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<SEC-DOCUMENT>0001001614-05-000071.txt : 20051005
<SEC-HEADER>0001001614-05-000071.hdr.sgml : 20051005
<ACCEPTANCE-DATETIME>20051005124845
ACCESSION NUMBER:		0001001614-05-000071
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20051005
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Termination of a Material Definitive Agreement
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20051005
DATE AS OF CHANGE:		20051005

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:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-15555
		FILM NUMBER:		051124142

	BUSINESS ADDRESS:	
		STREET 1:		10215 TECHNOLOGY DRIVE
		STREET 2:		SUITE 301
		CITY:			KNOXVILLE
		STATE:			TN
		ZIP:			37932
		BUSINESS PHONE:		865-675-1554

	MAIL ADDRESS:	
		STREET 1:		10215 TECHNOLOGY DRIVE
		STREET 2:		SUITE 301
		CITY:			KNOXVILLE
		STATE:			TN
		ZIP:			37932
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>drilling_program8k.htm
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<A NAME=A003></A>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>UNITED STATES </FONT></H1>

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<A NAME=A004></A>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SECURITIES and
EXCHANGE COMMISSION </FONT></H1>

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<A NAME=A005></A>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>WASHINGTON, D.C. 20549 </FONT></H1>

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<A NAME=A006></A>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>FORM 8-K </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Minor Center Bold-TNR" FSL="Workstation" -->
<A NAME=A007></A>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Current Report Pursuant
to Section 13 or 15(d) of the </FONT></H1>

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<A NAME=A008></A>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Securities Exchange
Act of 1934 </FONT></H1>

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<A NAME=A009></A>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date of Report (Date
of Earliest Event Reported): </FONT></H1>

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<A NAME=A010></A>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>October 5, 2005 </FONT></H1>

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<A NAME=A011></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Tengasco, Inc. </U></FONT></P>

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<A NAME=A012></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Exact Name of
Registrant as specified in its charter) </FONT></P>

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<A NAME=A013></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Commission File Number
0-20975 </FONT></P>





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<TR VALIGN="BOTTOM">
     <TH>Tennessee </TH>
     <TH> 87-0267438</TH></TR>
<TR align=center VALIGN="TOP">
     <TD>(State or other jurisdiction of<br>incorporation or organization)</TD>
     <TD>(I.R.S. Employer Identification No.)</TD></TR>
<TR VALIGN="TOP">
     <TD></TD>
     <TD></TD></TR>
<TR VALIGN="TOP">
     <TD></TD>
     <TD></TD></TR>
</TABLE>



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<A NAME=A014></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>10215Technology
Drive Suite 301, Knoxville, Tennessee 37932 </U></FONT></P>

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<A NAME=A015></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Address of Principal
Executive Office) </FONT></P>

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<A NAME=A016></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>(865) 675-1554 </U></FONT></P>

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<A NAME=A017></A>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Registrant&#146;s
Telephone number) </FONT></P>

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<FONT FACE="Times New Roman, Times, Serif" SIZE=2>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):<br>
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) <br>
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<br>
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))<br>
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))<br><br></font>


<HR SIZE=5 COLOR=GRAY NOSHADE>




&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b> Item 1.01- Entry into a Material Definitive Agreement<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item 1.02-Termination of a Material Definitive Agreement</b>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On October 5, Tengasco, Inc. signed
and accepted a subscription agreement whereby Hoactzin Partners, L.P.
(&#147;Hoactzin&#148;) subscribed for a 94.275% working interest in a twelve well drilling
program to be undertaken by the Company on its properties in Kansas. The Company retains
the balance of the 5.725% working interest in the drilling program in Kansas not owned by
Hoactzin. In exchange for its interest in the drilling program, Hoactzin surrendered to
the Company two promissory notes made by the Company to Dolphin Offshore Partners, L.P.
(&#147;Dolphin&#148;) in the aggregate principal amount of $2.514 million which had been
assigned to Hoactzin. Hoactzin also will release all liens securing these notes. These
notes had been issued in connection with loans made to the Company by Dolphin to fund the
Company&#146;s offer to holders of the Company&#146;s Series A, B and C Preferred Stock to
exchange their Preferred Stock for a discounted cash payment of the face value of their
Preferred Stock together with any accrued unpaid dividends and interest thereon. Upon
Hoactzin&#146;s receipt of proceeds form its working interest in the drilling program in
the amount of $3,016,800, Hoactzin will then pay to the Company a management fee equal to
85% of its net revenues attributable to its working interest in the drilling program for
the remaining life of all the program wells. The Company has an option expiring March 31,
2006 to repurchase the obligations to drill the final six wells of the twelve well program
for $222,222 per well, plus interest on that amount at 6% per annum until the date of any
repurchase, plus a 1/16 overriding royalty to Hoactzin in the six program wells and the
next six drilled by the Company in Kansas. Payout and management fee calculations would
also be adjusted to reflect any reduction to a six well program. </FONT></P>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Peter E. Salas, the
Chairman of the Board of Directors of the Company, is the controlling person of Hoactzin.
He is also the sole shareholder and controlling person of Dolphin Management, Inc., the
general partner of Dolphin which is the Company&#146;s largest shareholder. </FONT></P>

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<A NAME=A018></A>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item 9.01 Financial
Statements and Exhibits<br><br>(c) Exhibits </FONT></H1>

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<A NAME=A019></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.1 Subscription
Agreement </FONT></P>

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<A NAME=A020></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>99.1 Press Release dated
October 5, 2005 </FONT></P>

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<A NAME=A021></A>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SIGNATURES </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Default" -->

<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><br>Dated: October 5, 2005<br> <br>Tengasco, Inc.</FONT></P><br>


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<TR VALIGN="BOTTOM">
     <TH></TH>
     <TH></TH></TR>
<TR VALIGN="TOP">
     <TD>By: <u>s/Jeffery R. Bailey </u> <br>Jeffrey R. Bailey,<br>President</TD>
     <TD></TD></TR>
<TR VALIGN="TOP">
     <TD></TD>
     <TD></TD></TR>
</TABLE>


</BODY>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>subscription.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 10.1</FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tengasco, Inc.<br> 10215 Technology Park,
Suite 301<br>Knoxville, TN 37932<br>(865) 675-1554 </FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SUBSCRIPTION AGREEMENT
FOR DRILLING PROGRAM INTEREST </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned, hereinafter sometimes referred to as the &#147;Subscriber&#148;, does hereby
subscribe to participate in the drilling program entitled &#147;Kansas Twelve Well
Program&#148; and dated October 3, 2005 (&#147;Drilling Program&#148;)<B>.</B> </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>1.</U>&nbsp;&nbsp;&nbsp;&nbsp;
          <U>EXECUTION OF DOCUMENTS.</U> The Subscriber delivers to the Company this
          Subscription Agreement signed by the Subscriber for the purpose of subscribing
          to the Drilling Program. The Subscription is effective upon the date of
          acceptance by the Company. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>2.  </U> &nbsp;&nbsp;&nbsp;&nbsp;
        <U>SUBSCRIPTION</U>. The Subscriber subscribes to the Drilling Program by
          exchanging the principal of promissory notes that equals that interest in the
          Drilling Program for which the subscriber desires to exchange. All terms of the
          drilling program are set out in Tengasco, Inc. Document entitled &#147;Kansas
          Twelve Well Drilling Program&#148; dated October 3, 2005 are incorporated herein
          by this reference. Subscriber agrees to release any lien or security interest on
          any property securing the promissory note(s) so exchanged. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>3.  </U>&nbsp;&nbsp;&nbsp;&nbsp;
         <U>REPRESENTATIONS AND WARRANTIES</U>. By executing this Subscription
          Agreement, the undersigned further: </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          acknowledges that the undersigned has received and carefully read the following
          Reports filed by the Company with the Securities and Exchange Commission: (i)
          Annual Report on Form 10-K for the year ended December 31, 2004; and (ii)
          Quarterly Report on Form 10-Q for the Quarter ended June 30, 2005 (collectively
          referred to as the &#147;Reports&#148;). The undersigned also acknowledges that
          he has carefully read the Risk Factors contained in the Drilling Program, has
          based his decision to subscribe to the Drilling Program the information
          contained in the Reports, and this Subscription Agreement and those documents
          referred to and incorporated into this Subscription Agreement and has not been
          furnished with any other offering literature or prospectus; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          represents and warrants that he is entering into the Subscription for his own
          account as a principal, for investment purposes only and not with a view to, or
          for, resale or distribution. Further, the undersigned does not have any
          contract, understanding, agreement or arrangement with any person to sell or
          transfer to such person or to any third person, with respect to any of the
          Subscription. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          represents and warrants that he has such knowledge and experience in financial
          and business matters that he is capable of evaluating the merits and risks of
          the Subscription; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          represents and warrants that he is able to bear the economic risk of losing his
          entire investment in the Drilling Program or the Subscription and is not relying
          on the Company with respect to advice as to the economic considerations in this
          investment; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          represents and warrants that his overall commitment to investments which are not
          readily marketable is not disproportionate to his net worth, and his
          Subscription will not cause such overall commitment to become excessive; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          understands that the Drilling Program has not been registered under the
          Securities Act of l933, as amended (the &#147;Securities Act&#148;) and, as the
          result thereof, are subject to substantial restrictions, which restrictions are
          described in the Risk Factors set forth in the Drilling Program; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          agrees and understands that he will not sell or otherwise transfer any interest
          in the Drilling Program unless such interests are registered under the
          Securities Act and any other applicable securities laws or the undersigned
          obtains an opinion of counsel which is satisfactory to the Company (both as to
          the issuer of the opinion and the form and substance thereof) that the interest
          may be transferred in reliance on an applicable exemption from such registration
          requirements; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          understands that no Federal or state agency has approved or disapproved the
          Drilling Program, passed upon or endorsed the merits of the offering thereof, or
          made any finding or determination as to the fairness of the Drilling Program; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          acknowledges that all material documents, records, and books pertaining to the
          Drilling Program have on request been made available to him and his advisers; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          acknowledges that if he is entering into Subscription in a fiduciary capacity,
          the above representations and warranties shall be deemed to have been made on
          behalf of the person or persons for whom he is so purchasing; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          acknowledges that the Company has made available to him or her and his purchaser
          representative, if any, the opportunity to ask questions of, and receive answers
          from the Company or its representatives regarding its proposed business
          operations and has been given the opportunity for a reasonable time prior to the
          date hereof to review such additional information necessary to verify the
          accuracy of the Reports or such other information which was provided to the
          undersigned in order to evaluate the merits and risks of the Drilling Program to
          the extent the Company could acquire it without unreasonable effort or expense; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          ACKNOWLEDGES THAT HE UNDERSTANDS THAT: </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>THE  INFORMATION  PROVIDED  HEREIN HAS NOT BEEN  REVIEWED  BY THE  ATTORNEY  GENERAL  OF ANY STATE AND NO  ATTORNEY
GENERAL OF ANY STATE HAS PASSED ON OR  ENDORSED  THE MERITS OF THE  DRILLING  PROGRAM.  ANY  REPRESENTATION  TO THE
CONTRARY IS UNLAWFUL;</FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          understands that the Subscription is being offered in reliance on specific
          exemptions from the registration requirements of Federal and State securities
          law and that the Company, relying upon the truth and accuracy of the
          representations, warranties, agreements, acknowledgments, and understandings set
          forth herein in order to determine the applicability of such exemptions and the
          suitability of the undersigned to enter into the Subscription; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          represents, warrants, and agrees that no representative or warranties have been
          made to the undersigned by the Company, or any officer, employee, agent,
          affiliate or subsidiary of the Company, other than the representations of the
          Company contained in the written Reports, and in subscribing for the Drilling
          Program the undersigned is not relying upon any representations other than those
          contained in such Reports. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          represents, warrants, and agrees that any information which the undersigned
          furnishes to the Company with respect to his financial position and business
          experience is correct and complete as of the date of this Subscription Agreement
          and if there should be any material change in such information he will
          immediately furnish such revised or corrected information to the Company; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          represents and warrants that the undersigned, if an individual, is a citizen of
          the United States, and is at least 21 years of age, or if a partnership,
          corporation or trust, the members, shareholders or beneficiaries thereof are all
          citizens of the Unites States and each is at least 21 years of age. The address
          set forth below is the undersigned&#146;s correct home address, or if the
          undersigned is other than an individual, the undersigned&#146;s correct home
          address, or if the undersigned is other than an individual, the
          undersigned&#146;s correct principal office and the undersigned has no present
          intention of changing such address; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          understands that the Drilling Program is a speculative investment which involves
          a high degree of risk of loss of the entire investment in the Company; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(r)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          authorizes the Company or its respective designees to call the
          undersigned&#146;s bank or place of employment or otherwise inquire regarding
          the undersigned&#146;s financial standing; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(s)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          understands and agrees that the foregoing representations, warranties and
          agreements shall survive the date of acceptance of this Agreement by the Company
          and that the information set forth herein regarding the undersigned is true and
          correct; and </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(t)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          acknowledges that he understands the meaning of the representations made by him
          in this Subscription Agreement, and that the Company may be requesting certain
          background and financial information from him in order to verify that he is
          eligible to subscribe for interest in the Drilling Program, and that such
          information must be true and correct inasmuch as the Company is relying upon the
          accuracy of such information. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.&nbsp;&nbsp;&nbsp;&nbsp;
          GENERAL INFORMATION ABOUT THE SUBSCRIBER </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a)&nbsp;&nbsp;&nbsp;&nbsp; Name of Subscriber:  __________________________________________</font></p>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;
          Address and telephone number of Subscriber:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;__________________________________________<br><br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;__________________________________________ </FONT></P>


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          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c)</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Social Security or Tax ID Number of Subscriber:
          _____________________________________ </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(d)</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Can Subscriber afford to hold Subscriber&#146;s investment in the Company for an
          indefinite period of time? (Answer yes or no) Yes _____ No _____ </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(e)</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Can Subscriber afford a loss of its prospective investment in the Company?
          (Answer yes or no) Yes_____ No _____ </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(f)</FONT></TD>
          <TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          If Subscriber is not an individual: </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Is Subscriber&#146;s principal place of business located, or does Subscriber
               have substantial amounts of assets, in any other state(s)? If yes, which
               state(s)? </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TR VALIGN=TOP>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2) </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               In which state(s), if any, does Subscriber file state or local franchise,
               business or other tax returns? </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TR VALIGN=TOP>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3) </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               In which state(s) is Subscriber authorized to do business? </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TR VALIGN=TOP>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(4) </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Subscriber is (check appropriate type and give the requested information): </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;__________
Corporation (jurisdiction and date of incorporation): </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
__________Partnership
(jurisdiction and date where original Certificate filed or date of Partnership Agreement
if filing not required): </FONT></P>

<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;__________
Trust (jurisdiction and date of Trust Agreement): </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;__________
Other (Describe):</FONT></P>

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               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(5) </FONT></TD>
               <TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Was Subscriber organized for the specific purpose of acquiring the Unit(s)?
               (Answer yes or no) Yes _____ No _____ </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(g)&nbsp;&nbsp;&nbsp;&nbsp;
          Subscriber is an &#147;accredited investor&#148; because it falls within the
          applicable category(ies) checked below: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>__________ (1) Any employee benefit
plan (a &#147;Qualified Plan&#148;) within the meaning of ERISA, if a self-directed plan,
with investment decisions made solely by persons that are Accredited investors; or if the
investment decision is made by a plan fiduciary, as defined in section 3(21) of such Act,
which is either a bank, savings and loan association, insurance company, or registered
investment adviser, or if the employee benefit plan has total assets in excess of $5
million; or </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>__________ (2) Any bank as defined in
section 3(a)(2) of the Act, or any savings or loan association or other institution as
defined in section 3(a)(5)(A) of the Act whether acting in its individual or fiduciary
capacity; any broker or dealer registered pursuant to section 15 of the Securities
Exchange Act of 1934; any insurance company as defined in section 2(13) of the Act; any
investment company registered under the Investment Company Act of 1940 or a business
development company as defined in section 2(a)(48) of that Act; any Small Business
Investment Company licensed by the U.S. Small Business Administration under section 301(c)
or (d) of the Small Business Investment Act of 1958, any plan established and maintained
by a state, its political subdivisions, or any agency or instrumentality of a state or its
political subdivisions, for the benefit of its employees if such plan has total assets in
excess of $5 million; or </FONT></P>


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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>__________        (3)      Any  private  business  development  company as defined  in  section  202(a)(22)  of the Investment Advisers Act
of 1940; or </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>__________ (4) Any organization
described in section 501(c)(3) of the Internal Revenue Code of 1986, corporation,
Massachusetts or similar business trust, or partnership, not formed for the specific
purpose of acquiring the Subscription, with total assets in excess of $5,000,000; or </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>__________ (5) Any natural person
whose individual net worth, or joint net worth that persons&#146; spouse, at the time of
his purchase exceeds $1,000,000; or </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>__________ (6) Any natural person who
had an income in excess of $200,000 in each of the two most recent years or joint income
with that person&#146;s spouse in excess of $300,000 in each of those years and has a
reasonable expectation of reaching the same income level in the current Year; or </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>__________ (7) Any trust with total
assets in excess of $5,000,000, not formed for the specific purpose of purchasing the
Restructuring Option(s), whose purchase is directed by a &#147;Sophisticated&#148; person;
or </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>__________(8) Any entity in which all of the equity owners are "Accredited investors."</FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>MISCELLANEOUS. </U>The representations, warranties and agreements contained
          herein shall survive the delivery and exchange of Promissory Notes. References
          in this Agreement to &#147;him&#148; or &#147;her&#148; in relationship to the
          Subscriber shall include any entity if not a natural person. </FONT></p>
                    <BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>PROMISSORY NOTE(S) FOR THE VALUE
OF THE DRILLING PROGRAM INTERESTEXCHANGE SUBSCRIBED HEREBY ARE TENDERED HEREWITH BY
DELIVERY OF ORIGINAL NOTES TOGETHER WITH COPIES OF INSTRUMENTS TRANSFERRING INTERESTS IN
SUCH PROMISSORY NOTES TO THE SUBSCRIBER AS HOLDER. UPON TENDER AND ACCEPTANCE BY THE
COMPANY ALL SUCH PROMISSORY NOTES SHALL BE DEEMED PAID IN FULL AND NO FURTHER OBLIGATION
SHALL BE OWED BY THE COMPANY TO ANY PERSON.</U> </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PROMISSORY
NOTES TENDERED FOR SUBSCRIPTION ARE DESCRIBED AS FOLLOWS:</b></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Promissory
Note dated August 22, 2005 in principal amount of $1,814,000 by Tengasco, Inc. and
Tengasco Pipeline Corporation as Maker and Dolphin Offshore Partners, LP as Holder,
together with documents transferring or assigning rights of Dolphin Offshore Partners, LP
to Hoactzin Partners, L. P., a Delaware limited partnership.</B> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Promissory
Note dated August 18, 2005 in principal amount of $700,000 by Tengasco, Inc. and Tengasco
Pipeline Corporation as Maker and Dolphin Offshore Partners, LP as Holder, together with
documents transferring or assigning rights of Dolphin Offshore Partners, LP to Hoactzin
Partners, L. P., a Delaware limited partnership.</B> </FONT></P>






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     <TD><br><br>SUBSCRIBER:<br>HOACTZIN PARTNERS, L.P. <br><br><u>s/ Peter E. Salas</u><br><br>BY: DOLPHIN ADVISORS, LLC<BR> ITS GENERAL PARTNER<br>BY: DOLPHIN MANAGEMENT INC.
<BR>ITS MANAGING MEMBER<BR>BY: PETER E. SALAS<BR>ITS PRESIDENT<BR><BR>DATE: <u> October 5, 2005</u></TD>
     <TD><br><br>ACCEPTED:<br>TENGASCO, INC.<br><br>BY:s/<u>Jeffrey R. Bailey</u><br><br>JEFFREY R. BAILEY, PRESIDENT<br><br> Date:<u> October 5, 2005</u></TD></TR>
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<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>3
<FILENAME>pressrelease.htm
<DESCRIPTION>EXHIBIT 99.1
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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 99.1<br><br>Tengasco Announces
Exchange of Promissory Notes for Interest in Kansas Drilling Program </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Knoxville, TN, October 5, 2005 &#151;
Tengasco, Inc. (AMEX: TGC) (the &#147;Company&#148;) announced today that Hoactzin
Partners, L.P. (&#147;Hoactzin&#148;) will surrender to the Company two promissory notes
made by the Company in the aggregate principal amount of approximately $2.5 million. The
notes were originally issued to Dolphin Offshore Partners, L.P. (&#147;Dolphin&#148;) in
connection with loans made by Dolphin to fund the Company&#146;s recent exchange offer to
holders of its Series A, B and C Cumulative Convertible Preferred Stock. In exchange for
the surrender of these notes, the Company entered into an agreement today granting
Hoactzin a 94.3% working interest in a twelve-well drilling program to be undertaken by
the Company on its properties in Kansas. The Company will retain the remaining 5.7%
working interest in the drilling program. Peter E. Salas, the Chairman of the Board of
Directors of the Company, is the controlling person of Hoactzin. He is also the sole
shareholder and controlling person of Dolphin Management, Inc., the general partner of
Dolphin, which is the Company&#146;s largest shareholder. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As a result of the exchange and
retirement of these two notes, the Company no longer has any material debt other than
approximately $190,000 in purchase-money financing for equipment. In addition, the total
face value of the Company&#146;s outstanding preferred stock is now $200,000. The
Company&#146;s assets in Tennessee and Kansas are also now free of liens. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Upon Hoactzin&#146;s receipt of total
proceeds from its working interest in the drilling program in the amount of approximately
$3.0 million, Hoactzin will thereafter pay to the Company a management fee equal to 85% of
the net revenues attributable to its working interest in the drilling program. The Company
has an option expiring March 31, 2006 to repurchase the obligation to drill the final six
wells of the twelve well program by paying to Hoactzin an amount equal to one half of the
principal amount of the notes exchanged by Hoactzin, plus interest on that amount at 6%
per annum until the date of repurchase, and granting to Hoactzin a 1/16 overriding royalty
in both the six program wells existing at the time of repurchase and the next six wells
drilled by the Company in Kansas. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Jeffrey R. Bailey, President of the
Company, stated &#147;We are pleased to report the exchange of Tengasco&#146;s last
remaining material debt for an interest in a Company-operated drilling program in Kansas.
The Company now has virtually eliminated its debt and preferred stock, and has removed all
liens on the Company&#146;s properties in Tennessee and Kansas. This exchange completes a
significant and noteworthy reduction of the Company&#146;s debt and preferred stock
balances from $17,590,000 in early 2004 to only $390,000 following this exchange. The
Company is confident it can now accelerate development of its oil and gas properties and
pursue growth opportunities.&#148; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Bailey further reported, &#147;In
addition to this new twelve-well program in Kansas, the Company has now drilled six wells
in its earlier eight-well drilling program in which some of the former Series A preferred
shareholders participated. The Company retained a 19% working interest in those program
wells, with an 81% working interest being held by the participants. The three most recent
of the six drilled wells are the Urban #6, Kraus AA#3, and the Ben Tempero wells. The
Urban #6 has been completed and is averaging approximately 28 BOPD with no associated
water. The Kraus completion is underway at present and is expected to be a commercial
well. Although the Ben Tempero was a dry hole, five of the six wells drilled so far in
that program will have or are expected to result in commercial production. As of September
30, 2005 the first three wells in the eight-well program have produced 6,739 barrels of
oil in total, with the first well beginning producing in April, and the third well began
producing in June. That is a combined average daily production of approximately 53 barrels
per day. If favorable oil prices continue, we anticipate being able to drill all of the
wells under this new twelve-well drilling program, as well as the two remaining wells in
the eight-well program, from cash flow from operations without incurring additional debt
to finance drilling. We also continue negotiations to establish a banking relationship
based in part upon this substantial reduction in the Company&#146;s financial obligations
over the past two years.&#148; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Forward-looking statements made in
this release are made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements
involve risk and uncertainties which may cause actual results to differ from anticipated
results, including risks associated with the timing and development of the Company&#146;s
reserves and projects as well as risks of downturns in economic conditions generally, and
other risks detailed from time to time in the Company&#146;s filings with the Securities
and Exchange Commission. </FONT></P>

Contact- Jeffrey R. Bailey, President 865-675-1554



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