TORONTO, Nov. 16 /CNW/ - Alange Energy Corp (TSXV: ALE) announced today an update on its Topoyaco exploration.
Topoyaco is a large block of more than 60,000 hectares, which has shown several potential prospects in the foothills of the Andes Mountain chain, originally identified several years ago when extensive 2D seismic was logged. The block is on trend with Gran Tierra's prolific fields to the southwest. In the last few years, 3D seismic and new 2D seismic focused in the southwest corner of the block depicted several interesting prospects which were studied and certified by Petrotech Engineering Ltd. in its report dated effective April 30, 2010, resulting in significant prospective resources (89.3 million barrels best estimate). The thrust faults of the foothills typically show large overthrust and subthrust blocks, with many repeated sections in the lithology. Each and every block has two lithological sections to be evaluated: the upper is called Villeta and the lower is called Caballos.
During the past three months, two wells have been drilled by Alange Energy in the block, Topoyaco-1 (aimed at Prospect B, with 7.5 million barrels of prospective resources) and Topoyaco-2 (aimed at Prospect C, with 19.3 million barrels of prospective resources). Topoyaco-1, which has been a complex well due to problems of hole stability, has hence had a slower advance, although it is currently at total depth. Topoyaco-2 has run smoothly to total depth covering the whole of Villeta. The well logs in Topoyaco-2 have shown significant sections of oil sands with porosities of 14-17% and oil saturations of 55-72%. A first test is underway in 44 feet of the main sand body of Villeta, which has indicated the presence of oil of around 20 degrees API (final testing of the gravity has not yet been completed). This oil gravity, and the presumed high viscosity, suggest the need for a test using artificial lift, which will be carried out in the next 1-2 days.
Luis Giusti, the company´s Chief Executive Officer, stated "There is still a lot of work ahead to explore all the possibilities of Topoyaco. The first prospect (C) has already validated the structure and the lithology, in addition to confirming migration of oil. The biggest promise is in Caballos, especially in the subthrust."
In Topoyaco-1, open-hole pressure and flow tests (RFTs) have indicated several intervals that merit thorough testing, and the well is currently being cased in order to run those tests.
The next well in the block will be drilled immediately after Topoyaco-2 in prospect C. It will go down to the basement and it is aimed at the Caballos formation.
Management believes that the greatest promise in the block is prospect D, aimed at the subthrust, in which Petrotech assigned 46.9 million barrels of prospective resources (best estimate). The first well in this prospect will be drilled early in the first quarter of 2011.
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 at www.alangeenergy.com.
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 forward-looking statements.
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 resources.
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.
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For further information:
For further information contact either of:
Luis E. Giusti, Jr.
Vice President, Investor Relations
416-360-4653
Miranda Smith
Investor Relations Representative
The Capital Lab
647-428-7422
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