TORONTO, July 7 /CNW/ - Alange Energy Corp. (TSXV: ALE) today announced successful bids on three additional blocks located in the Magdalena Basin, which were recently awarded during the 2010 Open Round conducted by Colombia's National Hydrocarbon Agency ("ANH"). The three blocks awarded to the Company, with 100% participation and operatorship, cover a total area of 217,418 hectares.
Mr. Luis Giusti, Chief Executive Officer of Alange Energy, commented, "We are very pleased to considerably increase our exploration potential through the addition of these blocks near existing producing fields in the Magdalena Basin."
According to the schedule and terms of the ANH bidding process, Alange Energy, as the first eligible company, was awarded these blocks once offers were validated and requirements were verified. As previously announced on June 28, 2010, Alange Energy was also awarded two blocks, LLA 41 and COR 33, in the Llanos and Cordillera Basins, respectively.
VMM 35 Block
This block, which has an area of 7,704 hectares, was awarded to the Company as a Type 1 E&P block and carries an additional royalty of 1%. The 36-month first exploration phase includes the drilling of one exploratory well and the acquisition of seismic. Located in the Middle Magdalena Valley, near the Nare and Las Quinchas fields, the main reservoirs of VMM 35 are tertiary sandstones and the source rock is the La Luna Formation. This block has potential structures with API gravity of greater than 15 degrees.
VSM 12 Block
This block was awarded to the Company as a Type 1 E&P block, carrying an additional royalty of 1%. Covering an area of 56,730 hectares, the initial 36-month exploration phase includes the drilling of one exploratory well and the acquisition of seismic. Located in the Upper Magdalena Valley, close to the biggest field of the basin, San Francisco, the main reservoirs of VSM 12 are Caballos sandstones and the source rock is the Villeta Formation. This block has potential for structures with oil accumulation and API gravity of greater than 25 degrees.
VSM 13 Block
This block, with an area of 58,693 hectares, was awarded to Alange Energy as a Type 1 E&P block, carrying an additional royalty of 1%. During the first 36-month exploration phase, the Company is committed to the drilling of one exploratory well and the acquisition of seismic. Located in the Upper Magdalena Valley, near the main oil fields in the basin of Tello, Rio Ceibas, Pijao, Dina and Tenay, VSM 13 has potential structures for oil accumulation with API gravity of greater than 25 degrees. The reservoirs are the Caballos and Monserrat sandstones and the source rock is the Villeta Formation.
The total estimated net investment will be US$4.2 million, US$5.2 million, and US$5.2 million for VMM 35, VSM 12 and VSM 13, respectively, over the next three years. This exploration spending will be funded with operating cash flow starting in 2011 and is subject to ANH exploration regulations.
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.
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 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