TORONTO, Dec. 7 /CNW/ - Alange Energy Corp (TSXV: ALE) ("Alange Energy" or the "Company") announced today that the Careto-5 well, drilled as a development well, was deepened to explore the prospectivity of the Gacheta and Guadalupe formations, finding 12 feet of net oil sand in the deepest one, Gacheta. Production tests in Gacheta have shown an initial production rate of 730 barrels per day of 34.8 degrees API oil with 0.1% BS&W, on natural flow. These results represent a new discovery in the Cubiro Block, located in the Llanos Basin of Colombia, and merit an extensive evaluation aimed at a separate development program for this reservoir.
Luis Giusti, the Company's Chief Executive Officer, stated "this well not only extends the known C-7 reservoir but also confirms the continuation of the Careto field in the Cubiro Block to the north, and the existence of potential new reserves of extra light oil in a completely new reservoir. We are very pleased with the results, which strengthen our confidence in the production potential of Cubiro."
The Careto-5 was drilled as a directional well with an inclination angle of 35 degrees in the Cubiro Block to a final depth of 8,450 feet. It found the top of the Carbonera C-7 sandstones at a depth of 6,202 feet true vertical depth sub-sea ("TVDSS") (7,144 feet measured depth ("MD")) and the oil-water contact at 6,229 feet TVDSS (7,174 feet MD). The top of the Gacheta sandstones was found at a depth of 6,945 feet TVDSS (7,954 feet MD). The total vertical oil column in the three zones (Carbonera C-7, Guadalupe and Gacheta) is 35 feet. The Guadalupe and Gacheta formations are exploration projects within the Cubiro Block.
Preliminary petrophysical evaluation of the well data indicated a net pay zone of 12 feet with porosities of 25% in the Gacheta formation, a channel-shaped reservoir with high permeability. A multi-rate test was performed on the well with the following results:
Choke (inch) THP (psia) Volume (bopd)
16/64 162 657
20/64 102 666
24/64 52 660
API Gravity: 34.8 degrees
Permeability: 600 to 2500 md
Reservoir pressure: 2890 Psia
Bottom hole flowing pressure: 2650 Psia
Productivity Index: 3.08 to 4.9 Bls /psia
Oil Saturation: 75 %
The Company decided to complete this well on natural flow in the Gacheta formation and it has prepared a program for the installation of an electro-submersible pump, with the simulation projecting 1,249 barrels per day of production at 35 Hz of frequency. Alange Energy's current development campaign includes the Careto-6 well, which has already reached total depth and is currently being tested, plus a likely twin well to Careto-5, which would target the remaining prospective horizons of Carbonera C-7 and Guadalupe. Additionally, the Company will engage in geological studies and appraisal drilling to determine the extent of this new find.
Cubiro is an E&P block in which the Company holds a 60.5% working interest. The well is expected to be on permanent production by December 10, 2009.
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 may be obtained by visiting our website at www.alangeenergy.com.
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. and may contain forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. Actual results may differ materially from those currently anticipated. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward looking statements are detailed from time to time in the Company's periodic reports filed with the British Columbia Securities Commission and other regulatory authorities. The Company has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except 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