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UNITED STATES</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 12pt; FONT-WEIGHT: bold"><font id="TAB1" style="MARGIN-LEFT: 94.2pt"></font>SECURITIES and EXCHANGE
COMMISSION</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 12pt; FONT-WEIGHT: bold"><font id="TAB1" style="MARGIN-LEFT: 152pt"></font>WASHINGTON, D.C. 20549</font></div>
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    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font id="TAB1" style="MARGIN-LEFT: 80.9pt"></font>Current Report Pursuant to Section 13
or 15(d) of the</font></div>
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1934</font></div>
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    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font id="TAB1" style="MARGIN-LEFT: 92.4pt"></font>Date of Report (Date of Earliest
Event Reported):</font></div>
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    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 194.95pt"></font><font style="DISPLAY: inline; TEXT-DECORATION: underline">Tengasco,
Inc.</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 92.6pt"></font>(Exact Name of Registrant as
specified in its charter)</font></div>
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    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Tennessee</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<font style="DISPLAY: inline; TEXT-DECORATION: underline">87-0267438</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(State or
other jurisdiction
of&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;(I.R.S.
Employer Identification No.)</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">incorporation
or
organization)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></div>
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E, Knoxville, Tennessee 37934</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 130pt"></font>(Address of Principal Executive
Office</font></div>
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675-1554</font></font></div>
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number)</font></div>
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appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below):</font></div>
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)</font></div>
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)</font></div>
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))</font></div>
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
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8.01 Other Events</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">On April
8, 2010, the Board of Directors, on recommendation of the Compensation/Stock
Option Committee, elected pursuant to the Company&#8217;s Stock Incentive Plan (the
&#8220;Plan&#8221;) to convert 1,775,000 outstanding &#8220;in-the-money&#8221; options with a strike
price of $0.27 expiring April 20, 2010 held by officers and employees to Stock
Appreciation Rights (&#8220;SARs&#8221;) and to provide that such SARs be paid if exercised
in Company stock at the fair market value on the date of exercise.&#160; The
SARs have the same expiration date as the options they replace, and have a base
price of $0.27 per share, which is same priceas the options they replace.&#160;
This conversion was in accordance with the terms of the Plan.&#160;</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">When
exercised, one SAR provides that the holder is entitled to receive the
difference between the base price of the SAR and the fair market value of a
share on the date of exercise.&#160; In contrast to an option, a holder of a SAR
is not required to pay consideration to the Company upon exercise of the
SAR.&#160; Consequently, the effect of converting these existing options to SARs
is beneficial to those holders of options that would otherwise have had to
either provide the cash consideration or sell some of their issued option shares
to pay the $.27 per share option price, and for the holders is similar to what
is generally termed a &#8220;cashless exercise&#8221; of the options.&#160; If the SARs are
exercised, the conversion of these options to SARs will be less dilutive to
existing shareholders than the exercise of the options absent the
conversion.&#160; If all options were exercised, the total number of shares
issued by the Company would have been 1,775,000 shares.&#160;&#160; As an
example only for demonstration, if a fair market value of $.55 per share is
assumed on date of exercise of an equal number of SARs, the total number of
shares issued to holders exercising the SARs would be 903,636 or about 51% of
the number of option shares.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Of the
total number of options converted to SARS, 1,250,000 options were held by
Jeffrey R. Bailey, CEO and 400,000 options were held by Cary V. Sorensen, Vice
President and General Counsel.&#160; The remaining options to purchase an
aggregate of 125,000 shares were held by four nonexecutive employees of the
Company.</font></div>
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    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font id="TAB1" style="MARGIN-LEFT: 190.7pt"></font>SIGNATURES</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>Pursuant to the requirements of the
Securities and Exchange Act of 1934, the Registrant has duly caused and
authorized this report to be signed on its behalf by the
undersigned.</font></div>
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    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Dated:
April 9, 2010</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 252pt"></font>Tengasco, Inc.</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 252pt"></font>By: <font style="DISPLAY: inline; TEXT-DECORATION: underline">s/Jeffrey R.
Bailey</font></font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 252pt"></font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;Jeffrey R.
Bailey,</font></div>
    <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 252pt"></font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;Chief Executive
Officer</font></div><br>
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eightksars.htm
UNITED STATES
SECURITIES and EXCHANGE
COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13
or 15(d) of the
Securities Exchange Act of
1934
Date of Report (Date of Earliest
Event Reported):
April 8, 2010
Tengasco,
Inc.
(Exact Name of Registrant as
specified in its charter)
Commission File Number
0-20975
Tennessee
87-0267438
(State or
other jurisdiction
of                  (I.R.S.
Employer Identification No.)
incorporation
or
organization)
11121 Kingston Pike, Suite
E, Knoxville, Tennessee 37934
(Address of Principal Executive
Office
(865)
675-1554
(Registrant's Telephone
number)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below):
[ ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[ ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))
[ ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))
Item
8.01 Other Events
On April
8, 2010, the Board of Directors, on recommendation of the Compensation/Stock
Option Committee, elected pursuant to the Company's Stock Incentive Plan (the
"Plan") to convert 1,775,000 outstanding "in-the-money" options with a strike
price of $0.27 expiring April 20, 2010 held by officers and employees to Stock
Appreciation Rights ("SARs") and to provide that such SARs be paid if exercised
in Company stock at the fair market value on the date of exercise.  The
SARs have the same expiration date as the options they replace, and have a base
price of $0.27 per share, which is same priceas the options they replace. 
This conversion was in accordance with the terms of the Plan.
When
exercised, one SAR provides that the holder is entitled to receive the
difference between the base price of the SAR and the fair market value of a
share on the date of exercise.  In contrast to an option, a holder of a SAR
is not required to pay consideration to the Company upon exercise of the
SAR.  Consequently, the effect of converting these existing options to SARs
is beneficial to those holders of options that would otherwise have had to
either provide the cash consideration or sell some of their issued option shares
to pay the $.27 per share option price, and for the holders is similar to what
is generally termed a "cashless exercise" of the options.  If the SARs are
exercised, the conversion of these options to SARs will be less dilutive to
existing shareholders than the exercise of the options absent the
conversion.  If all options were exercised, the total number of shares
issued by the Company would have been 1,775,000 shares.   As an
example only for demonstration, if a fair market value of $.55 per share is
assumed on date of exercise of an equal number of SARs, the total number of
shares issued to holders exercising the SARs would be 903,636 or about 51% of
the number of option shares.
Of the
total number of options converted to SARS, 1,250,000 options were held by
Jeffrey R. Bailey, CEO and 400,000 options were held by Cary V. Sorensen, Vice
President and General Counsel.  The remaining options to purchase an
aggregate of 125,000 shares were held by four nonexecutive employees of the
Company.
SIGNATURES
Pursuant to the requirements of the
Securities and Exchange Act of 1934, the Registrant has duly caused and
authorized this report to be signed on its behalf by the
undersigned.
Dated:
April 9, 2010
Tengasco, Inc.
By:
s/Jeffrey R.
Bailey
Jeffrey R.
Bailey,
Chief Executive
Officer