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<SEC-DOCUMENT>0000930413-03-001720.txt : 20030520
<SEC-HEADER>0000930413-03-001720.hdr.sgml : 20030520
<ACCEPTANCE-DATETIME>20030520152706
ACCESSION NUMBER:		0000930413-03-001720
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20030331
FILED AS OF DATE:		20030520

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:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-15555
		FILM NUMBER:		03712381

	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
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>c28329_10q.txt
<TEXT>


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


                                    Form 10-Q


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



                  For the Quarterly period ended March 31, 2003



                           Commission File No. 0-20975


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


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


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


                                 (865-523-1124)
                ------------------------------------------------
                (Issuer's telephone number, including area code)


Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports),  and (2) has been
subject to such filing requirements for the past 90 days. Yes __X__  No_____


State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: 11,935,614 common shares at March 31,
2003.

Transitional Small Business Disclosure Format (check one):  Yes_____   No __X__


<PAGE>


                         TENGASCO, INC. AND SUBSIDIARIES

                                TABLE OF CONTENTS



                                                                            PAGE
PART I.          FINANCIAL INFORMATION

        ITEM 1.  FINANCIAL STATEMENTS

        *        Condensed Consolidated Balance Sheets as of March 31,
                 2003 (unaudited) and December 31, 2002 ..................   3-4

        *        Consolidated  Statements of Operations for the three
                 months ended March 31, 2003 and 2002 (unaudited) ........     5

        *        Consolidated Statements of Stockholders' Equity for the
                 three months ended March 31, 2003 (unaudited) ...........     6

        *        Consolidated Statements of Cash Flows for the three
                 months ended March 31, 2003 and 2002 (unaudited) ........     7

        *        Notes to Condensed Consolidated Financial Statements ....  8-11

        ITEM 2.  MANAGEMENT'S DISCUSSION AND
                 ANALYSIS OF FINANCIAL CONDITION
                 AND RESULTS OF OPERATIONS ............................... 11-14

        ITEM 3.  QUANTITATIVE AND QUALITATIVE
                 DISCLOSURE ABOUT MARKET RISK ............................ 14-15

        ITEM 4.  CONTROLS AND PROCEDURES ................................. 15-16

PART II.         OTHER INFORMATION .......................................    16

        ITEM 1.  LEGAL PROCEEDINGS ....................................... 16-17

        ITEM 2.  CHANGES IN SECURITIES AND USE OF
                 PROCEEDS ................................................    17

        *        SIGNATURES ..............................................    18

        *        CERTIFICATIONS .......................................... 19-22




                                        2

<PAGE>


                         TENGASCO, INC. AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEETS

                                     ASSETS




                                               March 31, 2003  December 31, 2002
                                                 (Unaudited)
                                               --------------  -----------------
Current Assets:
  Cash and cash equivalents                      $   176,620      $   184,130
  Investments                                         34,500           34,500
  Accounts receivable, net                         1,142,386          730,667
  Participant receivable                              71,850           70,605
  Inventory                                          262,748          262,748
  Current portion of loan fees, net                  312,802          323,856
                                                 -----------      -----------

      Total current assets                         2,000,906        1,606,506

Oil and gas properties, net (on the basis of
  full cost accounting)                           13,487,521       13,864,321

Completed pipeline facilities, net                15,573,375       15,372,843

Other property and equipment, net                  1,616,202        1,685,950
Loan fees, net of accumulated amortization                 0           40,158
Other                                                 14,613           14,613
                                                 -----------      -----------

                                                 $32,692,617      $32,584,391
                                                 ===========      ===========





      SEE ACCOMPANYING NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


                                        3

<PAGE>


                         TENGASCO, INC. AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEETS

                      LIABILITIES AND STOCKHOLDERS' EQUITY


<TABLE>
<CAPTION>
                                                        March 31, 2003  December 31, 2002
                                                         (Unaudited)
                                                        --------------  -----------------
<S>                                                      <C>              <C>
Current liabilities
   Current maturities of long-term debt                  $  7,971,776     $  7,861,245
   Accounts payable-trade                                   1,335,530        1,396,761
   Accrued interest payable                                    46,317           61,141
   Accrued dividends payable                                  229,675          254,389
   Current Long term debt to related parties                1,250,000          750,000
   Other accrued liabilities                                  297,170           31,805
                                                         ------------     ------------

Total current liabilities                                  11,130,468       10,355,341

Long term debt, less current maturities                       451,443        1,256,209
                                                         ------------     ------------

Total liabilities                                          11,581,911       11,611,550
                                                         ------------     ------------

Preferred Stock
   Cumulative convertible redeemable preferred;
    redemption value $7,072,000 and $7,072,000;
    70,720 and 70,720 shares outstanding; respectively      6,857,427        6,762,218
                                                         ------------     ------------
Stockholders' Equity
  Common stock, $.001 per value, 50,000,000 shares
    authorized                                                 11,951           11,460
  Additional paid-in capital                               42,791,007       42,237,276
  Accumulated deficit                                     (28,288,292)     (27,776,726)
  Accumulated other comprehensive loss                       (115,500)        (115,500)
  Treasury stock, at cost                                    (145,887)        (145,887)
                                                         ------------     ------------

Total stockholders' equity                                 14,253,279       14,210,623
                                                         ------------     ------------

                                                         $ 32,692,617     $ 32,584,391
                                                         ============     ============

</TABLE>




      SEE ACCOMPANYING NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


                                        4

<PAGE>


                         TENGASCO, INC. AND SUBSIDIARIES

                         CONSOLIDATED STATEMENTS OF LOSS



                                                 For the Three    For the Three
                                                  Months Ended     Months Ended
                                                 March 31, 2003   March 31, 2002
                                                  (Unaudited)       (Unaudited)
                                                 --------------   --------------
Revenue and other income
    Oil and gas revenues                         $  1,923,915      $  1,175,444
    Pipeline transportation revenues                   47,504            77,707
    Interest increase                                     184             1,038
                                                 ------------      ------------

Total revenues and other income                     1,971,603         1,254,189

Costs and other deductions
    Production costs and taxes                        769,909           723,799
    Depletion, depreciation and amortization          604,958           487,348
    Interest expense                                  153,356           153,367
    General and administrative costs                  511,337           640,230
    Public Relations                                    4,779                --
    Professional fees                                 209,426           117,313
                                                 ------------      ------------

Total costs and other deductions                    2,253,765         2,122,057
                                                 ------------      ------------

Net loss                                             (282,162)         (867,868)
                                                 ------------      ------------

Dividends on preferred stock                         (134,195)         (112,458)
                                                 ------------      ------------

Net loss attributable to common shareholders     $   (416,357)     $   (980,326)
                                                 ------------      ------------

Net loss attributable to common shareholders
     Per share basic and diluted                 $      (0.04)     $      (0.09)
                                                 ============      ============

Weighted average shares outstanding                11,764,321        10,642,541
                                                 ------------      ------------






      SEE ACCOMPANYING NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


                                        5

<PAGE>


                         TENGASCO, INC. AND SUBSIDIARIES

                 CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                      Accumulated
                                             Common Stock            Additional         Other
                                        ----------------------         Paid-in       Comprehensive    Accumulated
                                          Shares       Amount          Capital           Loss           Deficit
                                        ----------    --------      ------------     -------------   -------------
<S>                                     <C>           <C>           <C>               <C>            <C>
Balance December 31, 2002               11,459,279    $ 11,460      $ 42,237,276      $(115,500)     $(27,776,726)

Net Loss                                         0           0                 0                         (282,162)

Common Stock Issued in
Private Placements Net of
Related Expenses                           227,275         227           249,773                                0

Common Stock Issued in
Conversion of Debt                          60,528          61            69,538                                0

Common Stock Issued for
Preferred Dividend in Arrears              144,461         144           158,765

Common Stock Issued for
Charity                                      3,571           4             5,710

Retained Earnings-Accretion
of Issue Cost on Preferred
Stock                                                                                                     (95,209)

Common Stock Issued for
Services                                    55,000          55            69,945                                0

Dividends on Convertible
Redeemable Preferred Stock                       0           0                 0                         (134,195)
                                        ----------     -------       -----------      ---------      ------------
Net loss for the three  months
ended March 31, 2003                    11,950,114     $11,951       $42,791,007      $(115,500)     $(28,288,292)
                                        ==========     =======       ===========      =========      ============
</TABLE>



           Treasury Stock
       ---------------------
       Shares       Amount            Total
       ------     ----------      ------------
       14,500    $ (145,887)      $14,210,623

            0             0          (282,162)



            0             0           250,000


            0             0            69,599


                                      158,909


                                        5,714



                                      (95,209)


            0             0            70,000


            0             0          (134,195)

       ------     ----------      ------------

       14,500     $(145,887)      $14,253,279
       ======     ==========      ============


      SEE ACCOMPANYING NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


                                       6

<PAGE>


                         TENGASCO, INC. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS



                                                  For the three   For the three
                                                   Months Ended    Months Ended
                                                  March 31, 2003  March 31, 2002
                                                   (Unaudited)     (Unaudited)
                                                  --------------  --------------
Operating activities
   Net loss                                        $(282,162)       $(867,868)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depletion, depreciation and amortization             604,958          487,348
   Charitable donation and services paid in stock     75,714                0
   Changes in assets and liabilities
   Accounts receivable                              (411,719)         100,994
   Participant receivables                            (1,245)               0
   Accounts payable-trade                            (61,231)         (83,142)
   Accrued interest payable                          (14,824)            (889)
   Other accrued liabilities                         (31,805)               0
   Other                                               9,602                0
                                                   ---------        ---------

Net cash used in operating activities               (112,712)        (363,557)
                                                   ---------        ---------

Investing activities
   Additions to property and equipment                     0         (118,357)
   Net additions to oil and gas properties                 0         (365,475)
   Net additions to pipeline facilities              (37,362)        (171,713)
   Increase in restricted cash                             0             (497)
   Other                                              26,800          (14,949)
                                                   ---------        ---------

Net cash used in investing activities                (10,562)        (670,991)
                                                   ---------        ---------

Financing activities
   Repayments of borrowings                         (634,236)        (238,116)
   Proceeds from borrowings                          500,000          518,356
   Dividends on convertible redeemable
     preferred stock                                       0         (112,458)
   Proceeds from private placements of
     common stock                                    250,000          632,000
                                                   ---------        ---------

Net cash provided by financing activities            115,764          799,782
                                                   ---------        ---------

Net change in cash and cash equivalents               (7,510)        (234,766)

Cash and cash equivalents, beginning of period       184,130          393,451
                                                   ---------        ---------

Cash and cash equivalents, end of period           $ 176,620        $ 158,685
                                                   =========        =========




      SEE ACCOMPANYING NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


                                        7

<PAGE>


                         TENGASCO, INC. AND SUBSIDIARIES
              CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


(1)            BASIS OF PRESENTATION

               The accompanying unaudited consolidated financial statements have
been prepared in accordance with generally  accepted  accounting  principles for
interim  financial  information and with the  instructions to Form 10-Q and Item
210 of Regulation S-X.  Accordingly,  they do not include all of the information
and footnotes required by generally accepted accounting  principles for complete
financial statements. In the opinion of management,  all adjustments (consisting
of only normal recurring accruals)  considered necessary for a fair presentation
have been included.  Operating results for the three months ended March 31, 2003
are not necessarily  indicative of the results that may be expected for the year
ended  December  31,  2003.  For  further  information,  refer to the  Company's
consolidated  financial  statements  and  footnotes  thereto  for the year ended
December 31, 2002 included in the Company's annual report on Form 10-K.


(2)            GOING CONCERN UNCERTAINTY

               The  accompanying  consolidated  financial  statements  have been
prepared in conformity  with  accounting  principles  generally  accepted in the
United States of America,  which  contemplates  continuation of the Company as a
going  concern  and  assume  realization  of  assets  and  the  satisfaction  of
liabilities  in  the  normal  course  of  business.  The  Company  has  incurred
continuous losses since commencing its operations and has an accumulated deficit
of $28,288,292 and a working capital deficit of $9,129,562 as of March 31, 2003.
During  2002,  the  Company was  informed by its primary  lender that the entire
amount of its outstanding  credit  facility was immediately due and payable,  as
provided for in the Credit  Agreement.  These  circumstances  raise  substantial
doubt about the Company's ability to continue as a going concern.

               The Company has disputed its  obligation to make this payment and
is  attempting  to  resolve  the  dispute  or to  obtain  alternate  refinancing
arrangements  to repay this current  obligation.  There can be no assurance that
the Company will be successful in its plans to obtain the financing necessary to
satisfy its current obligation.

(3)            EARNINGS PER SHARE

               In accordance  with Statement of Financial  Accounting  Standards
(SFAS) No. 128, "Earnings Per Share", basic and diluted loss per share are based
on  11,764,321  and  10,642,541  weighted  average  shares  outstanding  for the
quarters  ended March 31, 2003 and 2002,  respectively.  During the three months
period ended March 31, 2003 and year ended December 31, 2002 potential  weighted
average stock equivalents outstanding were approximately 1,473,000. These shares
are not included in the computation of the diluted loss per share amount because
the  Company  was in a net loss  position  and  their  effect  would  have  been
antidilutive.


(4) NEW ACCOUNTING PRONOUNCEMENTS:

               In 2001, the Financial  Accounting  Standards Board (FASB) issued
Statement of Financial  Accounting  Standards ("SFAS") No. 143,  "Accounting for
Asset Retirement  Obligations".  SFAS No. 143 addresses financial accounting and
reporting for obligations  associated with the retirement of tangible long-lived
assets  and the  associated  asset  retirement  cost.  This  statement  requires
companies  to  record  the  present  value of  obligations  associated  with the
retirement of tangible  long-lived assets in the period in which it is incurred.
The liability is capitalized as part of the related  long-lived  assets carrying
amount.  Over time,  accretion of the  liability is  recognized  as an operating
expense and the capitalization cost is depreciated over the expected useful life
of  the  related  asset.  The  Company's  asset  retirement  obligations  relate
primarily to the plugging,  dismantlement,  removal site reclamation and similar
activities of its oil and gas  properties.  Prior to adoption of this statement,
such  obligations  were accrued ratably over the productive  lives of the assets
through its depreciation,  depletion and amortization for oil and gas properties
without  recording a separate  liability for such amounts.  Management  does not
believe  that  adoption  of this  standard  has a material  impact in  financial
positions or results of operation.

               In  July  2002,  FASB  issued SFAS  No. 146, Accounting for Costs
Associated with Exit or Disposal Activities.  The standard requires companies to
recognize  costs  associated  with  exit or  disposal  activities  when they are
incurred  rather than at the date of  commitment  to an exit or  disposal  plan.
Examples of costs covered by the standard  include lease  termination  costs and
certain  employee  severance  costs  that  are  associated  with  restructuring,
discontinued  operation,  plant  closing,  or other exit or  disposal  activity.
Previous  accounting  guidance was  provided by EITF Issue No. 94-3,  "Liability
Recognition for Certain



                                       8
<PAGE>

Employee  Termination  Benefits  and Other Costs to Exit an Activity  (including
Certain Costs Incurred in a Restructuring)." Statement 146 replaces Issue 94- 3.
Statement  146 is to be applied  prospectively  to exit or  disposal  activities
initiated after December 31, 2002. The Company does not currently have any plans
for exit or disposal activities,  and therefore does not expect this standard to
have a material effect on the Company's  consolidated  financial statements upon
adoption.

                In November  2002, the FASB issued FASB  Interpretation  ("FIN")
No.45,"Guarantor's   Accounting  and  Disclosure  Requirements  for  Guarantees,
Including  Indirect  Guarantees  of  Indebtedness  of Others",  which  clarifies
disclosure   and   recognition/measurement   requirements   related  to  certain
guarantees.  The disclosure  requirements are effective for financial statements
issued after December 15, 2002 and the recognition/measurement  requirements are
effective  on a  prospective  basis  for  guarantees  issued or  modified  after
December 31, 2002. The application of the  requirements of FIN 45 did not have a
impact on our financial position or results of operations.

               In December  2002,  the FASB issued SFAS No. 148,  Accounting for
Stock-Based   Compensation--Transition  and  Disclosure--an  amendment  of  FASB
Statement No. 123  ("Statement  148").  This  amendment  provides two additional
methods of transition  for a voluntary  change to the fair value based method of
accounting for stock-based employee compensation.  Additionally,  more prominent
disclosures  in both annual and interim  financial  statements  are required for
stock-based employee compensation. The transition guidance and annual disclosure
provisions of Statement 148 are effective for fiscal years ending after December
15, 2002. The interim disclosure  provisions are effective for financial reports
containing financial statements for interim periods beginning after December 15,
2002.  The  adoption  of  Statement  148 did not have a impact on the  Company's
consolidated financial statements.

         In January  2003,  the FASB issued FASB  Interpretation  No.  (FIN) 46,
"Consolidation of Variable Interest Entities." This interpretation of Accounting
Research Bulletin No. 51 "Consolidated  Financial  Statements"  consolidation by
business  enterprises  of  variable  interest  entities  which  possess  certain
characteristics. The Interpretation requires that if a business enterprise has a
controlling  financial  interest  in a variable  interest  entity,  the  assets,
liabilities,  and results of the activities of the variable interest entity must
be included in the consolidated  financial statements with those of the business
enterprise.   This  Interpretation  applies  immediately  to  variable  interest
entities  created  after January 31, 2003 and to variable  interest  entities in
which an  enterprise  obtains an  interest  after that date.  We do not have any
ownership in any variable  interest entities as of March 31, 2003. We will apply
the  consolidation  requirement of FIN 46 in future periods if we should own any
interest in any variable interest entity.

(5)            LETTER OF CREDIT AGREEMENT

               On November 8, 2001,  the Company  signed a credit  facility with
the Energy Finance Division of Bank One, N.A. in Houston, Texas whereby Bank One
extended  to the Company a revolving  line of credit of up to $35  million.  The
initial borrowing base under the facility was $10 million.  The interest rate is
the Bank One base rate plus  one-quarter  percent,  which at the present time is
5.25%.



                                        9
<PAGE>


               On November 9, 2001, funds from this credit line were used to (1)
refinance existing indebtedness on the Company's Kansas properties, (2) to repay
the internal  financing  provided by directors and shareholders on the Company's
completed  65-mile  Tennessee  intrastate  pipeline  system  (3) to repay a note
payable  to  Spoonbill,  Inc.  (4) to repay a  purchase  money  note due to M.E.
Ratliff,  who at the time was the Company's chief executive officer and Chairman
of the Board of  Directors,  for  purchase by the Company of a drilling  rig and
related equipment,  (5) to repay in full the remaining  principal of the working
capital loan due December 31, 2001 to Edward W.T. Gray III, who at that time was
a director of the Company.  All of these obligations incurred interest at a rate
substantially  greater than the rate being  charged by Bank One under the credit
facility.

               On April 5, 2002,  the  Company  received a notice  from Bank One
stating that it had redetermined and reduced the borrowing base under the Credit
Agreement by  $6,000,000 to  $3,101,766.  Bank One demanded that the Company pay
the $6,000,000 within thirty days of the notice.  The Company filed a lawsuit in
Federal  Court to prevent Bank One from  exercising  any rights under the Credit
Agreement. The Company has been paying $200,000 per month toward the outstanding
balance of the credit facility and any accrued  interest until this situation is
resolved.

(6)            SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

                During  the three  months  ended  March 31,  2003,  the  Company
converted  $60,000  of debt and $9,600 of  accrued  interest  owed to holders of
convertible notes into 60,528 shares of common stock.

               During  the  three  months  ended  March  31,  2003  the  Company
converted  $158,909 of accrued  dividends  payable into 144,461 shares of common
stock.

               During the three months ending March 31, 2003, the Company issued
55,000 shares of common stock for payment for consulting  services  performed in
the amount of $70,000.

               During  the three  months  ending  March 31,  2003,  the  Company
donated 3,571 shares of stock as a charitable contribution valued at $5,713.





                                       10
<PAGE>


(7)             NOTES PAYABLE

               On February  3, 2003 and  February  28,  2003,  Dolphin  Offshore
Partners,  LP which owns more than 10% of the Company's outstanding common stock
and whose general partner, Peter E. Salas, is a Director of the Company,  loaned
the Company the sum of $250,000 on each such date (cumulatively, $500,000) which
the Company used to pay the  principal and interest due to Bank One for February
and March 2003 and for working  capital needs.  Each of these loans is evidenced
by a  separate  promissory  note each  bearing  interest  at the rate of 12% per
annum,  with  payments of interest  only  payable  quarterly  and the  principal
balance  payable  on  January 4,  2004.  Each  promissory  note is secured by an
undivided 10% interest in the Company's Tennessee and Kansas pipelines.

(8)            RECLASSIFICATIONS

               Certain prior period amounts have been reclassified to conform to
the current period's presentation.

(9)              LAW SUIT SETTLEMENT

               On April 2,  2003 and by agreed  order  filed  May 5,  2003,  all
claims were  settled and the lawsuit was  dismissed in the Caddum  lawsuit.  The
settlement  provides that the amount claimed to be owed by the Company to Caddum
was  reduced  to  $297,000  which  is to be paid by note due May 1,  2004,  with
interest only payable monthly at an annual interest rate of 4.75 percent.


ITEM 2         MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
               CONDITION AND RESULTS OF OPERATIONS

               RESULTS OF OPERATIONS AND FINANCIAL CONDITION

               Kansas

               During the first quarter of 2003,  the Company  produced and sold
32,807  barrels of oil and 64,438 Mcf of natural gas from its Kansas  Properties
comprised  of 149  producing  oil  wells and 59  producing  gas  wells.  January
production was 10,986 barrels of oil and 22,577 Mcf of gas; February  production
was 10,621 barrels and 19,278 Mcf; and, March  production was 11,200 barrels and
22,583  Mcf of gas.  The  first  quarter  production  of 32,807  barrels  of oil
compares  to 35,806  barrels  produced in the first  quarter of 2002.  The first
quarter  production  of 64,438 Mcf of gas compares to 76,849 Mcf produced in the
first  quarter of 2002.  In  summary,  the first  quarter  production  reflected
expected  continued stable  production  levels from the Kansas  Properties which
have been in production  for many years.  The decrease in production  reflects a
normal  decline  curve for the Kansas  properties.  The revenues from the Kansas
properties  were $1,131,627 in the first quarter of 2003 as compared to $692,974
in 2002.  The increase in revenues is due to an increase in the price of oil and
gas for 2003.



                                       11
<PAGE>


               Tennessee

               During the first quarter of 2003,  the Company  produced gas from
23 wells in the Swan Creek field which it sold to its two  industrial  customers
in Kingsport,  Tennessee,  BAE SYSTEMS  Ordnance Systems Inc. as operator of the
Holston Army Ammunition Plant ("BAE") and Eastman Chemical Company ("Eastman").

               Natural  gas  production  from the Swan Creek field for the first
quarter of 2003 was an average of 1.241  million  cubic feet per day during that
period.  The first quarter  production  reflected  expected  natural  decline in
production  from the existing Swan Creek gas wells which were first brought into
production in mid-2001 upon completion of the Company's  pipeline.  This natural
decline is normal for any producing  well,  and this decline as  experienced  on
existing  wells in Swan  Creek was not  unexpected;  however,  volumes  were not
replaced as expected as a result of  additional  drilling.  In order for overall
field production to remain steady or grow, new wells must be brought online. Any
of the new wells drilled by the Company would also  experience the same harmonic
(i.e. a relatively  steep initial  decline curve  followed by longer  periods of
relatively  flat or stable  production)  decline as does every natural well in a
formation  similar to the Knox  formation,  so  continuous  drilling is vital to
maintaining or increasing  earlier  levels of production.  No new gas wells have
been  drilled  by the  Company to date in 2003 due to the  destabilized  lending
arrangements caused by the actions of Bank One and ongoing litigation  regarding
that matter. The Company anticipates that the natural decline of production from
existing wells is now  predictable  in Swan Creek,  that the total volume of the
Company's  reserves  remains  largely  intact,  and that these  reserves  can be
extracted through existing wells and also by steady additional  drilling brought
on by reliable financial  arrangements to fund drilling.  Upon conclusion of the
Bank  One  litigation,  the  Company  expects  that  additional  or  replacement
financing may more easily be obtainable to allow drilling to increase;  however,
no assurances can be made that such financing will be obtained.  See,  Liquidity
and Capital Resources discussion, below.

               COMPARISON OF THE QUARTERS ENDING MARCH 31 2003 AND 2002

               The Company  recognized  $1,923,915  in oil and gas revenues from
its Kansas  Properties and the Swan Creek Field during the first quarter of 2003
compared to $1,175,444  in the first  quarter of 2002.  The increase in revenues
was due to an  increase  in price  from oil and gas sales.  Oil prices  averaged
$31.53 per barrel in 2003 as  compared  to $19.12 in 2002.  Gas prices  averaged
$6.41  per Mcf in 2003 as  compared  to $2.33  for 2002.  The Swan  Creek  Field
produced  111,667  Mcf and  215,633  Mcf in the first  quarter of 2003 and 2002,
respectively.  This  decrease was due to natural  declines in  production  which
could not be offset as the Company  did not have the funds to continue  drilling
new  wells,  due to it's  dispute  with it's  primary  lender,  Bank One NA. The
decrease in pipeline transportation revenues is directly related to the decrease
in gas volumes.

               The  Company   realized  a  net  loss   attributable   to  common
shareholders  of $416,357  (($0.04) per share of common  stock) during the first
quarter of 2003  compared  to a net loss in the first  quarter of 2002 to common
shareholders of $980,326 (($0.09) per share of common stock).

               Production  costs  and  taxes  in the  first  quarter  of 2003 of
$769,902  were  consistent  with  production  costs and taxes of $723,799 in the
first quarter of 2002.



                                       12
<PAGE>


               Depreciation,  Depletion,  and Amortization expense for the first
quarter of 2003 was $604,958  compared to $487,348 in the first quarter of 2002.
The December 31, 2002,  Ryder Scott reserve reports were used as a basis for the
2003 estimate.  The Company reviews its depletion  analysis and industry oil and
gas  prices  on a  quarterly  basis to ensure  that the  depletion  estimate  is
reasonable.  The  depletion  taken in the first  quarter of 2003 was $350,000 as
compared to $250,000 in the first  quarter of 2002.  The Company also  amortized
$51,211 of loan fees relating to the Bank One note and convertible notes.

               During the first  quarter  the  Company  reduced  its general and
administrative costs significantly  ($128,893) from 2002. Management has made an
effort to control  costs in every aspect of its  operations.  Some of these cost
reductions included the closing of the Company's New York office and a reduction
in personnel from 2002 levels.

               Professional  fees, in the first  quarter of 2003 have  increased
dramatically  ($92,113)  from the first quarter of 2002,  primarily due to costs
incurred for legal and accounting services as a result of the Bank One lawsuit.

               Dividends on preferred stock have increased from $112,458 in 2002
to $134,195 in 2003 as a result of the increase in the amount of preferred stock
outstanding from new private  placements  occurring during the second quarter of
2002.

               LIQUIDITY AND CAPITAL RESOURCES

               On  November  8,  2001,  the  Company  signed a  credit  facility
agreement (the "Credit Agreement") with the Energy Finance Division of Bank One,
N.A. in Houston Texas ("Bank One").  Litigation was instituted by the Company in
May 2002 based on certain actions taken by Bank One under the agreement.

               In November  2002, the Company and Bank One concluded a series of
meetings and  correspondence  by reaching  preliminary  agreement upon the basic
terms of a potential settlement. Any settlement is conditioned upon execution of
final  settlement  documents,  and the  parties  agreed to  attempt to close the
settlement  by  November  29,  2002.  The  principal  element of the  settlement
proposal is for the Bank and the  Company to enter into an amended and  restated
agreement for a new term loan to replace the prior revolving credit facility. As
of the date of this report,  the Company and Bank One continue to negotiate  the
terms of a mutually satisfactory settlement agreement.

               Even if the Company  concludes a  settlement  with Bank One,  the
Company does not anticipate  that it will be able to borrow any additional  sums
from Bank One. To fund  additional  drilling and to provide  additional  working
capital,  the Company  would be required to pursue other  options.  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 activities.



                                       13
<PAGE>


               The harmful  effects upon operations of the Company caused by the
actions of Bank One and the ongoing  litigation  with Bank One in 2002 have been
dramatic. First, the action of Bank One in April, 2002 had the effect of totally
cutting off any additional  funds to the Company to support Company  operations.
Further,  the funds loaned to the Company by Bank One had been used to refinance
the Company's  indebtedness  and no funds were then  available to pay this large
repayment  obligation  to Bank One,  even if such action by the Bank was proper,
which the Company has vigorously and continually  denied.  The principal  reason
the Company had entered  into the Bank One credit  agreement  was to provide for
additional funds to promote the growth of the Company. Consequently, as a result
of Bank One's unwarranted  actions no additional funds under the credit facility
agreement were  available in 2002 for  additional  drilling that the Company had
anticipated  performing  in the Swan Creek Field and which were  critical to the
development  of that Field.  In order for  overall  field  production  to remain
steady  or grow in a field  such as the Swan  Creek  Field,  new  wells  must be
brought online.  Only two gas wells were added by the Company in 2002 due to the
destabilized  lending arrangements caused by the actions of Bank One and ongoing
litigation.

               Second, the existence of the dispute with Bank One, compounded by
the fact that an effect of Bank One's action was to cause the Company's auditors
to indicate that their was an uncertainty over the Company's ability to continue
as a going concern,  has significantly  discouraged other institutional  lenders
from  considering a variety of additional or replacement  financing  options for
drilling  and other  purposes  that may have  ordinarily  been  available to the
Company.  Third,  the dispute  has caused  Bank One to fail to grant  permission
under the  existing  loan  agreements  with the Company to permit the Company to
formulate drilling programs  involving  potential third party investors that may
have permitted additional drilling to occur. Finally, the dispute has caused the
Company to incur significant legal fees to protect the Company's rights.

               Although no assurances can be made, the Company  believes that it
will  either be able to resolve  the Bank One  dispute or obtain  additional  or
replacement financing to allow drilling to increase, and that once new wells are
drilled,  production  from the Swan  Creek  Field  will  increase.  However,  no
assurances  can be made that such  financing  will be obtained  or that  overall
produced volumes will increase.

               Similarly,   when  funding  for   additional   drilling   becomes
available,  the  Company  plans to drill  wells  in five  new  locations  it has
identified in Ellis and Rush Counties, Kansas on its existing leases in response
to  drilling  activity  in the area  establishing  new areas of oil  production.
Although the Company  successfully drilled the Dick No. 7 well in Kansas in 2001
and completed the well as an oil well, it was not able to drill any new wells in
Kansas in 2002 due to lack of funds  available for such  drilling  caused by the
Bank One situation. As with Tennessee, the Company is hopeful that once the Bank
One matter is resolved it will be able to resume  drilling and well workovers in
Kansas to maximize production from the Kansas Properties.



                                       14
<PAGE>


ITEM 3         QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISKS

               COMMODITY RISK

                  The  Company's  major  market risk  exposure is in the pricing
applicable to its oil and gas production.  Realized  pricing is primarily driven
by the prevailing  worldwide  price for crude oil and spot prices  applicable to
natural gas production. Historically, prices received for oil and gas production
have been  volatile  and  unpredictable  and price  volatility  is  expected  to
continue.  Monthly oil price realizations ranged from a low of $18.56 per barrel
to a high of $27.49 per barrel during 2002. Gas price realizations ranged from a
monthly low of $1.91 per Mcf to a monthly  high of $4.01 per Mcf during the same
period.

               INTEREST RATE RISK

               At  December  31,  2002,  the  Company  had debt  outstanding  of
approximately  $9.9 million.  The interest rate on the revolving credit facility
of $7.5 million is variable based on the financial institution's prime rate plus
0.25%.  The remaining debt of $2.4 million has fixed interest rates ranging from
6% to  11.95%.  As a  result,  the  Company's  annual  interest  costs  in  2002
fluctuated based on short-term  interest rates on approximately 78% of its total
debt  outstanding at December 31, 2002.  The impact on interest  expense and the
Company's  cash flows of a 10 percent  increase in the  financial  institution's
prime rate  (approximately  0.5 basis  points) would be  approximately  $32,000,
assuming borrowed amounts under the credit facility remain at $7.5 million.  The
Company did not have any open derivative contracts relating to interest rates at
March 31, 2003.

               FORWARD-LOOKING STATEMENTS AND RISK

               Certain  statements in this report,  including  statements of the
future  plans,  objectives,   and  expected  performance  of  the  Company,  are
forward-looking  statements  that are dependent upon certain  events,  risks and
uncertainties that may be outside the Company's  control,  and which could cause
actual  results  to differ  materially  from  those  anticipated.  Some of these
include,  but are not limited to, the market prices of oil and gas, economic and
competitive  conditions,  inflation rates,  legislative and regulatory  changes,
financial  market  conditions,  political and economic  uncertainties of foreign
governments,  future business decisions,  and other uncertainties,  all of which
are difficult to predict.

               There  are   numerous   uncertainties   inherent  in   estimating
quantities  of proved oil and gas  reserves  and in  projecting  future rates of
production  and the  timing of  development  expenditures.  The total  amount or
timing of actual  future  production  may vary  significantly  from reserves and
production estimates.  The drilling of exploratory wells can involve significant
risks, including those related to timing, success rates and cost overruns. Lease
and rig  availability,  complex  geology and other factors can also affect these
risks.  Additionally,  fluctuations in oil and gas prices, or a prolonged period
of low  prices,  may  substantially  adversely  affect the  Company's  financial
position, results of operations and cash flows.



                                       15
<PAGE>


ITEM 4         CONTROLS AND PROCEDURES

               EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

               The Company's  Chief Executive  Officer,  President and our Chief
Financial Officer, with the participation of other members of senior management,
reviewed and  evaluated  the  effectiveness  of the design and  operation of the
Company's  disclosure controls and procedures as of a date within 90 days before
the filing of this quarterly report on Form 10-Q. Based on this evaluation,  the
Company's  Chief  Executive  Officer,  President  and  Chief  Financial  Officer
believe:

               The Company's  disclosure controls and procedures are designed to
ensure that  information  required to be disclosed by the Company in the reports
it files or  submits  under the  Securities  Exchange  Act of 1934 is  recorded,
processed,  summarized  and reported  within the time  periods  specified in the
SEC's rules and forms; and

               The Company's  disclosure  controls and procedures were effective
to  ensure  that  material  information  was  accumulated  and  communicated  to
management, including the Chief Executive Officer, President and Chief Financial
Officer, as appropriate to allow timely decisions regarding required disclosure.

               CHANGES IN INTERNAL CONTROLS

               There  were no  significant  changes  in the  Company's  internal
controls  or, to their  knowledge,  in other  factors  that could  significantly
affect these controls subsequent to the date of their evaluation, nor were there
any significant  deficiencies or material  weakness in internal  controls.  As a
result, no corrective actions were required or undertaken.


PART II        OTHER INFORMATION

ITEM 1         LEGAL PROCEEDINGS

               (1).   The  Company  and  its   subsidiary,   Tengasco   Pipeline
Corporation ("TPC"),  were named as defendants in an action commenced on June 4,
2001 by C.H.  Fenstermaker  & Associates,  Inc.  ("Fenstermaker")  in the United
States  District  Court for the Eastern  District  of  Tennessee  entitled  C.H.
FENSTERMAKER & ASSOCIATES,  INC. V. TENGASCO, INC., NO. 3:01-CV-283.  The action
sought  to  recover  approximately   $365,000  in  charges  billed  to  TPC  for
engineering  services in connection with the planning and  construction of Phase
II of the  Company's  pipeline.  On June 25, 2001,  the Company and TPC filed an
answer to the complaint denying liability,  and counterclaiming  against Caddum,
Inc. ("Caddum"), a division of Fenstermaker..  On February 27, 2003, the parties
reached an  agreement  in  principle  for the  settlement  of this  action.  The
settlement was concluded on April 2, 2003 and by agreed order filed May 5, 2003,
all claims were settled and the lawsuit was dismissed.  The settlement  provides
that the  amount  claimed to be owed by the  Company  to Caddum  was  reduced to
$297,000 which is to be paid by note due May 1, 2004, with interest only payable
monthly at an annual  interest rate of 4.75  percent.  Each party is to bear its
own attorney's fees and court costs.

               (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,



                                       16
<PAGE>


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  had most  recently  been
scheduled  for trial on January  29,  2003.  The January 29, 2003 trial date was
continued by the Court to an unspecified  future date. The Court has ordered the
parties to a second  mediation  session  which  will  occur on June 2, 2003.  If
settlement is not reached at mediation, the Company intends to vigorously defend
the  allegations  of  the  counterclaim  because  trial  preparations  have  not
disclosed any fact that reasonably suggests a substantial adverse result in this
matter and the allegations of the counterclaim appear to be without any credible
basis.

               All other legal  proceedings  disclosed  in the Annual  Report on
Form 10-K for the year ended  December 31, 2002 remain  materially  unchanged at
March 31, 2003.


ITEM 2         CHANGES IN SECURITIES AND USE OF PROCEEDS

               On January 8, 2003,  Bill L. Harbert,  a Director of the Company,
purchased  227,275  shares of the  Company's  Common Stock from the Company in a
private  placement at a price of $1.10 per share.  The  proceeds  from this sale
were used by the Company to pay the  principal  and interest due to Bank One for
January, 2003 and to provide working capital for the Company's operations.

               On February  3, 2003 and  February  28,  2003,  Dolphin  Offshore
Partners,  LP ("Dolphin") which owns more than 10% of the Company's  outstanding
common  stock and whose  general  partner is Peter E.  Salas,  a Director of the
Company,  loaned the  Company  the sum of  $250,000  on each such date which the
Company used to pay the  principal and interest due to Bank One for February and
March  2003 and for  working  capital.  Each of these  loans is  evidenced  by a
separate  promissory  note each  bearing  interest at the rate of 12% per annum,
with  payments of interest  only payable  quarterly  and the  principal  balance
payable on January 4, 2004 which are secured by an undivided 10% interest in the
Company's Tennessee pipelines.







                                       17
<PAGE>


                                   SIGNATURES


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


Dated: May 20, 2003                             TENGASCO, INC.



                                                By: /s/ Richard T. Williams
                                                    --------------------------
                                                        Richard T. Williams
                                                        Chief Executive Officer



                                                By: /s/ Mark A. Ruth
                                                    --------------------------
                                                        Mark A. Ruth
                                                        Chief Financial Officer







                                       18
<PAGE>


                                  CERTIFICATION


I, Richard T. Williams,  certify  pursuant to Section 302 of the  Sarbanes-Oxley
Act of 2002 that:

1. I have reviewed this quarterly report on Form 10-Q of Tengasco, Inc.

2. Based on my  knowledge,  this  quarterly  report  does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;

3.  Based on my  knowledge,  the  financial  statements,  and other  information
included in this quarterly  report,  fairly present in all material respects the
financial  condition,  results of operations and cash flows of the Registrant as
of, and for, the periods presented in this quarterly report;

4.  The  Registrant's  other  certifying  officers  and  I are  responsible  for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the Registrant and we have:

         (a) designed  such  disclosure  controls and  procedures to ensure that
material  information  relating to the  Registrant,  including its  consolidated
subsidiaries, is made known to us by others within those entities,  particularly
during the period in which this quarterly report is being prepared;

         (b) evaluated the effectiveness of the Registrant's disclosure controls
and  procedures  as of a date  within 90 days prior to the  filing  date of this
quarterly report (the "Evaluation Date'); and

         (c)  presented  in this  quarterly  report  our  conclusions  about the
effectiveness of the disclosure  controls and procedures based on our evaluation
as of the Evaluation Date;

5. The Registrant's other certifying officers and I have disclosed, based on our
most recent evaluation,  to the Registrant's auditors and the audit committee of
the  Registrant's  board of  directors  (or persons  performing  the  equivalent
function);

         (a) all significant deficiencies in the design or operation of internal
controls  which  could  adversely  affect  the  Registrant's  ability to record,
process,  summarize  and  report  financial  data  and have  identified  for the
Registrant's auditors any material weakness in internal controls; and

         (b) any fraud,  whether or not material that involves the management or
other  employees  who  have a  significant  role  in the  Registrant's  internal
controls; and

6. The  Registrant's  other  certifying  officers  and I have  indicated in this
quarterly  report  whether or not there  were  significant  changes in  internal
controls or in other factors that could  significantly  affect internal controls
subsequent to the date of our most recent  evaluation,  including any corrective
actions with regard to significant deficiencies and material weaknesses.


Dated: May 20, 2003

                                                 /s/ Richard T. Williams
                                                 -----------------------------
                                                 Richard T. Williams
                                                 Chief Executive Officer







                                       19

<PAGE>


                                  CERTIFICATION


I, Mark A. Ruth,  certify pursuant to Section 302 of the  Sarbanes-Oxley  Act of
2002 that:

1. I have reviewed this quarterly report on Form 10-Q of Tengasco, Inc.

2. Based on my  knowledge,  this  quarterly  report  does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;

3.  Based on my  knowledge,  the  financial  statements,  and other  information
included in this quarterly  report,  fairly present in all material respects the
financial  condition,  results of operations and cash flows of the Registrant as
of, and for, the periods presented in this quarterly report;

4.  The  Registrant's  other  certifying  officers  and  I are  responsible  for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the Registrant and we have:

         (a) designed  such  disclosure  controls and  procedures to ensure that
material  information  relating to the  Registrant,  including its  consolidated
subsidiaries, is made known to us by others within those entities,  particularly
during the period in which this quarterly report is being prepared;

         (b) evaluated the effectiveness of the Registrant's disclosure controls
and  procedures  as of a date  within 90 days prior to the  filing  date of this
quarterly report (the "Evaluation Date'); and

         (c)  presented  in this  quarterly  report  our  conclusions  about the
effectiveness of the disclosure  controls and procedures based on our evaluation
as of the Evaluation Date;

5. The Registrant's other certifying officers and I have disclosed, based on our
most recent evaluation,  to the Registrant's auditors and the audit committee of
the  Registrant's  board of  directors  (or persons  performing  the  equivalent
function);

         (a) all significant deficiencies in the design or operation of internal
controls  which  could  adversely  affect  the  Registrant's  ability to record,
process,  summarize  and  report  financial  data  and have  identified  for the
Registrant's auditors any material weakness in internal controls; and

         (b) any fraud,  whether or not material that involves the management or
other  employees  who  have a  significant  role  in the  Registrant's  internal
controls; and

6. The  Registrant's  other  certifying  officers  and I have  indicated in this
quarterly  report  whether or not there  were  significant  changes in  internal
controls or in other factors that could  significantly  affect internal controls
subsequent to the date of our most recent  evaluation,  including any corrective
actions with regard to significant deficiencies and material weaknesses.


Dated: May 20, 2003

                                                       /s/ Mark A. Ruth
                                                       -------------------------
                                                       Mark A. Ruth
                                                       Chief Financial Officer



                                       20

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>c28329_ex99-1.txt
<TEXT>


                                                                    Exhibit 99.1


                                  CERTIFICATION


Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 I hereby certify that:

         (J) I have reviewed the Quarterly Report on Form 10-Q(i);

         (B) To the best of my knowledge this Quarterly  Report on Form 10-Q (i)
fully complies with the requirements of section 13(a) or 15(d) of the Securities
and Exchange Act of  1934(U.S.C.  78m(a) or 78o(d));  and, (ii) the  information
contained in this Report fairly present, in all material respects, the financial
condition  and results of  operations  of Tengasco,  Inc.  and its  Subsidiaries
during the period covered by this report.


Dated: May 20, 2003


                                                       /s/ Richard T. Williams
                                                       -------------------------
                                                       Richard T. Williams
                                                       Chief Executive Officer




A signed  original of this  written  statement  required by Section 906 has been
provided to Tengasco,  Inc. and will be retained by Tengasco, Inc. and furnished
to the Securities and Exchange Commission or its staff upon request.


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>4
<FILENAME>c28329_ex99-2.txt
<TEXT>


                                                                    Exhibit 99.2


                                  CERTIFICATION


Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 I hereby certify that:

         (C) I have reviewed the Quarterly Report on Form 10-Q(i);

         (B) To the best of my knowledge this Quarterly  Report on Form 10-Q (i)
fully complies with the requirements of section 13(a) or 15(d) of the Securities
and Exchange Act of  1934(U.S.C.  78m(a) or 78o(d));  and, (ii) the  information
contained in this Report fairly present, in all material respects, the financial
condition  and results of  operations  of Tengasco,  Inc.  and its  Subsidiaries
during the period covered by this report.


Dated: May 20, 2003

                                                       /s/ Mark A. Ruth
                                                       ------------------------
                                                       Mark A. Ruth
                                                       Chief Financial Officer


A signed  original of this  written  statement  required by Section 906 has been
provided to Tengasco,  Inc. and will be retained by Tengasco, Inc. and furnished
to the Securities and Exchange Commission or its staff upon request.

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
