8-K

                                                      UNITED STATES

SECURITIES and EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

Current Report Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported):

June 27, 2011

Tengasco, Inc.

(Exact Name of Registrant as specified in its charter)

Commission File Number 1-15555

                 Delaware                                                                            87-0267438

(State or other jurisdiction of                  (I.R.S. Employer Identification No.)

incorporation or organization)                                                                           

11121 Kingston Pike, Suite E, Knoxville, Tennessee 37934

(Address of Principal Executive Office)

(865) 675-1554

(Registrant's Telephone number)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01 Other Events.

On June 27, 2011, the Company entered into an agreement with Cargill, Incorporated for the period from August 1, 2011 through December 31, 2012.  The agreement provides to the Company a $65 per barrel floor on a stated quantity of 10,000 barrels per month, which is approximately half of the Company’s current production of oil.  If the average price falls below $65 per barrel, then Cargill will pay to the Company the difference between $65 and the lower average price for 10,000 barrels per month in each month during when such lower average prices occur.  The cost to the Company was $2.20 per barrel per month or a total of $374,000 for the entire period of the agreement.  This agreement will commence following the expiration on July 31, 2011 of the Company’s existing collar hedge agreement with Macquarie as counterparty.

On June 30, 2011, the Company issued a press release disclosing the oil price floor agreement. The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information in this Form 8-K (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits

(c) Exhibits

99.1 Press Release dated June 30, 2011.

SIGNATURES

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

Dated: June 30, 2011

Tengasco, Inc.

By: s/Jeffrey R. Bailey

       Jeffrey R. Bailey,

       Chief Executive Officer

EX-99

FOR IMMEDIATE RELEASE

Tengasco Announces 17 Month Oil Pricing Floor Agreement

June 30, 2011-- Knoxville, Tenn. Tengasco, Inc. (NYSE Amex; TGC) announced today that on June 27, 2011 the Company entered into an agreement with Cargill, Incorporated for the period from August 1, 2011 through December 31, 2012.  The agreement provides to the Company a $65 per barrel floor on a stated quantity of 10,000 barrels per month, which is approximately half of the Company’s current production of oil.  If the average price falls below $65 per barrel, then Cargill will pay to the Company the difference between $65 and the lower average price for 10,000 barrels per month in each month during when such lower average prices occur.  The cost to the Company was $2.20 per barrel per month or a total of $374,000 for the entire period of the agreement.  This agreement will commence following the expiration on July 31, 2011 of the Company’s existing collar hedge agreement with Macquarie as counterparty.

Jeffrey R. Bailey, CEO said “We are pleased to have entered into this floor price agreement with Cargill covering about half of our current production level of oil.  Unlike our current collar hedge that expires at the end of July 2011, this new floor price agreement establishes only a floor price to be received by the Company if average market price per barrel of oil falls below the floor price of $65.   If prices rise, the Company will not have any cap on any portion of its production volumes.  Like an insurance policy, there is a premium cost for this downside protection, but unlike the costs of a collar hedge, the cost of the downside protection is known and is paid in advance.  As the Company has already paid for this transaction, there will be no further cash payments by the Company for this floor hedge. Because we fund most of our operations from cash flow, it is essential to have some protection from the severe damage to cash flow and continuing operations that would occur in the event of a collapse in pricing as we experienced in late 2008 and through the first half of 2009 when oil prices fell from about $150 per barrel to $39 in less than six months.  Accordingly, we have now put a floor into place for about half of our current production, which will allow the Company to continue operations should low prices return.  By abandoning the concept of a collar hedge, and establishing only a floor, we realize the full benefit of increased future prices on all of our production no matter how high prices may go.”

The statements contained in this release that are not purely historical are forward-looking statements within the meaning of applicable securities laws.  Forward-looking statements include statements regarding “expectations,” “anticipations,” “intentions,” “beliefs,” or “strategies” regarding the future.  Forward-looking statements also include statements regarding revenue, margins, expenses, and earnings analysis for 2011 and thereafter; oil and gas prices; reserve calculation and valuation; exploration activities; development expenditures; costs of regulatory compliance; environmental matters; technological developments; future products or product development; the Company’s products and distribution development strategies; potential acquisitions or strategic alliances; and liquidity and anticipated cash needs and availability.  The Company’s actual results could differ materially from the forward-looking statements.

Contact:

Jeffrey R. Bailey CEO, 865-675-1554