Alange Energy Announces 180% Growth in 2P Net Reserves, 400% Increase in
Proved Reserves and Filing of 2009 Year End Reserve Report
TORONTO, April 26 /CNW/ - Alange Energy Corp. (TSX-V: ALE) ("Alange Energy" or the "Company") announced today that it has received an independent reserves evaluation report for the year ended December 31, 2009 in respect of seven of its blocks in Colombia. The combined proved plus probable (2P) reserves for these blocks increased by 180% compared to those reported on March 31, 2009, which amounts to a gross (before royalties) total to the Company of 31.65 million barrels of oil equivalent (MMboe) as at December 31, 2009, having a total net present value (NPV) (10% discount, before tax) of US$358.9 million. The report's evaluation also reflects a fourfold increase in the gross proved reserves (1P) to a total of 8.48 MMboe at year end.
The growth reflected in the report is the result of a combination of successful drilling and the completion of two corporate acquisitions - Prospero Hydrocarbons Inc. in September 2009 and Delavaco Energy Inc. in October 2009, both as previously announced by the Company.
Mr. Luis E. Giusti, the Company's Chief Executive Officer stated that "the new reserves report reflects the significant reservoir analysis, seismic acquisition, and drilling efforts by Alange Energy since its listing on the TSX Venture Exchange in July 2009, which have brought to the fore the true value of our carefully selected portfolio of oil and gas properties."
The following table summarizes the growth of proved plus probable (2P) reserves for the Rio Magdalena, Cubiro, Carbonera La Silla, Mecaya, La Punta, Cerrito and Carbonera blocks from March 31, 2009 to December 31, 2009:
2P Reserves : December 31, 2009 vs. March 31, 2009 ------------------------------------------------------------------------- Natural Gas L & M Oil Natural Gas Liquids Oil Equivalent Gross Net Gross Net Gross Net Gross Net (MMbbl) (MMbbl) (Bcf) (Bcf) (MMbbl) (MMbbl) (MMboe) (MMboe) ------------------------------------------------------------------------- March 2009(1) 1.01 0.93 56.32 52.00 0.89 0.82 11.29 10.41 ------------------------------------------------------------------------- December 2009 6.61 5.92 119.64 110.24 5.10 4.70 31.66 28.99 ------------------------------------------------------------------------- Reserve Additions, Net of Production 5.61 4.99 63.32 58.24 4.21 3.87 20.37 18.57 ------------------------------------------------------------------------- Notes: (1) Based on Petrotech Engineering Report effective March 31, 2009 titled "Evaluation of the Interests of Alange, Corp. in Five Oil & Gas Properties in Three Basins in Colombia". (2) "Gross reserves" are the Company's share of the reserve before deduction of royalty payments. (3) "Net reserves" are the Company's share of the gross reserve after deduction of royalty payments (4) MMbbl means million barrels. Bcf means billion cubic feet. MMboe means million barrels of oil equivalent. Barrels of oil equivalent (Boe) may be misleading, particularly if used in isolation. A Boe conversion ratio of 6 thousand cubic feet: 1 barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
The new reserves report dated April 2010 is effective December 31, 2009 and is entitled "Evaluation of the Interests of Alange Energy Corp. in Proved & Probable Reserves for year ending 2009 in Seven Properties in Colombia". It was prepared by Petrotech Engineering Ltd. in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities. The report has been filed, and is available for review, on www.sedar.com and on the Company's website.
A summary of the Company's net share of proved developed producing, non-producing, undeveloped and probable reserves and future net revenue discounted at 0%, 5%, 10%, 15%, and 20% before income tax, is as follows:
------------------------------------------------------------------------- Reserve Category Crude Oil Reserves Natural Gas Reserves 100% Gross Net 100% Gross Net (Mbbl) (Mbbl) (Mbbl) (Mboe) (Mboe) (Mboe) ------------------------------------------------------------------------- Proved Producing 2,358 781 719 0 0 0 Proved Non-producing 684 477 439 1,903 1,782 1,668 Proved Undeveloped 6,284 1,875 1,725 3,085 2,676 2,360 Total Proved 9,325 3,133 2,882 4,988 4,458 4,028 Probable Producing 896 32 30 0 0 0 Probable Non-Producing 108 98 90 2,311 2,211 2,069 Probable Undeveloped 2,032 1,043 959 14,450 13,271 12,277 Total Probable 6,951 3,483 3,035 16,760 15,481 14,346 Total Proved + Probable 16,276 6,614 5,917 21,748 19,940 18,374 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Reserve Category Condensate Total BOE Reserves Gross Net 100% Gross Net (Mbbl) (Mbbl) (Mboe) (Mboe) (Mboe) ------------------------------------------------------------------------- Proved Producing 0 0 2,358 781 719 Proved Non-producing 321 295 2,587 2,580 2,402 Proved Undeveloped 571 526 9,369 5,122 4,611 Total Proved 892 821 14,313 8,483 7,731 Probable Producing 0 0 896 32 30 Probable Non-Producing 124 114 2,419 2,433 2,273 Probable Undeveloped 4,088 3,761 16,482 18,402 16,997 Total Probable 4,212 3,874 23,711 23,176 21,255 Total Proved + Probable 5,103 4,695 38,024 31,657 28,986 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Reserve Category NPV of Future Net Revenue Before Tax Discounted @ 0% 5% 10% 15% 20% ($M) ($M) ($M) ($M) ($M) ------------------------------------------------------------------------- Proved Producing 42,257 40,788 39,476 38,298 37,232 Proved Non-producing 53,270 43,418 35,808 29,823 25,037 Proved Undeveloped 104,321 85,147 70,448 58,909 49,663 Total Proved 199,847 169,355 145,732 127,031 111,932 Probable Producing 1,643 1,508 1,393 1,293 1,205 Probable Non-Producing 50,218 36,825 26,665 19,851 15,155 Probable Undeveloped 313,565 186,816 114,853 71,935 45,153 Total Probable 482,268 313,748 213,153 150,584 109,707 Total Proved + Probable 682,115 483,103 358,885 277,615 221,639 ------------------------------------------------------------------------- Proved ($/BOE) $23.56 $19.96 $17.18 $14.97 $13.19 ------------------------------------------------------------------------- Proved + Probable ($/BOE) $21.55 $15.26 $11.34 $8.77 $7.00 ------------------------------------------------------------------------- Notes: (1) "Gross reserves" are the Company's share of the reserve before deduction of royalty payments. (2) "Net reserves" are the Company's share of the gross reserve after deduction of royalty payments. A summary of reserves information for each property evaluated in the Petrotech report is set out below: ------------------------------------------------------------------------- Reserve L & M Oil Natural Gas Natural Gas Liquids Category Gross Net Gross Net Gross Net (Mbbl) (Mbbl) (MMcf) (MMcf) (Mbbl) (Mbbl) ------------------------------------------------------------------------- Proved Producing Cubiro 740 681 La Punta No. 2 41 38 Total Producing 781 718 Proved Non-Producing Carbonera 5,872 5,497 36 33 Rio Magdalena 222 204 4,822 4,513 285 262 Mecaya 255 235 Total Non-Producing 477 439 10,695 10,010 321 295 Proved Undeveloped Cubiro 925 851 La Punta No. 3 218 200 Cerrito 6,390 5,112 Rio Magdalena 222 204 9,666 9,047 571 526 Mecaya 510 470 Total Undeveloped 1,875 1,725 16,056 14,159 571 526 Total Proved 3,132 2,882 26,750 24,169 892 821 Probable Cubiro 906 833 La Punta No. 2 & No. 3 69 63 Carbonera 41,566 38,906 254 233 Cerrito 6,390 5,112 Rio Magdalena 593 546 44,932 42,057 3,958 3,641 Carbonera La Silla 1,403 1,122 Mecaya 512 471 Total Probable 3,482 3,035 92,888 86,074 4,212 3,875 Proved + Probable 6,614 5,917 119,638 110,243 5,104 4,695 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Reserve NPV of Future Net Revenue Before Tax Category Discounted (in $M) @ 0% 5% 10% 15% 20% ------------------------------------------------------------------------- Proved Producing Cubiro 39,986 38,593 37,349 36,232 35,221 La Punta No. 2 2,271 2,195 2,127 2,066 2,011 Total Producing 42,257 40,789 39,477 38,298 37,232 Proved Non-Producing Carbonera 18,875 15,612 13,050 11,009 9,359 Rio Magdalena 22,489 17,763 14,198 11,451 9,293 Mecaya 11,906 10,043 8,560 7,363 6,385 Total Non-Producing 53,269 43,418 35,808 29,823 25,037 Proved Undeveloped Cubiro 41,323 37,302 33,875 30,927 28,369 La Punta No. 3 10,182 9,054 8,106 7,300 6,610 Cerrito 12,125 8,555 6,124 4,405 3,148 Rio Magdalena 22,368 15,250 9,967 5,968 2,886 Mecaya 18,323 14,986 12,376 10,309 8,650 Total Undeveloped 104,322 85,148 70,447 58,909 49,663 Total Proved 199,848 169,354 145,731 127,031 111,932 Probable Cubiro 45,188 39,640 35,053 31,221 27,985 La Punta No. 2 & No. 3 3,750 3,272 2,887 2,571 2,310 Carbonera 89,163 54,449 31,273 16,370 6,586 Cerrito 12,429 8,205 5,553 3,828 2,668 Rio Magdalena 243,022 145,615 92,220 61,363 42,592 Carbonera La Silla 71,654 48,959 35,189 26,284 20,209 Mecaya 17,062 13,608 10,978 8,947 7,356 Total Probable 482,267 313,749 213,153 150,583 109,705 Proved + Probable 682,114 483,104 358,884 277,614 221,637 ------------------------------------------------------------------------- Notes: (1) "100% reserves" are all reserves attributable to the field. The Company does not hold an entire interest in 100% reserves. See table and notes (2) and (3) below. (2) "Gross reserves" are the Company's share of the reserve before deduction of royalty payments. (3) "Net reserves" are the Company's share of the gross reserve after deduction of royalty payments. As at December 2009, the Company had the following working interests in each of the blocks evaluated in the Petrotech report: Block - Field Name Working Interest ------------------ ---------------- Rio Magdalena 91% Cubiro 60.5% Carbonera La Silla 58% Mecaya 58% La Punta 3.6% Cerrito 76% to 81% Carbonera 96%
The estimates of reserves and future net revenues in this release are based on forecast prices and costs as set forth in each report noted above and are estimates only.
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.
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.
Cautionary Note Concerning Forward-Looking Statements
This press release contains forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that the company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding estimates and/or assumptions in respect of production, revenue, cash flow and costs, reserve and resource estimates, potential resources and reserves and the company's exploration and development plans and objectives) are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the company based on information currently available to the company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: uncertainty of estimates of capital and operating costs, production estimates and estimated economic return; the possibility that actual circumstances will differ from the estimates and assumptions; failure to establish estimated resources or reserves; fluctuations in petroleum prices and currency exchange rates; inflation; changes in equity markets; political developments in Colombia; changes to regulations affecting the company's activities; uncertainties relating to the availability and costs of financing needed in the future; the uncertainties involved in interpreting drilling results and other geological data; and the other risks disclosed under the heading "Risk Factors" and elsewhere in the company's periodic reports filed on SEDAR at www.sedar.com. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
Information in this press release expressed in barrels of oil equivalent (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.
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
For further information: Michael Davies, Chief Financial Officer, (416) 360-4653, ext. 224
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