Tennessee
Swan Creek Field
Hancock County, TN
Situated in the Appalachian thrust belt, the Swan Creek field was discovered by Amoco in the 1980’s. Tengasco began exploration and development of this field in 1997 and currently has four producing oil wells and twenty-one producing gas wells. The field produced 104,043 MCF of gas and 6,396 Bbl of oil in 2008, and has total cumulative production since Tengasco began operations of approximately 3.2 BCF of gas and 200,000 barrels of oil. Other potential exists in the near-by area for Devonian shale exploration for gas, along with continued interest in drilling other structures similar to Swan Creek for oil and gas.
Pipeline Facilities
The Company’s wholly-owned subsidiary, Tengasco Pipeline Corporation (“TPC”) owns and operates a 65-mile intrastate pipeline constructed to transport natural gas from the Company’s Swan Creek Field to customers in Kingsport, Tennessee. In 1996, the Company began construction of a the pipeline to connect the Swan Creek development project to a gas purchaser and enable the Company to develop a gas transportation business in the future. Phase I of the pipeline construction was a 30-mile portion of the pipeline that was completed in 1998. Phase II, the remaining 35 miles, was completed in March 2001.
The pipeline transports gas from both Swan Creek and the MMC Carter Valley project to the Kingsport market. Although TPC’s 65-mile system is a common carrier pipeline, it currently has limited transportation revenue from third party producers or pipelines, but is open to providing access for those parties with pipeline quality and quantities of gas available for transportation.