0 0 0 0 0 3,125,875 0 2015 0 0 0 0 0 0 3,125,875 0 SUBTOT 30,071 0 20,000 0 50,071 3,125,875 2,564,728 REMAIN 0 0 0 0 0 0 3,125,875 0 TOTAL 30,071 0 20,000 0 50,071 3,125,875 2,564,728 LIFE OF EVALUATION IS 5.15 YEARS. FINAL PRODUCTION RATE: 3.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 213 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE OIL LEASE TENGASCO INC. - OPERATOR 6-T1S-R75E PROVED WARREN REED #1 (KNOX) BEHIND PIPE
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 24.10 5.00% - 75,452 FINAL - 1.000000 0.875000 24.10 10.00% - 56,241 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2006. 15.00% - 42,003 20.00% - 31,431 25.00% - 23,564
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 1 4,819 0 0 4,216 0 0.000 24.10 0.00 2007 1 1,966 0 0 1,721 0 0.000 24.10 0.00 2008 1 803 0 0 703 0 0.000 24.10 0.00 2009 1 40 0 0 34 0 0.000 24.10 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 7,628 0 0 6,674 0 0.000 24.10 0.00 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 7,628 0 0 6,674 0 0.000 24.10 0.00 CUMULATIVE 0 0 0 ULTIMATE 7,628 0 0
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 101,614 0 0 0 101,614 3,048 0 98,566 2007 41,474 0 0 0 41,474 1,245 0 40,229 2008 16,927 0 0 0 16,927 507 0 16,420 2009 840 0 0 0 840 26 0 814 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 160,855 0 0 0 160,855 4,826 0 156,029 REMAIN 0 0 0 0 0 0 0 0 TOTAL 160,855 0 0 0 160,855 4,826 0 156,029
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 9,600 0 25,000 0 34,600 63,966 63,966 36,751 2007 9,600 0 0 0 9,600 30,629 94,595 16,194 2008 9,600 0 0 0 9,600 6,820 101,415 3,289 2009 800 0 0 0 800 14 101,429 7 2010 0 0 0 0 0 0 101,429 0 2011 0 0 0 0 0 0 101,429 0 2012 0 0 0 0 0 0 101,429 0 2013 0 0 0 0 0 0 101,429 0 2014 0 0 0 0 0 0 101,429 0 2015 0 0 0 0 0 0 101,429 0 SUBTOT 29,600 0 25,000 0 54,600 101,429 56,241 REMAIN 0 0 0 0 0 0 101,429 0 TOTAL 29,600 0 25,000 0 54,600 101,429 56,241 LIFE OF EVALUATION IS 8.08 YEARS. FINAL PRODUCTION RATE: 40 BBLS/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 214 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E PROVED WARREN REED #2 (KNOX) SHUT-IN
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.781250 9.77 5.00% - 33,523,872 FINAL - 1.000000 0.781250 9.77 10.00% - 27,828,474 REMARKS - CAPITAL INCLUDED TO PERFORATE REMAINDER OF KNOX PAY. 15.00% - 24,001,832 20.00% - 21,226,233 25.00% - 19,097,807
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 1,225 0 0 957.055 0.00 9.77 2002 1 0 0 923 0 0 721.077 0.00 9.77 2003 1 0 0 625 0 0 488.545 0.00 9.77 2004 1 0 0 444 0 0 346.678 0.00 9.77 2005 1 0 0 327 0 0 255.127 0.00 9.77 2006 1 0 0 284 0 0 221.978 0.00 9.77 2007 1 0 0 251 0 0 196.231 0.00 9.77 2008 1 0 0 213 0 0 166.695 0.00 9.77 2009 1 0 0 184 0 0 143.445 0.00 9.77 2010 1 0 0 160 0 0 124.806 0.00 9.77 2011 1 0 0 140 0 0 109.627 0.00 9.77 2012 1 0 0 124 0 0 97.096 0.00 9.77 2013 1 0 0 111 0 0 86.627 0.00 9.77 2014 1 0 0 100 0 0 77.788 0.00 9.77 2015 1 0 0 90 0 0 70.255 0.00 9.77 SUB-TOTAL 0 0 5,201 0 0 4,063.030 0.00 9.77 REMAINDER 0 0 621 0 0 485.565 0.00 9.77 TOTAL 0 0 5,822 0 0 4,548.595 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 5,822
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 9,350,428 0 9,350,428 0 280,513 9,069,915 2002 0 0 7,044,918 0 7,044,918 0 211,347 6,833,571 2003 0 0 4,773,087 0 4,773,087 0 143,193 4,629,894 2004 0 0 3,387,043 0 3,387,043 0 101,611 3,285,432 2005 0 0 2,492,588 0 2,492,588 0 74,778 2,417,810 2006 0 0 2,168,726 0 2,168,726 0 65,062 2,103,664 2007 0 0 1,917,180 0 1,917,180 0 57,515 1,859,665 2008 0 0 1,628,606 0 1,628,606 0 48,858 1,579,748 2009 0 0 1,401,461 0 1,401,461 0 42,044 1,359,417 2010 0 0 1,219,358 0 1,219,358 0 36,581 1,182,777 2011 0 0 1,071,058 0 1,071,058 0 32,132 1,038,926 2012 0 0 948,628 0 948,628 0 28,458 920,170 2013 0 0 846,344 0 846,344 0 25,391 820,953 2014 0 0 759,988 0 759,988 0 22,799 737,189 2015 0 0 686,394 0 686,394 0 20,592 665,802 SUB-TOT 0 0 39,695,807 0 39,695,807 0 1,190,874 38,504,933 REMAIN 0 0 4,743,975 0 4,743,975 0 142,319 4,601,656 TOTAL 0 0 44,439,782 0 44,439,782 0 1,333,193 43,106,589
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 5,000 0 20,000 0 25,000 9,044,915 9,044,915 8,576,601 2002 6,000 0 0 0 6,000 6,827,571 15,872,486 5,902,718 2003 6,000 0 0 0 6,000 4,623,894 20,496,380 3,617,095 2004 6,000 0 0 0 6,000 3,279,432 23,775,812 2,321,443 2005 6,000 0 0 0 6,000 2,411,810 26,187,622 1,545,035 2006 7,200 0 0 0 7,200 2,096,464 28,284,086 1,212,480 2007 7,200 0 0 0 7,200 1,852,465 30,136,551 971,444 2008 7,200 0 0 0 7,200 1,572,548 31,709,099 746,400 2009 7,200 0 0 0 7,200 1,352,217 33,061,316 580,929 2010 7,200 0 0 0 7,200 1,175,577 34,236,893 457,132 2011 7,200 0 0 0 7,200 1,031,726 35,268,619 363,140 2012 7,200 0 0 0 7,200 912,970 36,181,589 290,864 2013 7,200 0 0 0 7,200 813,753 36,995,342 234,666 2014 7,200 0 0 0 7,200 729,989 37,725,331 190,548 2015 7,200 0 0 0 7,200 658,602 38,383,933 155,612 SUBTOT 101,000 0 20,000 0 121,000 38,383,933 27,166,107 REMAIN 80,216 0 0 0 80,216 4,521,440 42,905,373 662,367 TOTAL 181,216 0 20,000 0 201,216 42,905,373 27,828,474 LIFE OF EVALUATION IS 26.14 YEARS. FINAL PRODUCTION RATE: 3.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 215 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E PROVED WARREN REED #2 (SR-MFB) BEHIND PIPE
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.781250 9.77 5.00% - 888,058 FINAL - 1.000000 0.781250 9.77 10.00% - 621,503 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2006. 15.00% - 438,165 20.00% - 311,079 25.00% - 222,322
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 0 0 0 0 0 0.000 0.00 0.00 2004 0 0 0 0 0 0.000 0.00 0.00 2005 0 0 0 0 0 0.000 0.00 0.00 2006 1 0 0 48 0 0 37.859 0.00 9.77 2007 1 0 0 39 0 0 30.112 0.00 9.77 2008 1 0 0 31 0 0 24.550 0.00 9.77 2009 1 0 0 27 0 0 20.416 0.00 9.77 2010 1 0 0 22 0 0 17.258 0.00 9.77 2011 1 0 0 14 0 0 11.210 0.00 9.77 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 181 0 0 141.405 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 181 0 0 141.405 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 181
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 0 0 369,887 0 369,887 0 11,097 358,790 2007 0 0 294,198 0 294,198 0 8,826 285,372 2008 0 0 239,850 0 239,850 0 7,195 232,655 2009 0 0 199,466 0 199,466 0 5,984 193,482 2010 0 0 168,615 0 168,615 0 5,058 163,557 2011 0 0 109,523 0 109,523 0 3,286 106,237 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 1,381,539 0 1,381,539 0 41,446 1,340,093 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 1,381,539 0 1,381,539 0 41,446 1,340,093
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 0 0 0 0 0 0 2004 0 0 0 0 0 0 0 0 2005 0 0 0 0 0 0 0 0 2006 7,200 0 20,000 0 27,200 331,590 331,590 191,706 2007 7,200 0 0 0 7,200 278,172 609,762 145,935 2008 7,200 0 0 0 7,200 225,455 835,217 107,048 2009 7,200 0 0 0 7,200 186,282 1,021,499 80,054 2010 7,200 0 0 0 7,200 156,357 1,177,856 60,817 2011 5,358 0 0 0 5,358 100,879 1,278,735 35,943 2012 0 0 0 0 0 0 1,278,735 0 2013 0 0 0 0 0 0 1,278,735 0 2014 0 0 0 0 0 0 1,278,735 0 2015 0 0 0 0 0 0 1,278,735 0 SUBTOT 41,358 0 20,000 0 61,358 1,278,735 621,503 REMAIN 0 0 0 0 0 0 1,278,735 0 TOTAL 41,358 0 20,000 0 61,358 1,278,735 621,503 LIFE OF EVALUATION IS 10.74 YEARS. FINAL PRODUCTION RATE: 1.5 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 216 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E PROVED LOCATION # 1 (KNOX) UNDEVELOPED
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 26,323,935 FINAL - 1.000000 0.875000 9.77 10.00% - 22,671,454 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2001. 15.00% - 19,882,275 20.00% - 17,688,137 25.00% - 15,917,482
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 840 0 0 734.974 0.00 9.77 2002 1 0 0 790 0 0 690.852 0.00 9.77 2003 1 0 0 518 0 0 453.793 0.00 9.77 2004 1 0 0 360 0 0 314.452 0.00 9.77 2005 1 0 0 259 0 0 227.094 0.00 9.77 2006 1 0 0 231 0 0 201.785 0.00 9.77 2007 1 0 0 196 0 0 172.193 0.00 9.77 2008 1 0 0 147 0 0 127.985 0.00 9.77 2009 1 0 0 113 0 0 99.038 0.00 9.77 2010 1 0 0 90 0 0 79.021 0.00 9.77 2011 1 0 0 74 0 0 64.585 0.00 9.77 2012 1 0 0 62 0 0 53.821 0.00 9.77 2013 1 0 0 52 0 0 45.575 0.00 9.77 2014 1 0 0 44 0 0 39.113 0.00 9.77 2015 1 0 0 37 0 0 32.412 0.00 9.77 SUB-TOTAL 0 0 3,813 0 0 3,336.693 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 3,813 0 0 3,336.693 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 3,813
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 7,180,697 0 7,180,697 0 215,421 6,965,276 2002 0 0 6,749,624 0 6,749,624 0 202,489 6,547,135 2003 0 0 4,433,561 0 4,433,561 0 133,006 4,300,555 2004 0 0 3,072,199 0 3,072,199 0 92,166 2,980,033 2005 0 0 2,218,708 0 2,218,708 0 66,562 2,152,146 2006 0 0 1,971,444 0 1,971,444 0 59,143 1,912,301 2007 0 0 1,682,330 0 1,682,330 0 50,470 1,631,860 2008 0 0 1,250,413 0 1,250,413 0 37,512 1,212,901 2009 0 0 967,604 0 967,604 0 29,028 938,576 2010 0 0 772,037 0 772,037 0 23,162 748,875 2011 0 0 631,000 0 631,000 0 18,930 612,070 2012 0 0 525,836 0 525,836 0 15,775 510,061 2013 0 0 445,265 0 445,265 0 13,358 431,907 2014 0 0 382,130 0 382,130 0 11,463 370,667 2015 0 0 316,664 0 316,664 0 9,500 307,164 SUB-TOT 0 0 32,599,512 0 32,599,512 0 977,985 31,621,527 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 32,599,512 0 32,599,512 0 977,985 31,621,527
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 4,000 0 250,000 0 254,000 6,711,276 6,711,276 6,297,002 2002 6,000 0 0 0 6,000 6,541,135 13,252,411 5,656,709 2003 6,000 0 0 0 6,000 4,294,555 17,546,966 3,360,200 2004 6,000 0 0 0 6,000 2,974,033 20,520,999 2,105,618 2005 6,000 0 0 0 6,000 2,146,146 22,667,145 1,375,038 2006 7,200 0 0 0 7,200 1,905,101 24,572,246 1,100,105 2007 7,200 0 0 0 7,200 1,624,660 26,196,906 853,035 2008 7,200 0 0 0 7,200 1,205,701 27,402,607 572,837 2009 7,200 0 0 0 7,200 931,376 28,333,983 400,446 2010 7,200 0 0 0 7,200 741,675 29,075,658 288,595 2011 7,200 0 0 0 7,200 604,870 29,680,528 213,016 2012 7,200 0 0 0 7,200 502,861 30,183,389 160,282 2013 7,200 0 0 0 7,200 424,707 30,608,096 122,526 2014 7,200 0 0 0 7,200 363,467 30,971,563 94,910 2015 6,852 0 0 0 6,852 300,312 31,271,875 71,135 SUBTOT 99,652 0 250,000 0 349,652 31,271,875 22,671,454 REMAIN 0 0 0 0 0 0 31,271,875 0 TOTAL 99,652 0 250,000 0 349,652 31,271,875 22,671,454 LIFE OF EVALUATION IS 14.95 YEARS. FINAL PRODUCTION RATE: 3.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 217 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E PROVED LOCATION # 2 (KNOX) UNDEVELOPED
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 21,884,289 FINAL - 1.000000 0.875000 9.77 10.00% - 18,846,372 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2001. 15.00% - 16,532,667 20.00% - 14,715,597 25.00% - 13,250,416
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 709 0 0 620.360 0.00 9.77 2002 1 0 0 658 0 0 575.927 0.00 9.77 2003 1 0 0 433 0 0 378.289 0.00 9.77 2004 1 0 0 299 0 0 262.124 0.00 9.77 2005 1 0 0 216 0 0 189.299 0.00 9.77 2006 1 0 0 179 0 0 156.174 0.00 9.77 2007 1 0 0 151 0 0 131.852 0.00 9.77 2008 1 0 0 118 0 0 103.643 0.00 9.77 2009 1 0 0 96 0 0 83.713 0.00 9.77 2010 1 0 0 79 0 0 69.095 0.00 9.77 2011 1 0 0 66 0 0 58.045 0.00 9.77 2012 1 0 0 57 0 0 49.483 0.00 9.77 2013 1 0 0 48 0 0 42.709 0.00 9.77 2014 1 0 0 43 0 0 37.255 0.00 9.77 2015 1 0 0 27 0 0 23.822 0.00 9.77 SUB-TOTAL 0 0 3,179 0 0 2,781.790 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 3,179 0 0 2,781.790 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 3,179
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 6,060,914 0 6,060,914 0 181,827 5,879,087 2002 0 0 5,626,803 0 5,626,803 0 168,805 5,457,998 2003 0 0 3,695,881 0 3,695,881 0 110,876 3,585,005 2004 0 0 2,560,954 0 2,560,954 0 76,829 2,484,125 2005 0 0 1,849,450 0 1,849,450 0 55,483 1,793,967 2006 0 0 1,525,816 0 1,525,816 0 45,775 1,480,041 2007 0 0 1,288,198 0 1,288,198 0 38,645 1,249,553 2008 0 0 1,012,595 0 1,012,595 0 30,378 982,217 2009 0 0 817,880 0 817,880 0 24,537 793,343 2010 0 0 675,059 0 675,059 0 20,252 654,807 2011 0 0 567,099 0 567,099 0 17,012 550,087 2012 0 0 483,445 0 483,445 0 14,504 468,941 2013 0 0 417,266 0 417,266 0 12,518 404,748 2014 0 0 363,985 0 363,985 0 10,919 353,066 2015 0 0 232,745 0 232,745 0 6,983 225,762 SUB-TOT 0 0 27,178,090 0 27,178,090 0 815,343 26,362,747 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 27,178,090 0 27,178,090 0 815,343 26,362,747
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 4,000 0 250,000 0 254,000 5,625,087 5,625,087 5,278,299 2002 6,000 0 0 0 6,000 5,451,998 11,077,085 4,714,839 2003 6,000 0 0 0 6,000 3,579,005 14,656,090 2,800,334 2004 6,000 0 0 0 6,000 2,478,125 17,134,215 1,754,517 2005 6,000 0 0 0 6,000 1,787,967 18,922,182 1,145,554 2006 7,200 0 0 0 7,200 1,472,841 20,395,023 851,867 2007 7,200 0 0 0 7,200 1,242,353 21,637,376 651,961 2008 7,200 0 0 0 7,200 975,017 22,612,393 463,054 2009 7,200 0 0 0 7,200 786,143 23,398,536 337,899 2010 7,200 0 0 0 7,200 647,607 24,046,143 251,929 2011 7,200 0 0 0 7,200 542,887 24,589,030 191,148 2012 7,200 0 0 0 7,200 461,741 25,050,771 147,151 2013 7,200 0 0 0 7,200 397,548 25,448,319 114,674 2014 7,200 0 0 0 7,200 345,866 25,794,185 90,303 2015 5,140 0 0 0 5,140 220,622 26,014,807 52,843 SUBTOT 97,940 0 250,000 0 347,940 26,014,807 18,846,372 REMAIN 0 0 0 0 0 0 26,014,807 0 TOTAL 97,940 0 250,000 0 347,940 26,014,807 18,846,372 LIFE OF EVALUATION IS 14.71 YEARS. FINAL PRODUCTION RATE: 3.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 218 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E PROVED LOCATION # 4 (KNOX) UNDEVELOPED
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 6,327,573 FINAL - 1.000000 0.875000 9.77 10.00% - 5,394,837 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2001. 15.00% - 4,683,117 20.00% - 4,126,721 25.00% - 3,681,797
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 202 0 0 176.394 0.00 9.77 2002 1 0 0 189 0 0 165.804 0.00 9.77 2003 1 0 0 125 0 0 108.910 0.00 9.77 2004 1 0 0 86 0 0 75.469 0.00 9.77 2005 1 0 0 62 0 0 54.503 0.00 9.77 2006 1 0 0 53 0 0 46.188 0.00 9.77 2007 1 0 0 52 0 0 45.798 0.00 9.77 2008 1 0 0 48 0 0 42.235 0.00 9.77 2009 1 0 0 45 0 0 39.078 0.00 9.77 2010 1 0 0 42 0 0 36.268 0.00 9.77 2011 1 0 0 38 0 0 33.755 0.00 9.77 2012 1 0 0 11 0 0 9.693 0.00 9.77 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 953 0 0 834.095 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 953 0 0 834.095 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 953
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 1,723,367 0 1,723,367 0 51,701 1,671,666 2002 0 0 1,619,910 0 1,619,910 0 48,597 1,571,313 2003 0 0 1,064,055 0 1,064,055 0 31,922 1,032,133 2004 0 0 737,327 0 737,327 0 22,120 715,207 2005 0 0 532,490 0 532,490 0 15,974 516,516 2006 0 0 451,257 0 451,257 0 13,538 437,719 2007 0 0 447,443 0 447,443 0 13,423 434,020 2008 0 0 412,632 0 412,632 0 12,379 400,253 2009 0 0 381,792 0 381,792 0 11,454 370,338 2010 0 0 354,337 0 354,337 0 10,630 343,707 2011 0 0 329,784 0 329,784 0 9,894 319,890 2012 0 0 94,704 0 94,704 0 2,841 91,863 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 8,149,098 0 8,149,098 0 244,473 7,904,625 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 8,149,098 0 8,149,098 0 244,473 7,904,625
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 4,000 0 250,000 0 254,000 1,417,666 1,417,666 1,323,874 2002 6,000 0 0 0 6,000 1,565,313 2,982,979 1,353,682 2003 6,000 0 0 0 6,000 1,026,133 4,009,112 802,891 2004 6,000 0 0 0 6,000 709,207 4,718,319 502,129 2005 6,000 0 0 0 6,000 510,516 5,228,835 327,095 2006 7,200 0 0 0 7,200 430,519 5,659,354 248,792 2007 7,200 0 0 0 7,200 426,820 6,086,174 223,667 2008 7,200 0 0 0 7,200 393,053 6,479,227 186,443 2009 7,200 0 0 0 7,200 363,138 6,842,365 155,922 2010 7,200 0 0 0 7,200 336,507 7,178,872 130,788 2011 7,200 0 0 0 7,200 312,690 7,491,562 110,010 2012 2,164 0 0 0 2,164 89,699 7,581,261 29,544 2013 0 0 0 0 0 0 7,581,261 0 2014 0 0 0 0 0 0 7,581,261 0 2015 0 0 0 0 0 0 7,581,261 0 SUBTOT 73,364 0 250,000 0 323,364 7,581,261 5,394,837 REMAIN 0 0 0 0 0 0 7,581,261 0 TOTAL 73,364 0 250,000 0 323,364 7,581,261 5,394,837 LIFE OF EVALUATION IS 11.30 YEARS. FINAL PRODUCTION RATE: 3.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 219 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E PROVED LOCATION # 5 (KNOX) UNDEVELOPED
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 10,347,112 FINAL - 1.000000 0.875000 9.77 10.00% - 8,869,411 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2001. 15.00% - 7,730,919 20.00% - 6,832,157 25.00% - 6,106,782
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 302 0 0 264.635 0.00 9.77 2002 1 0 0 328 0 0 287.030 0.00 9.77 2003 1 0 0 215 0 0 187.566 0.00 9.77 2004 1 0 0 148 0 0 129.463 0.00 9.77 2005 1 0 0 106 0 0 93.209 0.00 9.77 2006 1 0 0 87 0 0 76.135 0.00 9.77 2007 1 0 0 81 0 0 70.157 0.00 9.77 2008 1 0 0 67 0 0 59.217 0.00 9.77 2009 1 0 0 58 0 0 50.683 0.00 9.77 2010 1 0 0 50 0 0 43.894 0.00 9.77 2011 1 0 0 44 0 0 38.401 0.00 9.77 2012 1 0 0 39 0 0 33.783 0.00 9.77 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 1,525 0 0 1,334.173 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 1,525 0 0 1,334.173 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 1,525
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 2,585,482 0 2,585,482 0 77,564 2,507,918 2002 0 0 2,804,286 0 2,804,286 0 84,129 2,720,157 2003 0 0 1,832,517 0 1,832,517 0 54,976 1,777,541 2004 0 0 1,264,850 0 1,264,850 0 37,945 1,226,905 2005 0 0 910,648 0 910,648 0 27,319 883,329 2006 0 0 743,837 0 743,837 0 22,316 721,521 2007 0 0 685,438 0 685,438 0 20,563 664,875 2008 0 0 578,551 0 578,551 0 17,356 561,195 2009 0 0 495,174 0 495,174 0 14,855 480,319 2010 0 0 428,843 0 428,843 0 12,866 415,977 2011 0 0 375,179 0 375,179 0 11,255 363,924 2012 0 0 330,063 0 330,063 0 9,902 320,161 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 13,034,868 0 13,034,868 0 391,046 12,643,822 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 13,034,868 0 13,034,868 0 391,046 12,643,822
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 3,500 0 250,000 0 253,500 2,254,418 2,254,418 2,100,925 2002 6,000 0 0 0 6,000 2,714,157 4,968,575 2,347,301 2003 6,000 0 0 0 6,000 1,771,541 6,740,116 1,386,170 2004 6,000 0 0 0 6,000 1,220,905 7,961,021 864,434 2005 6,000 0 0 0 6,000 877,329 8,838,350 562,124 2006 7,200 0 0 0 7,200 714,321 9,552,671 413,050 2007 7,200 0 0 0 7,200 657,675 10,210,346 344,912 2008 7,200 0 0 0 7,200 553,995 10,764,341 262,966 2009 7,200 0 0 0 7,200 473,119 11,237,460 203,268 2010 7,200 0 0 0 7,200 408,777 11,646,237 158,964 2011 7,200 0 0 0 7,200 356,724 12,002,961 125,563 2012 7,175 0 0 0 7,175 312,986 12,315,947 99,734 2013 0 0 0 0 0 0 12,315,947 0 2014 0 0 0 0 0 0 12,315,947 0 2015 0 0 0 0 0 0 12,315,947 0 SUBTOT 77,875 0 250,000 0 327,875 12,315,947 8,869,411 REMAIN 0 0 0 0 0 0 12,315,947 0 TOTAL 77,875 0 250,000 0 327,875 12,315,947 8,869,411 LIFE OF EVALUATION IS 12.00 YEARS. FINAL PRODUCTION RATE: 3.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 220 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E PROVED LOCATION # 6 (KNOX) UNDEVELOPED
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 8,132,876 FINAL - 1.000000 0.875000 9.77 10.00% - 7,221,576 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2001. 15.00% - 6,460,768 20.00% - 5,819,454 25.00% - 5,273,880
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 272 0 0 238.302 0.00 9.77 2002 1 0 0 296 0 0 258.512 0.00 9.77 2003 1 0 0 193 0 0 168.931 0.00 9.77 2004 1 0 0 133 0 0 116.601 0.00 9.77 2005 1 0 0 96 0 0 83.949 0.00 9.77 2006 1 0 0 75 0 0 65.978 0.00 9.77 2007 1 0 0 58 0 0 49.978 0.00 9.77 2008 1 0 0 27 0 0 23.569 0.00 9.77 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 1,150 0 0 1,005.820 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 1,150 0 0 1,005.820 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 1,150
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 2,328,214 0 2,328,214 0 69,846 2,258,368 2002 0 0 2,525,667 0 2,525,667 0 75,770 2,449,897 2003 0 0 1,650,456 0 1,650,456 0 49,514 1,600,942 2004 0 0 1,139,191 0 1,139,191 0 34,176 1,105,015 2005 0 0 820,180 0 820,180 0 24,605 795,575 2006 0 0 644,605 0 644,605 0 19,338 625,267 2007 0 0 488,288 0 488,288 0 14,649 473,639 2008 0 0 230,266 0 230,266 0 6,908 223,358 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 9,826,867 0 9,826,867 0 294,806 9,532,061 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 9,826,867 0 9,826,867 0 294,806 9,532,061
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 3,500 0 250,000 0 253,500 2,004,868 2,004,868 1,867,577 2002 6,000 0 0 0 6,000 2,443,897 4,448,765 2,113,572 2003 6,000 0 0 0 6,000 1,594,942 6,043,707 1,247,989 2004 6,000 0 0 0 6,000 1,099,015 7,142,722 778,133 2005 6,000 0 0 0 6,000 789,575 7,932,297 505,899 2006 7,200 0 0 0 7,200 618,067 8,550,364 357,742 2007 7,200 0 0 0 7,200 466,439 9,016,803 245,131 2008 4,726 0 0 0 4,726 218,632 9,235,435 105,533 2009 0 0 0 0 0 0 9,235,435 0 2010 0 0 0 0 0 0 9,235,435 0 2011 0 0 0 0 0 0 9,235,435 0 2012 0 0 0 0 0 0 9,235,435 0 2013 0 0 0 0 0 0 9,235,435 0 2014 0 0 0 0 0 0 9,235,435 0 2015 0 0 0 0 0 0 9,235,435 0 SUBTOT 46,626 0 250,000 0 296,626 9,235,435 7,221,576 REMAIN 0 0 0 0 0 0 9,235,435 0 TOTAL 46,626 0 250,000 0 296,626 9,235,435 7,221,576 LIFE OF EVALUATION IS 7.66 YEARS. FINAL PRODUCTION RATE: 3.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 221 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E PROVED LOCATION # 7 (KNOX) UNDEVELOPED
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 13,032,007 FINAL - 1.000000 0.875000 9.77 10.00% - 11,196,802 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2001. 15.00% - 9,780,699 20.00% - 8,660,380 25.00% - 7,754,008
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 382 0 0 334.124 0.00 9.77 2002 1 0 0 415 0 0 362.867 0.00 9.77 2003 1 0 0 271 0 0 237.120 0.00 9.77 2004 1 0 0 187 0 0 163.665 0.00 9.77 2005 1 0 0 134 0 0 117.832 0.00 9.77 2006 1 0 0 110 0 0 95.853 0.00 9.77 2007 1 0 0 97 0 0 85.434 0.00 9.77 2008 1 0 0 80 0 0 69.674 0.00 9.77 2009 1 0 0 66 0 0 57.958 0.00 9.77 2010 1 0 0 56 0 0 49.004 0.00 9.77 2011 1 0 0 48 0 0 42.003 0.00 9.77 2012 1 0 0 42 0 0 36.422 0.00 9.77 2013 1 0 0 18 0 0 16.031 0.00 9.77 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 1,906 0 0 1,667.987 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 1,906 0 0 1,667.987 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 1,906
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 3,264,390 0 3,264,390 0 97,932 3,166,458 2002 0 0 3,545,208 0 3,545,208 0 106,356 3,438,852 2003 0 0 2,316,662 0 2,316,662 0 69,500 2,247,162 2004 0 0 1,599,005 0 1,599,005 0 47,970 1,551,035 2005 0 0 1,151,221 0 1,151,221 0 34,537 1,116,684 2006 0 0 936,486 0 936,486 0 28,094 908,392 2007 0 0 834,691 0 834,691 0 25,041 809,650 2008 0 0 680,711 0 680,711 0 20,421 660,290 2009 0 0 566,249 0 566,249 0 16,988 549,261 2010 0 0 478,773 0 478,773 0 14,363 464,410 2011 0 0 410,371 0 410,371 0 12,311 398,060 2012 0 0 355,841 0 355,841 0 10,675 345,166 2013 0 0 156,620 0 156,620 0 4,699 151,921 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 16,296,228 0 16,296,228 0 488,887 15,807,341 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 16,296,228 0 16,296,228 0 488,887 15,807,341
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 3,500 0 250,000 0 253,500 2,912,958 2,912,958 2,716,608 2002 6,000 0 0 0 6,000 3,432,852 6,345,810 2,968,849 2003 6,000 0 0 0 6,000 2,241,162 8,586,972 1,753,629 2004 6,000 0 0 0 6,000 1,545,035 10,132,007 1,093,923 2005 6,000 0 0 0 6,000 1,110,684 11,242,691 711,638 2006 7,200 0 0 0 7,200 901,192 12,143,883 521,181 2007 7,200 0 0 0 7,200 802,450 12,946,333 420,969 2008 7,200 0 0 0 7,200 653,090 13,599,423 310,083 2009 7,200 0 0 0 7,200 542,061 14,141,484 232,938 2010 7,200 0 0 0 7,200 457,210 14,598,694 177,831 2011 7,200 0 0 0 7,200 390,860 14,989,554 137,600 2012 7,200 0 0 0 7,200 337,966 15,327,520 107,692 2013 3,503 0 0 0 3,503 148,418 15,475,938 43,861 2014 0 0 0 0 0 0 15,475,938 0 2015 0 0 0 0 0 0 15,475,938 0 SUBTOT 81,403 0 250,000 0 331,403 15,475,938 11,196,802 REMAIN 0 0 0 0 0 0 15,475,938 0 TOTAL 81,403 0 250,000 0 331,403 15,475,938 11,196,802 LIFE OF EVALUATION IS 12.49 YEARS. FINAL PRODUCTION RATE: 3.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 222 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E PROVED LOCATION # 8 (KNOX) UNDEVELOPED
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 9,382,565 FINAL - 1.000000 0.875000 9.77 10.00% - 7,981,230 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2001. 15.00% - 6,909,299 20.00% - 6,068,314 25.00% - 5,393,164
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 241 0 0 211.126 0.00 9.77 2002 1 0 0 308 0 0 269.289 0.00 9.77 2003 1 0 0 200 0 0 175.045 0.00 9.77 2004 1 0 0 138 0 0 120.339 0.00 9.77 2005 1 0 0 98 0 0 86.369 0.00 9.77 2006 1 0 0 79 0 0 69.089 0.00 9.77 2007 1 0 0 75 0 0 65.583 0.00 9.77 2008 1 0 0 65 0 0 56.515 0.00 9.77 2009 1 0 0 56 0 0 49.231 0.00 9.77 2010 1 0 0 50 0 0 43.288 0.00 9.77 2011 1 0 0 43 0 0 38.375 0.00 9.77 2012 1 0 0 40 0 0 34.265 0.00 9.77 2013 1 0 0 5 0 0 4.828 0.00 9.77 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 1,398 0 0 1,223.342 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 1,398 0 0 1,223.342 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 1,398
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 2,062,700 0 2,062,700 0 61,881 2,000,819 2002 0 0 2,630,957 0 2,630,957 0 78,929 2,552,028 2003 0 0 1,710,193 0 1,710,193 0 51,305 1,658,888 2004 0 0 1,175,710 0 1,175,710 0 35,272 1,140,438 2005 0 0 843,824 0 843,824 0 25,315 818,509 2006 0 0 675,000 0 675,000 0 20,250 654,750 2007 0 0 640,747 0 640,747 0 19,222 621,525 2008 0 0 552,150 0 552,150 0 16,564 535,586 2009 0 0 480,983 0 480,983 0 14,430 466,553 2010 0 0 422,924 0 422,924 0 12,688 410,236 2011 0 0 374,923 0 374,923 0 11,247 363,676 2012 0 0 334,768 0 334,768 0 10,043 324,725 2013 0 0 47,171 0 47,171 0 1,416 45,755 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 11,952,050 0 11,952,050 0 358,562 11,593,488 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 11,952,050 0 11,952,050 0 358,562 11,593,488
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 3,000 0 250,000 0 253,000 1,747,819 1,747,819 1,620,504 2002 6,000 0 0 0 6,000 2,546,028 4,293,847 2,202,007 2003 6,000 0 0 0 6,000 1,652,888 5,946,735 1,293,377 2004 6,000 0 0 0 6,000 1,134,438 7,081,173 803,236 2005 6,000 0 0 0 6,000 812,509 7,893,682 520,606 2006 7,200 0 0 0 7,200 647,550 8,541,232 374,535 2007 7,200 0 0 0 7,200 614,325 9,155,557 322,118 2008 7,200 0 0 0 7,200 528,386 9,683,943 250,771 2009 7,200 0 0 0 7,200 459,353 10,143,296 197,327 2010 7,200 0 0 0 7,200 403,036 10,546,332 156,713 2011 7,200 0 0 0 7,200 356,476 10,902,808 125,462 2012 7,200 0 0 0 7,200 317,525 11,220,333 101,156 2013 1,080 0 0 0 1,080 44,675 11,265,008 13,418 2014 0 0 0 0 0 0 11,265,008 0 2015 0 0 0 0 0 0 11,265,008 0 SUBTOT 78,480 0 250,000 0 328,480 11,265,008 7,981,230 REMAIN 0 0 0 0 0 0 11,265,008 0 TOTAL 78,480 0 250,000 0 328,480 11,265,008 7,981,230 LIFE OF EVALUATION IS 12.15 YEARS. FINAL PRODUCTION RATE: 3.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 223 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E PROVED LOCATION # 9 (KNOX) UNDEVELOPED
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 5,964,431 FINAL - 1.000000 0.875000 9.77 10.00% - 5,119,690 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2001. 15.00% - 4,455,857 20.00% - 3,924,421 25.00% - 3,491,520
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 160 0 0 140.429 0.00 9.77 2002 1 0 0 205 0 0 178.971 0.00 9.77 2003 1 0 0 133 0 0 116.333 0.00 9.77 2004 1 0 0 91 0 0 79.975 0.00 9.77 2005 1 0 0 66 0 0 57.398 0.00 9.77 2006 1 0 0 53 0 0 46.074 0.00 9.77 2007 1 0 0 52 0 0 45.431 0.00 9.77 2008 1 0 0 46 0 0 40.874 0.00 9.77 2009 1 0 0 43 0 0 36.979 0.00 9.77 2010 1 0 0 38 0 0 33.624 0.00 9.77 2011 1 0 0 2 0 0 2.005 0.00 9.77 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 889 0 0 778.093 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 889 0 0 778.093 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 889
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 1,371,987 0 1,371,987 0 41,160 1,330,827 2002 0 0 1,748,543 0 1,748,543 0 52,456 1,696,087 2003 0 0 1,136,575 0 1,136,575 0 34,097 1,102,478 2004 0 0 781,351 0 781,351 0 23,441 757,910 2005 0 0 560,780 0 560,780 0 16,823 543,957 2006 0 0 450,146 0 450,146 0 13,504 436,642 2007 0 0 443,862 0 443,862 0 13,316 430,546 2008 0 0 399,339 0 399,339 0 11,980 387,359 2009 0 0 361,288 0 361,288 0 10,839 350,449 2010 0 0 328,508 0 328,508 0 9,855 318,653 2011 0 0 19,590 0 19,590 0 588 19,002 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 7,601,969 0 7,601,969 0 228,059 7,373,910 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 7,601,969 0 7,601,969 0 228,059 7,373,910
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 3,000 0 250,000 0 253,000 1,077,827 1,077,827 996,970 2002 6,000 0 0 0 6,000 1,690,087 2,767,914 1,461,728 2003 6,000 0 0 0 6,000 1,096,478 3,864,392 857,994 2004 6,000 0 0 0 6,000 751,910 4,616,302 532,392 2005 6,000 0 0 0 6,000 537,957 5,154,259 344,693 2006 7,200 0 0 0 7,200 429,442 5,583,701 248,352 2007 7,200 0 0 0 7,200 423,346 6,007,047 221,894 2008 7,200 0 0 0 7,200 380,159 6,387,206 180,363 2009 7,200 0 0 0 7,200 343,249 6,730,455 147,409 2010 7,200 0 0 0 7,200 311,453 7,041,908 121,071 2011 451 0 0 0 451 18,551 7,060,459 6,824 2012 0 0 0 0 0 0 7,060,459 0 2013 0 0 0 0 0 0 7,060,459 0 2014 0 0 0 0 0 0 7,060,459 0 2015 0 0 0 0 0 0 7,060,459 0 SUBTOT 63,451 0 250,000 0 313,451 7,060,459 5,119,690 REMAIN 0 0 0 0 0 0 7,060,459 0 TOTAL 63,451 0 250,000 0 313,451 7,060,459 5,119,690 LIFE OF EVALUATION IS 10.06 YEARS. FINAL PRODUCTION RATE: 3.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 224 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E PROVED LOCATION #10 (KNOX) UNDEVELOPED
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 8,872,007 FINAL - 1.000000 0.875000 9.77 10.00% - 7,777,888 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2001. 15.00% - 6,883,522 20.00% - 6,143,106 25.00% - 5,522,793
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 254 0 0 222.029 0.00 9.77 2002 1 0 0 323 0 0 282.825 0.00 9.77 2003 1 0 0 210 0 0 183.837 0.00 9.77 2004 1 0 0 145 0 0 126.380 0.00 9.77 2005 1 0 0 103 0 0 90.703 0.00 9.77 2006 1 0 0 82 0 0 71.754 0.00 9.77 2007 1 0 0 68 0 0 59.704 0.00 9.77 2008 1 0 0 51 0 0 44.602 0.00 9.77 2009 1 0 0 34 0 0 29.619 0.00 9.77 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 1,270 0 0 1,111.453 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 1,270 0 0 1,111.453 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 1,270
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 2,169,228 0 2,169,228 0 65,077 2,104,151 2002 0 0 2,763,201 0 2,763,201 0 82,896 2,680,305 2003 0 0 1,796,092 0 1,796,092 0 53,883 1,742,209 2004 0 0 1,234,731 0 1,234,731 0 37,042 1,197,689 2005 0 0 886,167 0 886,167 0 26,585 859,582 2006 0 0 701,040 0 701,040 0 21,031 680,009 2007 0 0 583,313 0 583,313 0 17,499 565,814 2008 0 0 435,760 0 435,760 0 13,073 422,687 2009 0 0 289,374 0 289,374 0 8,681 280,693 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 10,858,906 0 10,858,906 0 325,767 10,533,139 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 10,858,906 0 10,858,906 0 325,767 10,533,139
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 3,000 0 250,000 0 253,000 1,851,151 1,851,151 1,716,719 2002 6,000 0 0 0 6,000 2,674,305 4,525,456 2,312,951 2003 6,000 0 0 0 6,000 1,736,209 6,261,665 1,358,575 2004 6,000 0 0 0 6,000 1,191,689 7,453,354 843,772 2005 6,000 0 0 0 6,000 853,582 8,306,936 546,922 2006 7,200 0 0 0 7,200 672,809 8,979,745 389,309 2007 7,200 0 0 0 7,200 558,614 9,538,359 293,295 2008 7,200 0 0 0 7,200 415,487 9,953,846 197,399 2009 6,046 0 0 0 6,046 274,647 10,228,493 118,946 2010 0 0 0 0 0 0 10,228,493 0 2011 0 0 0 0 0 0 10,228,493 0 2012 0 0 0 0 0 0 10,228,493 0 2013 0 0 0 0 0 0 10,228,493 0 2014 0 0 0 0 0 0 10,228,493 0 2015 0 0 0 0 0 0 10,228,493 0 SUBTOT 54,646 0 250,000 0 304,646 10,228,493 7,777,888 REMAIN 0 0 0 0 0 0 10,228,493 0 TOTAL 54,646 0 250,000 0 304,646 10,228,493 7,777,888 LIFE OF EVALUATION IS 8.84 YEARS. FINAL PRODUCTION RATE: 3.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 225 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E PROVED LOCATION #11 (KNOX) UNDEVELOPED
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 8,840,356 FINAL - 1.000000 0.875000 9.77 10.00% - 7,720,723 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2001. 15.00% - 6,806,085 20.00% - 6,049,575 25.00% - 5,416,517
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 219 0 0 191.792 0.00 9.77 2002 1 0 0 336 0 0 294.068 0.00 9.77 2003 1 0 0 218 0 0 190.108 0.00 9.77 2004 1 0 0 148 0 0 130.156 0.00 9.77 2005 1 0 0 107 0 0 93.114 0.00 9.77 2006 1 0 0 89 0 0 78.541 0.00 9.77 2007 1 0 0 68 0 0 59.328 0.00 9.77 2008 1 0 0 51 0 0 44.497 0.00 9.77 2009 1 0 0 34 0 0 29.853 0.00 9.77 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 1,270 0 0 1,111.457 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 1,270 0 0 1,111.457 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 1,270
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 1,873,807 0 1,873,807 0 56,214 1,817,593 2002 0 0 2,873,041 0 2,873,041 0 86,191 2,786,850 2003 0 0 1,857,356 0 1,857,356 0 55,721 1,801,635 2004 0 0 1,271,620 0 1,271,620 0 38,149 1,233,471 2005 0 0 909,723 0 909,723 0 27,291 882,432 2006 0 0 767,341 0 767,341 0 23,021 744,320 2007 0 0 579,638 0 579,638 0 17,389 562,249 2008 0 0 434,737 0 434,737 0 13,042 421,695 2009 0 0 291,662 0 291,662 0 8,750 282,912 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 10,858,925 0 10,858,925 0 325,768 10,533,157 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 10,858,925 0 10,858,925 0 325,768 10,533,157
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 2,500 0 250,000 0 252,500 1,565,093 1,565,093 1,444,661 2002 6,000 0 0 0 6,000 2,780,850 4,345,943 2,405,220 2003 6,000 0 0 0 6,000 1,795,635 6,141,578 1,405,128 2004 6,000 0 0 0 6,000 1,227,471 7,369,049 869,133 2005 6,000 0 0 0 6,000 876,432 8,245,481 561,576 2006 7,200 0 0 0 7,200 737,120 8,982,601 426,828 2007 7,200 0 0 0 7,200 555,049 9,537,650 291,413 2008 7,200 0 0 0 7,200 414,495 9,952,145 196,922 2009 6,095 0 0 0 6,095 276,817 10,228,962 119,842 2010 0 0 0 0 0 0 10,228,962 0 2011 0 0 0 0 0 0 10,228,962 0 2012 0 0 0 0 0 0 10,228,962 0 2013 0 0 0 0 0 0 10,228,962 0 2014 0 0 0 0 0 0 10,228,962 0 2015 0 0 0 0 0 0 10,228,962 0 SUBTOT 54,195 0 250,000 0 304,195 10,228,962 7,720,723 REMAIN 0 0 0 0 0 0 10,228,962 0 TOTAL 54,195 0 250,000 0 304,195 10,228,962 7,720,723 LIFE OF EVALUATION IS 8.85 YEARS. FINAL PRODUCTION RATE: 3.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 226 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E PROVED LOCATION #12 (KNOX) UNDEVELOPED
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 8,840,356 FINAL - 1.000000 0.875000 9.77 10.00% - 7,720,723 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2001. 15.00% - 6,806,085 20.00% - 6,049,575 25.00% - 5,416,517
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 219 0 0 191.792 0.00 9.77 2002 1 0 0 336 0 0 294.068 0.00 9.77 2003 1 0 0 218 0 0 190.108 0.00 9.77 2004 1 0 0 148 0 0 130.156 0.00 9.77 2005 1 0 0 107 0 0 93.114 0.00 9.77 2006 1 0 0 89 0 0 78.541 0.00 9.77 2007 1 0 0 68 0 0 59.328 0.00 9.77 2008 1 0 0 51 0 0 44.497 0.00 9.77 2009 1 0 0 34 0 0 29.853 0.00 9.77 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 1,270 0 0 1,111.457 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 1,270 0 0 1,111.457 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 1,270
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 1,873,807 0 1,873,807 0 56,214 1,817,593 2002 0 0 2,873,041 0 2,873,041 0 86,191 2,786,850 2003 0 0 1,857,356 0 1,857,356 0 55,721 1,801,635 2004 0 0 1,271,620 0 1,271,620 0 38,149 1,233,471 2005 0 0 909,723 0 909,723 0 27,291 882,432 2006 0 0 767,341 0 767,341 0 23,021 744,320 2007 0 0 579,638 0 579,638 0 17,389 562,249 2008 0 0 434,737 0 434,737 0 13,042 421,695 2009 0 0 291,662 0 291,662 0 8,750 282,912 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 10,858,925 0 10,858,925 0 325,768 10,533,157 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 10,858,925 0 10,858,925 0 325,768 10,533,157
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 2,500 0 250,000 0 252,500 1,565,093 1,565,093 1,444,661 2002 6,000 0 0 0 6,000 2,780,850 4,345,943 2,405,220 2003 6,000 0 0 0 6,000 1,795,635 6,141,578 1,405,128 2004 6,000 0 0 0 6,000 1,227,471 7,369,049 869,133 2005 6,000 0 0 0 6,000 876,432 8,245,481 561,576 2006 7,200 0 0 0 7,200 737,120 8,982,601 426,828 2007 7,200 0 0 0 7,200 555,049 9,537,650 291,413 2008 7,200 0 0 0 7,200 414,495 9,952,145 196,922 2009 6,095 0 0 0 6,095 276,817 10,228,962 119,842 2010 0 0 0 0 0 0 10,228,962 0 2011 0 0 0 0 0 0 10,228,962 0 2012 0 0 0 0 0 0 10,228,962 0 2013 0 0 0 0 0 0 10,228,962 0 2014 0 0 0 0 0 0 10,228,962 0 2015 0 0 0 0 0 0 10,228,962 0 SUBTOT 54,195 0 250,000 0 304,195 10,228,962 7,720,723 REMAIN 0 0 0 0 0 0 10,228,962 0 TOTAL 54,195 0 250,000 0 304,195 10,228,962 7,720,723 LIFE OF EVALUATION IS 8.85 YEARS. FINAL PRODUCTION RATE: 3.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 227 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E PROVED LOCATION #13 (KNOX) UNDEVELOPED
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 12,945,297 FINAL - 1.000000 0.875000 9.77 10.00% - 11,040,496 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2001. 15.00% - 9,568,559 20.00% - 8,403,638 25.00% - 7,461,763
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 292 0 0 255.139 0.00 9.77 2002 1 0 0 448 0 0 392.084 0.00 9.77 2003 1 0 0 289 0 0 253.474 0.00 9.77 2004 1 0 0 199 0 0 173.539 0.00 9.77 2005 1 0 0 142 0 0 124.151 0.00 9.77 2006 1 0 0 123 0 0 107.867 0.00 9.77 2007 1 0 0 102 0 0 89.044 0.00 9.77 2008 1 0 0 82 0 0 71.699 0.00 9.77 2009 1 0 0 67 0 0 59.032 0.00 9.77 2010 1 0 0 57 0 0 49.489 0.00 9.77 2011 1 0 0 48 0 0 42.116 0.00 9.77 2012 1 0 0 41 0 0 36.298 0.00 9.77 2013 1 0 0 16 0 0 13.843 0.00 9.77 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 1,906 0 0 1,667.775 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 1,906 0 0 1,667.775 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 1,906
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 2,492,706 0 2,492,706 0 74,781 2,417,925 2002 0 0 3,830,664 0 3,830,664 0 114,920 3,715,744 2003 0 0 2,476,444 0 2,476,444 0 74,293 2,402,151 2004 0 0 1,695,475 0 1,695,475 0 50,865 1,644,610 2005 0 0 1,212,951 0 1,212,951 0 36,388 1,176,563 2006 0 0 1,053,860 0 1,053,860 0 31,616 1,022,244 2007 0 0 869,961 0 869,961 0 26,099 843,862 2008 0 0 700,502 0 700,502 0 21,015 679,487 2009 0 0 576,738 0 576,738 0 17,302 559,436 2010 0 0 483,509 0 483,509 0 14,505 469,004 2011 0 0 411,476 0 411,476 0 12,345 399,131 2012 0 0 354,632 0 354,632 0 10,639 343,993 2013 0 0 135,247 0 135,247 0 4,057 131,190 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 16,294,165 0 16,294,165 0 488,825 15,805,340 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 16,294,165 0 16,294,165 0 488,825 15,805,340
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 2,500 0 250,000 0 252,500 2,165,425 2,165,425 2,000,744 2002 6,000 0 0 0 6,000 3,709,744 5,875,169 3,208,635 2003 6,000 0 0 0 6,000 2,396,151 8,271,320 1,875,042 2004 6,000 0 0 0 6,000 1,638,610 9,909,930 1,160,243 2005 6,000 0 0 0 6,000 1,170,563 11,080,493 750,037 2006 7,200 0 0 0 7,200 1,015,044 12,095,537 587,339 2007 7,200 0 0 0 7,200 836,662 12,932,199 438,968 2008 7,200 0 0 0 7,200 672,287 13,604,486 319,227 2009 7,200 0 0 0 7,200 552,236 14,156,722 237,329 2010 7,200 0 0 0 7,200 461,804 14,618,526 179,629 2011 7,200 0 0 0 7,200 391,931 15,010,457 137,985 2012 7,200 0 0 0 7,200 336,793 15,347,250 107,323 2013 3,035 0 0 0 3,035 128,155 15,475,405 37,995 2014 0 0 0 0 0 0 15,475,405 0 2015 0 0 0 0 0 0 15,475,405 0 SUBTOT 79,935 0 250,000 0 329,935 15,475,405 11,040,496 REMAIN 0 0 0 0 0 0 15,475,405 0 TOTAL 79,935 0 250,000 0 329,935 15,475,405 11,040,496 LIFE OF EVALUATION IS 12.42 YEARS. FINAL PRODUCTION RATE: 3.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 228 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E PROVED LOCATION #14 (KNOX) UNDEVELOPED
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 8,803,596 FINAL - 1.000000 0.875000 9.77 10.00% - 7,656,855 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2001. 15.00% - 6,722,013 20.00% - 5,950,365 25.00% - 5,305,947
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 183 0 0 160.247 0.00 9.77 2002 1 0 0 350 0 0 305.921 0.00 9.77 2003 1 0 0 225 0 0 196.670 0.00 9.77 2004 1 0 0 153 0 0 134.085 0.00 9.77 2005 1 0 0 109 0 0 95.612 0.00 9.77 2006 1 0 0 91 0 0 79.389 0.00 9.77 2007 1 0 0 69 0 0 60.895 0.00 9.77 2008 1 0 0 52 0 0 45.504 0.00 9.77 2009 1 0 0 38 0 0 33.134 0.00 9.77 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 1,270 0 0 1,111.457 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 1,270 0 0 1,111.457 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 1,270
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 1,565,614 0 1,565,614 0 46,968 1,518,646 2002 0 0 2,988,846 0 2,988,846 0 89,666 2,899,180 2003 0 0 1,921,467 0 1,921,467 0 57,644 1,863,823 2004 0 0 1,310,009 0 1,310,009 0 39,300 1,270,709 2005 0 0 934,128 0 934,128 0 28,024 906,104 2006 0 0 775,627 0 775,627 0 23,269 752,358 2007 0 0 594,948 0 594,948 0 17,848 577,100 2008 0 0 444,572 0 444,572 0 13,337 431,235 2009 0 0 323,714 0 323,714 0 9,712 314,002 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 10,858,925 0 10,858,925 0 325,768 10,533,157 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 10,858,925 0 10,858,925 0 325,768 10,533,157
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 2,000 0 250,000 0 252,000 1,266,646 1,266,646 1,163,682 2002 6,000 0 0 0 6,000 2,893,180 4,159,826 2,502,507 2003 6,000 0 0 0 6,000 1,857,823 6,017,649 1,453,848 2004 6,000 0 0 0 6,000 1,264,709 7,282,358 895,526 2005 6,000 0 0 0 6,000 900,104 8,182,462 576,757 2006 7,200 0 0 0 7,200 745,158 8,927,620 431,315 2007 7,200 0 0 0 7,200 569,900 9,497,520 299,220 2008 7,200 0 0 0 7,200 424,035 9,921,555 201,459 2009 6,695 0 0 0 6,695 307,307 10,228,862 132,541 2010 0 0 0 0 0 0 10,228,862 0 2011 0 0 0 0 0 0 10,228,862 0 2012 0 0 0 0 0 0 10,228,862 0 2013 0 0 0 0 0 0 10,228,862 0 2014 0 0 0 0 0 0 10,228,862 0 2015 0 0 0 0 0 0 10,228,862 0 SUBTOT 54,295 0 250,000 0 304,295 10,228,862 7,656,855 REMAIN 0 0 0 0 0 0 10,228,862 0 TOTAL 54,295 0 250,000 0 304,295 10,228,862 7,656,855 LIFE OF EVALUATION IS 8.93 YEARS. FINAL PRODUCTION RATE: 3.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 229 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E PROVED LOCATION #15 (KNOX) UNDEVELOPED
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 8,070,295 FINAL - 1.000000 0.875000 9.77 10.00% - 7,066,251 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2001. 15.00% - 6,236,886 20.00% - 5,544,488 25.00% - 4,960,630
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 174 0 0 152.070 0.00 9.77 2002 1 0 0 332 0 0 290.585 0.00 9.77 2003 1 0 0 213 0 0 186.815 0.00 9.77 2004 1 0 0 146 0 0 127.368 0.00 9.77 2005 1 0 0 104 0 0 90.823 0.00 9.77 2006 1 0 0 76 0 0 66.689 0.00 9.77 2007 1 0 0 57 0 0 49.739 0.00 9.77 2008 1 0 0 44 0 0 38.518 0.00 9.77 2009 1 0 0 12 0 0 10.316 0.00 9.77 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 1,158 0 0 1,012.923 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 1,158 0 0 1,012.923 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 1,158
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 1,485,719 0 1,485,719 0 44,572 1,441,147 2002 0 0 2,839,017 0 2,839,017 0 85,170 2,753,847 2003 0 0 1,825,180 0 1,825,180 0 54,755 1,770,425 2004 0 0 1,244,381 0 1,244,381 0 37,332 1,207,049 2005 0 0 887,342 0 887,342 0 26,620 860,722 2006 0 0 651,547 0 651,547 0 19,547 632,000 2007 0 0 485,949 0 485,949 0 14,578 471,371 2008 0 0 376,322 0 376,322 0 11,290 365,032 2009 0 0 100,784 0 100,784 0 3,023 97,761 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 9,896,241 0 9,896,241 0 296,887 9,599,354 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 9,896,241 0 9,896,241 0 296,887 9,599,354
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 2,000 0 250,000 0 252,000 1,189,147 1,189,147 1,092,202 2002 6,000 0 0 0 6,000 2,747,847 3,936,994 2,376,800 2003 6,000 0 0 0 6,000 1,764,425 5,701,419 1,380,759 2004 6,000 0 0 0 6,000 1,201,049 6,902,468 850,450 2005 6,000 0 0 0 6,000 854,722 7,757,190 547,678 2006 7,200 0 0 0 7,200 624,800 8,381,990 362,376 2007 7,200 0 0 0 7,200 464,171 8,846,161 243,627 2008 7,200 0 0 0 7,200 357,832 9,203,993 169,964 2009 2,248 0 0 0 2,248 95,513 9,299,506 42,395 2010 0 0 0 0 0 0 9,299,506 0 2011 0 0 0 0 0 0 9,299,506 0 2012 0 0 0 0 0 0 9,299,506 0 2013 0 0 0 0 0 0 9,299,506 0 2014 0 0 0 0 0 0 9,299,506 0 2015 0 0 0 0 0 0 9,299,506 0 SUBTOT 49,848 0 250,000 0 299,848 9,299,506 7,066,251 REMAIN 0 0 0 0 0 0 9,299,506 0 TOTAL 49,848 0 250,000 0 299,848 9,299,506 7,066,251 LIFE OF EVALUATION IS 8.31 YEARS. FINAL PRODUCTION RATE: 3.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 230 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E PROVED LOCATION #16 (KNOX) UNDEVELOPED
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 4,314,916 FINAL - 1.000000 0.875000 9.77 10.00% - 3,776,673 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2001. 15.00% - 3,329,453 20.00% - 2,954,525 25.00% - 2,637,498
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 96 0 0 83.855 0.00 9.77 2002 1 0 0 183 0 0 160.163 0.00 9.77 2003 1 0 0 118 0 0 102.973 0.00 9.77 2004 1 0 0 80 0 0 70.208 0.00 9.77 2005 1 0 0 57 0 0 50.065 0.00 9.77 2006 1 0 0 48 0 0 42.366 0.00 9.77 2007 1 0 0 42 0 0 36.777 0.00 9.77 2008 1 0 0 10 0 0 8.739 0.00 9.77 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 634 0 0 555.146 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 634 0 0 555.146 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 634
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 819,261 0 819,261 0 24,578 794,683 2002 0 0 1,564,791 0 1,564,791 0 46,944 1,517,847 2003 0 0 1,006,044 0 1,006,044 0 30,181 975,863 2004 0 0 685,934 0 685,934 0 20,578 665,356 2005 0 0 489,139 0 489,139 0 14,674 474,465 2006 0 0 413,916 0 413,916 0 12,418 401,498 2007 0 0 359,307 0 359,307 0 10,779 348,528 2008 0 0 85,376 0 85,376 0 2,561 82,815 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 5,423,768 0 5,423,768 0 162,713 5,261,055 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 5,423,768 0 5,423,768 0 162,713 5,261,055
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 2,000 0 250,000 0 252,000 542,683 542,683 496,068 2002 6,000 0 0 0 6,000 1,511,847 2,054,530 1,307,707 2003 6,000 0 0 0 6,000 969,863 3,024,393 758,978 2004 6,000 0 0 0 6,000 659,356 3,683,749 466,889 2005 6,000 0 0 0 6,000 468,465 4,152,214 300,181 2006 7,200 0 0 0 7,200 394,298 4,546,512 228,074 2007 7,200 0 0 0 7,200 341,328 4,887,840 179,026 2008 1,925 0 0 0 1,925 80,890 4,968,730 39,750 2009 0 0 0 0 0 0 4,968,730 0 2010 0 0 0 0 0 0 4,968,730 0 2011 0 0 0 0 0 0 4,968,730 0 2012 0 0 0 0 0 0 4,968,730 0 2013 0 0 0 0 0 0 4,968,730 0 2014 0 0 0 0 0 0 4,968,730 0 2015 0 0 0 0 0 0 4,968,730 0 SUBTOT 42,325 0 250,000 0 292,325 4,968,730 3,776,673 REMAIN 0 0 0 0 0 0 4,968,730 0 TOTAL 42,325 0 250,000 0 292,325 4,968,730 3,776,673 LIFE OF EVALUATION IS 7.27 YEARS. FINAL PRODUCTION RATE: 3.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 231 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E PROVED LOCATION #17 (KNOX) UNDEVELOPED
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 4,296,934 FINAL - 1.000000 0.875000 9.77 10.00% - 3,745,400 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2001. 15.00% - 3,288,301 20.00% - 2,906,053 25.00% - 2,583,643
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 76 0 0 66.616 0.00 9.77 2002 1 0 0 191 0 0 166.709 0.00 9.77 2003 1 0 0 121 0 0 106.570 0.00 9.77 2004 1 0 0 83 0 0 72.350 0.00 9.77 2005 1 0 0 59 0 0 51.421 0.00 9.77 2006 1 0 0 49 0 0 42.569 0.00 9.77 2007 1 0 0 42 0 0 37.363 0.00 9.77 2008 1 0 0 13 0 0 11.549 0.00 9.77 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 634 0 0 555.147 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 634 0 0 555.147 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 634
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 650,836 0 650,836 0 19,525 631,311 2002 0 0 1,628,746 0 1,628,746 0 48,862 1,579,884 2003 0 0 1,041,185 0 1,041,185 0 31,236 1,009,949 2004 0 0 706,857 0 706,857 0 21,206 685,651 2005 0 0 502,383 0 502,383 0 15,071 487,312 2006 0 0 415,898 0 415,898 0 12,477 403,421 2007 0 0 365,032 0 365,032 0 10,951 354,081 2008 0 0 112,831 0 112,831 0 3,385 109,446 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 5,423,768 0 5,423,768 0 162,713 5,261,055 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 5,423,768 0 5,423,768 0 162,713 5,261,055
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 1,500 0 250,000 0 251,500 379,811 379,811 345,145 2002 6,000 0 0 0 6,000 1,573,884 1,953,695 1,361,440 2003 6,000 0 0 0 6,000 1,003,949 2,957,644 785,683 2004 6,000 0 0 0 6,000 679,651 3,637,295 481,274 2005 6,000 0 0 0 6,000 481,312 4,118,607 308,421 2006 7,200 0 0 0 7,200 396,221 4,514,828 229,164 2007 7,200 0 0 0 7,200 346,881 4,861,709 181,941 2008 2,525 0 0 0 2,525 106,921 4,968,630 52,332 2009 0 0 0 0 0 0 4,968,630 0 2010 0 0 0 0 0 0 4,968,630 0 2011 0 0 0 0 0 0 4,968,630 0 2012 0 0 0 0 0 0 4,968,630 0 2013 0 0 0 0 0 0 4,968,630 0 2014 0 0 0 0 0 0 4,968,630 0 2015 0 0 0 0 0 0 4,968,630 0 SUBTOT 42,425 0 250,000 0 292,425 4,968,630 3,745,400 REMAIN 0 0 0 0 0 0 4,968,630 0 TOTAL 42,425 0 250,000 0 292,425 4,968,630 3,745,400 LIFE OF EVALUATION IS 7.35 YEARS. FINAL PRODUCTION RATE: 3.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 232 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E PROVED LOCATION #18 (KNOX) UNDEVELOPED
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 5,912,473 FINAL - 1.000000 0.875000 9.77 10.00% - 5,022,296 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2001. 15.00% - 4,321,373 20.00% - 3,760,223 25.00% - 3,303,894
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 92 0 0 80.496 0.00 9.77 2002 1 0 0 230 0 0 201.498 0.00 9.77 2003 1 0 0 147 0 0 128.801 0.00 9.77 2004 1 0 0 100 0 0 87.439 0.00 9.77 2005 1 0 0 71 0 0 62.143 0.00 9.77 2006 1 0 0 64 0 0 55.528 0.00 9.77 2007 1 0 0 59 0 0 52.137 0.00 9.77 2008 1 0 0 51 0 0 44.359 0.00 9.77 2009 1 0 0 44 0 0 38.223 0.00 9.77 2010 1 0 0 31 0 0 27.366 0.00 9.77 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 889 0 0 777.990 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 889 0 0 777.990 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 889
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 786,447 0 786,447 0 23,593 762,854 2002 0 0 1,968,637 0 1,968,637 0 59,060 1,909,577 2003 0 0 1,258,388 0 1,258,388 0 37,751 1,220,637 2004 0 0 854,276 0 854,276 0 25,628 828,648 2005 0 0 607,138 0 607,138 0 18,215 588,923 2006 0 0 542,511 0 542,511 0 16,275 526,236 2007 0 0 509,379 0 509,379 0 15,281 494,098 2008 0 0 433,388 0 433,388 0 13,002 420,386 2009 0 0 373,442 0 373,442 0 11,203 362,239 2010 0 0 267,364 0 267,364 0 8,021 259,343 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 7,600,970 0 7,600,970 0 228,029 7,372,941 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 7,600,970 0 7,600,970 0 228,029 7,372,941
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 1,500 0 250,000 0 251,500 511,354 511,354 465,889 2002 6,000 0 0 0 6,000 1,903,577 2,414,931 1,646,628 2003 6,000 0 0 0 6,000 1,214,637 3,629,568 950,563 2004 6,000 0 0 0 6,000 822,648 4,452,216 582,530 2005 6,000 0 0 0 6,000 582,923 5,035,139 373,530 2006 7,200 0 0 0 7,200 519,036 5,554,175 299,733 2007 7,200 0 0 0 7,200 486,898 6,041,073 255,332 2008 7,200 0 0 0 7,200 413,186 6,454,259 196,117 2009 7,200 0 0 0 7,200 355,039 6,809,298 152,530 2010 5,846 0 0 0 5,846 253,497 7,062,795 99,444 2011 0 0 0 0 0 0 7,062,795 0 2012 0 0 0 0 0 0 7,062,795 0 2013 0 0 0 0 0 0 7,062,795 0 2014 0 0 0 0 0 0 7,062,795 0 2015 0 0 0 0 0 0 7,062,795 0 SUBTOT 60,146 0 250,000 0 310,146 7,062,795 5,022,296 REMAIN 0 0 0 0 0 0 7,062,795 0 TOTAL 60,146 0 250,000 0 310,146 7,062,795 5,022,296 LIFE OF EVALUATION IS 9.81 YEARS. FINAL PRODUCTION RATE: 3.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 233 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E PROVED LOCATION #19 (KNOX) UNDEVELOPED
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 3,394,869 FINAL - 1.000000 0.875000 9.77 10.00% - 2,963,411 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2001. 15.00% - 2,603,736 20.00% - 2,301,497 25.00% - 2,045,565
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 1 0 0 60 0 0 52.502 0.00 9.77 2002 1 0 0 156 0 0 136.422 0.00 9.77 2003 1 0 0 100 0 0 87.206 0.00 9.77 2004 1 0 0 67 0 0 59.203 0.00 9.77 2005 1 0 0 48 0 0 42.077 0.00 9.77 2006 1 0 0 41 0 0 35.783 0.00 9.77 2007 1 0 0 35 0 0 30.615 0.00 9.77 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 507 0 0 443.808 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 507 0 0 443.808 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 507
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 512,944 0 512,944 0 15,388 497,556 2002 0 0 1,332,845 0 1,332,845 0 39,986 1,292,859 2003 0 0 852,008 0 852,008 0 25,560 826,448 2004 0 0 578,413 0 578,413 0 17,352 561,061 2005 0 0 411,089 0 411,089 0 12,333 398,756 2006 0 0 349,600 0 349,600 0 10,488 339,112 2007 0 0 299,114 0 299,114 0 8,973 290,141 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 4,336,013 0 4,336,013 0 130,080 4,205,933 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 4,336,013 0 4,336,013 0 130,080 4,205,933
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 1,500 0 250,000 0 251,500 246,056 246,056 222,249 2002 6,000 0 0 0 6,000 1,286,859 1,532,915 1,113,162 2003 6,000 0 0 0 6,000 820,448 2,353,363 642,080 2004 6,000 0 0 0 6,000 555,061 2,908,424 393,051 2005 6,000 0 0 0 6,000 392,756 3,301,180 251,677 2006 7,200 0 0 0 7,200 331,912 3,633,092 191,842 2007 6,513 0 0 0 6,513 283,628 3,916,720 149,350 2008 0 0 0 0 0 0 3,916,720 0 2009 0 0 0 0 0 0 3,916,720 0 2010 0 0 0 0 0 0 3,916,720 0 2011 0 0 0 0 0 0 3,916,720 0 2012 0 0 0 0 0 0 3,916,720 0 2013 0 0 0 0 0 0 3,916,720 0 2014 0 0 0 0 0 0 3,916,720 0 2015 0 0 0 0 0 0 3,916,720 0 SUBTOT 39,213 0 250,000 0 289,213 3,916,720 2,963,411 REMAIN 0 0 0 0 0 0 3,916,720 0 TOTAL 39,213 0 250,000 0 289,213 3,916,720 2,963,411 LIFE OF EVALUATION IS 6.90 YEARS. FINAL PRODUCTION RATE: 3.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 234 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E PROVED LOCATION #20 (KNOX) UNDEVELOPED
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 3,769,939 FINAL - 1.000000 0.875000 9.77 10.00% - 3,222,626 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2002. 15.00% - 2,773,917 20.00% - 2,402,903 25.00% - 2,093,631
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 1 0 0 180 0 0 157.570 0.00 9.77 2003 1 0 0 132 0 0 115.792 0.00 9.77 2004 1 0 0 88 0 0 76.823 0.00 9.77 2005 1 0 0 62 0 0 53.642 0.00 9.77 2006 1 0 0 46 0 0 40.318 0.00 9.77 2007 1 0 0 43 0 0 38.183 0.00 9.77 2008 1 0 0 20 0 0 17.266 0.00 9.77 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 571 0 0 499.594 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 571 0 0 499.594 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 571
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 1,539,457 0 1,539,457 0 46,184 1,493,273 2003 0 0 1,131,289 0 1,131,289 0 33,938 1,097,351 2004 0 0 750,565 0 750,565 0 22,517 728,048 2005 0 0 524,078 0 524,078 0 15,723 508,355 2006 0 0 393,908 0 393,908 0 11,817 382,091 2007 0 0 373,044 0 373,044 0 11,191 361,853 2008 0 0 168,684 0 168,684 0 5,061 163,623 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 4,881,025 0 4,881,025 0 146,431 4,734,594 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 4,881,025 0 4,881,025 0 146,431 4,734,594
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 5,000 0 250,000 0 255,000 1,238,273 1,238,273 1,054,292 2003 6,000 0 0 0 6,000 1,091,351 2,329,624 854,264 2004 6,000 0 0 0 6,000 722,048 3,051,672 511,379 2005 6,000 0 0 0 6,000 502,355 3,554,027 321,946 2006 7,200 0 0 0 7,200 374,891 3,928,918 217,103 2007 7,200 0 0 0 7,200 354,653 4,283,571 186,006 2008 3,727 0 0 0 3,727 159,896 4,443,467 77,636 2009 0 0 0 0 0 0 4,443,467 0 2010 0 0 0 0 0 0 4,443,467 0 2011 0 0 0 0 0 0 4,443,467 0 2012 0 0 0 0 0 0 4,443,467 0 2013 0 0 0 0 0 0 4,443,467 0 2014 0 0 0 0 0 0 4,443,467 0 2015 0 0 0 0 0 0 4,443,467 0 SUBTOT 41,127 0 250,000 0 291,127 4,443,467 3,222,626 REMAIN 0 0 0 0 0 0 4,443,467 0 TOTAL 41,127 0 250,000 0 291,127 4,443,467 3,222,626 LIFE OF EVALUATION IS 7.52 YEARS. FINAL PRODUCTION RATE: 3.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 235 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E PROVED LOCATION #21 (KNOX) UNDEVELOPED
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 4,208,608 FINAL - 1.000000 0.875000 9.77 10.00% - 3,594,708 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2002. 15.00% - 3,092,429 20.00% - 2,677,840 25.00% - 2,332,749
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 1 0 0 198 0 0 173.392 0.00 9.77 2003 1 0 0 146 0 0 127.342 0.00 9.77 2004 1 0 0 96 0 0 84.489 0.00 9.77 2005 1 0 0 68 0 0 58.995 0.00 9.77 2006 1 0 0 53 0 0 46.784 0.00 9.77 2007 1 0 0 47 0 0 41.100 0.00 9.77 2008 1 0 0 26 0 0 22.723 0.00 9.77 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 634 0 0 554.825 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 634 0 0 554.825 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 634
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 1,694,045 0 1,694,045 0 50,821 1,643,224 2003 0 0 1,244,131 0 1,244,131 0 37,324 1,206,807 2004 0 0 825,457 0 825,457 0 24,764 800,693 2005 0 0 576,385 0 576,385 0 17,292 559,093 2006 0 0 457,081 0 457,081 0 13,712 443,369 2007 0 0 401,543 0 401,543 0 12,046 389,497 2008 0 0 222,000 0 222,000 0 6,660 215,340 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 5,420,642 0 5,420,642 0 162,619 5,258,023 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 5,420,642 0 5,420,642 0 162,619 5,258,023
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 5,000 0 250,000 0 255,000 1,388,224 1,388,224 1,183,063 2003 6,000 0 0 0 6,000 1,200,807 2,589,031 939,940 2004 6,000 0 0 0 6,000 794,693 3,383,724 562,827 2005 6,000 0 0 0 6,000 553,093 3,936,817 354,462 2006 7,200 0 0 0 7,200 436,169 4,372,986 252,288 2007 7,200 0 0 0 7,200 382,297 4,755,283 200,582 2008 4,783 0 0 0 4,783 210,557 4,965,840 101,546 2009 0 0 0 0 0 0 4,965,840 0 2010 0 0 0 0 0 0 4,965,840 0 2011 0 0 0 0 0 0 4,965,840 0 2012 0 0 0 0 0 0 4,965,840 0 2013 0 0 0 0 0 0 4,965,840 0 2014 0 0 0 0 0 0 4,965,840 0 2015 0 0 0 0 0 0 4,965,840 0 SUBTOT 42,183 0 250,000 0 292,183 4,965,840 3,594,708 REMAIN 0 0 0 0 0 0 4,965,840 0 TOTAL 42,183 0 250,000 0 292,183 4,965,840 3,594,708 LIFE OF EVALUATION IS 7.66 YEARS. FINAL PRODUCTION RATE: 3.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 236 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E PROVED LOCATION #23 (KNOX) UNDEVELOPED
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 4,191,067 FINAL - 1.000000 0.875000 9.77 10.00% - 3,564,939 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2002. 15.00% - 3,054,203 20.00% - 2,633,904 25.00% - 2,285,113
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 1 0 0 183 0 0 159.948 0.00 9.77 2003 1 0 0 151 0 0 132.139 0.00 9.77 2004 1 0 0 100 0 0 87.240 0.00 9.77 2005 1 0 0 69 0 0 60.688 0.00 9.77 2006 1 0 0 54 0 0 47.108 0.00 9.77 2007 1 0 0 48 0 0 41.898 0.00 9.77 2008 1 0 0 29 0 0 25.805 0.00 9.77 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 634 0 0 554.826 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 634 0 0 554.826 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 634
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 1,562,692 0 1,562,692 0 46,881 1,515,811 2003 0 0 1,290,993 0 1,290,993 0 38,730 1,252,263 2004 0 0 852,339 0 852,339 0 25,570 826,769 2005 0 0 592,919 0 592,919 0 17,787 575,132 2006 0 0 460,242 0 460,242 0 13,808 446,434 2007 0 0 409,342 0 409,342 0 12,280 397,062 2008 0 0 252,115 0 252,115 0 7,563 244,552 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 5,420,642 0 5,420,642 0 162,619 5,258,023 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 5,420,642 0 5,420,642 0 162,619 5,258,023
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 4,500 0 250,000 0 254,500 1,261,311 1,261,311 1,069,723 2003 6,000 0 0 0 6,000 1,246,263 2,507,574 975,565 2004 6,000 0 0 0 6,000 820,769 3,328,343 581,314 2005 6,000 0 0 0 6,000 569,132 3,897,475 364,751 2006 7,200 0 0 0 7,200 439,234 4,336,709 254,134 2007 7,200 0 0 0 7,200 389,862 4,726,571 204,555 2008 5,383 0 0 0 5,383 239,169 4,965,740 114,897 2009 0 0 0 0 0 0 4,965,740 0 2010 0 0 0 0 0 0 4,965,740 0 2011 0 0 0 0 0 0 4,965,740 0 2012 0 0 0 0 0 0 4,965,740 0 2013 0 0 0 0 0 0 4,965,740 0 2014 0 0 0 0 0 0 4,965,740 0 2015 0 0 0 0 0 0 4,965,740 0 SUBTOT 42,283 0 250,000 0 292,283 4,965,740 3,564,939 REMAIN 0 0 0 0 0 0 4,965,740 0 TOTAL 42,283 0 250,000 0 292,283 4,965,740 3,564,939 LIFE OF EVALUATION IS 7.75 YEARS. FINAL PRODUCTION RATE: 3.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 237 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E PROVED LOCATION #24 (KNOX) UNDEVELOPED
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 2,458,298 FINAL - 1.000000 0.875000 9.77 10.00% - 2,097,744 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2002. 15.00% - 1,798,209 20.00% - 1,548,096 25.00% - 1,338,210
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 1 0 0 101 0 0 88.271 0.00 9.77 2003 1 0 0 100 0 0 87.694 0.00 9.77 2004 1 0 0 74 0 0 64.567 0.00 9.77 2005 1 0 0 56 0 0 48.952 0.00 9.77 2006 1 0 0 43 0 0 38.022 0.00 9.77 2007 1 0 0 9 0 0 7.619 0.00 9.77 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 383 0 0 335.125 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 383 0 0 335.125 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 383
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 862,405 0 862,405 0 25,872 836,533 2003 0 0 856,775 0 856,775 0 25,703 831,072 2004 0 0 630,817 0 630,817 0 18,925 611,892 2005 0 0 478,263 0 478,263 0 14,348 463,915 2006 0 0 371,472 0 371,472 0 11,144 360,328 2007 0 0 74,439 0 74,439 0 2,233 72,206 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 3,274,171 0 3,274,171 0 98,225 3,175,946 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 3,274,171 0 3,274,171 0 98,225 3,175,946
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 4,500 0 250,000 0 254,500 582,033 582,033 487,393 2003 6,000 0 0 0 6,000 825,072 1,407,105 645,216 2004 6,000 0 0 0 6,000 605,892 2,012,997 428,791 2005 6,000 0 0 0 6,000 457,915 2,470,912 293,289 2006 7,200 0 0 0 7,200 353,128 2,824,040 204,700 2007 1,673 0 0 0 1,673 70,533 2,894,573 38,355 2008 0 0 0 0 0 0 2,894,573 0 2009 0 0 0 0 0 0 2,894,573 0 2010 0 0 0 0 0 0 2,894,573 0 2011 0 0 0 0 0 0 2,894,573 0 2012 0 0 0 0 0 0 2,894,573 0 2013 0 0 0 0 0 0 2,894,573 0 2014 0 0 0 0 0 0 2,894,573 0 2015 0 0 0 0 0 0 2,894,573 0 SUBTOT 31,373 0 250,000 0 281,373 2,894,573 2,097,744 REMAIN 0 0 0 0 0 0 2,894,573 0 TOTAL 31,373 0 250,000 0 281,373 2,894,573 2,097,744 LIFE OF EVALUATION IS 6.23 YEARS. FINAL PRODUCTION RATE: 3.1 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 238 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E PROVED LOCATION #25 (KNOX) UNDEVELOPED
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 2,067,998 FINAL - 1.000000 0.875000 9.77 10.00% - 1,807,508 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2002. 15.00% - 1,584,110 20.00% - 1,391,931 25.00% - 1,226,113
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 1 0 0 113 0 0 99.282 0.00 9.77 2003 1 0 0 99 0 0 85.798 0.00 9.77 2004 1 0 0 63 0 0 55.651 0.00 9.77 2005 1 0 0 44 0 0 38.196 0.00 9.77 2006 1 0 0 0 0 0 0.198 0.00 9.77 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 319 0 0 279.125 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 319 0 0 279.125 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 319
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 969,987 0 969,987 0 29,100 940,887 2003 0 0 838,247 0 838,247 0 25,147 813,100 2004 0 0 543,706 0 543,706 0 16,311 527,395 2005 0 0 373,174 0 373,174 0 11,195 361,979 2006 0 0 1,937 0 1,937 0 59 1,878 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 2,727,051 0 2,727,051 0 81,812 2,645,239 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 2,727,051 0 2,727,051 0 81,812 2,645,239
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 4,500 0 250,000 0 254,500 686,387 686,387 576,995 2003 6,000 0 0 0 6,000 807,100 1,493,487 631,903 2004 6,000 0 0 0 6,000 521,395 2,014,882 369,332 2005 6,000 0 0 0 6,000 355,979 2,370,861 228,169 2006 45 0 0 0 45 1,833 2,372,694 1,109 2007 0 0 0 0 0 0 2,372,694 0 2008 0 0 0 0 0 0 2,372,694 0 2009 0 0 0 0 0 0 2,372,694 0 2010 0 0 0 0 0 0 2,372,694 0 2011 0 0 0 0 0 0 2,372,694 0 2012 0 0 0 0 0 0 2,372,694 0 2013 0 0 0 0 0 0 2,372,694 0 2014 0 0 0 0 0 0 2,372,694 0 2015 0 0 0 0 0 0 2,372,694 0 SUBTOT 22,545 0 250,000 0 272,545 2,372,694 1,807,508 REMAIN 0 0 0 0 0 0 2,372,694 0 TOTAL 22,545 0 250,000 0 272,545 2,372,694 1,807,508 LIFE OF EVALUATION IS 5.01 YEARS. FINAL PRODUCTION RATE: 3.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 239 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E PROVED LOCATION #26 (KNOX) UNDEVELOPED
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 686,196 FINAL - 1.000000 0.875000 9.77 10.00% - 592,579 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2002. 15.00% - 512,118 20.00% - 442,876 25.00% - 383,211
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 1 0 0 38 0 0 33.519 0.00 9.77 2003 1 0 0 49 0 0 42.532 0.00 9.77 2004 1 0 0 40 0 0 35.164 0.00 9.77 2005 1 0 0 1 0 0 0.785 0.00 9.77 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 128 0 0 112.000 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 128 0 0 112.000 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 128
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 327,478 0 327,478 0 9,824 317,654 2003 0 0 415,542 0 415,542 0 12,467 403,075 2004 0 0 343,552 0 343,552 0 10,306 333,246 2005 0 0 7,668 0 7,668 0 230 7,438 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 1,094,240 0 1,094,240 0 32,827 1,061,413 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 1,094,240 0 1,094,240 0 32,827 1,061,413
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 4,000 0 250,000 0 254,000 63,654 63,654 46,113 2003 6,000 0 0 0 6,000 397,075 460,729 310,198 2004 6,000 0 0 0 6,000 327,246 787,975 231,393 2005 147 0 0 0 147 7,291 795,266 4,875 2006 0 0 0 0 0 0 795,266 0 2007 0 0 0 0 0 0 795,266 0 2008 0 0 0 0 0 0 795,266 0 2009 0 0 0 0 0 0 795,266 0 2010 0 0 0 0 0 0 795,266 0 2011 0 0 0 0 0 0 795,266 0 2012 0 0 0 0 0 0 795,266 0 2013 0 0 0 0 0 0 795,266 0 2014 0 0 0 0 0 0 795,266 0 2015 0 0 0 0 0 0 795,266 0 SUBTOT 16,147 0 250,000 0 266,147 795,266 592,579 REMAIN 0 0 0 0 0 0 795,266 0 TOTAL 16,147 0 250,000 0 266,147 795,266 592,579 LIFE OF EVALUATION IS 4.02 YEARS. FINAL PRODUCTION RATE: 3.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 240 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E PROVED LOCATION #27 (KNOX) UNDEVELOPED
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 686,196 FINAL - 1.000000 0.875000 9.77 10.00% - 592,579 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2002. 15.00% - 512,118 20.00% - 442,876 25.00% - 383,211
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 1 0 0 38 0 0 33.519 0.00 9.77 2003 1 0 0 49 0 0 42.532 0.00 9.77 2004 1 0 0 40 0 0 35.164 0.00 9.77 2005 1 0 0 1 0 0 0.785 0.00 9.77 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 128 0 0 112.000 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 128 0 0 112.000 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 128
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 327,478 0 327,478 0 9,824 317,654 2003 0 0 415,542 0 415,542 0 12,467 403,075 2004 0 0 343,552 0 343,552 0 10,306 333,246 2005 0 0 7,668 0 7,668 0 230 7,438 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 1,094,240 0 1,094,240 0 32,827 1,061,413 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 1,094,240 0 1,094,240 0 32,827 1,061,413
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 4,000 0 250,000 0 254,000 63,654 63,654 46,113 2003 6,000 0 0 0 6,000 397,075 460,729 310,198 2004 6,000 0 0 0 6,000 327,246 787,975 231,393 2005 147 0 0 0 147 7,291 795,266 4,875 2006 0 0 0 0 0 0 795,266 0 2007 0 0 0 0 0 0 795,266 0 2008 0 0 0 0 0 0 795,266 0 2009 0 0 0 0 0 0 795,266 0 2010 0 0 0 0 0 0 795,266 0 2011 0 0 0 0 0 0 795,266 0 2012 0 0 0 0 0 0 795,266 0 2013 0 0 0 0 0 0 795,266 0 2014 0 0 0 0 0 0 795,266 0 2015 0 0 0 0 0 0 795,266 0 SUBTOT 16,147 0 250,000 0 266,147 795,266 592,579 REMAIN 0 0 0 0 0 0 795,266 0 TOTAL 16,147 0 250,000 0 266,147 795,266 592,579 LIFE OF EVALUATION IS 4.02 YEARS. FINAL PRODUCTION RATE: 3.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 241 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E PROVED LOCATION #28 (KNOX) UNDEVELOPED
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 686,196 FINAL - 1.000000 0.875000 9.77 10.00% - 592,579 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2002. 15.00% - 512,118 20.00% - 442,876 25.00% - 383,211
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 1 0 0 38 0 0 33.519 0.00 9.77 2003 1 0 0 49 0 0 42.532 0.00 9.77 2004 1 0 0 40 0 0 35.164 0.00 9.77 2005 1 0 0 1 0 0 0.785 0.00 9.77 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 128 0 0 112.000 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 128 0 0 112.000 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 128
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 327,478 0 327,478 0 9,824 317,654 2003 0 0 415,542 0 415,542 0 12,467 403,075 2004 0 0 343,552 0 343,552 0 10,306 333,246 2005 0 0 7,668 0 7,668 0 230 7,438 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 1,094,240 0 1,094,240 0 32,827 1,061,413 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 1,094,240 0 1,094,240 0 32,827 1,061,413
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 4,000 0 250,000 0 254,000 63,654 63,654 46,113 2003 6,000 0 0 0 6,000 397,075 460,729 310,198 2004 6,000 0 0 0 6,000 327,246 787,975 231,393 2005 147 0 0 0 147 7,291 795,266 4,875 2006 0 0 0 0 0 0 795,266 0 2007 0 0 0 0 0 0 795,266 0 2008 0 0 0 0 0 0 795,266 0 2009 0 0 0 0 0 0 795,266 0 2010 0 0 0 0 0 0 795,266 0 2011 0 0 0 0 0 0 795,266 0 2012 0 0 0 0 0 0 795,266 0 2013 0 0 0 0 0 0 795,266 0 2014 0 0 0 0 0 0 795,266 0 2015 0 0 0 0 0 0 795,266 0 SUBTOT 16,147 0 250,000 0 266,147 795,266 592,579 REMAIN 0 0 0 0 0 0 795,266 0 TOTAL 16,147 0 250,000 0 266,147 795,266 592,579 LIFE OF EVALUATION IS 4.02 YEARS. FINAL PRODUCTION RATE: 3.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 242 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E PROVED LOCATION #29 (KNOX) UNDEVELOPED
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 683,348 FINAL - 1.000000 0.875000 9.77 10.00% - 587,682 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2002. 15.00% - 505,796 20.00% - 435,615 25.00% - 375,391
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 1 0 0 34 0 0 29.577 0.00 9.77 2003 1 0 0 49 0 0 43.237 0.00 9.77 2004 1 0 0 41 0 0 35.709 0.00 9.77 2005 1 0 0 4 0 0 3.476 0.00 9.77 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 128 0 0 111.999 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 128 0 0 111.999 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 128
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 288,970 0 288,970 0 8,669 280,301 2003 0 0 422,426 0 422,426 0 12,673 409,753 2004 0 0 348,879 0 348,879 0 10,466 338,413 2005 0 0 33,965 0 33,965 0 1,019 32,946 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 1,094,240 0 1,094,240 0 32,827 1,061,413 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 1,094,240 0 1,094,240 0 32,827 1,061,413
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 3,500 0 250,000 0 253,500 26,801 26,801 15,659 2003 6,000 0 0 0 6,000 403,753 430,554 315,418 2004 6,000 0 0 0 6,000 332,413 762,967 235,048 2005 647 0 0 0 647 32,299 795,266 21,557 2006 0 0 0 0 0 0 795,266 0 2007 0 0 0 0 0 0 795,266 0 2008 0 0 0 0 0 0 795,266 0 2009 0 0 0 0 0 0 795,266 0 2010 0 0 0 0 0 0 795,266 0 2011 0 0 0 0 0 0 795,266 0 2012 0 0 0 0 0 0 795,266 0 2013 0 0 0 0 0 0 795,266 0 2014 0 0 0 0 0 0 795,266 0 2015 0 0 0 0 0 0 795,266 0 SUBTOT 16,147 0 250,000 0 266,147 795,266 587,682 REMAIN 0 0 0 0 0 0 795,266 0 TOTAL 16,147 0 250,000 0 266,147 795,266 587,682 LIFE OF EVALUATION IS 4.11 YEARS. FINAL PRODUCTION RATE: 3.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 243 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E PROVED LOCATION #30 (KNOX) UNDEVELOPED
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 683,348 FINAL - 1.000000 0.875000 9.77 10.00% - 587,682 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2002. 15.00% - 505,796 20.00% - 435,615 25.00% - 375,391
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 1 0 0 34 0 0 29.577 0.00 9.77 2003 1 0 0 49 0 0 43.237 0.00 9.77 2004 1 0 0 41 0 0 35.709 0.00 9.77 2005 1 0 0 4 0 0 3.476 0.00 9.77 2006 0 0 0 0 0 0.000 0.00 0.00 2007 0 0 0 0 0 0.000 0.00 0.00 2008 0 0 0 0 0 0.000 0.00 0.00 2009 0 0 0 0 0 0.000 0.00 0.00 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 128 0 0 111.999 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 128 0 0 111.999 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 128
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 288,970 0 288,970 0 8,669 280,301 2003 0 0 422,426 0 422,426 0 12,673 409,753 2004 0 0 348,879 0 348,879 0 10,466 338,413 2005 0 0 33,965 0 33,965 0 1,019 32,946 2006 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 2009 0 0 0 0 0 0 0 0 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 1,094,240 0 1,094,240 0 32,827 1,061,413 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 1,094,240 0 1,094,240 0 32,827 1,061,413
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 3,500 0 250,000 0 253,500 26,801 26,801 15,659 2003 6,000 0 0 0 6,000 403,753 430,554 315,418 2004 6,000 0 0 0 6,000 332,413 762,967 235,048 2005 647 0 0 0 647 32,299 795,266 21,557 2006 0 0 0 0 0 0 795,266 0 2007 0 0 0 0 0 0 795,266 0 2008 0 0 0 0 0 0 795,266 0 2009 0 0 0 0 0 0 795,266 0 2010 0 0 0 0 0 0 795,266 0 2011 0 0 0 0 0 0 795,266 0 2012 0 0 0 0 0 0 795,266 0 2013 0 0 0 0 0 0 795,266 0 2014 0 0 0 0 0 0 795,266 0 2015 0 0 0 0 0 0 795,266 0 SUBTOT 16,147 0 250,000 0 266,147 795,266 587,682 REMAIN 0 0 0 0 0 0 795,266 0 TOTAL 16,147 0 250,000 0 266,147 795,266 587,682 LIFE OF EVALUATION IS 4.11 YEARS. FINAL PRODUCTION RATE: 3.0 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 244 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E PROBABLE PROBABLE LOCATIONS (KNOX) UNDEVELOPED
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 91,285,523 FINAL - 1.000000 0.875000 9.77 10.00% - 75,180,091 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2002. 15.00% - 62,778,240 20.00% - 53,040,641 25.00% - 45,259,984
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 10 0 0 2,537 0 0 2,220.294 0.00 9.77 2003 10 0 0 3,233 0 0 2,828.251 0.00 9.77 2004 10 0 0 2,101 0 0 1,838.375 0.00 9.77 2005 10 0 0 1,444 0 0 1,263.798 0.00 9.77 2006 10 0 0 1,037 0 0 907.028 0.00 9.77 2007 10 0 0 770 0 0 673.586 0.00 9.77 2008 10 0 0 587 0 0 514.300 0.00 9.77 2009 10 0 0 698 0 0 610.551 0.00 9.77 2010 10 0 0 617 0 0 539.494 0.00 9.77 2011 10 0 0 466 0 0 407.657 0.00 9.77 2012 10 0 0 207 0 0 181.607 0.00 9.77 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 13,697 0 0 11,984.941 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 13,697 0 0 11,984.941 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 13,697
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 21,692,276 0 21,692,276 0 650,768 21,041,508 2003 0 0 27,632,016 0 27,632,016 0 828,961 26,803,055 2004 0 0 17,960,921 0 17,960,921 0 538,827 17,422,094 2005 0 0 12,347,309 0 12,347,309 0 370,420 11,976,889 2006 0 0 8,861,666 0 8,861,666 0 265,850 8,595,816 2007 0 0 6,580,932 0 6,580,932 0 197,428 6,383,504 2008 0 0 5,024,707 0 5,024,707 0 150,741 4,873,966 2009 0 0 5,965,084 0 5,965,084 0 178,952 5,786,132 2010 0 0 5,270,854 0 5,270,854 0 158,126 5,112,728 2011 0 0 3,982,814 0 3,982,814 0 119,484 3,863,330 2012 0 0 1,774,301 0 1,774,301 0 53,229 1,721,072 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 117,092,880 0 117,092,880 0 3,512,786 113,580,094 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 117,092,880 0 117,092,880 0 3,512,786 113,580,094
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 30,000 0 250,000 0 280,000 20,761,508 20,761,508 17,480,359 2003 60,000 0 0 0 60,000 26,743,055 47,504,563 20,937,119 2004 60,000 0 0 0 60,000 17,362,094 64,866,657 12,297,993 2005 60,000 0 0 0 60,000 11,916,889 76,783,546 7,637,931 2006 72,000 0 0 0 72,000 8,523,816 85,307,362 4,943,860 2007 72,000 0 0 0 72,000 6,311,504 91,618,866 3,312,906 2008 72,000 0 0 0 72,000 4,801,966 96,420,832 2,281,177 2009 72,000 0 0 0 72,000 5,714,132 102,134,964 2,442,044 2010 72,000 0 0 0 72,000 5,040,728 107,175,692 1,962,871 2011 72,000 0 0 0 72,000 3,791,330 110,967,022 1,335,968 2012 38,909 0 0 0 38,909 1,682,163 112,649,185 547,863 2013 0 0 0 0 0 0 112,649,185 0 2014 0 0 0 0 0 0 112,649,185 0 2015 0 0 0 0 0 0 112,649,185 0 SUBTOT 680,909 0 250,000 0 930,909 112,649,185 75,180,091 REMAIN 0 0 0 0 0 0 112,649,185 0 TOTAL 680,909 0 250,000 0 930,909 112,649,185 75,180,091 LIFE OF EVALUATION IS 11.54 YEARS. FINAL PRODUCTION RATE: 30.2 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. [LOGO OMITTED] RYDER SCOTT COMPANY --------------------- PETROLEUM CONSULTANTS TENGASCO, INC. TABLE 245 ESTIMATED FUTURE RESERVES AND INCOME ATTRIBUTABLE TO CERTAIN LEASEHOLD AND ROYALTY INTERESTS AS OF DECEMBER 31, 2000 SEC CASE SWAN CREEK FIELD, HANCOCK COUNTY, TENNESSEE GAS LEASE TENGASCO INC. - OPERATOR 11-T1S-R74E POSSIBLE POSSIBLE LOCATIONS (KNOX) UNDEVELOPED
REVENUE INTEREST PRODUCT PRICES ---------------------------- ------------------------------------- DISCOUNTED EXPENSE OIL/ PLANT OIL/COND. PL PROD GAS FUTURE NET INCOME - $ INTEREST COND. PRODUCTS GAS $/BBL $/BBL $/MCF COMPOUNDED MONTHLY -------- -------- -------- -------- ------------- ------ -------------- ---------------------- INITIAL - 1.000000 0.875000 9.77 5.00% - 53,825,724 FINAL - 1.000000 0.875000 9.77 10.00% - 43,252,319 REMARKS - COMPLETION COST IS SHOWN AS A DEVELOPMENT COST IN 2003. 15.00% - 35,019,134 20.00% - 28,549,812 25.00% - 23,422,959
ESTIMATED 8/8 THS PRODUCTION COMPANY NET PRODUCTION AVERAGE PRICES ------------------------------------- ------------------------------------------ ------------------ NO OF OIL/COND. PLANT PROD. GAS OIL/COND. PLANT PROD. GAS OIL/COND. GAS PD WELLS BARRELS BARRELS MMCF BARRELS BARRELS MMCF $/BBL. $/MCF ---- ----- ------------- ----------- ----------- -------------- ----------- ------------ --------- -------- 2001 0 0 0 0 0 0.000 0.00 0.00 2002 0 0 0 0 0 0.000 0.00 0.00 2003 13 0 0 1,726 0 0 1,510.593 0.00 9.77 2004 13 0 0 2,200 0 0 1,924.953 0.00 9.77 2005 13 0 0 1,430 0 0 1,251.313 0.00 9.77 2006 13 0 0 984 0 0 860.265 0.00 9.77 2007 13 0 0 717 0 0 627.712 0.00 9.77 2008 13 0 0 660 0 0 577.760 0.00 9.77 2009 13 0 0 526 0 0 460.133 0.00 9.77 2010 0 0 0 0 0 0.000 0.00 0.00 2011 0 0 0 0 0 0.000 0.00 0.00 2012 0 0 0 0 0 0.000 0.00 0.00 2013 0 0 0 0 0 0.000 0.00 0.00 2014 0 0 0 0 0 0.000 0.00 0.00 2015 0 0 0 0 0 0.000 0.00 0.00 SUB-TOTAL 0 0 8,243 0 0 7,212.729 0.00 9.77 REMAINDER 0 0 0 0 0 0.000 0.00 0.00 TOTAL 0 0 8,243 0 0 7,212.729 0.00 9.77 CUMULATIVE 0 0 0 ULTIMATE 0 0 8,243
COMPANY FUTURE GROSS REVENUE (FGR) - $ PRODUCTION TAXES - $ ------------------------------------------------------------------- ----------------------- FGR AFTER FROM FROM FROM PRODUCTION PD OIL/COND. PLANT PROD. GAS OTHER TOTAL OIL/COND. GAS/P.P. TAXES - $ ---- -------------- ----------- ------------- ------------ ------------- ----------- ----------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 0 0 14,758,492 0 14,758,492 0 442,755 14,315,737 2004 0 0 18,806,791 0 18,806,791 0 564,203 18,242,588 2005 0 0 12,225,327 0 12,225,327 0 366,760 11,858,567 2006 0 0 8,404,787 0 8,404,787 0 252,144 8,152,643 2007 0 0 6,132,744 0 6,132,744 0 183,982 5,948,762 2008 0 0 5,644,714 0 5,644,714 0 169,342 5,475,372 2009 0 0 4,495,497 0 4,495,497 0 134,865 4,360,632 2010 0 0 0 0 0 0 0 0 2011 0 0 0 0 0 0 0 0 2012 0 0 0 0 0 0 0 0 2013 0 0 0 0 0 0 0 0 2014 0 0 0 0 0 0 0 0 2015 0 0 0 0 0 0 0 0 SUB-TOT 0 0 70,468,352 0 70,468,352 0 2,114,051 68,354,301 REMAIN 0 0 0 0 0 0 0 0 TOTAL 0 0 70,468,352 0 70,468,352 0 2,114,051 68,354,301
DEDUCTIONS - $ FUTURE NET INCOME BEFORE INCOME TAXES - $ -------------------------------------------------------------- ------------------------------------------ OPERATING AD VALOREM DEVELOPMENT UNDISCOUNTED DISCOUNTED PD COSTS TAXES COSTS OTHER TOTAL ANNUAL CUMULATIVE @ 10.00 % ---- ------------ ----------- ----------- ----------- ------------- -------------- ------------- ------------- 2001 0 0 0 0 0 0 0 0 2002 0 0 0 0 0 0 0 0 2003 39,000 0 250,000 0 289,000 14,026,737 14,026,737 10,687,250 2004 78,000 0 0 0 78,000 18,164,588 32,191,325 12,873,157 2005 78,000 0 0 0 78,000 11,780,567 43,971,892 7,553,585 2006 93,600 0 0 0 93,600 8,059,043 52,030,935 4,675,789 2007 93,600 0 0 0 93,600 5,855,162 57,886,097 3,071,757 2008 93,600 0 0 0 93,600 5,381,772 63,267,869 2,556,234 2009 93,362 0 0 0 93,362 4,267,270 67,535,139 1,834,547 2010 0 0 0 0 0 0 67,535,139 0 2011 0 0 0 0 0 0 67,535,139 0 2012 0 0 0 0 0 0 67,535,139 0 2013 0 0 0 0 0 0 67,535,139 0 2014 0 0 0 0 0 0 67,535,139 0 2015 0 0 0 0 0 0 67,535,139 0 SUBTOT 569,162 0 250,000 0 819,162 67,535,139 43,252,319 REMAIN 0 0 0 0 0 0 67,535,139 0 TOTAL 569,162 0 250,000 0 819,162 67,535,139 43,252,319 LIFE OF EVALUATION IS 9.00 YEARS. FINAL PRODUCTION RATE: 39.9 MMCF/MO
THESE DATA ARE PART OF A RYDER SCOTT REPORT AND ARE SUBJECT TO THE CONDITIONS IN THE TEXT OF THE REPORT. EX-99.14A 6 c20582_ex99-14a.txt EXHIBIT 99.14(a) [RYDER SCOTT COMPANY LETTERHEAD] CONSENT OF INDEPENDENT PETROLEUM ENGINEERS AND GEOLOGISTS As independent oil and gas consultants, Ryder Scott Company, L.P. hereby consents to: (a) the use of our report setting forth our estimates of proved reserves and future revenue, as of December 31, 2000, to the interest of Tengasco, Inc. (Tengasco) in certain oil and gas properties, and (b) all references to our firm included in or made a part of Tengasco's Annual Report on Form 10-K for the year ended December 31, 2000. /s/ Ryder Scott Company, L.P. RYDER SCOTT COMPANY, L.P. Houston, Texas April 12, 2001 -----END PRIVACY-ENHANCED MESSAGE-----