TORONTO, Dec. 16 /CNW/ - Alange Energy Corp. (TSXV: ALE) announced today
that it has confirmed a heavy oil discovery in the Topoyaco-2
exploration well, which tested net 310 barrels per day of 10.5 degrees
API oil with 20% BS&W, completed with an electro-submersible pump
(ESP). The Topoyaco-2 well was drilled to explore Prospect C, with
prospective resources certified by Petrotech Engineering Ltd. in its
report dated effective April 30, 2010 of 19.26 MMbbl (best estimate).
Luis E. Giusti, the Company's Chief Executive Officer, stated, "The
discovery of an unanticipated heavy oil reservoir at Topoyaco Prospect
C, in what appears to be the Rumiyaco formation, has diverted us from
the original targeting of Villeta and Caballos, which hold the best
promise. It is a case of unexpected good news, delaying what we expect
to be even better news in the near future."
At Topoyaco-2 in Prospect C, Alange Energy was originally targeting the
Villeta and Caballos formations, the main oil reservoirs along the
structural-stratigraphic play of the foothills; however, in the course
of drilling, the well logs showed the presence of significant net oil
sands from what is now believed to be Lower Rumiyaco formation
(informally named Neme). Although the presence of heavy oil indicates that it is Rumiyaco, the
definitive stratigraphic model will have to be validated by a thorough
geological evaluation to encompass correlations with the neighboring
blocks to the south and northeast.
As a result of the presence of the oil sands, Alange Energy decided to
carry out extensive testing using diverse optimization techniques. The
test of 310 barrels per day mentioned above was carried out in an oil
saturated section at a depth from 7,532 to 7,624 feet, which had
identified a net pay of 48 feet. The significant net oil sand
thickness, indicative of a significant deposit, merits an appraisal
well for a first assessment of the lateral continuity of the reservoir.
The possibility of a horizontal entry into the Lower Rumiyaco, in
search of a larger production rate, is being considered for such well.
Alange Energy anticipates that these initial test results will be
incorporated into the Company's year-end reserve report.
Topoyaco-2 has proved the existence of oil accumulations in Prospect C's
play type, confirming the structural model. In the meantime, the
exploration program for Villeta and Caballos formations will continue
with the drilling of a new well in Prospect C. Additionally, as
originally planned, the most important objective of the Topoyaco block
is Prospect D, which Alange Energy will start drilling late in the
first quarter of 2011 which, in contrast to the other prospects, will
target the sub-thrust.
Topoyaco-2, spudded on August 8, 2010, had reached total depth of 8,700
feet, finding 114 feet of total net oil pay sand and 125 feet of
oil-saturated carbonates in whole drilled section.
In Prospect B, the Topoyaco-1 well penetrated the whole sedimentary
column of interest reaching the Saldana formation in the Paleozoic. The
Company plans to run an ESP to start production testing in the next
Alange Energy holds a 50% working interest and has control of the
operatorship in this block, partnering with Pacific Rubiales Energy
Corp., which holds a 50% working interest.
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
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. 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 Energy; 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 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 and other risks of
the oil and gas industry, failure of plant, equipment or processes to
operate as anticipated. 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 not to place undue reliance on
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. 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.
Prospective Resources are those quantities of petroleum estimated, as of
a given date, to be potentially recoverable from undiscovered
accumulations by application of future development projects.
Prospective resources have both an associated chance of discovery and a
chance of development. Prospective Resources are further subdivided in
accordance with the level of certainty associated with recoverable
estimates, assuming their discovery and development, and may be
sub-classified based on project maturity. There is no certainty that
any portion of the resources will be discovered. If discovered, and
they would be technically and economically viable to recover; there is
no certainty that the prospective resource will be discovered. If
discovered, there is no certainty that any discovery will be
technically or economically viable to produce any portion of the
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
SOURCE Alange Energy Corp.
For further information:
Investor Relations Representative
The Capital Lab