TORONTO, Aug. 30 /CNW/ - Alange Energy Corp. (TSXV: ALE) announced today the release of its unaudited interim consolidated financial results for the three and six months ended June 30, 2010, together with its Management's Discussion and Analysis. These documents will be available on the Company's website at www.alangeenergy.com and at www.SEDAR.com.
Continued exploration and appraisal program success enabled the Company to report its third consecutive quarter of growth in its share of production from its oil and gas properties. With its gross share of production (before deduction of royalties) averaging 2,764 barrels of oil equivalent per day ("boed") in June 2010, the Company has tripled its production rate in less than a year. The Company's daily production rate has since increased by a further 27% to approximately 3,500 boed at present and remains on track to reach the 10,000 boed level in the second quarter of 2011.
Luis E. Giusti, the Company's Chief executive Officer, stated "we are encouraged by the exploration and development program results in the first half of 2010. We have enjoyed several new discoveries at Cubiro and La Punta that are fueling our growth in keeping with our strategy. During the second half of 2010, we expect to drill 12 new wells and complete 4 workovers, in addition to completing 3 important infrastructure projects at Carbonera to significantly ramp up our gas production".
For the second quarter ended June 30, 2010, the Company reported revenue of $10.8 million bringing the total revenues for the first half of 2010 to $21.3 million, compared with $1.2 million in the first half last year. The Company reported a net loss of $7.6 million, or $0.01 per share, in the second quarter of 2010, compared with $2.8 million, or $0.02 per share, in the second quarter last year. The net loss for the first half of 2010 was $13.3 million, or $0.02 per share, compared with a net loss of $5.5 million, or $0.04 per share, in the first half of 2009.
The Company continued its strategic initiatives in the second quarter of 2010, spending an additional $16.8 million on its oil and gas properties, funded by cash flow from operations and $9.3 million of proceeds from two new term loans drawn down in the quarter. These expenditures included significant continued transformation of the infrastructure at Cubiro to support its planned growth and to improve operational efficiency. The exploration and development program led to the announcement of successful discoveries at Careto-5, Copa-1 and La Punta-3. These discoveries, together with the optimization of the Barranquero-1 well, were key contributors to the recent growth in production.
Management will hold a conference call on Tuesday, August 31, 2010 at 9:00 a.m. Eastern Time to provide an operational update and to discuss the second quarter results. Analysts and interested investors are invited to participate as follows:
Toronto & International: 1 (647) 427-7450
North America: 1 (888) 231-8191
Conference ID: 97505833
Playback of the conference call will be available starting two hours after the call's completion and up to 11:59 pm Eastern Time on September 14, 2010. To access the playback, please call either 1-800-642-1687 (toll free) or 416-849-0833 with the password 97505833.
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 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.
SOURCE ALANGE ENERGY CORP.
For further information: For further information: Michael Davies, Chief Financial Officer, 416-360-4653, ext. 224