TORONTO, Oct. 20 /PRNewswire/ - Alange Energy Corp. (TSXV: ALE) announced today that the Topoyaco-2 well, drilled to explore the prospectivity of the Villeta and Caballos formations in the Topoyaco Block, reached total depth of 8,700 feet, finding 114 feet of total net oil pay sand and 125 feet of oil saturated carbonates in the Villeta Formation.
The well logs (a package of resistivity, porosity, gamma ray and sonic) indicated 44 feet of net oil pay sandstones in the N zone, 25 feet of net oil pay sandstones interbeded with heavily fractured hydrocarbon saturated carbonates in the M1/M2 and B zones, and 45 feet of net oil sandstones in the T zone, all in the Villeta Formation. Petrophysical analysis indicated average porosities and oil saturations in the sandstones in the ranges of 14-17% and 55-72%, respectively. The logs also identified a total of 10 feet, 65 feet and 50 feet of hydrocarbon saturated limestones in M1/M2, B and C (basal), respectively.
Luis E. Giusti, the Company's Chief Executive Officer, stated, "These results confirm the much anticipated expectations for Topoyaco. We firmly believe that Alange Energy is in the process of unlocking the large hydrocarbon resources of this new oil province."
The Topoyaco-2, spudded on August 8, 2010, is a directional exploration well with 32 degrees of inclination, drilled to a total depth of 8,700 feet measured depth (MD), with 4,300 feet of horizontal displacement. The well found the top of the Villeta N sandstones at a depth of 7,346 feet MD, the top of the Villeta M1/M2 limestones at a depth of 7,610 feet MD, and the top of the Villeta T sandstones at a depth of 8,420 feet MD with petrophysical evidence showing 44 feet, 25 feet and 45 feet of net pay respectively for a total vertical oil column in the three zones of 114 feet.
Oil and gas shows were present along the whole perforated zone of interest, including a gusher that was previously announced by the Company. As a result of these initial indications of oil pay, a test program is being designed to confirm the fluid content and productivity of the discovered zones. This test program is expected to start immediately and will take approximately two weeks to complete.
The Topoyaco-1 exploration well, aimed at the B prospect, has reached 6,156 feet MD covering the Villeta Formation, and will continue drilling to an estimated total depth of 6,306 feet MD. The final testing of these two wells will determine the extent of this find, and the potential appraisal drilling plans targeting the B and C prospects which, in principle, would include at least one additional well per prospect from the same slabs.
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. The Topoyaco Block is subject to the Agencia Nacional de Hidrocarburos (ANH) contractual terms, with a sliding scale royalty commencing at 8% and no back-in rights by the state. The structures known as prospects B and C have calculations of prospective resources certified by Petrotech Engineering Ltd. in its report dated effective April 30, 2010 of 7.54 and 19.26 MMbbl (best estimate), respectively.
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 Corp. 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; 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 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 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 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.