Revised: Alange Energy Announces 82% Increase of 2P Net Reserves in Cubiro

TORONTO, Aug. 9 /CNW/ - Alange Energy Corp (TSXV: ALE) announced today that it has received an independent reserves and resource evaluation report dated June 30, 2010 (the "Petrotech Report" or the "Report") prepared by Petrotech Engineering Ltd. ("Petrotech") of Burnaby, British Columbia, relating to the current resource base in Cubiro, an oil and gas exploration and production property located in the Llanos Basin of Colombia. The combined proved plus probable ("2P") reserves for this block increased by 2.11 million barrels of oil ("MMbbl"), or 82%, compared to those reported in December 2009, which amounts to a gross (before royalties) total to the Company of 4.68 million barrels of oil ("MMbbl"), having a total net present value ("NPV") (10% discount, before tax) of US$146.7 million. The Report also reflects a 54% increase in gross proven reserves ("1P") to a total of 2.56 MMbbl.

These additional reserves are the result of recent geological and reservoir evaluations, stemming from the drilling campaign during the past six months, in which two active rigs have drilled 6 wells.

Luis E. Giusti, the Company's Chief Executive Officer, commented: "With every step taken in Cubiro, we have a better interpretation of the endless possibilities of increasing recovery, by improving the exploitation schemes of the reservoirs."

The Petrotech Report provides the following summary of the Company's total proved, probable, and possible reserves and prospective resources and future net revenue, discounted at 0%, 5%, 10%, 15% and 20%, before income tax, from its interests in the Cubiro block:

    
    Reserves:
    -------------------------------------------------------------------------
                                                     L & M Oil Reserves Mbbl

                                                      100%    Gross      Net
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Proved Developed Producing                       2,064    1,154    1,061
    Proved Developed Non Producing                     464      116      107
    Proved Undeveloped                               2,810    1,295    1,192
    Total Proved                                     5,339    2,565    2,360
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Probable                                         4,268    2,111    1,942
    Total 2P                                         9,607    4,676    4,302
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Possible                                         2,879      720      662
    Total 3P                                        12,486    5,395    4,964
    -------------------------------------------------------------------------



    -------------------------------------------------------------------------
                                          NPV of Future Net Revenue
                                          Before Tax Discount in $M
    -------------------------------------------------------------------------
                                      0%       5%      10%      15%      20%
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Proved Developed Producing    49,850   43,461   38,658   34,935   31,967
    Proved Developed Non
     Producing                     5,282    4,581    4,028    3,585    3,223
    Proved Undeveloped            48,597   43,098   38,524   34,676   31,397
    Total Proved                 103,729   91,139   81,211   73,195   66,587
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Probable                      91,074   76,405   65,484   57,053   50,352
    Total 2P                     194,803  167,544  146,695  130,248  116,940
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Possible                      29,568   24,294   20,273   17,151   14,684
    Total 3P                     224,370  191,839  166,967  147,399  131,624
    -------------------------------------------------------------------------



    Reserves Comparison of Petrotech Reports (June 2010 vs. December 2009):
    -------------------------------------------------------------------------
                 2P Reserves comparison of Petrotech Reports
                           L & M Oil Reserves Mbbl
    -------------------------------------------------------------------------
                                      As of June    As of December Variation
                                         2010             2009         of 2P
                                                                    Reserves
    -------------------------------------------------------------------------
                                   Gross      Net    Gross      Net    Gross
    -------------------------------------------------------------------------
    Proved Developed Producing     1,154    1,061      740      681      414
    Proved Developed Non
     Producing                       116      107        0        0      116
    Proved Undeveloped             1,295    1,192      925      851      370
    Total Proved                   2,565    2,360    1,665    1,532      900
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Probable                       2,111    1,942      906      833    1,205
    Total 2P                       4,676    4,302    2,570    2,365    2,106
    -------------------------------------------------------------------------



    Prospective Resources:
    -------------------------------------------------------------------------
                                                    L & M Oil Resources Mbbl

                                                      100%    Gross      Net
    -------------------------------------------------------------------------
    Estimate
    -------------------------------------------------------------------------
    Low                                                196      137      126
    Best                                             4,047    2,833    2,606
    High                                            13,977    9,784    9,001
    -------------------------------------------------------------------------



    -------------------------------------------------------------------------
                                          NPV of Future Net Revenue
                                          Before Tax Discount in $M
                                      0%       5%      10%      15%      20%
    -------------------------------------------------------------------------
    Estimate
    -------------------------------------------------------------------------
    Low                            2,103    1,827    1,599    1,411    1,252
    Best                         114,820   95,044   79,937   68,154   58,784
    High                         401,347  329,743  274,630  231,551  197,337
    -------------------------------------------------------------------------
    

The new reserves report is entitled: "Evaluation of the Interests of Alange Energy Corp. in Cubiro Block in the Llanos Basin, Colombia", and it has been filed and is available for review on www.sedar.com and on the Company's website. The Petrotech Report reserve and resource estimates set out in this press release were prepared in accordance with the requirements of Canadian National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities. Capitalized terms related to resource classifications used in this press release are based on the definitions and guidelines in the Canadian Oil and Gas Evaluation Handbook.

Petrotech has acted independently in the preparation of the Petrotech Report. Petrotech and its employees have no direct or indirect ownership in the properties appraised or the areas of study described in the report.

Reserves are classified according to the degree of certainty associated with the estimates. Proved reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves. Probable reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves. Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. It is unlikely that the actual remaining quantities recovered will exceed the sum of the estimated proved plus probable plus possible reserves.

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.

CAUTIONARY STATEMENT

By definition of the COGE Handbook - "Undiscovered resources are those quantities of oil and gas estimated on a given date to be contained in accumulations yet to be discovered." Further the Handbook states - Caution (per NI 51-101/5.9(2)(v)(B)) - "There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources." In addition, per NI 51-101/5.6 "the estimated values disclosed do not represent fair market value."

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.

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.

%SEDAR: 00005776E

SOURCE ALANGE ENERGY CORP.

For further information: For further information: Jose Luis Acevedo, Executive Vice President, 416-360-4653

Organization Profile

ALANGE ENERGY CORP.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890