TORONTO, Nov. 12 /CNW/ - Alange Energy Corp. (TSXV: ALE) ("Alange Energy" or the "Company") announced today that it has executed a letter agreement with Columbus Energy Ltd., a private company, to acquire its 19.27% working interest in the Development and Central Areas of the Cubiro Block Exploration and Production Contract ("E&PC") dated October 8, 2004 for $20 million in cash. Effective as of November 1, 2009, the transaction is expected to close within 30 days, increasing Alange Energy's working interest from 41.23% to 60.5% of the developing area and from 50.73% to 70% of the Central Cubiro exploration area. The Company also holds a 25% working interest in the Oriental Cubiro exploration area.
Alange Energy, operator of the Cubiro E&PC, has implemented exploration and development programs to increase the current total production of approximately 3,000 barrels of oil per day ("bopd") to approximately 5,500 bopd by the end of 2009 and to over 10,000 by the end of 2010. As a result of this acquisition, Alange Energy's share of production from the Cubiro Area will increase by 600 bopd or almost 50% to reach 1,800 bopd at present and then increasing to about 3,300 bopd by the end of 2009 and to more than 6,000 bopd by the end of 2010. Management is also confident that it will be reporting an increased level of total oil reserves and prospective resources for the Cubiro property when it prepares an updated National Instrument 51-101 technical report on its properties at the end of the year.
Commenting on the transaction, Mr. Luis Giusti, Alange Energy's Chairman and CEO stated that "this acquisition strengthens the Company's position in a key producing property within our portfolio, immediately increasing Alange Energy's total current daily production by approximately 25% and enhancing our operating cash flows. The current program to upgrade the Careto production facilities is progressing well and increasing our interest at this time will enable the Company to more effectively operate the exploration and development programs to meet our production growth targets."
Alange Energy is a Canadian-based oil and gas exploration and production company, with working interests in thirteen properties in Colombia.
Forward Looking Information
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. 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