TORONTO, Sept. 29 /CNW/ - Alange Energy Corp. ("Alange") is pleased to announce that it is in discussions with Delavaco Energy Inc. ("Delavaco") concerning a possible transaction for the acquisition of Delavaco by Alange. The proposed transaction terms include a purchase price of approximately C$100 million payable in Alange common shares. The acquisition would occur pursuant to a three-cornered amalgamation pursuant to which Delavaco would amalgamate with a wholly-owned subsidiary of Alange and holders of common shares of Delavaco would receive Alange common shares. The eventual transaction would be arm's length and subject to approval by the TSX Venture Exchange and by shareholders of Delavaco, among other conditions.
Delavaco is an Ontario corporation which was incorporated on November 1, 2007 and is a private oil and gas exploration and development company. Delavaco is headquartered in Calgary and has an office in Toronto. The company has two wholly-owned Barbadian subsidiaries and a registered branch office in Bogota, Colombia.
The Delavaco Projects
Delavaco currently holds, and is in final negotiations to acquire, a working interest in the following exploration and exploitation blocks:
- 51% working interest in the Rio Magdalena block located in the Middle
Magdalena Basin; Delavaco is currently negotiating to acquire an
additional 40% interest and operatorship status;
- 39% working interest in the Carbonera block located in the Catatumbo
Basin; Delavaco is in final negotiations to acquire an additional 6%
interest in the Carbonera block by early October;
- 3.6% interest in La Punta No.2, which is a producing well within the
La Punta block in the Llanos Basin in Colombia; Delavaco is in
negotiations to acquire a 6% to 10% working interest in the remainder
of the La Punta block; and
- Currently in negotiations to acquire operatorship status and a 15%
interest in the Mecaya block in Putumayo Basin.
As at December 31, 2008, Petrotech Engineering Ltd. assigned 12.7 mmboe of net Proved + Probable reserves to Delavaco. Management estimates that the successful negotiations of working interest additions described above will result in 6.5 mmboe in net Proved + Probable additions to Delavaco, with a resulting portfolio of 19.3 mmboe of net Proved + Probable reserves. Delavaco's current daily average net production after royalties is approximately 215 boe/d.
In addition, Delavaco holds C$13 million in escrow, which are earmarked for acquisition of additional working interest in the Carbonera, Mecaya and La Punta blocks.
There can be no assurance that the discussions will result in an agreement to complete a transaction.
Alange Energy is a Canadian-based oil and gas exploration and production company, with working interests in eleven properties in Colombia.
This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the Company's objectives, goals or future plans, and the negotiation of the Proposed Transaction. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, those risks set out in the Company's public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
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.
For further information: For further information: Michael Davies, Chief Financial Officer, (416) 360-4653, ext. 224