Alange Energy Announces Closing of the Acquisition of Additional Interest in the Cubiro Block
18 Apr, 2011, 07:30 ET
TORONTO, April 18, 2011 /PRNewswire/ -- Alange Energy Corp. (TSXV: ALE) is pleased to announce the closing of its previously announced acquisition of additional interest in the Cubiro block pursuant to a share purchase agreement entered into with Columbus Energy Inc. whereby the Company has acquired:
- an additional 32.14% participating interest in Block C of the Cubiro Exploration and Production Contract ("E&PC") located in the Llanos Basin. The Copa wells in the eastern Block C of Cubiro, where the Company already holds a 25% participating interest, are currently producing approximately 1,800 barrels of oil per day, before deduction of royalties, and this acquisition would increase the Company's share of gross production by almost 600 barrels per day. Based on the evaluation of the interests of the Company in the Cubiro Block prepared by Petrotech Engineering Ltd. as of June 30, 2010, this acquisition is expected to increase Alange Energy's share of total gross proven, probable and possible oil reserves by 2.0 million barrels.
- a 10% participating interest over the entire block and a 15% participating interest in the Yamu 1 and Mapuro/Picure 1 exploration prospects on the Yamu E&PC, located in the Llanos Basin. Current gross production from the Yamu Block is approximately 900 barrels of oil per day and the Company's share would amount to approximately 90 barrels per day.
- overriding royalties of 4% and 3% in the A and B Sectors, respectively, of the Arrendajo E&PC, in which the Company holds a 35% working interest.
The acquisition of the interests has been effected through the acquisition by the Company of all of the issued and outstanding shares of Columbus' wholly-owned subsidiary, Jaguar E&P CPR Consultants, S.A., for a purchase price of US$25 million. The purchase price was funded by the Company's existing cash balances. These funds will be replenished upon the closing of the previously announced senior secured notes and warrants financing (the "Offering") of the Company with gross proceeds of approximately CA$27 million. The Offering is expected to close on or around April 26, 2011.
About Alange Energy Corp.
Alange Energy is a Canadian-based oil and gas exploration and production company, with working interests in 12 properties in four basins in Colombia. Further information can be obtained by visiting our website at www.alangeenergy.com.
All monetary amounts in U.S. dollars unless otherwise stated. The term "gross" in reference to production and reserves represents amounts before the deduction of royalties. This news release contains certain "forward-looking statements" and "forward-looking information" under applicable Canadian securities laws concerning the business, operations and financial performance and condition of Alange Energy Corp. ("Alange Energy"). Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to estimated production and reserve life of the various oil and gas projects of Alange Energy; the estimation of oil and gas reserves; the realization of oil and gas reserve estimates; the timing and amount of estimated future production; costs of production; success of exploration activities; and currency exchange rate fluctuations. Except for statements of historical fact relating to the company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of Alange Energy and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include changes in market conditions, risks relating to international operations, fluctuating oil and gas prices and currency exchange rates, changes in project parameters, the possibility of project cost overruns or unanticipated costs and expenses, labour disputes and other risks of the oil and gas industry, failure of plant, equipment or processes to operate as anticipated. Although Alange Energy has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Alange Energy undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.
Statements concerning oil and gas reserve estimates may also be deemed to constitute forward-looking statements to the extent they involve estimates of the oil and gas that will be encountered if the property is developed. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Estimated values of future net revenue disclosed do not represent fair market value.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
SOURCE Alange Energy Corp.
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