Alange Energy Announces Farm Out to YPF of Two Colombian Assets

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TORONTO, July 11, 2011 /PRNewswire/ -- Alange Energy Corp. (TSXV: ALE) announced today that as part of its strategy to focus on production growth and optimization of assets in the portfolio, it has entered into a strategic partnership with YPF S.A. YPF is a large regional player in the energy sector, and this partnership enables the Company to realize value and gain future upside potential from certain of the Company's assets in the Catatumbo Basin in Colombia. The Company's strategy to joint venture was previously announced in a press release dated January 19, 2011. The partnership marks YPF's entry into Colombian land operations and provides an indication of the value of Alange's portfolio.

The partnership encompasses three agreements under which Alange Energy will:

• Farm-out an interest in the Carbonera E&PC to YPF for a total work program of $23 million (100% working interest). Alange Energy will retain a 36% beneficial working interest in the property. YPF will fund up to $23 million of the exploration and capital program costs over the next three years including Alange Energy's share; this includes the costs associated with the acquisition of 3D seismic and drilling of one exploratory or development well in 2011. As well, an application will be submitted to the ANH requesting that YPF become the operator of the Carbonera E&PC. This agreement is subject to ANH approval.
• Farm-out interests in the Catguas E&PC to YPF for a total work program that could reach $100 million over the next three to five years (100% working interest). The Company currently has a 50% beneficial working interest in the Catguas A Northern area and a 15% beneficial working interest in the Catguas B Southern area. Pursuant to the agreement, YPF will assume a 35% interest in the Northern area and a 10.5% interest in the Southern area and will pay $5 million cash to Alange Energy. Under certain conditions, the Company has the option to increase its working interests up to an additional 10% in the Northern area and 5% in the Southern area. This agreement is subject to ANH approval.
• Explore further business opportunities with YPF pursuant to a Memorandum of Understanding for joint exploration and development of the Company's interests in Rio Magdalena, Santa Cruz, Cerrito, Carbonera La Silla, Arrendajo and five of the blocks awarded to the Company in the ANH 2010 Open Round, namely VMM 35, VMM 11,  VSM 12, VSM 13 and COR 33.

Commenting on the farm-out agreements with YPF, Luciano Biondi, the Company's Chief Executive Officer, stated, "We are very pleased to be partnered with a strong regional player who brings technical capabilities and financial stability to explore and develop these assets.  As we have previously indicated, the oil and gas assets of Carbonera and Catguas are high quality assets and with YPF's focus we have the opportunity to realize value from the development of these assets for our shareholders, an ideal partnership scenario."

The Company also announced that it is continuing its discussions with several parties in connection with investment opportunities to joint venture, farm out or dispose of its interests in certain of its other assets. The Company's capital allocation program is designed to generate improved returns on investment from the core portfolio.

Management will hold a conference call on Tuesday, July 12, 2011 at 9:00 a.m. (Eastern Time) to answer any questions pertaining to these agreements. Analysts and interested investors are invited to participate as follows:

A playback of this conference call will be available by dialling (416) 849-0833 or 1-855-859-2056 with the above conference ID number until July 26, 2011.

Alange Energy is a Canadian-based oil and gas exploration and production company, with working interests in 19 properties in five 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. 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. 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.

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.

For further information:

Miranda Smith
Investor Relations Representative
(647) 428-7422

(ALE.)

SOURCE Alange Energy Corp.