TORONTO, June 28 /CNW/ - Alange Energy Corp. (TSXV: ALE) today announced successful bids on two blocks in the recently completed 2010 Open Round conducted by Colombia's National Hydrocarbon Agency ("ANH"). The two blocks awarded to the company with 100% participation and operatorship are located in the Llanos and Cordillera Basins and cover a total area of 94,921 hectares.
Mr. Luis Giusti, Chief Executive Officer of Alange Energy, commented, "We are excited to expand and strengthen the company's exploration portfolio with these new blocks. The LLA 41 block in the Llanos Basin will significantly increase our land position and enable us to leverage our existing knowledge of this basin. The COR 33 block in the Cordillera Basin lies in close proximity to several producing fields and we look forward to discovering the potential this property brings to our near-term production pipeline."
LLA 41 Block in the Llanos Basin
This block, which has an area of 72,263 hectares, was awarded to the company as a Type 1 E&P block and carries an additional royalty of 1%. During the first 36-month exploration phase, the company is committed to the drilling of one exploratory well and the acquisition of seismic. Located in the Llanos Basin, near the giant Cano Limon field, the main reservoirs of LLA 41 are tertiary sandstones and there is potential for several structures with API gravity of greater than 25 degrees.
COR 33 Block in the Cordillera Basin
This block, which has an area of 22,658 hectares, was awarded to Alange Energy as a Type 1 E&P block and carries an additional royalty of 1%. During the first 36-month exploration phase, the company is committed to the drilling of one exploratory well and the acquisition of seismic. Located on the border of the Cordillera and Upper Magdalena Valley basins, near the Guando field, the main reservoirs of COR 33 are Monserrate Sandstones and the source rock is the Villeta Formation. The block has potential structures with API gravity of greater than 25 degrees.
The open process was available to those pre-qualified by the ANH and successful bid contracts are expected to be finalized by October 2010. The total estimated net investment will be $5.5 million and $6.8 million for LLA 41 and COR 33, respectively, over the next three years. This exploration spending will be funded with operating cash flow starting in 2011 and is subject to ANH exploration regulations.
Alange Energy is a Canadian-based oil and gas exploration and production company, with working interests in twelve properties in four basins in Colombia. Further information can 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 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