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<SEC-DOCUMENT>0001169232-08-001171.txt : 20090424
<SEC-HEADER>0001169232-08-001171.hdr.sgml : 20090424
<ACCEPTANCE-DATETIME>20080229164353
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001169232-08-001171
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20080229

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:		CORRESP

	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>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<html>
    <head>
        <title></title>
        <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
        <!-- Control Number:                                                                  -->
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        <!-- Client Name:                                                                     -->
        <!-- Project Name:                                                                    -->
        <!-- Firm Name:                                                                       -->
    </head>

    <body text="#000000" vlink="#800000" link="#0000ff" bgcolor="#ffffff">
        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
        Tengasco, Inc.<br>
        10215 Technology Drive, Suite 301<br>
        Knoxville, TN 37932-4307<br>
        865.675.1554<br>
        865.675.1621 (facsimile)</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        February 29, 2008<br>
        &nbsp;<br>
        Mr. Karl Hiller<br>
        Branch Chief, Division of Corporation Finance<br>
        U.S. Securities and Exchange Commission<br>
        100 F Street, N.E.<br>
        Washington, D. C. 20549<br>
        &nbsp;<br>
        VIA EDGAR FILING<br>
        &nbsp;<br>
        Re: Tengasco, Inc.<br>
        Form 10-K for the Fiscal Year Ended December 31, 2006 Filed March 30, 2007<br>
        Form 10-Q for the Quarter Ended September 30, 2007<br>
        File No. 1-15555<br>
        &nbsp;<br>
        Dear Mr. Hiller:<br>
        &nbsp;<br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tengasco, Inc. hereby responds as follows to each of the
        three numbered items in your letter dated February 12, 2008. The February 12 Letter refers
        to certain &ldquo;PRIOR COMMENTS&rdquo; contained in a letter dated January 15, 2008 and
        our written responses. This letter refers both to your numbered comments as of February 12,
        and the prior comment to which your February 12 comments are directed.<br>
        &nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="left">
        We believe that disclosure needed for sound investment decisions was in fact made in our
        original filings of our Form 10-K for the year ending December 31, 2006 and Form 10-Q for
        the Quarter ended September 30, 2007. However, in order to enhance the disclosure made in
        our original filings, we remain willing to amend our Form 10-K and Form 10-Q as set out
        below and as may be further suggested following your consideration of our responses and the
        receipt of any additional comments you may have to these responses.</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        For your convenience, we include the text of each of <u>your comments underlined</u> for
        reference, together with our corresponding responses, below:</p>

        <p></p>

        <p></p>

        <table>
            <tr>
                <td width="24">
                </td>

                <td valign="top">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt">
                    <b><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></p>
                </td>

                <td valign="top">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in" align="left">
                    <b><u>Your Comment No. 1 to PRIOR COMMENT NO. 2 Form 10-K for the Fiscal Year
                    Ended December 31, 2006 Properties, page 21; Reserve Analyses, page
                    23</u></b><b><u>:</u></b></p>
                </td>
            </tr>
        </table>
        <br>
        <br>
        <br>


        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="left"><u>We have
        read your response to prior comment one in which you propose to include a table that
        provides a breakdown of the standardized measure of discounted future net cash flows
        associated with various categories of proved reserves, both as to oil and as to gas, for
        each of the past three years. However, you have not proposed any action pertaining to the
        PV-l 0 non-GAAP measures amounting to $ 26,469,192 and $20,962,018, disclosed under this
        heading. We previously advised that these should be reconciled to GAAP based measures in
        accordance with the provisions in Item 10(e) of Regulation S-K, and that you</u> <u>should
        disclose with your reconciliation the assumptions you have made about the</u> <u>timing of
        future development and production, and your reasons for focusing on currently producing
        properties. Alternatively, if you are planning to replace that narrative with your
        tabulation, we would not object. However, there are several difficulties with the table
        that require your attention. Please revise to address the following points.</u></p>

        <p></p>

        <p></p>

        <table>
            <tr>
                <td width="48">
                </td>

                <td valign="top" width="24">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; COLOR: #000000; FONT-FAMILY: 'SYMBOL'">
                    &middot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>

                <td valign="top">
                    <p style="MARGIN: 0pt 0in" align="left">
                    <u><font style="FONT-SIZE: 12pt">Replace the title "Reserve Value Analysis"
                    with language clarifying that you are presenting a disaggregation of the
                    standardized measure of discounted future net cash flows associated with proved
                    reserves, rather than a separate valuation.</font></u></p>
                </td>
            </tr>
        </table>
        <br>
        <br>
        <br>


        <p></p>

        <p></p>

        <table>
            <tr>
                <td width="48">
                </td>

                <td valign="top" width="24">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; COLOR: #000000; FONT-FAMILY: 'SYMBOL'">
                    &middot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>

                <td valign="top">
                    <p style="MARGIN: 0pt 0in" align="left"><u><font style="FONT-SIZE: 12pt">Revise
                    each caption or insert language before the group of line items to clarify that
                    you are presenting the standardized measure of discounted</font></u> <u>future
                    net cash flows associated with proved reserves, rather than reserve</u>
                    <u>quantities.</u></p>
                </td>
            </tr>
        </table>
        <br>
        <br>
        <br>


        <p></p>

        <p></p>

        <table>
            <tr>
                <td width="48">
                </td>

                <td valign="top" width="24">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; COLOR: #000000; FONT-FAMILY: 'SYMBOL'">
                    &middot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>

                <td valign="top">
                    <p style="MARGIN: 0pt 0in" align="left">
                    <u><font style="FONT-SIZE: 12pt">Reorder the columnar data to show fiscal years
                    2006, 2005 and 2004, in this chronological format, from left to right,
                    consistent with how you</font></u> <u>present other numeric data in your
                    filing, to comply with SAB Topic 11:E.</u></p>
                </td>
            </tr>
        </table>
        <br>
        <br>
        <br>


        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        OUR RESPONSE: We believe that all of the substance of your comment is resolved by (1)
        insertion of the following &ldquo;TEXT&rdquo; which will <b><i>replace</i></b> the first
        five existing paragraphs under the heading &ldquo;Reserve Analyses&rdquo; on page 23 of the
        10-K; and (2) the insertion of the following &ldquo;TABLE&rdquo; which will replace the
        final paragraph on page F-32 beginning with &ldquo;Of the Company&rsquo;s total proved
        reserves&hellip;&rdquo;:<br>
        </p>
        <!-- PAGE BREAK  --><!-- EEDocs PBStart-->
        <hr align="center" width="100%" noshade size="2">

        <p style="PAGE-BREAK-AFTER: always"></p>
        <!-- EEDocs PBEnd-->

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        TEXT</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        <b><font style="FONT-SIZE: 11pt; COLOR: #000000">Reserve Analyses</font></b></p>

        <p style="MARGIN-TOP: 9pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 24px" align="left">
        <font style="FONT-SIZE: 11pt; COLOR: #000000">The Company&rsquo;s estimated total net
        proved reserves of oil and natural gas as of December&nbsp;31, 2006, and the present values
        of estimated future net revenues attributable to those reserves as of those dates, are
        presented in the following table. These estimates were prepared by LaRoche Petroleum
        Consultants, Ltd. (&ldquo;LaRoche&rdquo;) of Houston, Texas, and are part of their reserve
        reports on the Company&rsquo;s oil and gas properties. Laroche&rsquo;s estimates were based
        on a review of geologic, economic, ownership and engineering data that they were provided
        by the Company. In estimating the reserve quantities that are economically recoverable,
        end-of-period natural gas and oil prices, held constant, were used. In accordance with SEC
        regulations, no price or cost escalation or reduction was considered.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        <font style="FONT-SIZE: 11pt; COLOR: #000000">&nbsp;</font></p>

        <p></p>

        <table cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
            <tr>
                <td valign="middle" width="36%">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <a name="FIS_UNIDENTIFIED_TABLE_6"></a></p>
                </td>

                <td valign="bottom" width="2%">&nbsp;</td>

                <td valign="middle">&nbsp;</td>

                <td valign="middle">&nbsp;</td>

                <td valign="bottom" width="3%">&nbsp;</td>

                <td valign="middle">&nbsp;</td>

                <td valign="middle">&nbsp;</td>

                <td valign="bottom" width="3%">&nbsp;</td>

                <td valign="middle">&nbsp;</td>

                <td valign="middle">&nbsp;</td>

                <td valign="bottom" width="3%">&nbsp;</td>

                <td valign="middle">&nbsp;</td>

                <td valign="middle">&nbsp;</td>
            </tr>

            <tr>
                <td valign="bottom" width="36%">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">&nbsp;</font></p>
                </td>

                <td valign="bottom" width="2%">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">&nbsp;&nbsp;</font></p>
                </td>

                <td style="BORDER-BOTTOM: #000000 0.8pt solid" valign="bottom" colspan="11">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <b><font style="FONT-SIZE: 11pt; COLOR: #000000">Total Proved Reserves as of
                    December&nbsp;31, 2006</font></b></p>
                </td>
            </tr>

            <tr>
                <td valign="bottom" width="36%">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">&nbsp;</font></p>
                </td>

                <td valign="bottom" width="2%">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">&nbsp;&nbsp;</font></p>
                </td>

                <td style="BORDER-BOTTOM: #000000 0.8pt solid" valign="bottom" colspan="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <b><font style="FONT-SIZE: 11pt; COLOR: #000000">Producing</font></b></p>
                </td>

                <td valign="bottom">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">&nbsp;&nbsp;</font></p>
                </td>

                <td style="BORDER-BOTTOM: #000000 0.8pt solid" valign="bottom" colspan="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <b><font style="FONT-SIZE: 11pt; COLOR: #000000">Non-producing</font></b></p>
                </td>

                <td valign="bottom">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">&nbsp;&nbsp;</font></p>
                </td>

                <td style="BORDER-BOTTOM: #000000 0.8pt solid" valign="bottom" colspan="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <b><font style="FONT-SIZE: 11pt; COLOR: #000000">Undeveloped</font></b></p>
                </td>

                <td valign="bottom">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">&nbsp;&nbsp;</font></p>
                </td>

                <td style="BORDER-BOTTOM: #000000 0.8pt solid" valign="bottom" colspan="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <b><font style="FONT-SIZE: 11pt; COLOR: #000000">Total</font></b></p>
                </td>
            </tr>

            <tr>
                <td style="BACKGROUND: #cceeff" valign="top" width="36%">
                    <p style="MARGIN-TOP: 5pt; MARGIN-BOTTOM: 5pt; MARGIN-LEFT: 0.2in; TEXT-INDENT: -12px" align="left">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">Natural gas (MMcf)</font></p>
                </td>

                <td style="BACKGROUND: #cceeff" valign="bottom" width="2%">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">&nbsp;&nbsp;</font></p>
                </td>

                <td style="BACKGROUND: #cceeff" valign="bottom">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">&nbsp;</font></p>
                </td>

                <td style="BACKGROUND: #cceeff" valign="bottom">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 11pt">1,265</font></p>
                </td>

                <td style="BACKGROUND: #cceeff" valign="bottom">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">&nbsp;&nbsp;</font></p>
                </td>

                <td style="BACKGROUND: #cceeff" valign="bottom">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">&nbsp;</font></p>
                </td>

                <td style="BACKGROUND: #cceeff" valign="bottom">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">42.56</font></p>
                </td>

                <td style="BACKGROUND: #cceeff" valign="bottom">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">&nbsp;&nbsp;</font></p>
                </td>

                <td style="BACKGROUND: #cceeff" valign="bottom">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">&nbsp;</font></p>
                </td>

                <td style="BACKGROUND: #cceeff" valign="bottom">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">0</font></p>
                </td>

                <td style="BACKGROUND: #cceeff" valign="bottom">&nbsp;</td>

                <td style="BACKGROUND: #cceeff" valign="bottom">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">&nbsp;</font></p>
                </td>

                <td style="BACKGROUND: #cceeff" valign="bottom">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 11pt">1,307</font></p>
                </td>
            </tr>

            <tr>
                <td valign="top" width="36%">
                    <p style="MARGIN-TOP: 5pt; MARGIN-BOTTOM: 5pt; MARGIN-LEFT: 0.2in; TEXT-INDENT: -12px" align="left">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">Oil (Bbls)</font></p>
                </td>

                <td valign="bottom" width="2%">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">&nbsp;&nbsp;</font></p>
                </td>

                <td valign="bottom">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">&nbsp;</font></p>
                </td>

                <td valign="bottom">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 11pt">1,358,532</font></p>
                </td>

                <td valign="bottom">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">&nbsp;&nbsp;</font></p>
                </td>

                <td valign="bottom">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">&nbsp;</font></p>
                </td>

                <td valign="bottom">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">37,322</font></p>
                </td>

                <td valign="bottom">&nbsp;</td>

                <td valign="bottom">&nbsp;</td>

                <td valign="bottom">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">316,152</font></p>
                </td>

                <td valign="bottom">&nbsp;</td>

                <td valign="bottom">&nbsp;</td>

                <td valign="bottom">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 11pt">1,712,006</font></p>
                </td>
            </tr>

            <tr>
                <td style="BACKGROUND: #cceeff" valign="top" width="36%">
                    <p style="MARGIN-TOP: 5pt; MARGIN-BOTTOM: 5pt; MARGIN-LEFT: 0.2in; TEXT-INDENT: -12px" align="left">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">Total proved reserves
                    (BOE)</font></p>
                </td>

                <td style="BACKGROUND: #cceeff" valign="bottom" width="2%">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">&nbsp;&nbsp;</font></p>
                </td>

                <td style="BACKGROUND: #cceeff" valign="bottom">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">&nbsp;</font></p>
                </td>

                <td style="BACKGROUND: #cceeff" valign="bottom">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">1,569,365</font></p>
                </td>

                <td style="BACKGROUND: #cceeff" valign="bottom">&nbsp;</td>

                <td style="BACKGROUND: #cceeff" valign="bottom">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">&nbsp;</font></p>
                </td>

                <td style="BACKGROUND: #cceeff" valign="bottom">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">44,415</font></p>
                </td>

                <td style="BACKGROUND: #cceeff" valign="bottom">&nbsp;</td>

                <td style="BACKGROUND: #cceeff" valign="bottom">&nbsp;</td>

                <td style="BACKGROUND: #cceeff" valign="bottom">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">316,512</font></p>
                </td>

                <td style="BACKGROUND: #cceeff" valign="bottom">&nbsp;</td>

                <td style="BACKGROUND: #cceeff" valign="bottom">&nbsp;</td>

                <td style="BACKGROUND: #cceeff" valign="bottom">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">1,930,292</font></p>
                </td>
            </tr>

            <tr>
                <td valign="top" width="36%">
                    <p style="MARGIN-TOP: 5pt; MARGIN-BOTTOM: 5pt; MARGIN-LEFT: 0.2in; TEXT-INDENT: -12px" align="left">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">Standardized measure of</font>
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">discounted future net cash
                    flow</font></p>
                </td>

                <td valign="bottom" width="2%">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">&nbsp;&nbsp;</font></p>
                </td>

                <td valign="bottom">&nbsp;</td>

                <td valign="bottom">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 11pt">$20,962,018</font></p>
                </td>

                <td valign="bottom">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">&nbsp;&nbsp;</font></p>
                </td>

                <td valign="bottom">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">$</font></p>
                </td>

                <td valign="bottom">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">1,572,837</font></p>
                </td>

                <td valign="bottom">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">&nbsp;&nbsp;</font></p>
                </td>

                <td valign="bottom">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">$</font></p>
                </td>

                <td valign="bottom">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">3,934,337</font></p>
                </td>

                <td valign="bottom">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <font style="FONT-SIZE: 11pt; COLOR: #000000">&nbsp;&nbsp;</font></p>
                </td>

                <td valign="bottom">&nbsp;</td>

                <td valign="bottom">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 11pt">$</font><font style="FONT-SIZE: 11pt">26,469,192</font></p>
                </td>
            </tr>
        </table>
        <br>
        <br>


        <p style="MARGIN-TOP: 4.5pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 24px" align="left">
        <font style="FONT-SIZE: 11pt; COLOR: #000000">SEC regulations require that the natural gas
        and oil prices used in Laroche&rsquo;s reserve reports are the period-end prices for
        natural gas and oil at December&nbsp;31, 2006. These prices are held constant in accordance
        with SEC guidelines for the life of the wells included in the reserve reports but are
        adjusted by lease for energy content, quality, transportation, compression and gathering
        fees, and regional price differentials. The weighted average natural gas and oil prices
        after basis adjustments used in our reserve valuation as of December&nbsp;31, 2006 were
        $</font><font style="FONT-SIZE: 11pt; COLOR: #000000">56.59</font>
        <font style="FONT-SIZE: 11pt; COLOR: #000000">per barrel and</font>
        <font style="FONT-SIZE: 11pt">$8.33</font>
        <font style="FONT-SIZE: 11pt; COLOR: #000000">per Mcf.</font></p>

        <p style="MARGIN-TOP: 9pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 24px" align="left">
        <font style="FONT-SIZE: 11pt; COLOR: #000000">The prices used in calculating the estimated
        future net revenue attributable to proved reserves do not reflect market prices for natural
        gas and oil production sold subsequent to December&nbsp;31, 2006. There can be no assurance
        that all of the estimated proved reserves will be produced and sold at the assumed prices.
        Accordingly, the foregoing prices should not be interpreted as a prediction of future
        prices. The net reserve values in the Report were adjusted to take into account the working
        interests that have been sold by the Company in various wells.</font></p>

        <p style="MARGIN-TOP: 9pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 24px" align="left">
        <font style="FONT-SIZE: 11pt; COLOR: #000000">An increase in oil reserves from 2005 to 2006
        is reflective of the Company&rsquo;s increased drilling activities in Kansas in 2006 and
        future drilling plans for 2007. The decrease in gas reserves from 2005 is due primarily to
        the Company&rsquo;s determination not to drill any new wells in its Swan Creek Field and
        the substantial drop in the price used to calculate the gas reserves from $11.54 per Mcf in
        2005 to $8.33 per Mcf in 2006. For additional information concerning our estimated proved
        reserves, the standardized measure of discounted future net cash flows of the proved
        reserves at December&nbsp;31, 2006, 2005 and 2004, and the changes in quantities and
        standardized measure of such reserves for each of the three years then ended, see Note 21
        to our consolidated financial statements.</font></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        <font style="COLOR: #000000">TABLE:<br>
         &nbsp;</font></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
        <b><font style="FONT-FAMILY: 'ARIAL'">BREAKOUT ANALYSIS OF ELEMENTS OF STANDARDIZED MEASURE
        OF DISCOUNTED FUTURE NET CASH FLOWS ASSOCIATED WITH PROVED RESERVES</font></b>
        <b><font style="FONT-FAMILY: 'ARIAL'">2004-2006</font></b></p>

        <p></p>

        <table cellspacing="0" cellpadding="0" width="691" border="0">
            <tr>
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="207">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <b><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'ARIAL'">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="163" colspan="3">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <b><font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">Year Ended
                    12/31/06</font></b></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="161" colspan="3">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <b><font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">Year Ended
                    12/31/05</font></b></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="159" colspan="3">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <b><font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">Year Ended
                    12/31/04</font></b></p>
                </td>
            </tr>

            <tr style="HEIGHT: 12.8pt">
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="207">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">Standardized Measure of
                    Future Net Cash Flows Associated with Total Proved Reserves, and with each of
                    the following described categories of proved reserves ($000) with indicated
                    percentage the cash flow of each category bears to cash flow of total proved
                    reserves :</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="middle" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <b><font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">Oil</font></b></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="middle" width="56">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <b><font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">Gas</font></b></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="middle" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <b><font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'; FONT-VARIANT: small-caps">
                    Total</font></b></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="middle" width="55">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <b><font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">Oil</font></b></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="middle" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <b><font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">Gas</font></b></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="middle" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <b><font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'; FONT-VARIANT: small-caps">
                    Total</font></b></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="middle" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <b><font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">Oil</font></b></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="middle" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <b><font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">Gas</font></b></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="middle" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <b><font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'; FONT-VARIANT: small-caps">
                    Total</font></b></p>
                </td>
            </tr>

            <tr style="HEIGHT: 12.8pt">
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="207">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <b><font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">Total</font></b>
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">proved reserves</font>
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">($000)</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">$23,606</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="56">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">$2,863</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">$26,469</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="55">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">$23,530</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">$13,649</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">$37,179</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">$12,073</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">$14,658</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">$26,731</font></p>
                </td>
            </tr>

            <tr style="HEIGHT: 12.8pt">
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="207">
                &nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                &nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="56">
                &nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                &nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="55">
                &nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                &nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                &nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                &nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                &nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                &nbsp;</td>
            </tr>

            <tr style="HEIGHT: 13.5pt">
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="207">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <b><font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">Proved developed
                    producing</font></b>
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">reserves</font>
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">(PDP)</font>
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">($000)</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">$18,922</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="56">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">$2,783</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">$21,705</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="55">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">$18,721</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">$8,048</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">$26,769</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">$8,630</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">$9,814</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in" valign="bottom" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">$18,444</font></p>
                </td>
            </tr>

            <tr style="HEIGHT: 13.5pt">
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="middle" width="207">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">% of PDP to total proved
                    reserves</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="middle" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">71%</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="middle" width="56">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">11%</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="middle" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">82%</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="middle" width="55">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">50%</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="middle" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">22%</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="middle" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">72%</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="middle" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">32%</font></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="middle" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">37%</font></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="middle" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">69%</font></p>
                </td>
            </tr>

            <tr style="HEIGHT: 12.8pt">
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="207">
                &nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                &nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="56">
                &nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                &nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="55">
                &nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                &nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                &nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                &nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                &nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                &nbsp;</td>
            </tr>

            <tr style="HEIGHT: 13.5pt">
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="207">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <b><font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">Proved developed
                    non-producing reserves</font></b>
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">(PDNP)</font>
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">($000)</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">$449</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="56">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">$80</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">$529</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="55">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">$1,602</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">$3,603</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">$5,205</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">$1,046</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">$3,498</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in" valign="bottom" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">$4,544</font></p>
                </td>
            </tr>

            <tr style="HEIGHT: 13.5pt">
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="middle" width="207">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">% of PDNP to total proved
                    reserves</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="middle" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">2%</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="middle" width="56">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">0%</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="middle" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">2%</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="middle" width="55">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">4%</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="middle" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">10%</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="middle" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">14%</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="middle" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">4%</font></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="middle" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">13%</font></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="middle" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">17%</font></p>
                </td>
            </tr>

            <tr style="HEIGHT: 12.8pt">
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="207">
                &nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                &nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="56">
                &nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                &nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="55">
                &nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                &nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                &nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                &nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                &nbsp;</td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                &nbsp;</td>
            </tr>

            <tr style="HEIGHT: 13.5pt">
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="207">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <b><font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">Proved undeveloped
                    reserves</font></b>
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">(PUD)</font>
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">($000)</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">$4,235</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="56">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">$0</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">$4,235</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="55">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">$3,207</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">$1,998</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">$5,205</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">$2,397</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">$1,346</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in" valign="bottom" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">$3,743</font></p>
                </td>
            </tr>

            <tr style="HEIGHT: 13.5pt">
                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="middle" width="207">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">% of PUD reserves to total
                    proved reserves</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="middle" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">16%</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="middle" width="56">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">0%</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="middle" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">16%</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="middle" width="55">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">9%</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="middle" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">5%</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="middle" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">14%</font></p>
                </td>

                <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="middle" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">9%</font></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="middle" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">5%</font></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="middle" width="53">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'ARIAL'">14%</font></p>
                </td>
            </tr>
        </table>
        <br>
        <br>


        <p></p>

        <p></p>

        <table>
            <tr>
                <td width="24">
                </td>

                <td valign="top">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt">
                    <b><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></p>
                </td>

                <td valign="top">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in" align="left">
                    <b><u>Your Comment No. 2. Financial Statements; Note 1- Summary of Significant
                    Accounting Policies, page F-9 Inventory, page F-10</u></b></p>
                </td>
            </tr>
        </table>
        <br>
        <br>
        <br>


        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 27pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: -36px" align="left">
        .&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>We understand from your response to prior comment two
        that you do not regard the estimated differences between your accounting for inventory at
        fair value and the accounting that would have arisen using historical cost to be material.
        You</u> <u>also explain that until 2006 you had commingled costs of oil and gas, because
        you</u> <u>had not created an accounting system for allocating costs to these separate
        products. We do not see this as a viable argument for not using historical cost as the
        accounting basis for inventory, given the guidance in ARB 43, Chapter 4, Statement 9. We
        believe that you will need to correct your accounting policy to utilize one that is
        generally accepted. Please make the necessary arrangements and follow the guidance in SFAS
        154.</u></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        OUR RESPONSE:</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        As we previously noted, the estimated differences for previous periods was not material.
        With the recent sustained levels of higher commodity prices, we observed that the
        differences may approach materiality, so commencing with the third quarter of 2007 the
        Company has adopted the policy for all future periods to account for inventory at
        historical cost.<br>
        &nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        In determining whether our internal controls are effective, we consider whether there are
        deficiencies in the design or operation of our internal controls such that there is a
        reasonable possibility that a material misstatement in our annual or interim consolidated
        financial statements will not be prevented or detected. As we previously indicated, our
        assessment is that any misstatements in our prior annual and interim consolidated financial
        statements as a result of our accounting for crude inventory at market is immaterial.</p>

        <p></p>

        <p></p>

        <table>
            <tr>
                <td width="24">
                </td>

                <td valign="top">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt">
                    <b><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></p>
                </td>

                <td valign="top">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in" align="left">
                    <b><u>Form 10-Q for the Fiscal Quarter Ended September 30, 2007</u></b></p>
                </td>
            </tr>
        </table>
        <br>
        <br>
        <br>


        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="left">
        <b><u>Financial Statements Note 5- Related Party Transactions, page 10<br>
        &nbsp;</u></b></p>

        <p></p>

        <p style="FONT-SIZE: 12pt; MARGIN: 0pt 0.1in 0pt 0.5in; TEXT-INDENT: -36px" align="left">
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>We have read your response to prior comment three,
        regarding your September 17, 2007 agreement with Hoactzin Partners, LP (Hoactzin), under
        which you are</u> <u>responsible for drilling ten oil wells on your properties in Kansas.
        We understand</u> <u>that you have retained an economic interest equivalent to a 25%
        working interest in the wells until Hoactzin has recovered 1.35 times its "purchase price,"
        after which your economic interest will increase to an effective 85% working interest. We
        also understand that you granted Hoactzin a 75% interest in your methane extraction project
        until this "payout point" is achieved, after which the interest drops to 7</u> <u>1/2%;</u>
        <u>and that earnings from the oil wells plus earnings from the methane extraction project
        count towards this objective.</u></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="left">
        <u>Given these provisions, along with those allowing Hoactzin to exchange its interests in
        the methane extraction project to convertible preferred shares, having</u> <u>conversion
        provisions based on the then market value of your common shares, and</u> <u>aggregate
        values based on an un-recovered portion of the "purchase price" at the end of 2009, and
        each of the four subsequent years, the arrangement seems to be substantively a
        borrowing.</u></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="left">
        <u>Under Rule 4-10(c)(6) of Regulation S-X, you are directed to the guidance in SFAS 19 for
        mineral property conveyances and related transactions that are not specifically covered
        within the full cost rules. The guidance in paragraph 43(b) of SFAS 19 appears to have
        strong correlation with the arrangement you describe.</u></p>

        <p></p>

        <p style="FONT-SIZE: 12pt; MARGIN: 0pt 0.1in 0pt 0.5in" align="left"><u>This would require
        that you establish a liability for the proceeds, rather than record the initial credit
        against your property account. This liability would later be reduced as Hoactzin recovers
        the "purchase price," and you would record interest expense for the increment between
        recovery and the "payout point."</u> <u>Further, if Hoactzin retains an effective 15%
        working interest in the oil wells after</u> <u>the payout point is achieved under all
        scenarios, a portion of the proceeds may need to be</u> <u>attributed to this sale, with a
        debit to deferred financing costs and a credit to the property account.</u></p>

        <p></p>

        <p style="FONT-SIZE: 12pt; MARGIN: 0pt 0.1in 0pt 0.5in" align="left"><u>If you have
        additional information that you believe would yield an alternate view,</u> <u>please submit
        it with your reply. Otherwise, provide the accounting and disclosure revisions necessary to
        comply with this guidance.</u><br>
        &nbsp;</p>

        <p style="FONT-SIZE: 12pt; MARGIN: 0pt 0.1in 0pt 0.5in" align="left"><u>In conjunction with
        your reply, tell us whether you intend to fully consolidate the</u> <u>drilling program and
        methane extraction project, before and after the payout point</u> <u>is achieved, or if you
        intend to use proportionate or equity method accounting at any point; and explain your
        rationale. Under the borrowing characterization, it appears you would need to address the
        consolidation question based on your retained interests of 85% in the oil wells and
        92</u><u>&frac12;%</u> <u>interest in the methane extraction project.</u></p>

        <p></p>

        <p style="FONT-SIZE: 12pt; MARGIN: 0pt 0.3in 0pt 0.5in" align="left"><u>Please also clarify
        whether Hoactzin retains the 7</u> <u>1/2%</u> <u>interest in the methane</u> <u>extraction
        project under the exchange for convertible preferred stock scenario.</u></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify">
        <font style="FONT-SIZE: 11pt">OUR RESPONSE:</font></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify">
        <b><font style="FONT-SIZE: 11pt">The substance of your most recent comment deals mainly
        with our intended accounting treatment of the referenced September 17, 2007 agreements.
        Earlier related comment requested additional disclosure language.</font></b></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="left">
        <b><font style="FONT-SIZE: 11pt">There follows a description of intended accounting
        treatment, together with the</font></b> <b><font style="FONT-SIZE: 11pt">all
        proposed</font></b> <b><font style="FONT-SIZE: 11pt">disclosure language</font></b>
        <b><font style="FONT-SIZE: 11pt">SET OUT IN FULL for your ease in reference. We have added
        language in this disclosures to clarify that</font></b> <b>Hoactzin would retain no net
        profits interest in the methane project after a full exchange of Hoactzin&rsquo;s 75% net
        profits interest for preferred stock.</b> <b><font style="FONT-SIZE: 11pt">This is the
        language</font></b> <b><font style="FONT-SIZE: 11pt">we propose to add</font></b> <b>to the
        referenced portion of the Form 10-Q beginning at page 11 so that the provisions beginning
        there and continuing to the end of this section read as set out below at
        &ldquo;***&rdquo;.</b></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">
        The revenues received by the Company under the September 17, 2007 agreements will be
        reported as a separate line item on the Company&rsquo;s income statement. Although these
        revenues are referred to as management fees, as defined in the agreements they are in the
        nature of a net profits interest.<br>
        &nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        The Company intends that funds received for drilling program interests will be treated as
        offset to oil and gas properties; that net profits interests received from the methane
        project will be reported as line items on the Company&rsquo;s income statement; and that
        until circumstances arise or become probable triggering any ability to require the Company
        to exchange Hoactzin&rsquo;s net profits interest in the methane project for preferred
        stock to be issued, no accounting adjustment will be made for any obligation under that
        exchange agreement. It is important to note that although Hoactzin may under certain
        circumstances exchange its interests for preferred stock at a value equal to its drilling
        program purchase price of $3.85 million, at no time under these agreements does Hoactzin
        have any right to receive preferred stock for the additional figure of about $1.35 million
        which is the difference between $3.85 million (Hoactzin&rsquo;s purchase price) and $5.2
        million (the point at which Hoactzin&rsquo;s potential revenues if received would cause the
        parties&rsquo; interests to &ldquo;flip&rdquo; under the agreements.) Said another way, the
        figure of $5.2 million is simply a description of a point in time that might occur in the
        future revenue collection by Hoactzin and if it does, then Hoactzin&rsquo;s interests are
        reduced and the Company&rsquo;s are increased.<br>
        &nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        Tengasco proposes to employ normal joint-venture accounting through direct inclusion of its
        proportional share of the expenses, revenues, and assets to its agreement with Hoactzin.
        Under its analysis, the Company has conveyed an equity interest in particular oil and gas
        properties to Hoactzin. In the event there is a deficiency in future earnings from these
        properties, the remedy will be the issuance of equity. The instruments to be issued cannot
        be net settled, nor are other provisions apparent that would allow Hoactzin, in the event
        of shortfall, to settle other than in shares.<br>
        &nbsp;<br>
        We believe that the facts and circumstances differentiate Tengasco&rsquo;s agreement with
        Hoactzin from that addressed in SFAS 19, paragraph 43(b).</p>

        <p style="FONT-SIZE: 12pt; MARGIN: 5pt 0.5in" align="left"><u>The citation to SFAS 19
        reads</u>:<br>
        &ldquo;43. Certain transactions, sometimes referred to as conveyances, are in substance
        borrowings repayable in cash or its equivalent and shall be accounted for as borrowings.
        The following are examples of such transactions:<br>
        </p>

        <p></p>

        <table>
            <tr>
                <td width="72">
                </td>

                <td valign="top">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0px; FONT-FAMILY: 'SYMBOL'">
                    &middot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>

                <td valign="top">
                    <p style="FONT-SIZE: 12pt; MARGIN: 5pt 0in; TEXT-INDENT: 0px" align="left">
                    Funds advanced to an operator that are repayable in cash out of the proceeds
                    from a specified share of future production of a producing property, until the
                    amount advanced <a name="OLE_LINK1"></a><a name="OLE_LINK2">plus interest at a
                    specified or determinable rate</a> is paid in full, shall be accounted for as a
                    borrowing. The advance is a payable for the recipient of the cash and a
                    receivable for the party making the advance . . .&rdquo;</p>
                </td>
            </tr>
        </table>
        <br>
        <br>
        <br>


        <p style="FONT-SIZE: 12pt; MARGIN: 5pt 0.8in 5pt 0in; TEXT-INDENT: 0px" align="left">SFAS
        19 at 43(b) can be viewed as a restatement of the rule that substance is to be given
        accounting recognition over mere form. However, as hypothesized in 43(b), the substance of
        the agreement in paragraph 43(b) of SFAS 19 differs from that of the Tengasco/Hoactzin
        agreement as to whether the transaction conveys an ownership interest (equity) or creates a
        liability.</p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        <u>The definition of a Liability from FASB Concept Statement No. 6, &ldquo;Elements of
        Financial Statements&rdquo;</u></p>

        <p></p>

        <p style="MARGIN: 0pt 0.5in" align="left">&ldquo; . . . liabilities are claims to the
        entity's assets by other entities and, once incurred, involve nondiscretionary future
        sacrifices of assets that must be satisfied on demand, at a specified or determinable date,
        or on occurrence of a specified event.&rdquo; [para. 54]</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        <u>Claims against the entity&rsquo;s assets</u></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="left">
        Addressed under the 43(b) hypothetical</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 1in" align="left">The claim
        under 43(b) is against the entity&rsquo;s <u>existing</u> assets &ndash; the presence of
        the interest component &ldquo;payable at a specified or determinable rate&rdquo; makes this
        clear. That the repayments are specified to be &ldquo;out of future production&rdquo; is
        the element of the agreement that we believe paragraph 43(b) of SFAS 19 is attempting to
        address &ndash; the temptation to give recognition to form over the substance of the
        agreement (otherwise, the example is so basic that its inclusion defies explanation).</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="left">
        Addressed under the Tengasco/Hoactzin Drilling agreement</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 1in" align="left">The monetary
        claim in the Tengasco/Hoactzin Drilling agreement is against <u>future earnings</u>. The
        claim for what the SEC has analogized as &lsquo;interest&rsquo; does not arise unless
        future earnings materialize. No monetary claim arises absent future earnings. This is an
        important distinction because liabilities represent claims against existing assets whose
        payment is &ldquo;nondiscretionary.&rdquo; Matching the liability against the asset not in
        existence is a violation of the overarching principles.<br>
        &nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        The fundamental distinction between the two scenarios is that, under 43(b) a claim arises
        against the Company&rsquo;s assets, but in Hoactzin, the claim is against profits to be
        realized, or failing that, against equity.<br>
        &nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        <u>FASB Concept Statement No. 6, &ldquo;Elements of Financial Statements&rdquo; addresses
        the concept of Equity:</u></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 1in" align="left">
        <font style="COLOR: #000000">From para. 55: &ldquo;Although the line between equity and
        liabilities is clear in concept, it may be obscured in practice. Applying the definitions
        to particular situations may involve practical problems because several kinds of securities
        issued by business enterprises seem to have characteristics of both liabilities and equity
        in varying degrees&rdquo;</font></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        <u>So, the FASB Concept Statement No. 6, &ldquo;Elements of Financial Statements&rdquo;
        does not attempt a &ldquo;definition&rdquo; of equity, as such, but rather an enumeration
        of its characteristics. Principal among them in paragraph 54 and following are:<br>
        &nbsp;</u></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="left">1.
        &ldquo;In contrast, equity is a residual interest&mdash;what remains after liabilities are
        deducted from assets&mdash;and depends significantly on the profitability of a business
        enterprise</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="left">2. &ldquo;A
        business enterprise may distribute assets resulting from income to its owners, but
        distributions to owners are discretionary, depending on the volition of owners or their
        representatives after considering the needs of the enterprise and restrictions imposed by
        law, regulation, or agreement</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="left">
        <font style="COLOR: #000000">3. &ldquo;An enterprise's liabilities and equity are mutually
        exclusive claims to or interests in the enterprise's assets by entities other than the
        enterprise, and</font> liabilities take precedence over ownership interests.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 1in; TEXT-INDENT: 36px" align="left">
        and, from paragraph 62:</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="left">4.&ldquo;.
        . . that is, some classes of owners may bear relatively more of the risks of an
        enterprise's unprofitability or may benefit relatively more from its profitability (or
        both) than other classes of owners. However, all classes depend at least to some extent on
        enterprise profitability for distributions of enterprise assets, and no class of equity
        carries an unconditional right to receive future transfers of assets from the enterprise
        except in liquidation, and then only after liabilities have been satisfied.&rdquo;</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        Under this guidance, the Company has concluded that what was conveyed in Hoactzin was an
        equity interest in the oil and gas properties:<br>
        &nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.8in; TEXT-INDENT: -18px" align="left">
        1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;What is to be distributed is a &ldquo;residual
        interest&rdquo; &ndash; a proportion of the working interest, which is calculated net of
        expenses attributable to the entity. Earnings, dependent upon the profitability of the
        venture.</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.8in; TEXT-INDENT: -18px" align="left">
        2. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The distributions to the owners are volitional and &ndash;
        because subject to upfront &ldquo;restrictions imposed by agreement&rdquo; amongst the
        owners &ndash; are not rendered of a different nature than equity.</p>

        <p></p>

        <p></p>

        <table>
            <tr>
                <td width="48">
                </td>

                <td valign="top">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt">
                    <font style="FONT-FAMILY: 'TIMES NEW ROMAN'">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
                </td>

                <td valign="top">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in" align="left">A
                    characteristic of equity is that &ldquo;liabilities take precedence over
                    ownership interests.&rdquo; The position of Tengasco as the operator in regards
                    to an oil well or a group of wells is not the equivalent of establishing a
                    precedence to the earnings of those with whom the Company is splitting
                    earnings.</p>
                </td>
            </tr>
        </table>
        <br>
        <br>
        <br>


        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.8in; TEXT-INDENT: -18px" align="left">
        4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finally, that &ldquo;no class of equity carries an
        unconditional right to receive future transfers of assets from the enterprise&rdquo; is not
        a principle violated here, as future distributions are conditioned on profitability. Other
        conditions present here a disproportionate distribution of earnings do not negate the
        presence of equity.</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        The Company did not consider that the inclusion of the equity &lsquo;kicker&rsquo; in the
        deal could possibly give what was a straight-up equity deal the earmarks of a debt
        transaction.</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        The Company views the convertible preferred component as an option with a performance
        condition. Accordingly, no value has been accorded these options prior to
        &ldquo;performance&rdquo; &ndash; here the failure of the Company to comply with the terms
        of the conveyance. If preferred shares are issued, the Company proposes to debit its
        investment in oil and gas and credit APIC.</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        At any rate, the Company&rsquo;s analysis, made prior to the conveyance, attached little
        fair value to the preferred stock option. Accordingly, this provision of the agreement was
        ceded without significant negotiation.<br>
        &nbsp;<br>
        Seen as a &lsquo;guarantee&rsquo; the Company believed that exercise of the preferred
        option in any amount material to the financial statements was, at best, a remote
        contingency.. Events subsequent to contract date have borne out this judgment. These
        analyses give no weight to additional cash flows that might be attributable to the
        manufactured methane installation in Tennessee.<br>
        &nbsp;<br>
        Given the further considerations below as to the adequacy of its disclosure, the Company
        elected to include no adjustment to its equity accounts for the fair value of the option
        given.<br>
        &nbsp;<br>
        Finally, given the application of joint venture accounting, the Company believes that no
        consolidation of the Hoactzin agreement is appropriate.</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        <b>As noted, we would amend to add the following beginning at current page 11, complete
        paragraph number 1 on that page to read as follows:</b></p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        ***[begin insert:]</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify">
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On September 17, 2007, the Company entered into a drilling
        program with Hoactzin Partners, LP (&ldquo;Hoactzin&rdquo;) for ten wells to be drilled in
        Kansas targeting production of oil during the remainder of 2007. Under the drilling
        program, Hoactzin will pay $400,000 per well completed as a producer, and $250,000 per
        drilled well that is nonproductive. The total purchase price will consequently be between
        $2.5 million and $4 million. The controlling person of Hoactzin is Peter E. Salas, the
        Chairman of the Company&rsquo;s Board of Directors and also the controlling person of
        Dolphin Offshore Partners, LP, the Company&rsquo;s largest shareholder. On September 17,
        2007 the Audit Committee of the Company&rsquo;s Board of Directors, as well as the Board of
        Directors, authorized the transactions in accordance with the Company&rsquo;s related party
        transaction policy.<br>
        &nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify">
        Under the terms of the drilling program, Hoactzin will receive all the working interest in
        the ten wells, but will pay an initial fee to the Company of 25% of its working interest
        revenues net of operating expenses. This is referred to as a management fee but as defined
        is in the nature of a net profits interest. The fee paid by Hoactzin will increase to 85%
        of working interest revenues when net revenues received by Hoactzin reach an agreed payout
        point of approximately 1.35 times Hoactzin&rsquo;s purchase price (ultimately $3.85 million
        for the ten drilled wells) paid for the drilling program, or approximately $5.2 million.
        The Company&rsquo;s lenders have agreed to consider the fee as an equivalent value to a
        working interest for purposes of calculating the Company&rsquo;s borrowing base.</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify">
        The Company was obligated under the terms of the drilling program to drill ten wells,
        consisting of approximately three wildcat wells and seven developmental wells on it
        properties in Kansas. The Company agreed to attempt to drill these ten wells by year end
        2007 but if not able to do so to drill them as soon as possible in 2008. To date of this
        amended report (March ___, 2008) all ten of the wells have been drilled. Of the ten drilled
        wells, 9 have been completed as producers and are producing currently approximately 84
        barrels per day in total. Although that production level will decline with time in
        accordance with expected decline curves for this type of well, the results of drilling are
        expected at current prices and expected production volumes to result in the agreed payout
        point being reached sometime in the year 2013. (Any revenues contributed by the methane
        project as described below would serve to accelerate that point to an earlier date.) As of
        September 30, 2007 Hoactzin had paid $1,300,000 for its interest in the drilling program,
        and to date of this amended report, Hoactzin has paid $3,850,000 for its interest in this
        drilling program. All obligations of Hoactzin have been paid at or near the time of
        drilling and the last well drilling costs have been paid in advance. The Company will
        account for funds received for interests in the drilling program as an offset to oil and
        gas properties. The Company expects based on its experience in Kansas drilling and
        completion of oil wells that the payment of Hoactzin&rsquo;s purchase price for the ten
        wells in the drilling program will exceed costs incurred by the Company in drilling and
        completing all program wells by approximately $1 million, and this expectation has been met
        as to each of the program wells that have been drilled, or drilled and completed.</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify">
        On September 17, 2007 Hoactzin was simultaneously conveyed a 75% net profits interest in
        the Company&rsquo;s subsidiary Manufactured Methane Corporation&rsquo;s
        (&ldquo;MMC&rsquo;s) Carter Valley, Tennessee methane extraction project. When the methane
        project comes online, the methane project revenues received by Hoactzin will also apply
        towards the determination of the payout point for the drilling program. When the payout
        point is reached from either the drilled wells or the methane project or a combination
        thereof, Hoactzin&rsquo;s net profits interest in this methane project will decrease to a
        7.5% net profits interest. The Company believes that the addition of revenues of the
        methane project to reaching the payout point of the drilling program as a favorable
        provision that is anticipated to both to rapidly accelerate reaching that payout point with
        the Company&rsquo;s and providing additional safeguard of obviating any need to issue
        preferred stock in the Company as set out below. The grant of a 7.5% net profits interest
        in the methane project following the payout point of the drilling program being reached is
        also considered a favorable provision because the Company has used funds provided by
        Hoactzin for purchase of its interests in the drilling program above drilling program costs
        as experienced, for the purchase of approximately $1,000,000 in equipment required for the
        methane project, or about 25% of the project&rsquo;s capital costs. The availability of
        these funds has avoided the need to borrow those funds, and to both pay interest to any
        lending institution or to dedicate project revenues to debt service.</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 32px" align="justify">
        The Company&rsquo;s wholly owned subsidiary, Manufactured Methane Corporation, has placed
        equipment orders for its first stage of process equipment (cleanup and carbon dioxide
        removal) and the second stage of process equipment (nitrogen rejection) as of the date of
        this amended Report, the Company has paid and capitalized approximately $1,875,000 in
        equipment costs for this project from the Company&rsquo;s cash flow from operations
        including the proceeds of the sale of the drilling program interests to Hoactzin as have
        exceeded drilling and completion costs of the program wells. Total project costs, including
        pipeline construction, are expected to be approximately $4.1 million including costs for
        compression and interstage controls. The Company anticipates that equipment will be
        manufactured and delivered to allow operations to begin in the April or May 2008 time
        period when equipment installation, testing, and startup procedures are begun. Commercial
        deliveries of gas will begin when the equipment is installed and tested and the pipeline is
        constructed. Upon commencement of operations, the methane gas produced by the project
        facilities will be mixed in the Company&rsquo;s pipeline and delivered and sold to Eastman
        Chemical Company under the terms of the Company&rsquo;s existing natural gas purchase and
        sale agreement. The Company anticipates approximately 400 MCF per day of sales gas to be
        generated at current volumes of gas collected by Allied Waste at the Carter Valley
        location.</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 32px" align="justify">
        As part of MMC&rsquo;s Carter Valley methane project agreement, the Company agreed to
        install a new force-main water drainage line for Allied Waste, the landfill owner, in the
        same two-mile pipeline trench as the gas pipeline needed for the project, reducing overall
        costs and avoiding environmental effects to private landowners resulting from multiple
        installations of pipeline. Allied Waste will pay the additional costs for including the
        water line. Construction of the gas pipeline needed to connect the facility with the
        Company&rsquo;s existing natural gas pipeline is expected to begin in mid-January 2008. As
        a certificated utility, the Company&rsquo;s pipeline subsidiary requires no additional
        permits for the gas pipeline construction. The Company currently anticipates that pipeline
        construction will be concluded approximately the same time as equipment deliveries and
        installations occur or in the May to June 2008 time period, subject to weather delays
        during wintertime construction.</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify">
        The Company also announced that on September 17, 2007 it entered into an additional
        agreement with Hoactzin providing that if the new drilling program wells and the methane
        project interest in combination failed to return net revenues to Hoactzin equal to 25% of
        the actual drilling program purchase price by December 31, 2009, then Hoactzin has an
        option to exchange up to 20% of its net profits interest in the methane project for
        convertible preferred stock to be issued by the Company with a liquidation value equal to
        20% of the drilling program price less the net proceeds received at the time of any
        exchange. The conversion option would be set at issuance of the preferred stock at the then
        twenty business day trailing average closing price of Company stock on the American Stock
        Exchange. Hoactzin has a similar option each year after 2009 in which Hoactzin&rsquo;s
        then-unrecovered investment at the beginning of the year is not reduced 20% further by the
        end of that year, using the same conversion option calculation at date of the subsequent
        year&rsquo;s issuance if any. The Company, however, may in any year make a cash payment
        from any source in the amount required to prevent such an exchange option for preferred
        stock from arising. In addition, the conversion right is limited to no more than 19% of the
        outstanding common shares of the Company. In the event Hoactzin&rsquo;s 75% net profits
        interest in the methane project were fully exchanged for preferred stock, by definition the
        reduction of that 75% interest to a 7.5% net profits interest that was agreed to occur upon
        the receipt of 1.3547 of Hoactzin&rsquo;s invested funds could not happen because the
        larger percentage interest then exchanged, no longer exists to be reduced. Accordingly
        Hoactzin would retain no net profits interest in the methane project after a full exchange
        of Hoactzin&rsquo;s 75% net profits interest for preferred stock.</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify">
        Under this exchange agreement, if no proceeds at all were received by Hoactzin through 2009
        or in any year thereafter (i.e. a worst-case scenario already impossible in view of the
        success of the drilling program), then Hoactzin would have an option to exchange 20% of its
        methane project interest in 2010 and each year thereafter for preferred stock with
        liquidation value of 100% of its drilling program investment (not 135%) convertible at the
        trailing average price before each year&rsquo;s issuance of the preferred. The maximum
        number of common shares into which all such preferred could be converted cannot be
        calculated given the formulaic determination of conversion price based on future stock
        price. However, assuming for purposes of a calculation example only, a uniform stock price
        of $.75 per share, the preferred stock would be convertible (at investment $3.7 million for
        eight of ten producing wells) or 4.93 million common shares, approximately 8.35% of the
        Company&rsquo;s currently outstanding shares as of the date of this amended report.</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify">
        However, the Company anticipates that with the demonstrated successful results of the
        drilling program that the payout of 25% of the actual drilling program price will be
        reached by December 31, 2009 and no requirement to issue preferred stock will arise in
        2010. The Company further anticipates that at current oil and gas prices, and at currently
        expected sales levels of methane gas from MMC&rsquo;s project to come online in 2008, that
        the balance of the unrecovered investment by Hoactzin will also be reduced by at least 20%
        each year thereafter. Based only on current production from the nine producing wells (i.e.
        not considering any revenue contribution from the methane project), expected decline curves
        for production, and using current oil prices, the Company expects that by December 2009,
        Hoactzin will have received approximately 66% of its investment, far in excess of the 25%
        required in order to obviate any occasion to exchange its methane interest for preferred
        stock. As a result, the Company believes it is highly unlikely that any obligation to issue
        preferred stock will arise under the terms of this agreement at any time in the future.</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify">
        ***[end]</p>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        Tengasco, Inc. acknowledges that it is responsible for the adequacy and accuracy of the
        disclosure in the filing, that SEC staff comments or changes to disclosure in response to
        staff comments do not foreclose the Commission from taking any action with respect to the
        filing; and it may not assert staff comments as a defense in any proceeding initiated by
        the Commission or any person under the federal securities laws of the United States.<br>
        &nbsp;<br>
        We will await further comment from you with regard to each these matters before preparing
        and filing any amended pages of the Form 10-K or any amendment of the Form 10-Q as may be
        indicated in response to items 1-3 above, and previous comments to which our responses are
        presumed to be satisfactory, to enhance the overall disclosure currently provided therein.
        We emphasize that no restatement of the financials is required by any of the comments made
        in your letters and consequently no restatement of any financial statement is necessary to
        meet the comments you have made. The Company continues to believe that the disclosure
        contained in the filings is sufficient to provide all information required to provide
        investors with the opportunity to make informed investment decisions.<br>
        &nbsp;<br>
        Very truly yours,<br>
        &nbsp;<br>
        Tengasco, Inc.<br>
        &nbsp;<br>
        &nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        BY: <u>s/ Jeffrey R. Bailey</u></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;JEFFREY R. BAILEY, Chief Executive Officer</p>
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