CROSSVILLE, Tenn., Sept. 23, 2010 (GLOBE NEWSWIRE) -- TN-K Energy Group Inc. (Pink Sheets:TNKY) announced today that the company has purchased the Charles and Lynda Anderson Lease in Overton County TN with funds raised by a Guaranteed Contract. The Anderson lease is approximately 200 acres with 3 existing wells producing approximately 50 barrels per day in the Sunnybrook formation, which ranges in depth from 700 to 900ft. Less than 10% of this lease has been drilled, which leaves 40-45 more locations to be drilled, with several known producing formations in the area down to the Knox Formation of approximately 2000ft.
"I am very excited," said Ken Page, TN-K's CEO, "to have obtained this lease and for the company to have been able to raise $1.2 million to be paid back with royalty payments only, with no stock issuance or interest payments. The company owns 70% of the remaining lease and will receive 30% of the royalty interest of the 3 existing wells after repayment of funds in an estimated 18 months."
About TN-K Energy Group Inc.
TN-K Energy Group Inc. is an independent energy company with operations in Tennessee and Kentucky.
This press release contains "forward-looking statements." Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain the words "estimate," "project," "intent," "forecast," "anticipate," "plan," "planning," "expect," "believe," "will likely," "should," "could," "would," "may," or words or expressions of similar meaning. Such statements are not guarantees of future performance and could cause the actual results of TN-K Energy Group to differ materially from the results expressed or implied by such statements, including, but not limited to, the company's ability to enter into one or more leases for oil, gas and coal properties, the lack of commercial productivity from drilled wells, the ability to obtain audited financial statements as necessary on these properties, compliance with Federal securities laws, and other factors. Additional information regarding risks can be found in TN-K Energy Group's Annual Report on Form 10-K and its other filings with the SEC. Accordingly, although TN-K Energy Group believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. TN-K Energy Group has no obligation to update the forward-looking information contained in this press release.