TORONTO, Aug. 17 /CNW/ - Alange Energy Corp (TSXV: ALE) announced today that it has confirmed a discovery in the Pajarito-1X well that was drilled to a total depth of 2,002 feet to explore the oil prospectivity of the Catatumbo, Barco and Mito Juan formations in the Carbonera Block. Covering an area of 64,000 acres, the Carbonera Block is located in the Catatumbo Basin, which constitutes an extension of the highly prolific Lake Maracaibo Basin of Venezuela.
Luis E. Giusti, the Company's Chief Executive Officer, commented: "This discovery could lead to an important development of shallow non-conventional ultra light oil. Although the type of reservoir has low energy, a small spacing well pattern and proper pumping equipment could deliver important value, as in fields like Ancon in Ecuador and Sardinata in Colombia, which is also in the Catatumbo Basin. As well, supplementary recovery could be possible."
Well logs indicate the presence of hydrocarbons in several horizons. The top of the Mito Juan sandstones was found at a depth of 542 feet, with petrophysical evidence showing 5 feet of net pay zone. The top of the Upper and Lower Catatumbo sandstones was found at depths of 452 feet and 1,030 feet, with petrophysical evidence showing 22 feet and 32 feet of net pay zone, respectively. Both formations, with a total vertical oil column of 59 feet, represent new discoveries within the Carbonera Block. Representative tests were limited to Mito Juan because of high skin damage in the remaining intervals. Pajarito-1X was tested using a wire-line pump, producing 14 barrels of 41 degrees API oil in 20 hours. Still to be determined is the capacity of the reservoir to replenish the fluid level in the well; at the same time the Company intends to test for a possible supplementary recovery project based on miscible displacement. Abundant high pressure CO(2) for that testing is available nearby.
Pajarito-1X is the first well to be tested in the Upper Cretaceous and Tertiary sands, showing good petrophysical characteristics: porosity of 15%, water cut of 34% and 41 degrees API oil in the Mito Juan Formation. Correlation of this well with seismic and petro-physical information in the surroundings, suggests a significant areal extension that, if confirmed, could translate into the immediate design of an appraisal campaign. The seismic available includes 88 km(2) of 3D, in addition to old 2D. The neighboring wells, Cerro Gordo-2, Cerro Gordo-4 and Paramito-1X, confirm thickening and better sand properties in the whole section toward the north and west of Pajarito-1X well. The same can be observed in Cerro Gordo-1 and Cerro Gordo-3 toward the southeast. The distances from Pajarito-1 to Paramito-1 and Cerro Gordo-1 are 500 and 1,200 meters respectively.
Evaluation is in progress and the well is currently scheduled to have proper beam pumping installed in order to continue with further testing on the Mito Juan Formation on the up-thrown side of the fault.
With the drilling of Pajarito-1X, the Company has taken the first step to continue exploration in the Upper Cretaceous and Tertiary sandstones in the Carbonera Block. The Company holds a 96% working interest in the block.
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. ("Alange"). 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.
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: Luis E. Giusti Jr., Vice President, Investor Relations, 416-360-4653