Alange Energy Announces Closing of C$31,050,000 Financing


TORONTO, May 5 /CNW/ - Alange Energy Corp. (TSXV: ALE) is pleased to announce that it has closed its previously announced "best efforts" private placement (the "Offering") of units of the Company (the "Units"). The Company issued an aggregate of 31,050 Units (which included the exercise in full of the agent's option for up to an additional 4,050 Units) at a price of C$1,000 per Unit for aggregated gross proceeds of C$31,050,000.  The Units were sold pursuant to an agency agreement between the Company and GMP Securities, L.P. (the "Agent").

Each Unit consists of one C$1,000 principal amount senior secured series A note (the "Note") of the Company and 300 common share purchase warrants (the "Warrants") of the Company. Each Note will bear interest at a rate of 9% per annum from the date of issue, payable quarterly in arrears, and is secured by, among other things, the Company's 57.14% interest in Block C of the Cubiro Exploration and Production Contract ("Cubiro Block C"), a general security agreement of the Company and a pledge by the Company of the shares of its wholly-owned Panamanian subsidiary, Alange, Corp., and is guaranteed by Alange, Corp. and its wholly-owned subsidiaries, Jagalan S.A. and Jaguar E&P CPR Consultants, S.A., which guarantees are also secured. Each Warrant entitles the holder to purchase a common share in the capital of the Company at an exercise price of C$0.50 at any time prior to 5:00 p.m. (Toronto time) on February 22, 2016. The Warrants issued pursuant to the Offering are of the same series as the warrants of the Company currently listed on the TSX Venture Exchange under the symbol "ALE.WT", which closed at C$0.105 on May 4, 2011.  Insiders of the Company purchased an aggregate of 2,820 Units representing approximately 9% of the Offering.

The Agents received an aggregate fee of $1,242,000 for services rendered in connection with the Offering.

The net proceeds raised under the Offering will be used to replenish the funds of the Company that were used to purchase certain interests from Jaguar E&P CPR Consultants, S.A., including the additional 32.13% interest in Cubiro Block C, pursuant to the previously announced transaction involving Columbus Energy Ltd. The remainder of the net proceeds will be used to fund the increase in the Company's share of the 2011 capital and exploration program at Cubiro Block C as a result of the acquisition of the additional interest.

All securities issued pursuant to the Offering will be subject to a four-month statutory hold period, which will expire on September 6, 2011.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This news release is not an offer of securities for sale into the United States or Canada. No offering of securities shall be made in the United States except pursuant to registration under the US Securities Act of 1933, as amended, or an exemption therefrom.

About Alange Energy Corp.

Alange Energy is a Canadian-based oil and gas exploration and production company, with working interests in 19 properties in five basins in Colombia. Further information can be obtained by visiting our website at

All monetary amounts in Canadian 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. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to the listing of the Warrants on the TSX Venture Exchange and the intended use of the net proceeds from the Offering.

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 Energy 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, other risks of the oil and gas industry, failure of plant, equipment or processes to operate as anticipated; the ability of Alange Energy to obtain qualified staff, equipment and services in a timely and cost efficient manner to develop its business; the ability to replace and expand oil and natural gas reserves through acquisition, development of exploration; the timing and costs of drilling, completion, pipeline, storage and facility construction and expansion; the regulatory framework regarding royalties, taxes and environmental matters; the ability of Alange Energy to successfully market its oil and natural gas products and completion of the review of internal controls and procedures, management systems and corporate governance practices. Although Alange Energy 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 Energy 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 that the foregoing lists of risks, uncertainties, assumptions and other factors are not exhaustive.  The reader should 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. Information in this press release expressed in boe is derived by converting natural gas to oil in the ratio of six thousand cubic feet (mcf) of natural gas to one barrel (bbl) of oil. 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:

Mr. Michael Davies
Chief Financial Officer

Ms. Miranda Smith
Investor Relations

Profil de l'entreprise

Alange Energy Corp.

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