TORONTO, Dec. 15 /PRNewswire/ - Alange Energy Corp. (TSXV: ALE) announced today that it has confirmed a heavy oil discovery in the Topoyaco-2 exploration well, which tested net 310 barrels per day of 10.5 degrees API oil with 20% BS&W, completed with an electro-submersible pump (ESP). The Topoyaco-2 well was drilled to explore Prospect C, with prospective resources certified by Petrotech Engineering Ltd. in its report dated effective April 30, 2010 of 19.26 MMbbl (best estimate).
Luis E. Giusti, the Company's Chief Executive Officer, stated, "The discovery of an unanticipated heavy oil reservoir at Topoyaco Prospect C, in what appears to be the Rumiyaco formation, has diverted us from the original targeting of Villeta and Caballos, which hold the best promise. It is a case of unexpected good news, delaying what we expect to be even better news in the near future."
At Topoyaco-2 in Prospect C, Alange Energy was originally targeting the Villeta and Caballos formations, the main oil reservoirs along the structural-stratigraphic play of the foothills; however, in the course of drilling, the well logs showed the presence of significant net oil sands from what is now believed to be Lower Rumiyaco formation (informally named Neme). Although the presence of heavy oil indicates that it is Rumiyaco, the definitive stratigraphic model will have to be validated by a thorough geological evaluation to encompass correlations with the neighboring blocks to the south and northeast.
As a result of the presence of the oil sands, Alange Energy decided to carry out extensive testing using diverse optimization techniques. The test of 310 barrels per day mentioned above was carried out in an oil saturated section at a depth from 7,532 to 7,624 feet, which had identified a net pay of 48 feet. The significant net oil sand thickness, indicative of a significant deposit, merits an appraisal well for a first assessment of the lateral continuity of the reservoir. The possibility of a horizontal entry into the Lower Rumiyaco, in search of a larger production rate, is being considered for such well. Alange Energy anticipates that these initial test results will be incorporated into the Company's year-end reserve report.
Topoyaco-2 has proved the existence of oil accumulations in Prospect C's play type, confirming the structural model. In the meantime, the exploration program for Villeta and Caballos formations will continue with the drilling of a new well in Prospect C. Additionally, as originally planned, the most important objective of the Topoyaco block is Prospect D, which Alange Energy will start drilling late in the first quarter of 2011 which, in contrast to the other prospects, will target the sub-thrust.
Topoyaco-2, spudded on August 8, 2010, had reached total depth of 8,700 feet, finding 114 feet of total net oil pay sand and 125 feet of oil-saturated carbonates in whole drilled section.
In Prospect B, the Topoyaco-1 well penetrated the whole sedimentary column of interest reaching the Saldana formation in the Paleozoic. The Company plans to run an ESP to start production testing in the next week.
Alange Energy holds a 50% working interest and has control of the operatorship in this block, partnering with Pacific Rubiales Energy Corp., which holds a 50% working interest.
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. 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.
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.
Prospective Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. Prospective Resources are further subdivided in accordance with the level of certainty associated with recoverable estimates, assuming their discovery and development, and may be sub-classified based on project maturity. There is no certainty that any portion of the resources will be discovered. If discovered, and they would be technically and economically viable to recover; there is no certainty that the prospective resource will be discovered. If discovered, there is no certainty that any discovery will be technically or economically viable to produce any portion of the resources.
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SOURCE Alange Energy Corp.