Alange Energy Implements Direct International Sales Contract, Eliminating Crude Nomination Uncertainties and Improving Working Capital

TORONTO, Nov. 17 /PRNewswire/ - Alange Energy Corp (TSXV: ALE) announced today that it has entered into a sales agreement with Arcadia Petroleum Limited and Colombiana de Distribucion y Servicio CI S.A ("Codis"), for the direct export of its total operated volume through what the Company is calling the "Cartagena Oil Export Platform". This platform is based on two 3-year contracts, the first with Transporte Sanchez Polo S.A. ("Sanchez Polo") for trucking oil from the Llanos in Casanare directly to Cartagena, and a second one with Codis that ensures adequate storage capacity in the Contecar Terminal in Cartagena. The operational kick-off of the platform took place three weeks ago with daily trucking of oil from the Cubiro Block. Currently, more than 100,000 barrels are stored in Contecar ready to be shipped to the international market.

Luis E. Giusti, the Company's Chief Executive Officer, stated, "It will take a few years for the national pipeline solution in the Llanos to be fully operational. With these new contracts in trucking and storage in Cartagena, Alange Energy creates a pipeline without a pipe, ensuring unrestricted crude flow and proper valuation, in addition to direct and secure access to the international market."

This first sales agreement contains the following commercial terms:

• Three consecutive shipments of 100,000 barrels of Petrodex Sweet Blend crude oil to be delivered to Cartagena during late November 2010, late December 2010 and late January 2011, for a total volume of 300,000 barrels. The first cargo is projected to be lifted between November 23 through 25, 2010.
• The Petrodex Sweet Blend, composed of 50% crude oil from the Careto/Arauco field  and  50% crude oil from the Copa field in the Cubiro Block, has a gravity of 36.6 degrees API, with 0.1039% sulphur. The delivery will be Free on Board ("FOB") at the Contecar Terminal in Cartagena.  
• The FOB price will bear a premium of US$1.00/barrel above the WTI (NYMEX) settlement price, and payment will be made five days after the bill of lading date, supported by a documentary and irrevocable letter of credit issued by a major international financial institution.
• Current storage capacity at the Contecar Terminal is 196,719 barrels and a project is underway to increase capacity to 300,000 barrels by January 2011.

The Cartagena Oil Export Platform, which does not involve capital expenditures by Alange Energy, will eliminate nomination uncertainties and will bypass current bottlenecks in the national pipeline system. In the very near future, the potential expansion of the contract will allow Alange Energy to increase frequency to two monthly cargoes, which will increase volume to approximately 450,000 barrels per month.

The new export strategy will also provide immediate cash flow benefits to Alange Energy, reducing the time it takes to collect cash from oil sales from more than 60 days at present to less than 20 days on future deliveries under the new export strategy.

Several major oil trading companies have already requested a Petrodex Sweet Blend assay and oil samples, with the intention of promptly negotiating forthcoming sales agreements with Alange Energy. In addition to the access and valuation advantages, this newly implemented strategy will improve the Company's netback by approximately US$0.50 per barrel by allowing it to export its oil from Cubiro directly to refiners, using a light crude price as a benchmark (WTI), instead of a medium quality crude oil such as the Vasconia Blend. To date, all of Alange Energy's production during 2010 from the Cubiro Block, has been mixed into the Vasconia stream, with an average loss of $3.95/barrel. This pricing improvement is expected to more than compensate for the incremental land transportation cost to Cartagena under the new strategy.

A significant feature of the contract with Sanchez Polo is its strategic alliance nature, aimed at the implementation of a new logistical program that will substantially reduce the land transportation cost from wellhead to delivery port. This will be achieved through several improvements that will increase efficiency, further increasing Alange Energy's netback as transportation costs decrease.

Finally, the Company is in discussions with several oil companies operating in the Casanare region, regarding their potential participation in the Cartagena Oil Export Platform through nominations of similar quality oil. Alange Energy intends to maximize the system utilization to its top capacity, in order to obtain economies of scale while its anticipated growth takes place.

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. At present, Alange Energy's total operated production is approximately 7,000 boed and its gross share of daily production is currently 4,100 boed. 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 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.